Colorado Approves Xcel Plan With More Gas, Less Renewables

Denver, CO - Today the Colorado Public Utilities Commission (PUC) voted to reject existing proposals and approve a portfolio for Xcel Energy's Electric Resource Plan (ERP) that has 41 megawatts more gas power and 1,357 megawatts less total power than the company originally recommended.*

"The PUC’s shortsighted decision is bad for customers, the environment, and workers because it will ultimately drive up costs and delay Colorado's green energy transition," said Alana Miller, Colorado Policy Director for NRDC. "Somehow they've settled on a decision that unnecessarily increases emissions while stifling renewable energy opportunities for Colorado’s economy, all while not actually saving money for customers in the long run.”

The decision comes after reports that Xcel's plan would be expensive for customers. However, the approved portfolio is a whopping 23 percent more expensive than Xcel's preferred portfolio on a dollar per megawatt basis. The PUC claimed to be pursuing a “no regrets” policy, but chose more gas, and far less renewables, delaying Xcel's needed acquisition of more renewable energy, which could be more costly than locking in investments now.

"Imagine you need a gallon of milk at the grocery store and you think you can save money by buying a half gallon for two-thirds the price and then having to come back to buy the second half later, hoping the price doesn't go up," said Ren Smith, Fossil Free Front Range Organizer for Colorado Sierra Club. "The problem with this, especially during inflation, is that you could have saved money by just buying the full gallon up front. We're better off investing in renewable energy now, especially with available federal incentives."

The commissioner's decision is troubling because they acknowledged that the renewables they rejected will be needed in the near future. Commissioners did not address the likely possibility that deferring acquisition of those renewables will increase the cost that customers ultimately pay for those clean energy resources.  

The commission's portfolio invests in 669 megawatts of new gas power plants, which have been controversial due to high costs, disproportionate pollution in low-income communities, and added air pollution to an already contaminated front range.

"Time and time again we're asked to decide between false narratives that we must either continue breathing dirty air or pay higher utility bills for cleaner energy," said Ean Thomas Tafoya, GreenLatinos Colorado State Director. "Pretending that these are the only two options for working people, especially when we're talking about billion dollar profit-making corporations, is absurd. Environmental Justice advocates have called out this administration for appointments that lack the lived experience to protect the most vulnerable in Colorado. This decision exemplifies this - new gas will continue to harm communities from extraction, to burning, to those paying higher bills." 

When accounting for the social cost of carbon, which tallies damages of climate change and pollution, the approved plan is $300 million more expensive than Xcel's preferred portfolio. In one portfolio, Xcel said it only needed 500 megawatts to maintain reliability, which was already criticized by environmental organizations. 

Intervening parties on this case, including Xcel Energy and environmental groups, could ask the PUC for reconsideration.

*A previous version of this press release incorrectly stated that the approved plan has 1,357 less megawatts of wind and solar. The correct number is 1,378 megawatts less of renewable energy (2,056 megawatts less of  wind and solar but 678 megawatts of additional battery storage).