As we move into the spring of 2026, one of the most consequential decisions for Denver’s next two decades is reaching a boiling point. Our current “Franchise Agreement” with Xcel Energy—the contract that allows them to use our streets and alleys to deliver power—is set to expire at the end of this year.
After a 2025 City Council vote pushed the pause button on a “status quo” deal, the city has spent the last six months back at the negotiating table. Here is what you need to know about the road to the November 2026 Ballot.
The Current Friction: Profits vs. Prices
Last month, Xcel Energy reported nearly $1 billion in operating profits from its Colorado operations for 2025. This news arrived just as the utility filed for new rate hikes—a proposed 10% increase for electricity and an 11% jump for gas—to cover infrastructure costs.
While the city cannot legally set utility rates in this contract, the City Council is using this leverage to demand more for Denver residents:
• Data Center Moratorium: In February, Mayor Johnston and Council announced a pause on new data centers. These facilities consume massive amounts of energy and water. The city is now negotiating to ensure Xcel prioritizes residential reliability and green energy over “big tech” power demands.
• Transparency First: Council members are holding firm on “binding” data-sharing requirements. They argue that Denver cannot meet its goal of 100% renewable energy by 2030 if Xcel doesn’t provide real-time data on where our energy comes from and how it’s used.
What’s Staying, What’s Changing?
The 2027–2046 agreement isn’t just a renewal; it’s a rewrite.
• The $3 Billion Shield: We are keeping the “Relocation Requirement.” This ensures that when the city builds a new bridge or bike path, Xcel—not the taxpayer—pays to move the power lines. This has saved Denver $3 billion since 2006.
• The Undergrounding Fund: A new 1% dedicated fund (roughly $10M/year) will be established specifically to move overhead lines underground, starting in neighborhoods most vulnerable to outages and extreme weather.
• Innovation Group (DDIG): A new joint task force will give Denver a “seat at the table” for long-term grid planning, ensuring that neighborhood EV charging and rooftop solar projects don’t get stuck in a multi-year backlog.
Timeline: The Countdown to November
Because the 2025 ballot window was missed, the stakes for this year are absolute.
1. Spring/Summer 2026: Final public “listening sessions” to refine the Community Benefits Agreement.
2. August 2026: City Council’s final vote to place the measure on the ballot.
3. November 2026: Voter Approval. If residents vote “No,” Denver enters 2027 without a formal agreement, potentially throwing public works projects into a costly legal limbo.
Why it matters to you: This agreement is the only time every 20 years that Denver has the upper hand with its monopoly utility. It’s about more than just light switches; it’s about who pays for our climate goals and how we protect our most vulnerable neighbors from rising costs