DENVER - Xcel Energy Inc.'s attempt to make up for $16.6 million in cost overruns from the Boulder SmartGridCity project went before an administrative law judge Wednesday in a hearing that will greatly impact the case.

SmartGridCity was a pilot program developed by Xcel Energy in partnership with the city of Boulder and other corporate partners. The project wired Boulder customers with smart meters with the purpose of developing smart grid technologies.

Xcel Energy expected its share of the project to be $15.3 million, but it ballooned to $44.5 million, according to documents filed with the Colorado Public Utilities Commission.

The commission has ruled that Xcel Energy is allowed to make up $27.9 million of the cost in customer rate increases. The company could charge for the remainder if it proved to the commission it "re-booted" SmartGrid City and showed the project "has a coherent and valuable future."

The hearing today will determine whether Xcel Energy has done that and can recover the $16.6 million.

The judge will consider filings and hear evidence during the hearing, which will run Wednesday and Thursday, PUC spokesman Terry Bote said. The judge will then write a recommended decision, on which the PUC will base its final ruling.

"They are not bound by the recommended decision, but typically they will give it considerably weight," Bote said.

Parties in the case can file "exceptions" to the recommended decisions, which Bote said are essentially appeals. The commission's final ruling is expected to come within 45 to 60 days, Bote said.