Denver City Council Budget and Policy Committee Discusses Excel Franchise Agreement Update - June 8, 2026

The Budget and Policy Committee of the Denver City Council held an informational session on June 8, 2026, to receive an update on the proposed 20-year electric franchise agreement with Excel Energy and the companion Energy Partnership Agreement (EPA). City staff and Excel representatives presented progress on community engagement, negotiations, and key priorities. No votes were taken; the item is scheduled for action at the Governance Committee on June 30, 2026, with a potential ballot referral in November 2026.

Discussion Items

• City Staff Presentation (Cindy Patton, Johnny Rogers, Shannon, Dominic Moreno): The EPA (formerly the D Dig) focuses on affordability, sustainability, and reliability. Five priority areas were highlighted: shareholder contributions, energy assistance support, pilot programs, substation design, and reporting/transparency. Staff noted that Denver’s electric rates are 37% below the national average, and Excel has approved plans for an 88% carbon emission reduction by 2030. The city emphasized that the franchise agreement itself provides $30 million annually in franchise fees, an estimated $150 million per year in infrastructure relocation benefits, and a 1% fund (about $10 million annually) for undergrounding distribution lines. The EPA will include a public dashboard, a community advisory committee, and regular council briefings.
• Excel Presentation (Holly and team): Excel reported extensive community outreach since February 2026, including over 1,500 contacts to 189 RNOs/JIDs/BIDs, 31 in-person presentations, and 47 Red Truck events. Major customer concerns identified: street light outage reporting, planned outage communication, vegetation management, undergrounding interest, and substation landscaping. Excel established a rapid response team four months ago to address these issues and is simplifying the street light reporting process. Excel also noted that the franchise agreement provides operational certainty and coordination benefits for the company.
• Councilmember Q&A:
  • Councilmember Cashman asked about regular check-ins and whether the working group would continue. Staff confirmed regular briefings and a new advisory committee.
  • Councilmember Alvidres inquired about the shareholder contribution amount. Staff indicated Denver currently receives $250,000 from shareholders, but negotiations aim for a higher amount (potentially $1 million per year) directed toward energy assistance navigators or pilots. Excel requested clarity on the desired use of funds.
  • Councilmember Hines raised concerns about accountability mechanisms if Excel fails to meet commitments. Staff cited PUC quality-of-service plans, customer bill credits for outages, and potential fines. Excel noted that 2024 outage minutes reached a decade high due to public safety power shutoffs and wildfire mitigation, but corrective actions are underway.
  • Councilmember Flynn asked about the city’s policy on removing gas lines. Staff explained that avoiding duplicative gas infrastructure is part of the energy transition, but acknowledged cost burdens on households. A memo was requested.
  • Councilmember Gonzalez Gutierrez questioned conditional language in the shareholder contribution and alignment on substation beautification. Staff and Excel discussed exploring a minimum budget percentage for community-driven design.

Key Outcomes

• No formal decisions or votes were taken at this informational meeting.
• The city and Excel continue negotiations on the EPA, with a goal to finalize language by late June 2026.
• The franchise agreement and EPA will be presented to the Governance Committee on June 30, 2026, for a vote on referral to the November 2026 ballot.
• The working group, including Councilmembers Parody and Watson, will provide written recommendations on shareholder contribution use and substation design expectations before June 30.
• Councilmembers requested follow-up information on gas line removal policy, low participation rates in energy assistance programs (currently 15–35% of eligible households), and power restoration metrics.