Xcel Energy and the Colorado Energy Plan
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Xcel Energy is an investor owned utility that operates in eight states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.
Xcel Energy's subsidiary in Colorado, Public Service Company of Colorado, is the largest electric utility in the state, with about 1.5 million customers. Xcel is also a wholesale power provider for 4 of the 22 electric cooperatives in Colorado: Grand Valley Power, Holy Cross Energy, Intermountain Rural Electric Association, and Yampa Valley Electric Association. Public Service Company of Colorado accounts for "approximately 35 percent to 45 percent of Xcel Energy’s consolidated net income," according to the company's latest 10-K filing with the Securities and Exchange Commission. Energy Mix and future plans Public Service Company of Colorado reported that its energy mix in 2017 was 44% coal, 28% natural gas, 24% wind energy, 2% hydroelectric, and 2% other. In August 2018, the Colorado Public Utilities Commission approved Xcel Energy's "Colorado Energy Plan," which the company expects will shift its energy mix to 53% renewable energy by 2026. |
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Image from Xcel Energy Colorado Energy Information Sheet, Fall 2018 Update
Colorado Energy Plan
Under the Colorado Energy Plan, Xcel Energy will shut down two of the three units at the Comanche coal plant near Pueblo Colorado, and replace that power with a mix of new renewable energy and battery storage projects along with existing natural gas plants.
Overall, the Colorado Energy Plan will invest $2.5 billion in eight counties to add more than 1,100 megawatts of wind generation, more than 700 megawatts of solar generation, and 275 megawatts of large-scale battery storage. - Xcel Energy Colorado Energy Information Sheet, Fall 2018 Update
Xcel Energy chose those projects from the "unprecedented" 430 bids it received. Those renewable energy bids attracted interest from a wide array of energy industry analysts and publications, because the very low prices for wind and solar projects showed that new wind and solar power in Colorado is now cheaper than existing coal plants. In an updated report filed in June 2018, Xcel Energy said the Colorado Energy Plan "includes unprecedented low pricing across a range of generation technologies including wind at levelized pricing between $11-18/MWh, solar between $23-$27/MWh, solar with storage between $30-$32/MWh and gas between $1.50 - $2.50/kW-mo"
A June 2018 report from the Leeds School of Business at the University of Colorado Boulder found that the plan would create hundreds of new jobs, boost local tax revenue, and provide a net positive economic impact to the state - mostly by avoiding nearly $1 billion in coal purchases from Wyoming. Most of the $2.5 billion in new investments will be in Cheyenne, Kit Carson, Weld, Baca, and Pueblo counties.
Under the Colorado Energy Plan, Xcel Energy will shut down two of the three units at the Comanche coal plant near Pueblo Colorado, and replace that power with a mix of new renewable energy and battery storage projects along with existing natural gas plants.
Overall, the Colorado Energy Plan will invest $2.5 billion in eight counties to add more than 1,100 megawatts of wind generation, more than 700 megawatts of solar generation, and 275 megawatts of large-scale battery storage. - Xcel Energy Colorado Energy Information Sheet, Fall 2018 Update
Xcel Energy chose those projects from the "unprecedented" 430 bids it received. Those renewable energy bids attracted interest from a wide array of energy industry analysts and publications, because the very low prices for wind and solar projects showed that new wind and solar power in Colorado is now cheaper than existing coal plants. In an updated report filed in June 2018, Xcel Energy said the Colorado Energy Plan "includes unprecedented low pricing across a range of generation technologies including wind at levelized pricing between $11-18/MWh, solar between $23-$27/MWh, solar with storage between $30-$32/MWh and gas between $1.50 - $2.50/kW-mo"
A June 2018 report from the Leeds School of Business at the University of Colorado Boulder found that the plan would create hundreds of new jobs, boost local tax revenue, and provide a net positive economic impact to the state - mostly by avoiding nearly $1 billion in coal purchases from Wyoming. Most of the $2.5 billion in new investments will be in Cheyenne, Kit Carson, Weld, Baca, and Pueblo counties.
