Author: Jesse Malcomb
Website: http://aessolarenergy.com/blog/index.php/c2/xcel-energy-turn…
From June 1st to September 31st, electricity for Colorado homes will cost up to $0.15 per kilowatt-hour (kWh). Traditionally this year, electricity from Xcel Energy in Colorado has run around $0.105 per kWh.
With the new two tiered rate system just released by Xcel, every kilowatt-hour (kWh) of electricity above 500 used by a residential home in a given month will be subject to this much higher fee. The average household electricity consumption in Colorado is around 700kWh per month - which means the average family would pay the 2nd-tier rate on about 200kWh of their usage.
Here’s a simple breakdown
Traditional Rate System:
700kWh (Usage) x $0.105 (Avg. Electricity Rate) = $73.50
New 2-Tier Rate System:
Tier 1 - 500kWh (Usage) x $0.10 (Avg. Tier 1 Rate) = $50.00
Tier 2 - 200kWh (Usage) x $0.15 (Avg. Tier 2 Rate) = $30.00
Total = $80.00 ($0.115 per kWh)
This would represent a 9% increase. For bigger users of electricity, this new tier will represent a significant…
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