The state Public Utilities Commission said electric bills for Xcel's small-business customers will rise by about $4.42 a month.
The total rate increase is $112.2 million, or about 5 percent. Xcel had asked for $159.3 million.
Minneapolis-based Xcel is Colorado's largest electric utility with 1.4 million customers.
Earlier, Xcel proposed a $180.2 million rate increase to start January 1, on top of the increase that was approved.
Xcel says that request would increase typical monthly residential customer's bill by $4.98 and the typical small-business customer's bill by $5.40.