City & County of Denver and Xcel Energy Partnership
The City and County of Denver (CCD) and Xcel Energy partner to deliver essential public infrastructure and utility services to Denver residents, businesses, and public spaces across Denver communities. Every 20 years, CCD and Xcel Energy negotiate a franchise agreement to refer to the voters, outlining each organization's roles and responsibilities in providing these services effectively.
Significant public benefits delivered through the city's partnership with Xcel Energy include:
- Efficient public construction projects that reduce costs and minimize disruptions
- Energy assistance and efficiency programs that help residents manage costs
- Repairs to traffic signals and streetlights that keep Denver communities safe
The current 20-year franchise agreement expires in 2026, so CCD and Xcel Energy are negotiating a new agreement to present to Denver voters for approval in the November 2025 election. CCD is leveraging this opportunity to strengthen the partnership and secure essential energy public benefits, including financial benefits for the residents of Denver.
What is a franchise agreement?
A franchise agreement is a contract between a municipality and a public utility outlining public benefits and granting a utility the right to use Denver's public right-of-way to install, maintain and repair infrastructure and facilities to deliver utility services. A franchise agreement is a tool for the city to safely and effectively manage utility, transportation, and water infrastructure needs within Denver's public right-of-way to provide high-quality and reliable service to Denverites. As an example, if the city needs to repair a road, Xcel can use that construction opportunity to repair electricity lines. This increases efficiency and decreases costs and disruptions.
What isn't a franchise agreement?
CCD and Xcel Energy are separate entities, and the franchise agreement only covers certain aspects of how they work together.
While CCD is actively engaged at the Public Utilities Commission on behalf of all Denver residents, the franchise agreement does not set utility rates. Xcel Energy sets utility billing rates and provides utility assistance and efficiency opportunities as required by Colorado State Statute (Title 24 & 40) and the Colorado Public Utilities Commission Rules Regulating Electric and Gas Utilities.
The franchise does not govern Xcel Energy plans, designs, or builds of utility infrastructure. Under the leadership of the Office of Climate Action, Sustainability, and Resiliency, the city works to advance Denver's climate goals. In 2023, 42% of electricity supplied by Xcel Energy in Colorado came from renewable energy sources, such as Solar, Wind, and Hydroelectric energy. According to Xcel Energy, it is on track to provide 82% of its electricity with renewable sources by 2030, and 100% by 2050.
Why does Denver need a franchise agreement with Xcel Energy?
CCD's franchise agreement grants Xcel Energy the non-exclusive right to use Denver's right-of-way and Airport property to build the infrastructure needed to provide electricity, gas, steam and chilled water to the city – its homes, businesses, and public spaces. The franchise agreement also regulates operational matters pertaining to traffic signals and streetlights managed in partnership with Xcel Energy.
CCD and Denverites receive several benefits from Denver's longstanding partnership with Xcel Energy:
- General Fund revenue support
- Efficient, cost-effective construction projects
- Energy assistance and efficiency programs
- Repairs to traffic signals and street lights
- Underground benefits
Over the last 20-year agreement term, the relocation requirement saved CCD an estimated $3 billion for non-airport projects. In addition, the agreement requires Xcel Energy transfer a portion of gross revenues, currently totaling approximately $30 million per year, to CCD's General Fund.
Frequently Asked Questions
Browse the FAQs below to learn more about these benefits and the strong partnership the city maintains with Xcel Energy to provide utility services to the city.
Why do Denver voters approve the city's Franchise Agreement with Xcel Energy?
Denver's charter specifies all franchise agreements impacting public streets, alleyways, or places be referred to a vote of the people to ensure authorized uses of public property serve the public good and involve transparent decision-making. CCD has an existing 20-year franchise agreement with Xcel Energy expiring December 31, 2026. CCD is using this opportunity to resecure the benefits of the franchise agreement, while simultaneously strengthening the city and Xcel Energy's partnership to achieve the greatest benefits for Denverites.
When will Denverites be asked to approve the city's Franchise Agreement?
Denver City Council will review the new franchise agreement through the Summer of 2025 with the potential to refer to voters for the November 2025 election.
- If approved by Denver voters, the new agreement will go into effect on January 1, 2027, providing financial benefits and fostering strengthened partnership, resiliency, safety, and efficiency in delivering public projects and utility services to Denverites.
- If rejected by Denver voters, Xcel Energy will continue to serve Denver residents, but Denverites will not receive the same benefits achieved through the franchise agreement.
How does the Franchise Agreement improve the operational and cost efficiencies of public infrastructure construction projects?
When the city builds or repairs new city building, streets, or sidewalks, Xcel Energy must relocate its utility infrastructure to make space in the public right-of-way for the new infrastructure. This saves significant taxpayer money for public projects and minimizes construction and service disruptions to Denver homes and businesses.
The agreement's utility relocation benefits extend to aviation property, which is critical to meet the growing operational and development needs of Denver International Airport (DEN). The relocation benefits also extend to public projects managed by City and County Departments, Denver Water, National Western Center, RTD, Metro Wastewater, Business Improvement Districts, and more.
Over the last 20-year agreement term, the relocation requirement saved CCD an estimated $3 billion for non-airport projects. In addition, the agreement requires Xcel Energy transfer a portion of gross revenues, currently totaling approximately $30 million per year, to CCD's General Fund.
How will Denver's partnership with Xcel move the city toward a more resilient and energy-efficient future?
Together, CCD and Xcel Energy are advancing Denver's energy transition through strategies to implement and/or expand clean energy infrastructure and clean energy financing options while reducing reliance on natural gas. In addition, the franchise agreement requires Xcel Energy to annually allocate a portion of gross revenues to projects relocating overhead energy transmission lines below ground.
How does Denver's Franchise Agreement with Xcel Energy impact Energy Utility rates?
CCD recognizes the challenge of rising household costs in Denver, including utility rates. Denver agencies and Councilmembers collaborate to understand the policy challenges and gaps in available supports and services to best meet community needs. While the city is actively engaged at the PUC on behalf of all Denver residents, the franchise agreement does not set utility rates.
Xcel Energy proposes utility billing rates, which are approved by the PUC, and provides utility assistance and efficiency opportunities as required by Colorado State Statute (Title 24 & 40) and the Colorado Public Utilities Commission Rules Regulating Electric and Gas Utilities. The Colorado Office of the Utility Consumer Advocate (UCA) advocates for the interests of residential, small business, and agricultural utility customers in Colorado. They work with the Colorado Public Utilities Commission (PUC) to ensure fair and reasonable rates for utility services, according to the Colorado Department of Regulatory Agencies (DORA).
How does the Franchise Agreement impact CCD street lights?
The ownership, operation and repair of street lights in Denver falls to Xcel Energy. The city purchases the services delivered by Xcel Energy to meet the needs of the city.