ReportWire

Tag: rate increase

  • Xcel Energy customers react to proposal to increase bills by nearly 10% in 2026

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    COMMERCE CITY, Colo. — Denver7 is listening to the community after Xcel Energy announced Friday it wants to increase electric rates in Colorado by nearly 10% in 2026.

    Commerce City resident Lucy Molina told Denver7 its going to force some families to make difficult choices.

    “Do I pay my electric bill, or do I eat?” said Molina.

    Denver7

    Pictured: Lucy Molina speaking with Denver7’s Claire Lavezzorio in her Commerce City home.

    Robert Kenney, President of Xcel Energy Colorado told Denver7 Friday that the increase is to recover investments in safety and reliability like transmission, distribution and generating facilities the company has made over the past 3 years.

    The average residential customer would see their bill increase $9.94 per month if their bill is around $100. The average large commercial customer will see a $14.22 increase per month or 9.48%.

    Kenney said the company hasn’t requested a major rate hike from its customers since 2022.

    Back in 2022, Denver7 covered unprecedented complaints from Xcel customers about price increases.

    Now that a new hike is being proposed, Molina said every expense matters for people in her situation.

    “For people with fixed incomes, every dollar counts. Every penny counts for us, right?” she said.

    Xcel Energy worker

    Denver7

    Xcel Energy employee working on a power line.

    Ean Thomas Tafoya with Green Latinos, a group that advocates for customers, said the rate increase would disproportionately affect those who can least afford it.

    “Certainly, energy affordability is a conversation that’s happening everywhere,” Tafoya said. “The first thought I had was what kind of income qualified programs exist because the sort of thing that we have advocated for at the Public Utilities Commission?”

    Xcel told Denver7 the company will be expanding energy assistance programs alongside this rate increase.

    “We’re taking steps to enhance our energy assistance programs for our customers that need the help the most, and so we are going to be increasing our percent of income payment plan program to gain more customers into that program,” said Kenney. “We’re going to be increasing our targeted support for energy burden seniors, whereby they will receive a reduction of up to $20 a month.”

    However, customers like Molina worry that some families will still fall through the cracks.

    “Why do we have to pay the burden of their costs or their upgrades?” Molina said. “I want to say, when is it enough? You know, when is it enough?…is what I want to ask the president of Xcel.”

    Xcel filed the rate change request with the Colorado Public Utilities Commission on Friday.

    It will undergo a review and public comment process with the PUC and, if passed, could take effect in August of next year.

    Coloradans making a difference | Denver7 featured videos

    Denver7 is committed to making a difference in our community by standing up for what’s right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.

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    Claire Lavezzorio

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  • California leaders say homeowners insurance companies are coming back to the state

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    Several homeowners insurance companies that had either left the state or limited policies are coming back or committing to staying in California’s market, Gov. Gavin Newsom and the California Department of insurance said on Wednesday. The development comes about nine months after Insurance Commissioner Ricardo Lara and the department overhauled California’s insurance regulations after several companies had either dropped policies or limited them in the state. KCRA 3 was the first to report the update on Wednesday, after Gov. Newsom appeared to tell Bill Clinton at the Clinton Global Initiative that a handful of companies were coming back to the state. Newsom made the remarks in New York after Clinton asked Newsom what he thought should be done about the situation, which Newsom called one of the most pressing global issues. “We just had four of our admitted market come back,” Newsom told Clinton. “In the last two days or so we had our fourth come back in. We had a lot of folks who were leaving the market, they simply said it was too expensive and the losses are too significant.”Following the remarks, KCRA 3 asked the California Department of Insurance to confirm. A spokesman for the department said the governor’s remarks were accurate and provided a list of the companies that were committing to staying in California. The spokesman noted the list includes three of the state’s largest insurers. The five companies listed are Mercury, CSAA, USAA, Pacific Specialty and California Casualty. After this story first published Wednesday, both USAA and Mercury clarified in separate statements to KCRA 3 the company never stopped writing coverage in the state. A spokesman for Mercury would not say if the state leaders mischaracterized the situation but said they had “simplified” it.The new rules that lured the companies to return or do more business in the state allow insurance companies to consider new factors when they set premiums, including the likelihood of a catastrophe and the cost insurance companies pay to insure themselves, also known as reinsurance. In exchange, the companies have promised to provide more coverage in high-wildfire risk parts of California. State leaders have also been pushing to bring companies back into the market to reduce the number of properties relying on California’s FAIR plan, the state’s insurance of last resort. The plan provides insurance to those who can’t get private insurance and has been facing significant financial challenges as it takes on more claims. “The Sustainable Insurance Strategy helps restore stability and access to California’s homeowners insurance market,” said Mark Pitchford, the Chief Operating Officer at California Casualty Group in a press release Wednesday. “We appreciate all the work being done by the Commissioner and the Department to make coverage more accessible to homeowners across the state.”All five insurers have requested rate increases of 6.9%, according to Michael Soller, a spokesman for the California Department of Insurance. Soller noted the rate increase is identical to thousands approved under past insurance commissioners, but with a promise to remain and grow in the state. “This is a far cry from what has happened in the past, when insurance companies increased their rates and dropped policies,” Soller told KCRA 3 in an email. “Under Commissioner Lara’s Sustainable Insurance Strategy, we are seeing initial signs of market improvement despite the devastating L.A. wildfires. We won’t declare victory prematurely. We will thoroughly review companies’ rate filings to make sure consumers do not pay more than is required.” Speaking with Clinton, the governor acknowledged the new rules will allow for more rapid rate increases.”I think this issue requires leadership at the national level, it is under resourced, under focused. It’s a challenge for me, a challenge for Ron DeSantis, for governors in most states but it’s not top of mind and I think we need to be more focused on it,” Newsom said. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

