Conventional wisdom would believe that Investor Owned Utilities (IOUs) such as Xcel Energy would have lower electric rates than Rural Electric Associations (REAs) and Municipally Owned Utilities (MOUs) because IOUs have the advantage of population density that allows for maximization of capital investment.
Average residential bill/cost of 700 KWh
Average small commercial bill/cost of 2,000 KWh + 10KW
Average large commercial bill/cost of 45,000 KWh + 130KW
Average industrial bill/cost of 1,900,000 KWh + 3,000KW
These figures beg a couple of questions to which I don’t have definitive answers but do have very strong suspicions:
- Would the IOUs’ bills have compared more favorably before the 30 percent renewable mandate and before the Public Utilities Commission moved away from a least cost principle?
- Is Colorado’s largest IOU Xcel Energy worried that REAs and MOUs provide electricity at lower costs? If not, it should be. As electric rates continue to rise, businesses looking to reduce their costs may move out of Xcel service areas and into an area served by an REA or MOU. It already produces surplus electricity as it is.