Denver sends Xcel franchise renewal to November ballot

Overview

Updated Aug 26

Denver voters rejected Xcel Energy's franchise deal last November. On July 27, the City Council voted 10-2 to send a revised 20-year agreement to the November 3 ballot.

The new deal keeps a $34 million annual franchise fee flowing to the city's general fund. It also locks in Xcel's obligation to cover utility relocation costs during city projects — savings city officials estimate at $150 million a year. A companion agreement adds $2.5 million for bill-payment assistance and $10 million a year to bury overhead lines.

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

$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.

$3B

Relocation savings since 2007

Total saved under the current franchise, per city officials.

10-2

City Council vote on ballot referral

Councilmembers Shontel Lewis and Sarah Parady dissented.

$10M/year

Annual undergrounding fund

1% of electric gross revenues for burying overhead lines.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

People Involved

Sarah Parady

At-large Denver City Councilmember

Dissenting voter; resigned effective August 5, 2026

Amanda Sandoval

Denver City Council President

Supported the franchise referral

Shontel Lewis

Denver City Councilmember

Dissenting voter

Robert F. Kennedy Jr.

CEO of Xcel Colorado

Led utility's negotiating team

Mike Johnson

Denver Mayor

Administration negotiated the deal

Organizations Involved

Xcel Energy

Investor-owned utility

Franchise holder seeking 20-year renewal

Investor-owned energy company supplying electricity and gas to Denver and much of Colorado.

Denver City Council

Municipal legislative body

Referred franchise to ballot 10-2

13-member body that must approve placing a utility franchise on the ballot under Denver's charter.

Together Colorado

Community organization

Leading opposition to the franchise deal

Nonpartisan group organizing residents around housing, energy, and public issues.

City and County of Denver

Municipal Government

Negotiated the franchise and companion agreements

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

Timeline

January 2007 January 2027

7 events Latest: July 27th, 2026 · 2 months ago

Tap a bar to jump to that date

January 2027
Companion agreements take effect
Upcoming Implementation

Energy partnership and airport agreements take effect if voters approve.
January 1st, 2027
November 2026
Denver voters decide franchise question
Upcoming Election

Franchise agreement and companion measures appear on the November ballot.
November 3rd, 2026
July 2026
Council refers revised deal to November ballot
Latest Vote

City Council votes 10-2 to send revised franchise and companion agreements to voters.
July 27th, 2026
June 2026
Parady announces resignation
Personnel

Councilmember Sarah Parady says she will step down in August for health reasons.
June 1st, 2026
November 2025
Voters reject initial Xcel franchise deal
Election

Denver voters turn down the first proposed franchise renewal.
November 4th, 2025
July 2025
Council initial vote backs 2025 ballot
Vote

Council votes 8-5 for November 2025 placement; four members threaten to flip over Xcel's engagement.
July 25th, 2025
January 2007
Current Xcel franchise takes effect
Agreement

Denver and Xcel sign a 20-year franchise with a companion agreement on service equity.
January 1st, 2007

Scenarios

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.

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.

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.

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.

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.