Updated by Staff

The Colorado Public Utilities Commission late Friday afternoon approved a $128.3 million increase in investor-owned Xcel Energy electric rates that will go into effect Jan. 1.

 Colorado’s largest power supplier  had originally sought a $180 million increase, which was reduced down to roughly $136 million in a settlement with two consumer groups.

The PUC  estimates the increase will raise the average residential electricity bill by 6.5 percent, or about $4.43 a month. “No one likes a rate increase,” PUC Chairman Ron Binz said in a release. “But we scrubbed Xcel’s request thoroughly and believe that the reduced amount is fair.”

The increase is intended to cover the expense of several major Xcel projects, including construction of a third generating unit at the Comanche coal-fired plant in Pueblo (Comanche 3) – scheduled to come online within three weeks, 300 megawatts of new natural gas-fired generation at the Fort St. Vrain station near Platteville, investment in the SmartGridCity project in Boulder, and other power distribution upgrades.

Consumer and clean energy advocates wanted to see a sweeping rule-making change by the PUC on the issue of T&E expenses and other perks, but the commissioners, on the day before their ruling, made clear they would not go that route, instead opting to admonish Xcel on the record and make it clear they did not expect to see such expenses in future rate cases.

Clean Energy Action’s Leslie Glustrom, one of 30 interveners in the rate case, said of Tarpley’s comments, “It was a polite but powerful statement from the commissioner.”