    SACRAMENTO, Calif. —

    Several homeowners insurance companies that had either left the state or limited policies are coming back or committing to staying in California’s market, Gov. Gavin Newsom and the California Department of insurance said on Wednesday.

    The development comes about nine months after Insurance Commissioner Ricardo Lara and the department overhauled California’s insurance regulations after several companies had either dropped policies or limited them in the state.

    KCRA 3 was the first to report the update on Wednesday, after Gov. Newsom appeared to tell Bill Clinton at the Clinton Global Initiative that a handful of companies were coming back to the state. Newsom made the remarks in New York after Clinton asked Newsom what he thought should be done about the situation, which Newsom called one of the most pressing global issues.

    “We just had four of our admitted market come back,” Newsom told Clinton. “In the last two days or so we had our fourth come back in. We had a lot of folks who were leaving the market, they simply said it was too expensive and the losses are too significant.”

    Following the remarks, KCRA 3 asked the California Department of Insurance to confirm. A spokesman for the department said the governor’s remarks were accurate and provided a list of the companies that were committing to staying in California. The spokesman noted the list includes three of the state’s largest insurers. The five companies listed are Mercury, CSAA, USAA, Pacific Specialty and California Casualty.

    After this story first published Wednesday, both USAA and Mercury clarified in separate statements to KCRA 3 the company never stopped writing coverage in the state.

    A spokesman for Mercury would not say if the state leaders mischaracterized the situation but said they had “simplified” it.

    The new rules that lured the companies to return or do more business in the state allow insurance companies to consider new factors when they set premiums, including the likelihood of a catastrophe and the cost insurance companies pay to insure themselves, also known as reinsurance. In exchange, the companies have promised to provide more coverage in high-wildfire risk parts of California.

    State leaders have also been pushing to bring companies back into the market to reduce the number of properties relying on California’s FAIR plan, the state’s insurance of last resort. The plan provides insurance to those who can’t get private insurance and has been facing significant financial challenges as it takes on more claims.

    “The Sustainable Insurance Strategy helps restore stability and access to California’s homeowners insurance market,” said Mark Pitchford, the Chief Operating Officer at California Casualty Group in a press release Wednesday. “We appreciate all the work being done by the Commissioner and the Department to make coverage more accessible to homeowners across the state.”

    All five insurers have requested rate increases of 6.9%, according to Michael Soller, a spokesman for the California Department of Insurance. Soller noted the rate increase is identical to thousands approved under past insurance commissioners, but with a promise to remain and grow in the state.

    “This is a far cry from what has happened in the past, when insurance companies increased their rates and dropped policies,” Soller told KCRA 3 in an email. “Under Commissioner Lara’s Sustainable Insurance Strategy, we are seeing initial signs of market improvement despite the devastating L.A. wildfires. We won’t declare victory prematurely. We will thoroughly review companies’ rate filings to make sure consumers do not pay more than is required.”

    Speaking with Clinton, the governor acknowledged the new rules will allow for more rapid rate increases.

