Xcel Energy seeks approval for on-bill financing program in Colorado

The Colorado Public Utilities Commission is considering a new on-bill financing program proposed by Xcel Energy, aimed at enhancing energy efficiency and electrification for residential customers. This initiative, filed under proceeding number 25A-0036E, seeks to provide upfront financing for energy upgrades, allowing customers to repay the costs through their electric bills.

During a public comment hearing held on July 8, 2025, Communications Director Megan Castle outlined the program's key features. The financing will cover various upgrades, including cold climate air source heat pumps, ground source heat pumps, and insulation, with a maximum financing amount of $50,000 per eligible customer. Repayment plans will be available in terms of three, five, or ten years. Notably, the program will exclude gas-only customers, focusing primarily on those with electric metered premises.

The financing will be facilitated by the Collective Clean Energy Fund (CCEF), which is currently in negotiations with Xcel Energy to provide the necessary capital. This program is part of a broader strategy to address demand-side management and beneficial electrification, as outlined in a previous settlement agreement approved by the commission.

Commissioner Tom Plant, who is overseeing the hearing, emphasized the importance of public input in the decision-making process. He encouraged community members to share their thoughts, either during the hearing or through written comments, which will be given equal consideration. The commission will review all feedback before making a final decision, which could result in the program being adopted, modified, or rejected.

As the commission prepares for the evidentiary hearing scheduled for July 10 and 11, stakeholders are keenly awaiting the outcomes of this initiative, which could significantly impact energy efficiency efforts across Colorado.