According to today's Coloradoan, Xcel Energy will be speaking to the Colorado state Utility Regulator to propose a possible rate hike which would occur over a three year span. The possible plan would see customers experience a three percent rate hike in 2015, and it would also occur the next two years. According to the report, Xcel Energy is requesting the rate hike to cover the costs which will be incurred with the installation of new pipes along with other safety and reliability improvements. The total cost for these improvements could get close to the $1 billion ceiling.

What does a three percent rate hike mean to consumers? According to a news release, residential customers would see an average increase of two dollars per year while small business owners could see an increase a little less than $7/year.

While Xcel was expected to make the request to the utility regulator on Tuesday, it could be sometime before customers see the effects of the possible rate increase. The average time for the Public Utilities Commission to act on such a request is usually around seven months. This gives advocates for ratepayers, such as the Colorado Office of Consumer Counsel, a chance to respond.

Xcel plans on replacing 275 miles of pipeline between now and 2017. This comes after they have already replaced 198 miles since 2012, which is when the last rate hike went into effect.

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