Xcel Energy, Colorado’s largest utility, has proposed a $5 billion plan to improve the state’s electrical system, aiming to keep up with the growing demand for energy. The utility needs to upgrade substations and other parts of the electrical grid to handle the increasing use of electric vehicles, solar panels, heat pumps, and general growth in electricity consumption.
The plan, which includes 443 projects like building 35 new substations and upgrading over 100 pieces of equipment, was recently submitted to the Colorado Public Utilities Commission for approval. If approved, it will take place between 2025 and 2029, with residential electricity bills expected to rise by about $8.71 per month by 2029. Small commercial bills would increase by about $10.24 per month.
Robert Kenney, CEO of Xcel Energy in Colorado, explained that the grid is facing more demand than ever before, especially since air conditioning became widespread. The company expects the number of electric heat pumps to increase dramatically, from 5,000 today to 300,000 by 2030, and the number of electric vehicles to grow from 100,000 to 400,000 over the same period. Additionally, residential solar power is projected to more than double, adding even more pressure on the grid.
The goal of the plan is to boost the grid’s capacity by 3,100 megawatts, which will help improve reliability and security while reducing outages. The upgrades are also part of Colorado’s push to reduce greenhouse gas emissions and transition to cleaner energy sources. Xcel Energy is on track to meet the state’s goal of cutting emissions by 80% from 2005 levels by 2030, but more clean energy will be needed, particularly for transportation and heating.
