Xcel Energy is seeking to charge customers $84 million [1] for electric meters that were replaced before the end of their useful lives.

This request is part of a broader electric rate-hike filing. The move could result in higher monthly bills for consumers to cover costs the company incurred by replacing equipment prematurely.

According to the filing, the $84 million [1] charge is intended to recoup the expenses associated with the early removal of these meters. The utility company is asking regulators to allow this recovery as part of its current request to increase rates.

Under typical utility accounting, equipment is depreciated over its expected lifespan. When a company replaces a meter before that lifespan ends, it may seek to recover the remaining value of that asset from its customer base.

Xcel Energy has not provided a specific timeline for the implementation of these charges, though the request is tied to the ongoing rate-hike proceedings. The company said the charge is necessary to recover costs of early meter replacements [1].

Regulators will now review the filing to determine if the costs are justified and if the charge to consumers is reasonable. The outcome of this process will dictate whether the $84 million [1] will be added to customer bills.

“Xcel Energy wants customers to pay $84 million for old meters”

This filing highlights a tension between utility infrastructure modernization and consumer costs. By seeking to recover the 'unrecovered' value of assets replaced early, Xcel Energy is attempting to shift the financial burden of its operational decisions onto the ratepayer, a move that typically requires regulatory approval to ensure the costs are prudent and not the result of mismanagement.