As the temperatures plummet and snow is expected, the dog days of summer seem like a long lost memory.  For most of us days spent poolside, kids playing in the parks, and the buzz of air conditioners cranking have been replaced with school buses, leaves littering the lawns, and warm jackets.  Not the case for Xcel Energy.  Xcel Energy has proposed a new rate structure to the Colorado State Public Utility System that could increase our cost of energy in the summertime.

Currently, the proposal includes an "inverted block rate" structure for residential customers in the summer.  The inverted block rate structure would move to a tiered system that would charge customers a rate based on use versus the current flat rate of 5.5 cents per kilowatt hour (kWh).  The program is designed to help reduce consumption in the hot summer months when the use of high consumption products like air conditioners soar.  Other utilities have seen success in reducing consumption and changing consumer behavior when pricing structures such as Xcel's have been implemented. 

According to a recent article in the Denver Business Journal, Xcel's rate case is expected to be reviewed in January and could go into effect as soon as next summer.  If approved it could mean that Colorado residents under Xcel's jurisdiction would pay under a two tier structure:

• First 500 kilowatt hours (kWh) of power used in June, July, August, and September would be charged at 5.1 cents per kWh
• Above 500 kWh would be charged at 8 cents per kWh

What does this mean to you?  According to the same article in the Denver Business Journal, Xcel expects that 60% of their households will be impacted by the higher rates as the average household uses about 632 kWh per month in the summer.  

What Can You Do About It?  Start with energy efficiency (click here to read more about energy efficiency) in your household.  Second, know what your consumption is on a monthly basis and set plans into motion to reduce these costs.  In the summer, think about opening windows and using ceiling fans instead of running your AC everyday.  Purchase a programmable thermostat to program based on your schedule.  Third, seriously think about ways to offset your consumption through production via solar panels or a wind turbine.  If you are in the city, chances are you will be limited by space for a wind turbine so solar panels may be your best bet on adding a power generation system.  However, if you have 1/4 of an acre to 1/2 of an acre a wind turbine could be a better option for production based on your wind speeds. 

So as the temperatures drop start thinking about what you can do to reduce your energy consumption and costs.  Perhaps the proposed cost could be just the motive you were looking for to turn green energy initiatives to green energy action and cost savings.