Boilers, heaters and other household machinery hungry for natural gas could be working in overdrive this weekend as the extreme cold hits, leaving plenty of Denver-area residents cautious about their Xcel Energy bills. Here's what we know about past Colorado cold snaps and how they've affected power bills, and a few ways to make sure you're not wasting energy in freezing weather.
This isn't just 'stock show/oh it's January in Colorado' cold.
— Chris Bianchi (@BianchiWeather) January 15, 2025
Coldest Denver wind chill on record: -42° (1979). I suspect we'll get close to that some time on Monday or Tuesday.
Frostbite can set in in ~10 minutes with wind chills these cold. #COwx pic.twitter.com/op9eKrtq6O
Denver Energy Bills in Cold Weather
After a cold snap in Denver in December 2022, metro residents reported skyrocketing Xcel Energy bills. Cold snaps and global market shifts led to high natural gas prices at the time. Because Xcel passes the cost of natural gas on to customers, bills were alarming. During the 2022 arctic blast, approximately 42,000 Xcel customers lost power, but the utility said the main reason was heavy snowfall causing tree branches to down power lines. That scenario is unlikely when snow totals are projected to be fairly low, however.
In a recent blog post, Xcel says the company is prepared to be reliable even on extremely cold days, thanks to extra workers and varied energy production.
“Xcel Energy maintains a diverse energy mix of wind, solar, nuclear, natural gas and coal generation,” Xcel says. “The company also prepares for winter storms by having additional field crews at the ready to quickly and safely restore power in the event of an outage.”
According to Xcel, the company has also taken steps to minimize the impact of fluctuations in natural gas prices like purchasing and storing natural gas over the summer when prices are low. However, Xcel warns that even those steps aren’t a guarantee that people won’t see bill increases in the coldest months.
“While wholesale natural gas prices have been significantly lower than last winter, winter heating can still account for about half of a typical customer’s monthly energy costs,” the company says of gas prices in late 2024.
According to Xcel’s latest gas price adjustment with the Colorado Public Utilities Commission, filed every quarter to make sure commodity prices are being passed down to customers correctly, bills were already predicted to rise slightly even without extreme cold.
“Xcel Energy — Colorado customers should anticipate a small increase in their electric and natural gas bills at the start of 2025 when compared to the last quarter of 2024,” the company said in an announcement about the adjustments.
Residential customers are projected to see a 32-cent increase in their electric bills and a $1.33 increase in their gas bills compared to the end of 2024. Still, Xcel has some tips to mitigate the impact of cold weather on heating bills.
How to Keep Energy Bills Low During Cold Weather in Colorado
Breaking news: A lower thermostat setting requires less power. Xcel recommends bundling up before you crank up the thermostat, and keeping the heat setting to between 65 and 70 degrees while at home and 58 degrees while away. Drapes and blinds should be open to the sun during the day to let heat in, and closed at night to keep that heat inside. (If the sun isn’t shining, blinds and drapes should be closed, too.)Running ceiling fans in a clockwise direction pushes warm air down from the ceiling, so if you have a fan on, make sure it’s spinning the right way. Window sealing and increasing the insulation of your home will also help.
“Put a lid on pots and pans when cooking to heat up food faster and save energy,” Xcel suggests. “Opening the door of your oven can lower the cooking temperature by as much as 25 degrees, so look through the window instead. Rinse dishes in cool water, so you're not wasting hot water that costs money to heat.”
Making sure there are no leaky faucets and proper maintenance on the heating system, including vents and radiators, is also key, the utility suggests. You’ll also want to make sure your pipes are prepped for cold and leave them dripping to prevent bursts. A few rebates that help with heating and insulation are available through Xcel.
In case of emergencies, Xcel recommends an emergency kit with a battery-powered radio or television, flashlights, batteries, backup phone chargers, bottled water and nonperishable food, and a first aid kit.
Stay warm, Denver, and check out this video from Xcel to help you prepare:
