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Denver sends Xcel franchise renewal to November ballot

Denver sends Xcel franchise renewal to November ballot

Rule Changes Denver, CO local

Voters approve 20-year Xcel deal with $34M annual fee

November 3rd, 2026: Denver voters approve Xcel franchise

Overview

Updated Aug 26

Denver voters approved a new 20-year franchise agreement with Xcel Energy on Nov. 3, with 69.12% support in early results. The deal runs through 2046 and keeps a 3% fee on electric and gas bills that sends about $34 million a year to the city's general fund. Xcel must also cover utility relocation costs during city projects and set aside about $10 million a year to bury overhead power lines.

Xcel spent about $4 million on the campaign and said it will recover that money through the franchise fee, which customers pay. Ads for the yes campaign included Denver residents, including some Xcel employees. The companion agreements take effect Jan. 1, 2027.

Why it matters

If Denver voters reject this deal, the city loses $34 million a year and gives up utility relocation savings that keep public works projects affordable.

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Key Indicators

69.12%
Voter support for Referred Question 2K
Early results showed the Xcel franchise passing with 69.12%.
$34M/year
Franchise fee to city general fund
3% fee on electric gross revenues projected for 2027.
$150M/year
Estimated annual utility relocation savings
Xcel covers relocation costs during city public works projects.
$10M/year
Annual undergrounding fund
1% of electric gross revenues for burying overhead lines.
$4M
Xcel campaign spending
Utility said it would recover the cost through the franchise fee.
$3B
Relocation savings since 2007
Total saved under the current franchise, per city officials.

Voices

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People Involved

SP
Sarah Parady
At-large Denver City Councilmember
Resigned from the Denver City Council on August 5, 2026.
AS
Amanda Sandoval
Denver City Council President
Council president; supported the franchise, which voters approved Nov. 3.
 Shontel Lewis
Shontel Lewis
Denver City Councilmember
Dissenting voter; franchise approved without her support.
RK
Robert Kenney
CEO of Xcel Colorado
CEO of Xcel Colorado; utility won 20-year franchise approval.
 Mike Johnston
Mike Johnston
Denver Mayor
Mayor; administration's franchise deal approved by voters Nov. 3.

Organizations Involved

Xcel Energy
Xcel Energy
Public utility
Won 20-year franchise renewal; deal takes effect Jan. 1, 2027.

Investor-owned energy company supplying electricity and gas to Denver and much of Colorado.
Denver City Council
Denver City Council
Municipal legislative body
Referred franchise to ballot 10-2; voters approved it Nov. 3.

13-member body that must approve placing a utility franchise on the ballot under Denver's charter.
Together Colorado
Together Colorado
Community organization
Opposed the franchise; voters approved it.

Nonpartisan group organizing residents around housing, energy, and public issues.
City and County of Denver
City and County of Denver
Municipal government
Franchise approved; companion agreements take effect Jan. 1, 2027.

Municipal government that negotiated the franchise, energy partnership, and airport agreements with Xcel.

Timeline

January 2007 January 2027

8 events Latest: November 3rd, 2026 · 1 week ago
Tap a bar to jump to that date

  1. Companion agreements take effect

    Upcoming Implementation

    Energy partnership and airport agreements take effect if voters approve.

  2. Denver voters approve Xcel franchise

    Latest Election

    Referred Question 2K passed with 69.12% support in early results, according to the Denver Gazette.

  3. Xcel says it will recover $4M campaign cost through franchise fee

    Campaign finance

    Xcel spokesperson Sydney Isenberg said the utility would take the money from the franchise fee paid by Denver customers over 20 years.

  4. Council refers revised deal to November ballot

    Vote

    City Council votes 10-2 to send revised franchise and companion agreements to voters.

  5. Parady announces resignation

    Personnel

    Councilmember Sarah Parady says she will step down in August for health reasons.

  6. Voters reject initial Xcel franchise deal

    Election

    Denver voters turn down the first proposed franchise renewal.

  7. Council initial vote backs 2025 ballot

    Vote

    Council votes 8-5 for November 2025 placement; four members threaten to flip over Xcel's engagement.

  8. Current Xcel franchise takes effect

    Agreement

    Denver and Xcel sign a 20-year franchise with a companion agreement on service equity.

Scenarios

1

Denver voters approve 20-year Xcel franchise

Possible Resolves by Nov 20, 2026

Discussed by: Denver city officials and labor unions supporting the deal

Voters approve the franchise and companion agreements in November. The $34 million annual fee continues flowing to the general fund, Xcel keeps covering relocation costs, and the $10 million undergrounding program and $2.5 million bill-payment assistance begin in 2027. The standoff over affordability shifts to the Colorado Public Utilities Commission, where Denver gains new standing to intervene in rate cases.

2

Denver voters reject Xcel franchise a second time

Possible Resolves by Nov 20, 2026

Discussed by: Together Colorado and community advocates

Voters reject the deal as they did in 2025. Denver loses the $34 million annual franchise fee and faces uncertainty on utility relocation costs, which could delay and raise costs for public works projects. The current franchise expires December 31, 2026, forcing the city and Xcel to renegotiate or arrange a temporary extension.

3

Voters reject, then Denver and Xcel broker temporary extension

Unlikely Resolves by End of 2026

Discussed by: Local utility watchdogs and municipal law observers

Voters reject the new franchise, but Denver and Xcel negotiate a short-term agreement to bridge the gap while a new franchise is crafted. The city keeps some revenue and avoids service disruption, but the $34 million annual fee may be reduced or modified, and the companion agreement's affordability programs lapse.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2011 - November 2020

Boulder's failed Xcel municipalization (2011-2020)

Boulder voters approved creating a city-owned electric utility to replace Xcel in November 2011, with 70% support. The city spent years and tens of millions of dollars on feasibility studies, but projected costs climbed and the effort bogged down in legal and financial hurdles.

Then

Boulder never launched its own utility, and Xcel remained the city's electric provider.

Now

In November 2020, Boulder voters reversed course and repealed the municipalization mandate, keeping Xcel. The episode became a cautionary tale for Colorado cities contemplating a break from the utility.

Why this matters now

Denver's leverage in franchise talks comes partly from the implicit threat of municipalization. Boulder's outcome signals that path is rarely realistic, so a rejection in Denver would most likely mean renegotiation, not a city takeover.

2007 - 2026

The 2007 Denver Xcel franchise (being replaced)

Denver's current Xcel franchise, negotiated in 2006 and effective 2007, was considered precedent-setting for its time. It included a companion agreement addressing the needs of customers over-burdened by utility costs and required Xcel to cover utility relocation during city projects.

Then

The deal locked in 20 years of Xcel service with social-equity provisions that had not been standard in utility franchises.

Now

The arrangement saved Denver taxpayers an estimated $3 billion in relocation costs. It also set expectations for what a franchise arrangement should include that the new negotiation has struggled to match.

Why this matters now

The new companion agreement is directly compared to the 2007 version. City officials call the current deal stronger; opponents say the affordability and community provisions fall short of what was achieved two decades ago.

Sources

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Colorado Politics Brownstein Hyatt Farber Schreck Big Pivots Denver City Council Legistar Denver Gazette Colorado Public Radio Denver Politics Denver Metro Herald 9News Denver City Council Legistar Denver City Council Legistar Denver Gazette Denver Gazette