Denver City Council Governance Committee Approves Xcel Energy Franchise and Budget Charter Ballot Measures on June 30, 2026

The Governance and Intergovernmental Relations Committee of the Denver City Council met on Tuesday, June 30, 2026, at 10:30 AM to consider several action items, including a package of agreements with Xcel Energy (a 20-year franchise, an energy partnership agreement, and an airport operating agreement) and two bills related to amending the city's budget and appropriation process, both of which would be referred to voters in the November 3, 2026 general election. The committee also approved seven consent items, including appointments to the Denver Community Corrections Board and the Denver American Indian Commission.

Consent Calendar

• Council Bill 26-0935 – Reappointment of Blake Renner to the Denver Community Corrections Board for a term through 6-30-2030.
• Council Bill 26-0936 – Appointment of Jennifer Lobato to the Denver Community Corrections Board through 6-30-2030.
• Council Bill 26-0937 – Appointment of Monique Hudley-Taylor to the Denver Community Corrections Board through 6-30-2030.
• Council Resolution 26-0938 – Appointment of Nicole Monroe to the Denver Community Corrections Board through 6-30-2030.
• Council Bill 26-0939 – Reappointment of Scott Mangino to the Denver Community Corrections Board through 6-30-2030.
• Council Resolution 26-0940 – Appointment of Starlene Naranjo to the Denver American Indian Commission from 7-03-2026 through 7-03-2029.
• Council Resolution 26-0941 – Amendment of a contract with LINEBARGER GOGGAN BLAIR & SAMPSON, LLP to extend the end date to 8-31-2027 for legal services related to debt collection for parking and photo citation enforcement, with no change to contract capacity. All consent items were approved without discussion.

Public Comments & Testimony

Seven speakers signed up for public comment, and two additional speakers were accommodated. Key positions:

• Jeremy Ross (IBEW Local 111 and working group member): Expressed support for the franchise and companion agreement, noting that labor concerns were heard and met.
• Jose Obaya (Xcel Energy employee): Stated support for the franchise agreement, emphasizing safe and efficient access to public rights-of-way.
• Joseph Lopez (Servicios de la Raza): Supported the agreement, highlighting Xcel Energy's partnership with his organization on safety and community outreach, particularly for hard-to-reach communities.
• Christy Kibler (CEO, Lupus Colorado): Supported the franchise agreement, noting her organization's partnership with Xcel Energy and Energy Outreach Colorado to provide bill assistance; her small organization distributed $280,000 in assistance to 467 Denver families since October.
• Adair Andre (working group member): Urged support for referral to the ballot, highlighting $5 million in shareholder investments over time for affordability, energy navigators, a public dashboard, and pilot projects such as the downtown ambient loop and heat pump rates.
• Dominique Gomez (Deputy Director, Colorado Energy Office; also Denver Board of Water Commissioners): Supported the franchise, citing decarbonization, affordability, and the relocation benefits of $3 billion over 20 years for major public works (Denver Water, Airport, RTD). Also noted that Xcel Energy indicated it would continue a long-term agreement regarding water releases from the Shoshone plant.
• Kate McKenna (CEO, Ballpark General Improvement District): Expressed strong support, noting that Xcel's community engagement is more substantive than other energy companies she has worked with; highlighted the 1% (minimum of $6.3 million) substation beautification commitment and a fully funded green infrastructure project on 20th Street.
• Jeff Ackerman (Together Colorado, working group): Praised the work but urged consideration of inflation adjustments for the $125,000 annual contribution and deeper community engagement to build a genuine long-term relationship.
• Keith Meyer (INC, working group): Thanked the city and Xcel for listening to the working group, particularly on community engagement and adding substation beautification to the agreement.

