Denver voters will face a critical decision this November when they consider Referred Question 2K, a measure that would extend the city’s franchise agreement with Public Service Company of Colorado – better known as Xcel Energy – for another 20 years beginning January 1, 2027. The agreement grants Xcel the right to use public right‑of‑way, such as medians and sidewalks, to maintain and expand its power and gas infrastructure.
What the agreement entails
Under the proposed contract, Xcel would continue to cover certain utility‑related costs for the city and provide a package of community benefits. Those benefits include ongoing undergrounding of overhead electrical lines, infrastructure safety programs, and coordination with the city on emergency‑management efforts. In return, the utility would pay Denver for the reasonable use of public rights‑of‑way and other city property needed to deliver reliable utility services.
Supporters’ arguments
City officials and supporters argue the deal represents the strongest energy partnership in Colorado history. Deputy Executive Director of the city’s climate office Jonathan Rogers said the agreement secures a “greater degree of local investment in affordability than Xcel offers anywhere else in the area.” Councilmember Amanda Sandoval framed the vote as a chance to improve upon a previous proposal that the council rejected last year, describing the new terms as “more thoughtful and collaborative.”
Deputy Chief Operating Officer Dominick Moreno likened the revised deal to a better sequel, saying, “Much like ‘The Empire Strikes Back’ and ‘Terminator 2,’ we hope you agree the sequel is better than the original.” The campaign supporting the measure reported roughly $454,000 in fundraising as of August 31.
Critics and concerns
Opponents caution that the agreement may undervalue Denver’s public right‑of‑way. Former Public Utilities Commission chair Jeff Ackermann, speaking for the advocacy group Together Colorado, noted that Xcel’s CEO earns $16 million while the utility contributes only about $125,000 per year to local assistance programs. Councilmember Shontel Lewis called for greater funding for affordability programs, questioning why a corporation of Xcel’s size cannot commit more meaningful resources.
Councilmember Sarah Parady, who helped negotiate the deal, said the $5 million total for energy assistance over the contract’s life is modest, noting the working group originally sought $5 million per year. She expressed disappointment that the city did not press for a higher payment, saying it “undermines her faith in the negotiations.”
What a “no” vote could mean
If voters reject the measure, the current franchise agreement would expire at the end of the year, making it harder for Xcel to operate in Denver and likely prompting another round of negotiations. The city could temporarily extend the existing agreement while discussions continue, but there is no guarantee of a better deal. Denver’s experience would mirror Boulder’s decade‑long gap without a franchise contract, during which the city struggled to launch a municipal utility.
Key dates and next steps
Ballot Question 2K will appear on the November 5 ballot. Voters who support the measure will see Xcel Energy continue its operations under the new terms, while a “no” vote would end the current contract and open a new period of uncertainty. Both sides urge residents to review the details and consider the long‑term impact on utility reliability, affordability, and local control.
Original reporting: Denverite — read the source article.
