Colorado Politics

State regulators unanimously approve Xcel’s wildfire mitigation plan

The Colorado Public Utilities Commission unanimously approved Xcel Energy’s 2025-2027 Wildfire Mitigation Plan last month — leading to nearly $2 billion in investments to reduce fire risk.

The June 5 approval built upon a unanimous settlement reached in April with stakeholders including 11 organizations, municipalities and companies. The mitigation plan will look to reduce the chances of Xcel’s equipment starting or reinforcing a wildfire, according to a press release from the PUC.

“The Commission’s approval of our Wildfire Mitigation Plan is significant as it allows us to quickly implement important projects to protect our customers and communities from wildfire risk. We worked closely with a large coalition of stakeholders representing customers, businesses, government and agencies to put forth a plan designed to keep our customers and communities safe, while keeping bills low,” Robert Kenney, president of Xcel Energy-Colorado, said in a press release on June 6.

The 11 parties in the case include the City of Boulder, Office of Utility Consumer Advocate, the City and County of Denver, Western Resource Advocates, Trial Staff of the PUC and the Colorado Energy Consumers.

The $1.9 billion plan includes mitigation efforts like moving 50 miles of power lines underground, rebuilding major transmission lines, keeping detailed track of aging transmission equipment, an expansion of employees and the use of drones to increase the speed of inspections.

Other commitments include replacing 198 miles of smaller power lines and keeping stakeholders updated on its plans for rebuilding major transmission lines, anticipated to be completed during 2025 – 2027.

Furthermore, the plan will set clear guidelines for Xcel’s “public safety power shutoffs,” in which the company shuts down power lines when conditions threaten to cause sparking, as well as accommodating the needs of critical power customers — including disabled persons who are placed at risk by power grid shutdowns.

The shutoffs drew the ire of Coloradans in April 2024 when Xcel shut down power for around 55,000 customers without sufficient notice during a windstorm.

“This is a significant step toward making our community safer and more resilient in the face of growing wildfire threats,” Boulder’s City Manager Nuria Rivera-Vandermyde said previously in a release. “I am proud of the work our city team did to ensure the voices of our community, and our neighboring communities, were heard and to help shape a plan that better protects the people and places most at risk.”

While this investment will be paid for by customers, much of the project will be financed via securitization — low-interest bonds without equity return — helping to keep monthly costs lower for customers, according to the plan.

For ratepayers, “the monthly bill impact will vary over time, reaching approximately $9 per month towards the end of the plan period, and then lowering after securitization,” according to the PUC release.

Utility commissioners will issue a written decision approving the plan by the end of August.

The Denver Gazette reporter Scott Weiser contributed to this story

FILE PHOTO: Power lines in Colorado’s electric grid are seen in this file photo. (COURTESY OF XCEL ENERGY)
FILE PHOTO: Power lines in Colorado’s electric grid are seen in this file photo. (COURTESY OF XCEL ENERGY)
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