Denver’s proposed 2027 budget excludes $32 million in Xcel fees pending vote

Denver’s proposed 2027 budget will exclude about $32 million in Xcel Energy franchise-fee revenue and related spending until voters decide whether to renew the utility’s agreement with the city on Nov. 3, 2026.

The existing franchise agreement expires Dec. 31, 2026, and its continuation requires voter approval, the Denver Department of Finance said. Because the vote will occur after the proposed budget is released, the money will not officially appear in the proposal. The Finance Department’s budget presentation shows how the resources “would be allocated if approved by voters.”

The presentation does not identify the 2027 departments, projects or line items that would receive the roughly $32 million. A separate city description of the proposed Xcel partnership estimates that about $34 million in annual franchise fees would go to the General Fund for “essential services.” It identifies a $2 million annual set-aside for income-qualified energy-affordability programs but does not explain how the remaining money would be divided.

The partnership also includes benefits separate from the city’s franchise-fee revenue. The proposed agreements would dedicate 1% of electric revenue annually to undergrounding power lines, while Xcel would contribute more than $5 million of shareholder money to energy-assistance programs.

If voters approve the measure, the Finance Department says the final 2027 budget will include the franchise-fee revenue and corresponding expenditures. The city’s budget timeline calls for a revised budget on Oct. 19, a City Council opportunity to adopt the budget on Nov. 9, and the 2027 budget to take effect Jan. 1.

If voters reject the agreement, city materials do not specify whether potential spending would be cut, replaced with another revenue source or addressed through later budget amendments. They do establish that the contingent revenue and related expenditures are not officially part of the proposed budget.

Rejection would not end Xcel service in Denver, according to the city. But Denver says it would lose negotiated benefits, including utility-relocation and undergrounding provisions. Responsibilities and costs for individual public projects could instead be negotiated or litigated, potentially causing delays, higher costs, reduced project scope or redesigns.

The Denver Clerk and Recorder’s elections page lists the question for the Nov. 3 general election. It asks voters to approve a 20-year franchise contract with Public Service Company of Colorado, beginning Jan. 1, 2027, that covers undergrounding overhead electrical lines, infrastructure safety, emergency-management coordination and payments to the city for use of public rights of way and other city property.

The vote had not occurred as of Aug. 25, 2026.