Image from Xcel Energy Electric Resource Plan 120 Day Report, filed with Colorado PUC June 2018
100% carbon free electricity goal
In December 2018, Xcel Energy became the first major utility in the country to commit to 100% carbon free electricity (by 2050), and said it also plans to reduce carbon emissions 80 percent by 2030, across all eight states in which it operates.
“When your customers are asking for this over and over you really do listen,” [Xcel Energy CEO Ben] Fowke said at the announcement. “Boulder, the city of Denver, Breckenridge... Pueblo, they’re considered or they have already decided that they want to pursue 100 percent renewable.”
Read more about how Colorado towns and cities are helping push utilities to embrace renewable energy.
In March 2019, Xcel Energy published a "Building a Carbon-free Future" report looking at the opportunities and challenges of meeting its 100% carbon free electricity goal.
In December 2018, Xcel Energy became the first major utility in the country to commit to 100% carbon free electricity (by 2050), and said it also plans to reduce carbon emissions 80 percent by 2030, across all eight states in which it operates.
“When your customers are asking for this over and over you really do listen,” [Xcel Energy CEO Ben] Fowke said at the announcement. “Boulder, the city of Denver, Breckenridge... Pueblo, they’re considered or they have already decided that they want to pursue 100 percent renewable.”
Read more about how Colorado towns and cities are helping push utilities to embrace renewable energy.
In March 2019, Xcel Energy published a "Building a Carbon-free Future" report looking at the opportunities and challenges of meeting its 100% carbon free electricity goal.
Hayden Generating Station, a coal plant in Northwest Colorado operated by Xcel Energy, and owned by Xcel Energy, Pacificorp, and Salt River Project
Clean Cooperative articles about Xcel Energy
Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy
September 25, 2018 - Co-op's contract with Xcel "give us additional clean energy options that may not be available to other utilities.”
Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado
August 28, 2018 - Colorado PUC approval of Xcel Energy's plan will mean $2.5 billion investment, mostly in Eastern Colorado counties
Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue
June 22, 2018 - Xcel Energy's plan would lower costs in part by avoiding nearly $1 billion in coal purchases from Wyoming
Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance
June 12, 2018 - Xcel Energy Colorado President Alice Jackson was named “Power Player of the Year” for renewable energy plan
Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery
January 23, 2018 - A glimpse of the "infinite scalability" of energy storage
New wind and solar power in Colorado is now cheaper than existing coal plants
January 3, 2018 - Xcel Energy receives “unprecedented” bids for wind and solar at prices well below the costs of running its coal plants
Companies' 100% renewable energy goals are getting results in Colorado
December 20, 2017 - Xcel Energy highlights its ability to support corporate renewable goals to attract tech companies
Colorado towns and cities are helping push utilities to embrace renewable energy
November 20, 2017 - More Colorado cities want 100% renewable energy - and Xcel Energy wants to keep its customers
Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy
September 25, 2018 - Co-op's contract with Xcel "give us additional clean energy options that may not be available to other utilities.”
Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado
August 28, 2018 - Colorado PUC approval of Xcel Energy's plan will mean $2.5 billion investment, mostly in Eastern Colorado counties
Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue
June 22, 2018 - Xcel Energy's plan would lower costs in part by avoiding nearly $1 billion in coal purchases from Wyoming
Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance
June 12, 2018 - Xcel Energy Colorado President Alice Jackson was named “Power Player of the Year” for renewable energy plan
Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery
January 23, 2018 - A glimpse of the "infinite scalability" of energy storage
New wind and solar power in Colorado is now cheaper than existing coal plants
January 3, 2018 - Xcel Energy receives “unprecedented” bids for wind and solar at prices well below the costs of running its coal plants
Companies' 100% renewable energy goals are getting results in Colorado
December 20, 2017 - Xcel Energy highlights its ability to support corporate renewable goals to attract tech companies
Colorado towns and cities are helping push utilities to embrace renewable energy
November 20, 2017 - More Colorado cities want 100% renewable energy - and Xcel Energy wants to keep its customers
Comanche Generating Station, a coal plant operated by Xcel Energy near Pueblo Colorado. Units 1 and 2 will close by 2022 and 2025