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Xcel Energy's New Time of Use Rates

Understanding how Xcel's time of use rates have changed and other frequently asked questions about time of use rates.

On June 3, 2025, the Colorado Public Utilities Commission (PUC) approved Xcel Energy’s shift in residential Time of Use (TOU) On-Peak pricing rates starting October 1, 2025. Time of Use rates are not new to utilities in Colorado, starting in October TOU hours will be streamlined. Mid-peak periods will be removed, leaving off-peak periods to be extended by two hours daily. On-peak hours will shift to 5-9 pm on weekdays and weekends and holidays will still be billed at the off-peak rate.

Xcel Energy worker installing a smart electric meter.

Time of Use rates are already live for customers with Advanced Metering Infrastructure (AMI) meters since the 2022 introduction of TOU rates by Xcel Energy. Xcel Energy will be implementing these new TOU rates through the installation of AMI Meters or smart meters. Once your smart meter is installed, you will automatically be enrolled in TOU rates. Customers do have the option to opt out of the TOU rate plan for the alternative flat rate plan (R-OO) pricing.


Frequently Asked Questions:


What are Time of Use (TOU) Rates?

TOU rates change the rate that you are paying for energy and electricity when demands are high and it is more expensive to produce. When demands for energy and electricity are lower and energy is cheaper to produce, you'll pay less.


How are TOU rates used?

TOU rates are used to vary the cost of electricity during the day to more accurately reflect the actual cost of operating a utility's electric system. TOU rates are used to incentivize and give electric utility customers the option to save money. By adjusting when you use electricity to times when the rate is reduced and by using less electricity during on-peak hours, TOU rates are designed to lower electricity bills.


What is a smart meter?

A smart meter measures energy usage in 15-minute increments allowing Xcel Energy to better monitor outages and manage high energy demands. Smart meters allow Xcel Energy to charge and change rates based on when energy is used. Smart meters could help your household save money by understanding your energy usage and shifting your high energy usage to Off-Peak times and limiting energy usage during On-Peak and Mid-Peak times.


What are the current peak time periods?

On-Peak: 3 pm - 7 pm

Mid-Peak: 1pm - 3 pm

Off-Peak: 7 pm - 1 pm the next day


What are the current TOU Rates?

Summer Season (June 1 through September 30)

On-Peak Energy Charge: $0.21/kWh

Mid-Peak Energy Charge: $0.14/kWh

Off-Peak Energy Charge: $0.08/kWh

Winter Season (October 1 through May 31)

On-Peak Energy Charge: $0.13/kWh

Mid-Peak Energy Charge: $0.10/kWh

Off-Peak Energy Charge: $0.08/kWh


What are the new peak time periods?

On-Peak: 5 pm - 9 pm, weekdays except holidays

Off-Peak: All other hours, weekends and holidays


What are the new TOU rates*?

Summer Season (June 1 through September 30)

On-Peak Energy Charge: $0.21/kWh

Off-Peak Energy Charge: $0.07/kWh

Winter Season (October 1 through May 31)

On-Peak Energy Charge: $0.18/kWh

Off-Peak Energy Charge: $0.06/kWh

*New proposed time of use rates are subject to change

Tips and Tricks on How to Shift Your Usage

TOU rates mean when you use electricity is just as important as how much you use. By shifting your electricity usage to the off-peak period, you reduce energy demands during the on-peak period, while taking advantage of the lower-cost off-peak period rate. The U.S. Department of Energy provides a wide variety of information on energy savings from home energy audits to heating and cooling. Check out the U.S. Department of Energy - Energy Saver program for a variety of information and resources: Energy Saver | Department of Energy


Most of the electricity in your home is used for heating and cooling, with appliances and lighting following behind. Making small changes like running your dishwasher after 9:00 p.m. can make a big impact. Check out Xcel Energy's infographic to find out what appliances are the more energy-efficient: 23-02-501_CO-TOU-ApplianceInfographic_is_P01.pdf


Year-Round Tips:

  • Shift what appliances you use to cook for more energy-efficient alternatives

  • Install LED lighting in every room

  • Use smart power strips to help conserve energy and manage standby power of electronics

  • Run large appliances like the dishwasher, washing machine, and dryer before 5:00 p.m. or after 9:00 p.m.

  • Install a programmable thermostat and adjust the temperature based on your needs and whether or not you are home


Summer Tips:

  • 'Pre-cool' your home by turning your thermostat down when you wake up in the morning

  • Run fans counterclockwise to circulate cooler, conditioned air

  • Closer curtains and blinds during the day

  • Install window coverings to prevent heat gain

  • Turn off ceiling fans when you leave the room

  • Regularly maintain your cooling systems


Winter Tips:

  • Run fans clockwise to push the warm air down into the room

  • Open curtains on the south-facing windows and take advantage of the sunlight to naturally heat your home

  • Cover drafty windows with tight-fitting, insulating drapes or shades

  • Adjust your thermostat back when you are asleep or out of the house

  • Regularly maintain your heating systems


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