    “I think this issue requires leadership at the national level, it is under resourced, under focused. It’s a challenge for me, a challenge for Ron DeSantis, for governors in most states but it’s not top of mind and I think we need to be more focused on it,” Newsom said.

    See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

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  • State insurance commissioner says companies are delaying policies, denying discounts

    State insurance commissioner says companies are delaying policies, denying discounts

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    Responding to consumer complaints about auto insurance coverage, the state insurance commissioner said Thursday that insurers could face penalties for creating unlawful barriers for California drivers.

    Ricardo Lara issued a bulletin to auto insurers, reminding them that they cannot change their policies’ terms and rates without formally filing for state review and approval. The bulletin also reminded companies that they must offer coverage to all motorists in California who meet the state’s legal definition of “Good Drivers.”

    “These alleged passive-aggressive tactics by insurance companies to slow down drivers’ access to coverage are unacceptable, dangerous, and will not be tolerated,” Lara said in a statement. “I am taking action today to ensure these insurance companies are acting according to the law and giving drivers the coverage they are paying for at the rate they qualify for. We will continue to monitor the situation and take any and all steps necessary to protect California consumers.”

    The commissioner acted in response to numerous complaints the department received about insurers imposing requirements that are not allowed by state law, including Proposition 103, the 1988 ballot measure that regulated property and casualty insurance sold in California. Issuing the bulletin, the department said, makes the legal requirements clear to insurers and “sets the stage for future enforcement actions, if warranted.”

    Frustrated by state regulations, a number of insurers have limited the new policies their agents can sell in California. And for California drivers who already have policies, the challenge for many has been a sharp increase in premiums when they renew.

    California drivers are now running into speed bumps to coverage because insurers say they were hurt by Lara’s pandemic-related orders, including those requiring partial refunds to policyholders who were driving less and denying approval for rate increases through most of 2022.

    Big-name insurers have been saying for months that they “can’t get the rates they need from the state Department of Insurance,” said Mike D’Arelli, executive director of American Agents Alliance, a national association of independent insurance agents and brokers.

    The companies complained they were losing money despite being profitable as recently as 2022, according to Department of Insurance market share data.

    The complaints that reached Lara’s desk include claims that some auto insurers may not be offering “Good Driver” discounts to those who qualify. According to the department, California law requires insurers to offer a policy with such a discount to any driver who’s held a license for the last three years, has no more than one point on their driving record and was not principally at fault in a motor vehicle accident that resulted in bodily injury or death.

    Consumers also have complained about “having to complete unnecessarily lengthy and/or confusing questionnaires, verify employment or school information, respond to physically mailed questionnaires despite applicants electing to receive documents electronically, provide information regarding excluded drivers living at the same address, and/or submit copies of applicants’ utility bills, vehicle registrations, and/or photos of driver’s licenses or vehicles, among other examples,” the department said Thursday.

    These barriers in many cases “discourage, inhibit or delay” motorists from completing an application for insurance, especially in a timely manner, the department said.

    In addition to the requirement to offer coverage to good drivers, the bulletin issued by Lara highlights the limits on what insurers can demand from applicants. “The Insurance Commissioner may initiate administrative enforcement actions and/or seek penalties against any and all insurers failing to offer and sell automobile insurance to all qualified Good Drivers,” the bulletin states.

    The bulletin also reiterates that, under Proposition 103, auto insurers in California are required to submit complete rate applications to the insurance commissioner for review and approval “any time they seek to implement new, or changes to existing, programs, coverages, rates, rating factors, underwriting guidelines, rating rules, forms, and fees, or make any other changes that may have a rate impact,” even if they think there won’t be any impact, according to the Department of Insurance.

    “An insurer’s failure to file proposed underwriting guidelines prior to implementing the proposed guideline may result in an administrative enforcement action against the insurer leading to restitution and/or penalties,” the bulletin says.

    Proposition 103 gave the insurance commissioner the power to review property and casualty insurance premiums before they go into effect, known as a “prior approval” system. It also sharply limited the factors insurers could consider when setting rates, requiring that they show data connecting each factor to their risk of loss. The goal was to prevent insurers from setting discriminatory premiums that didn’t reflect a driver’s potential for claims. Prior to the law, insurance companies weren’t regulated.

    If a requested premium increase exceeds 7%, the commissioner makes an independent determination of the allowable rate change based on data provided by the insurance company. Proposition 103 also allows consumer advocates and other third parties to intervene with their own analyses and arguments.

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    Karen Garcia

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