DENVER (August 24, 2020) – In an effort to help Colorado spur the economy, Xcel Energy today proposed a new Economic Development incentive to encourage new commercial and industrial customers to bring their business to Colorado. It also can help the Colorado economy as it rebounds from the global COVID-19 pandemic.
The proposal before the Colorado Public Utilities Commission creates an incentive to enhance economic development in the communities we serve through lower electricity costs for major expansions of existing and new business. It also sets up an approval process at the Commission that would make it easier and faster for businesses to take advantage of the special rate while also allowing for expansion of voluntary renewable programs that would accommodate customers who qualify.
“Many of our current large commercial and industrial customers have sustainability or carbon reduction goals and participate in our programs such as Solar*Rewards and Windsource,” said Alice Jackson, president, Xcel Energy—Colorado. “If approved, the proposal would help more customers tap into these programs to maximize the clean energy benefits, which then makes Colorado an even more attractive place to locate a business.”
The Economic Development incentive supports the company’s goal of providing 80% carbon free energy to customers by 2030 while reinforcing Colorado’s vision for a carbon-free future. It also provides a framework to expand voluntary renewable programs to accommodate these customers.
“This global pandemic has created a challenging economic environment in Colorado, and we know we can support our communities by helping the state attract new business and expand existing companies. The economic development rate is good for the economy and plays a role in providing clean, affordable energy to our customers,” said Jackson.
“Jefferson County EDC applauds the efforts of the Xcel Energy leadership for their proactive approach to leverage resources for community development in this time of economic uncertainty,” said Jansen Tidmore, President and CEO of the Jefferson County Economic Development Corporation. “Getting our residents back to work is our highest priority and incentives such as this gives us a better opportunity at securing expansions and attracting new projects. We encourage the Commission to approve this proposal and look forward to our continued partnership with the Xcel Energy team.”
“We support Xcel Energy’s plan to offer incentives for new or expanding businesses in Colorado. Not only will this assist our economic environment by helping to recruit good-paying jobs to the state as we work to recover from the COVID induced recession; it will also benefit our physical environment by helping these companies tap into the voluntary renewable energy programs that Xcel offers and maximize the clean energy benefits they provide,” said Thomas Brook, President and CEO, South Denver Economic Development Partnership.
If approved by the Commission, eligible companies would receive a lower price for new electric service for up to 10 years. The incentive is a set percentage off the customer’s applicable base rates and follows tiered pricing that gradually steps down over a multi-year term.
In 2018, the Colorado Legislature passed a law allowing the Commission to approve economic development rates, which are lower rates for commercial and industrial power users who locate or expand their operations in the state. It can also authorize the expansion of renewable energy programs or service offerings for EDR customers or commercial or industrial customers making large capital investments.
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About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
