Colorado's largest power utility gets green light for $440 million "clean heat" investments - Denver Business Journal
Xcel Energy, which serves over 1.5 million Colorado customers, submitted its plan in response to a new state law requiring natural gas utilities to reduce their greenhouse gas emissions by 4% by 2025 and 22% by 2030. Xcel Energy, Colorado's largest power utility, has been approved by the Colorado Public Utilities Commission (PUC) for $440 million in energy efficiency and electrification investments over the next three years, which could result in nearly 725,000 tons in emissions reductions annually. The plan was submitted in response to a new state law requiring natural gas utilities to reduce their greenhouse gas emissions by 4% by 2025 and 22% by 2030. Xcel Energy serves 1.6 million electrical customers and 1.5 million natural gas customers in Colorado. The company submitted its initial plan in August 2023, but can still pursue these strategies under certain circumstances. Environmental groups have praised the plan's balance of emissions reductions with costs, prioritizing customer choice and expanded rebates for energy efficiency, energy efficiency.
Pubblicato : 11 mesi fa di Moe Clark in Business
Xcel Energy, which serves over 1.5 million Colorado customers, submitted its plan in response to a new state law requiring natural gas utilities to reduce their greenhouse gas emissions by 4% by 2025 and 22% by 2030.
Colorado utility regulators approved a plan that will help the state’s largest power utility reduce its greenhouse gas emissions and meet state-mandated climate goals.
The Colorado Public Utilities Commission approved Xcel Energy-Colorado’s clean heat plan June 10, which includes spending up to $440 million in energy efficiency and electrification investments over the next three years and could translate into nearly 725,000 tons in emissions reductions annually.
Xcel Energy, which serves 1.6 million electrical customers and 1.5 million natural gas customers in Colorado, is a subsidiary of Minneapolis-based Xcel Energy Inc. It submitted its initial legally-mandated plan in August 2023 in response to a new state law passed requiring natural gas utilities to reduce their greenhouse gas emissions by 4% from 2015 levels by 2025 – and 22% by 2030.
Xcel Energy was the first company to submit their plan, with other Colorado utilities’ plans currently pending before the PUC. Each utility must file a new plan to meet decreasing emission targets every four years.
“The PUC-approved plan, like our proposal, balances emissions reductions with costs, while prioritizing customer choice with expanded rebates for electrification, energy efficiency and other measures,” Tyler Bryant, an Xcel Energy spokesperson, said in a written statement. “The plan also provides us the ability to explore clean fuels options, such as hydrogen blending through commercial customers and certified natural gas through a premium, clean-sourced product customers may opt in for.”
Xcel's Colorado utility business reported earning $695 million in profits last year on $5.5 billion of 2023 sales revenue, according to the company's filings to the U.S. Securities and Exchange Commission.
Hydrogen blending mixes hydrogen with natural gas to reduce emissions, and certified natural gas is made using the highest standards to minimize methane leaks.
The two strategies were proposed in Xcel Energy’s initial plan, but were removed in their updated plan submitted in November. The company can still pursue those methods under certain circumstances.
Xcel Energy plans to “work with stakeholders and the PUC” to clarify some elements of the approved plan, according to Bryant. Requests for reconsideration can be submitted to the PUC within the next 90 days.
The plan’s approval was applauded by environmental groups, including Western Resource Advocates, Southwest Energy Efficiency Project, and the Natural Resource Defense Council.
“This decision by the Commission represents an important first step in the challenging process to decarbonize the state’s natural gas utilities,” said Justin Brant, utility program director for the Southwest Energy Efficiency Project. “Now comes the hard part, which will require transforming the market for heating and hot water appliances in Colorado. We look forward to working with Xcel Energy and the state to achieve these goals in the coming years.”