Discussion Items

Xcel Energy Franchise and Partnership Agreements (Council Bills 26-0970, 26-0973, 26-0974) City staff (Dominic Reno, Deputy COO; Cindy Patton; Johnny Rogers, Deputy Executive Director of Climate Action, Sustainability and Resiliency) and Xcel Energy representatives (Holly Velasquez Horvath, Iffy Jennings, Grace Lopez Ramirez) presented the three-bill package:

• Franchise Agreement (26-0970): A 20-year franchise, to be referred to voters on November 3, 2026. Financial benefits include ~$34 million in annual franchise fees to the general fund, payment of utility relocation costs for city and other governmental projects (estimated $3 billion over 20 years), and a 1% undergrounding fee (~$10 million per year). Non-financial benefits include council retaining legislative authority over Xcel operations, requiring individual negotiations for utility facilities on non-right-of-way city property, and a stronger voice at the Public Utilities Commission (PUC).
• Energy Partnership Agreement (26-0973): A companion agreement outlining shareholder contributions and commitments:
  • $2.5 million one-time shareholder donation in 2027 for utility bill payment assistance.
  • $125,000 annually from shareholders for income-qualified energy affordability programs (Denver-specific navigators).
  • $250,000 annually in shareholder dollars to backfill any state income-qualified energy assistance shortfall in Denver.
  • $2 million per year carved from franchise fees for carbon reduction and energy programs.
  • Minimum 1% of substation construction budgets (estimated $6.3 million total) for neighborhood-compatible design (e.g., facades, landscaping).
  • A city-hosted public dashboard for transparency, five-year evaluations, and a community advisory group similar to the working group.
  • Commitments to pilot projects, a heat pump rate (to be filed with PUC by August 14, 2026), and the downtown ambient loop district thermal network application.
• DEN Operating Agreement (26-0974): Operating agreement for utility services at Denver International Airport, in Council District 11.

Budget Charter Amendment (Council Bills 26-0864 and 26-0867) These bills, presented at a prior meeting, propose a charter amendment to adjust the city's budget and appropriation process, with a companion ordinance adding procedures for the Mayor and City Council to consider budget changes and requiring a community engagement process for a two-year budget term. Both would be referred to voters on November 3, 2026.

Council Questions and Discussion:

• Several council members (Alvidrez, Kashmann, Gilmore, Romero Campbell, Flynn, Gonzales-Gutierrez, Lewis) raised concerns about inflation adjustments for the $125,000 annual contribution over 20 years. Xcel's Holly Velasquez Horvath acknowledged the request and indicated willingness to discuss an inflation escalator with the company.
• Councilwoman Gilmore questioned the equity of substation beautification dollars; most future substations are in other districts, not District 11. She requested a map of planned substations (provided).
• Councilwoman Romero Campbell asked about metrics for the five-year evaluation (affordability, reliability, decarbonization) and community engagement oversight. Staff noted that proposed community advisors would develop detailed metrics.
• Councilman Flynn inquired about the $2.5 million lump sum—whether it must be used for bill payment assistance only (as stated in the agreement) and how it would be conserved over 20 years. Staff confirmed it is restricted to bill payment assistance but emphasized strategic disbursement; the $250,000 annual backstop is separate.
• Councilwoman Alvidrez asked about the reporting dashboard; staff described it as publicly tracking key priorities, pilots, dollars, and outcomes.
• Chair Sawyer requested clarification on beautification for existing substations (e.g., the Leedsdale substation in District 5). Holly Velasquez Horvath committed to identifying upgrade plans and possible beautification funding for Leedsdale and the University substation, and to provide that answer before the full council vote.
• A question about municipalization (like Boulder) was answered: Boulder’s attempted purchase (70,000 meters, 4 substations) was estimated at ~$460 million; Denver (330,000 meters, 11 substations) would cost roughly $4 to $5 billion.

Key Outcomes

• Xcel Energy Franchise Package (26-0970, 26-0973, 26-0974): Approved by the committee for filing to the full council on a 5-0 vote (voting members: Flynn, Gilmore, Gonzales-Gutierrez, Kashmann, Sawyer; Sandoval and Torres absent). The package will be referred to the ballot if approved by full council by the August 3, 2026 deadline.
• Budget Charter Amendment Package (26-0864, 26-0867): Approved for filing on a 4-1 vote (Aye: Gilmore, Gonzales-Gutierrez, Kashmann, Sawyer; Nay: Flynn; Sandoval and Torres absent). Flynn voted against.
• Next Steps: The full City Council will consider both packages. The Xcel franchise must be referred to the ballot by August 3, 2026, for the November 3, 2026 special municipal election. If approved by voters, the franchise will run through December 31, 2046.