Colorado’s largest utility company is proposing a $4.9 billion plan to modernize the power grid, accommodating vehicle and building electrification, as well as distributed electric generation and storage.

The goal, Xcel Energy added, includes enhancing reliability, resiliency, and safety benefits, as required by a recently adopted state law.

The five-year plan is expected to cost Colorado residential ratepayers approximately $8.71 more per month, while business customers will pay about $10.24 more per month by 2029.

The grid modernization plan includes adding 3.1 gigawatts of new capacity to the distribution system, which the company said would be enough to serve nearly 500,000 homes, along with 100 new or replaced distribution substation transformers, 36 substations and more than 300 new feeder lines by 2029.

“The projects in this plan reimagine a grid that can proactively meet the rapidly evolving electrification expectations and needs of our customers and communities — today and in the future — in a safe, reliable, affordable and equitable manner,” Robert Kenney, president of Xcel Energy-Colorado, said in the release.

In addition to this plan, Xcel is seeking approval for Phase 1 of its “Just Transition” energy resource plan, which proposes building 5,000 megawatts of new generation at an as-of-yet-unknown cost to meet predicted future demand increases resulting from factors such as artificial intelligence, data centers and vehicle electrification.

The Metro Mayors Caucus, which represents 38 municipalities across the metro Denver area, sent a letter to the Colorado Public Utilities Commission this week asking it to support Xcel’s request for new generation. The letter stated that Colorado risks power shortages, higher costs, economic slowdowns, and setbacks in clean energy if the utility’s capacity request is not approved.

“Large employers like advanced manufacturers, clean technology companies, and data centers require guaranteed power before committing to a site,” said the group’s chair, Broomfield Mayor Guyleen Castriotta. “Competitor states such as Texas, Utah, Arizona, and North Carolina are actively building capacity to win these projects. Lost opportunities mean lost jobs, reduced tax base, and diminished competitiveness.”

These two plans are on top of the company’s existing Clean Heat Plan, Transportation Electrification Plan, Wildfire Mitigation Plan, Demand Side Management/Beneficial Electrification Plan, as well as its $1.7 billion Power Pathway project. 

The latter is currently in progress in eastern Colorado. It seeks to provide high-voltage transmission backbone to bring distributed renewable energy on the eastern plains, such as wind and solar, to the power grid to serve the metro Denver area’s increasing power needs.

Xcel said it plans to invest $22.3 billion in energy in Colorado from 2025 through 2029.

Details about this request, including the legal notice, are available at xcelenergy.com. 

A public comment session on Xcel Energy’s $4.9 billion Distribution System Plan will be held from 4:30 p.m. to 6:30 p.m. Tuesday, August 26.

Register on the PUC Calendar here: puc.colorado.gov/puccalendar