DENVER (January 16, 2025) — Today Xcel Energy–Colorado proposed the Mountain Energy Project, its largest non-pipeline alternative portfolio to date, to reduce natural gas use and emissions while ensuring the reliability, safety and comfort of customers served by its Easter Mountain Gas System in Grand, Lake, Eagle and Summit counties. The project will help meet the state of Colorado’s clean energy goals and supports Xcel Energy’s vision of delivering net-zero natural gas service by 2050.
The Mountain Energy Project is an innovative approach to natural gas system planning, pairing non-pipeline alternatives – like energy efficiency, conservation and beneficial electrification programs – with new modular liquid natural gas and compressed natural gas equipment to back up these projects during times of increased demand. This allows the company to address customers’ natural gas needs while keeping bills low and balancing energy reliability and environmental considerations.
“The main idea of a non-pipeline alternative portfolio is straightforward – instead of expanding and upgrading traditional natural gas pipeline systems, we will invest in alternative projects to avoid or defer investment in natural gas infrastructure, while fulfilling our obligation to serve new and existing customers as communities grow,” said Robert Kenney, president of Xcel Energy—Colorado. “We’ve collaborated with key partners in our mountain communities to develop creative, innovative solutions that meet increasing natural gas demand and look forward to successfully implementing the Mountain Energy Project.”
The Mountain Energy Project will enhance reliability and affordability while supporting communities and customers’ desire for carbon-free energy. Customers in targeted areas can choose to reduce natural gas use and emissions through multiple programs that meet their needs.
“The Mountain Energy Project, if approved, will provide valuable insight into how to effectively plan to achieve emissions reductions on the larger natural gas system serving our 1.5 million natural gas customers statewide,” adds Kenney. “The natural gas system is a dependable and affordable energy supply network for customers, and our existing system – working together with newer solutions – can continue to deliver for customers as we work towards our net-zero vision.”
Xcel Energy’s preferred portfolio is the lowest cost options among the four portfolios evaluated as part of the Mountain Energy Project, with an overall cost estimate of $155 million.
“Xcel Energy's Mountain Energy Project shows the promise of deploying non-pipeline alternatives at scale, which will help customers reduce gas demand, save on bills, and cut emissions. We look forward to reviewing the project in detail and making the most of this opportunity,” said Mike Henchen, Principal at Rocky Mountain Institute.
"While we have yet to see the full details of Xcel's Mountain Energy Project proposal, non-pipeline alternative projects will be essential to meeting the state's greenhouse gas emissions targets and reducing energy costs for Coloradans, while also improving public health and saving customers money," said Justin Brant, Utility Program Director at the Southwest Energy Efficiency Project.
The Colorado Public Utilities Commission will evaluate the Mountain Energy Project, and the company anticipates a decision by the end of 2025.
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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 X, formerly known as Twitter, and Facebook.
