Coloradans pay 24% more for residential electricity than they did in 2021 and energy costs continue to climb by 1.1% per month, according to a national survey.

Most Americans said they feel powerless about how much they are charged for electricity or gas services and many do not fully understand what drives the costs, the survey showed.

Additionally, nearly two in three ratepayers said their electric or gas bills have contributed to their financial stress, according to the poll, which surveyed some 2,000 respondents. The poll — conducted by Ipsos and commissioned by Powerlines.org — took place from March 28 to March 30.

The worries expressed in the poll

come at a time when millions of Americans are struggling to pay utility bills, Powerlines noted in a memo outlining the survey’s results.

The survey’s results will likely serve as another data point in the debate over “decarbonization.” That debate is occurring amid a push by policymakers in mostly Democratic states to adopt electrification, which proponents view as a route to achieving decarbonization goals.

In Colorado, policymakers are seeking to quickly transition away from fossil-fired energy. Supporters argued the transition — while acknowledging it might be painful in the short term — positions Colorado for a more sustainable and energy-efficient future.

They said it would help wean the country from dependence on foreign oil. Ultimately, they added, the transition toward green energy is good for the environment and people’s health.

Critics maintained the quick transition is failing to protect American consumers, particularly low-income residents, who already contend with soaring inflation, and that the singular focus on alternative energy is short-sighted, given that America is rich in all forms of energy and that nuclear power can provide the state with a viable, sustainable and “green” baseline.

Lucy Vernasco, spokesperson for Powerlines.org, separately provided The Denver Gazette with figures from the national survey.

From 2021 to 2024, residential electricity prices in Colorado increased 24%, from 12.28 to 15.24 cents per kWh, Vernasco said.

Regionally, 80% of western ratepayers say they feel powerless over their energy costs, 74% are worried about bills increasing this year and 65% believe their electricity and gas bills contribute to their financial stress, said Vernasco.

“Rising utility bills are hurting American energy consumers, while consumer engagement with the complex system of utility regulation remains limited,” Charles Hua, founder and executive director of PowerLines, said in a statement to The Denver Gazette. “Few Americans can name the government body that determines their utility bill — namely, their state PUC.”

Hua added: “While the factors driving rising utility bills vary by region, the end result is the same: American energy consumers are stressed out about rising utility bills and concerned about what these trends mean for the broader economy.”

In the survey, the feelings of helplessness are partly due to consumers not understanding how energy prices are set. Nationally, 60% of consumers don’t know what state agency is responsible for setting energy rates.

In Colorado, the Colorado Public Utilities Commission is the entity that regulates investor-owned utilities, such as Xcel Energy and Black Hills Energy. It ultimately determines the energy rates, called “tariffs.”

The PowerLines survey found that:

• 62% of Americans said their electricity or gas bill has increased compared to a year ago and 73% are concerned these bills will increase this year.

• One in three said electricity or gas bills stayed the same compared to a year ago. Just 3% indicated these bills decreased.

• Those in households that make under $50,000 a year (81%), those living in the West (77%), and Hispanic respondents (78%) are the most worried about rising electricity or gas bills.

• Nearly half said that the higher electricity or gas bills are a bad sign for the economy. Half said they are neither a good nor a bad sign for the economy.

• Fewer than half (42%) and ratepayers (43%) said they fully understand what drives the costs they are charged by local electric or gas utilities.

When asked what type of electricity or gas utility company services their home, one in three said they don’t know.

While most said they are familiar with their local power or gas utilities, fewer know the state regulatory agencies that oversee these utilities or how local utilities source their power.

Less than half said their state government does a good job of protecting their interests when it comes to regulating local electric or gas utilities.

The survey showed no significant differences across political parties. Older Americans were more likely to say their state government does a good job, compared to those ages 18-34.