Colorado electricity rates
As of May 2026, the average residential electricity rate in Colorado is 16.16 cents per kilowatt-hour, 12.4% below the U.S. average of 18.44¢. That is the 28th highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +3.7% from 15.58¢ in May 2025
- Vs. U.S. average
- -12.4% U.S. average 18.44¢
- National rank
- #28 of 51 · #24 cheapest
- Supply market
- Western Interconnection Regulated monopoly
Why Colorado pays what it pays
Colorado has committed to retiring its coal fleet on an accelerated schedule and replacing it with wind, solar, storage and gas. The replacement resources have low or zero fuel cost, but they are new, and new assets carry full capital cost in rate base while the retiring plants often still have undepreciated value to recover.
The state has also built substantial transmission, including a large new backbone connecting eastern plains wind to Front Range load. Wildfire mitigation has become a significant and growing expense since the Marshall Fire focused attention on utility-related ignition risk.
Working in Colorado's favour: an excellent wind and solar resource, a growing customer base to spread costs across, and moderate weather-driven consumption compared with the South or the Upper Midwest.
How Colorado compares
Colorado ranks #28 of 51 jurisdictions by residential price, making it the 24th cheapest. Within the Mountain division, every other state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Idaho | 12.35 | +4.0% | #51 |
| Utah | 12.96 | +2.9% | #50 |
| Nevada | 13.60 | +2.3% | #47 |
| New Mexico | 14.12 | -2.6% | #44 |
| Montana | 14.67 | +13.9% | #39 |
| Wyoming | 14.80 | +7.1% | #38 |
| Arizona | 15.23 | -3.1% | #32 |
| Colorado | 16.16 | +3.7% | #28 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What a bill looks like at this rate
The figures below apply the May 2026 Colorado average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
Estimate your Colorado bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Who sells electricity in Colorado
Xcel Energy's Public Service Company of Colorado serves Denver and much of the Front Range. Black Hills Energy serves Pueblo and the southeast. Colorado Springs Utilities and other municipal systems serve major cities, and Tri-State supplies many rural co-operatives.
There is no residential retail choice. The Colorado Public Utilities Commission sets rates for investor-owned utilities, and municipal utilities set their own.
What you can actually do about it
Colorado's municipal utilities are frequently cheaper than the investor-owned utilities, and several rural co-operatives have been renegotiating or exiting wholesale contracts to buy cheaper power. It is a live issue worth tracking if you are served by one.
Xcel's time-of-use rate is the default for residential customers in Colorado rather than an option, which makes load shifting the most direct saving available.
Closest states by price
These jurisdictions charge within a fraction of a cent of Colorado, which is useful if you are comparing a move or a multi-state operating cost.
Colorado electricity rates: common questions
What is the average electricity rate in Colorado?
The average residential electricity rate in Colorado is 16.16 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -12.4% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Colorado?
At the May 2026 average rate of 16.16¢/kWh, a household using 900 kWh a month would pay about $145, and one using 1,500 kWh about $242. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Colorado gone up?
Colorado rates rose 3.7% over the year to May 2026, from 15.58¢ in May 2025 to 16.16¢.
Can I choose my electricity supplier in Colorado?
Regulated monopoly. Colorado households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Colorado rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.