DENVER, Colorado (June 20, 2018) – Xcel Energy—Colorado’s preferred Colorado Energy Plan for

meeting its future generation needs would have significant and positive economic impacts over the next two decades for both the state and Pueblo County, according to a recent study conducted by the research division of the Leeds School of Business at the University of Colorado.

“As we continue to evaluate the impacts of our proposal, we are finding that it would increase total net employment, gross domestic product and disposable personal income throughout Colorado and in Pueblo, where a significant portion of the future generation development would occur,” said Alice

Jackson, president for Xcel Energy—Colorado. “Our goal is to create a positive transition for Pueblo. This study clearly shows that these benefits will far outweigh the impacts of the early retirement of two coal units in Pueblo.”

Earlier this month, Xcel Energy submitted its 120-Day Report with the Colorado Public Utilities

Commission. The recommended Colorado Energy Plan would invest $2.5 billion in eight Colorado

counties and add more than 1,100 megawatts (MW) of wind generation, 700 MW of large-scale solar generation and 275 MW of large-scale battery storage. The plan also would retire two coal-fired units in Pueblo approximately a decade ahead of schedule and add 380 MW of existing natural gas generation. One megawatt provides electricity for 1,100 Colorado homes.

Using national and local economics and demographic data through a REMI model, the Leeds study

analyzed the impacts of the Colorado Energy Plan specifically for both Colorado and Pueblo County, as it compares to the Electric Resource Plan, without early coal unit retirements.

For Colorado, the study indicates that:

  • In the first five years of the plan – when wind, solar and transmission projects would be built and would create construction jobs – the preferred Colorado Energy Plan would add 1,987 jobs statewide, and contribute an extra $203.6 million to Colorado’s economy in terms of Gross Domestic Product (GDP, the total value of goods produced and services provided in a given region over a given time period);

Colorado Energy Plan economic impact study

  • Over the approximately 23 years of the study period, the Colorado Energy Plan would result in 549 more jobs in Colorado, and real GDP would increase by an average of $57.8 million; and
  • Statewide, the plan would increase disposable personal income by $48.2 million over the same period.

In Pueblo, the Leeds study shows that:

  • In the first five years of the plan, Pueblo County would gain an estimated 516 jobs and $44 million in Gross Domestic Product;
  • Over the approximately 23 years of the study period, Pueblo County would add 133 jobs. Real GDP would increase by $9.8 million in Pueblo County;
  • Over the same period, disposable personal income in Pueblo County would increase by $8.6 million; and
  • Pueblo County also would not only benefit from direct new solar generation, storage and transmission capacity, but would see net job growth averaging 109 news jobs per year, over the next 23 years. This would be above the loss of approximately 80 jobs at Comanche, where the two units would retire approximately a decade earlier, in the early-to-mid-2020s.

Xcel Energy further noted that the Leeds Study measured the effects of changes in capital investments; Xcel Energy’s operating expenses; and electric rates. It showed how these variables impact employment, GDP, disposable personal income and other metrics. The impacts are expressed in 2018 dollars and cover a period from 2018 to 2040, for both Colorado and Pueblo County.

The study used a structural economic forecasting and policy analysis model developed by Regional

Economic Modeling Inc. (REMI), of Amherst, Mass. Inputs included data from Xcel Energy; the U.S.

Department of Commerce, Energy and Labor; the Colorado Department of Revenue and Local Affairs; and Moody’s Analytics.

The study today falls under the company’s 2016 Electric Resource Plan, which was originally filed in May2016. The CPUC is expected to rule on the plan by September 2018.

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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.