Colorado lawmakers call on Xcel Energy to cut reliance on methane gas

Denver, CO -- Today, 55 Colorado lawmakers delivered a letter to Xcel Energy encouraging the utility to reduce the need for methane gas-fired power plants in its upcoming Electric Resource Plan (ERP), which could be approved by the end of the year. The letter flags major concerns with air and climate pollution, environmental injustice and high costs for the volatile energy source. 

"This ERP in particular comes at a critical turning point for climate action in Colorado where our state’s largest utility, Xcel, can either invest in more expensive and polluting fossil fuels or aggressively pursue affordable, clean energy alternatives," said Edgewater City Councilwoman, Hannah Gay Keao. "Many of my neighbors are struggling to keep up with their energy bills as is, and our entire community would benefit from expediting a clean energy transition.”

“Here in Routt County, local governments have partnered effectively on renewable energy projects. However, our rural elective cooperative has recently limited our capacity to deploy renewables, blaming their contract with Xcel for limiting local progress," said Routt County Commissioner, Sonja Macys. “This comes just at the time when the Inflation Reduction Act is providing rural electric cooperatives and local governments unprecedented financial incentives for developing these projects. Clean, affordable energy is available now and Routt County residents deserve to benefit from it. We ask Xcel to minimize reliance on fossil fuels, increase investments in renewables, and enable and empower local renewable generation as it develops its Phase II of the 2021 ERP.”

Of particular concern is whether Xcel will build out new methane gas power plants. Colorado's largest monopoly utility, which again made record profits last year, came under customer criticism and legislative scrutiny this year as energy bills skyrocketed. Experts and lawmakers found methane gas and expensive fossil fuel power plants were the primary cause of the spike in recent energy bills.

"Xcel already has gas plants operating and burning harmful pollution in our Colorado communities," said Aurora City Council Member, Juan Marcano. "Methane gas plants exacerbate inequalities in our communities, creating more energy burden when bills increase and disproportionately polluting low income and BIPOC communities. Rather than expanding gas infrastructure, this unjust pattern needs to be corrected through stopping investments in gas.”

"Building new gas plants would cost our communities when it comes to our energy bills, our health and our environment," said Sen. Faith Winter. "Despite Xcel's admirable commitments to renewable energy so far, it's unfortunate the utility’s leaders continue to consider costly new gas infrastructure when we have cheaper and cleaner alternatives.”

The letter also calls on Xcel to use newly-available tax credits from the Inflation Reduction Act and Bipartisan Infrastructure Act while avoiding the use of blue hydrogen. Blue hydrogen -- produced from a mix of renewable and fossil fuel power -- is criticized for being ineffective at reducing emissions and prolonging the harmful industry status quo. 

"The fossil fuel industry will fight tooth and nail to cling to any so-called 'solution' that extends its life and they'll present their own studies and evidence to promote ideas like blue hydrogen and hydrogen blending," said Grace Thorvilson, Campaign Representative at Sierra Club. "Regulators need to be hypervigilant of Xcel's resource planning and ensure they are modeling cost savings for truly renewable energy from tax incentives now available through historic federal funding."

Colorado's largest monopoly utility will release a "120 Day Report" later this summer outlining possible energy resource portfolios. The Colorado Public Utilities Commission (PUC) could approve a plan in November.