What drives electric bills in Colorado
Residential electricity in Colorado averaged 16.7¢ per kWh in January–July 2026, up 8.0% from 15.5¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 17.0¢. The typical home here used 674 kWh a month in 2024, 22% less than the U.S. average, so a high bill usually points to the price per kWh or to one big appliance.
- Time-of-use rates. Xcel Energy moved most Colorado homes to time-of-use rates, with higher prices on weekday afternoons and evenings. Running major appliances then costs more.
- Wildfire mitigation. Xcel and other utilities are spending heavily on wildfire safety, and those costs show up in rates.
- Fuel cost adjustments. Natural gas prices feed into the electric bill through a fuel charge that changes quarterly.
Who supplies your power
Xcel Energy serves Denver and most of the Front Range. Black Hills Energy serves Pueblo and southern Colorado, and cities such as Colorado Springs, Fort Collins and Longmont have their own utilities. Co-ops serve most rural areas.
Ways to pay less in Colorado
- Check your plan’s peak hours. Run the dishwasher, laundry and car charging after the peak or on weekends.
- Xcel and many co-ops offer rebates on heat pumps, heat pump water heaters and insulation. Colorado also offers state tax credits for heat pumps.
For example, a 1,500 W space heater running 8 hours a day costs about $61 a month at Colorado prices. Check what your appliances cost to run in Colorado.
Help paying your bill in Colorado
- LEAP: Colorado’s Low-income Energy Assistance Program helps with winter heating bills, including electric heat. Apply through the Colorado Department of Human Services.
- Energy Outreach Colorado: a nonprofit that helps households pay energy bills and get free home upgrades.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Colorado?
A typical 7 kW rooftop system in Colorado produces roughly 10,500 kWh a year, about 100% of what an average home here uses. At the state’s average price of 16.7¢, that power is worth about $1,756 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Colorado compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Colorado | 16.7¢ | 674 | $113 |
| Nebraska | 12.9¢ | 956 | $123 |
| Utah | 13.2¢ | 774 | $102 |
| Oklahoma | 13.6¢ | 1,079 | $147 |
| Wyoming | 14.0¢ | 863 | $120 |
| New Mexico | 15.1¢ | 654 | $99 |
| Kansas | 15.2¢ | 876 | $133 |
| Arizona | 15.4¢ | 1,075 | $166 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.