I received my most recent Xcel Energy bill, and I decided to set up an automatic payment plan, so I wouldn’t have to worry about forgetting making the payment. While I was waiting on hold, I had the opportunity to look over my bill. I knew that the cost of energy has gone up in recent months, but I was trying to figure out why my monthly bill had gone from roughly $25.00 a month to nearly $75.00 a month.

While continuing to wait on hold, I was able to thoroughly examine my statement. By the time a representative came on the line, I had many questions. In addition to my actual usage charges, there were nine additional fees that I had to pay. The following is an itemized breakdown of my most recent energy bill:

Residential General: $26.46
GRSA :$3.36
Air Quality Imp: $0.36
Trans Cost Adj: $0.11
Elec Commodity Adj: $28.71 (Are you kidding me?!?)
Demand Side Mgmt Cost: $0.69
Purch Cap Cost Adj: $8.54 (Again with the kidding. What the hell?)
Renew. Energy Std Adj: $1.00
Franchise Fee: $2.07
Sales Tax: $2.58
Subtotal: $73.88

Here is a line by line description of my energy bill:

Residential General: $26.46
This is the amount of energy I consumed over that given month.

GRSA: $3.36
General Rate Schedule Adjustment: This is when Xcel Energy proposes a rate increase to the CPUC (Colorado Public Utilities Commission), and while they are waiting for an answer, they are allowed to charge the increase. If for some reason, the CPUC denies the increase, Xcel is supposed to refund the rate increase.

Air Quality Imp: $0.36
This charge is to help Xcel Energy recover the costs that the federal government has imposed, in order to reduce emissions.

Trans Cost Adj: $0.11
This charge is in order to allow Xcel Energy to recover the costs of renting energy lines that they do not own.

Elec Commodity Adj: $28.71
This is the cost that Xcel pays in order to produce the energy (via coal, wind, water, gas, etc) in order to make electricity.

Demand Side Mgmt Cost: $0.69
This is what Xcel Energy charges for the increasing cost of doing business.

Purch Cap Cost Adj: $8.45
This charge is due to Xcel Energy’s need to purchase additional energy from external companies in order to compensate for their own energy production shortfall, so that they can meet the energy demands of their customers. When they have to purchase energy from other companies, Xcel will pass on the same rate that the other energy charges, which may be either higher or lower than their own rate

Renew. Energy Std Adj: $1.00
6/10ths of every 1% of every bill funds the renewable energy program (a Colorado state mandate). I have no problem with this charge, as I believe renewable energy is a great thing.

Franchise Fee: $2.07
This charge is to reclaim the cost of meter and line maintenance.

Sales Tax: $2.58
This is exactly what it sounds like.

When I posed the issue to the representative, “It sounds to me like all of your customers are paying for all the overhead for Xcel Energy. We are paying for the line and meter maintenance, the costs of producing the power, buying the power, renting the power, and other than payroll, benefits, and the building leases, what is Xcel paying for?”

She very politely answered that every energy company has to pay for a myriad of things that most people don’t think of: vehicles, street lights, ongoing maintenance of the infrastructure, new construction, payroll, benefits, etc.

My main complaint is that I used $26.46 worth of energy, but in the end I have to pay $73.88 a month.

It may be a coincidence, but my bill this month is as follows:

Residential General: $12.46
GRSA: $1.58
Air Quality Imp: $0.11
Trans Cost Adj: $0.04
Elec Commodity Adj: $8.08
Demand Side Mgmt Cost: $0.22
Purch Cap Cost Adj: $2.71
Renew. Energy Std Adj: $0.36
Franchise Fee: $0.76
Sales Tax: $0.96
Subtotal: $27.28

You will note that the ancillary charges are significantly reduced. I don’t know if that is due to my complaint or not, but I’m pleased as to the result nonetheless, even though I’m still paying more for the other crap than I am for the actual usage.

In the interim, you should all look very closely at your utility bills, and question anything you don’t understand. You may not like the answers, but at least you will be more informed. After that, you can decide to investigate or ignore the results. I say that because I assume that every energy company is practicing this same type of behavior. If any of you have anything to add, please let me know.