Key Issues Before the Commission
Commission Completes Deliberations on Xcel Energy’s Just Transition Solicitation (JTS) Electric Resource Plan Phase 1
The Commission finalized deliberations on the first phase of the Xcel Energy’s Just Transition Plan, Proceeding 24A-0442E on Aug. 27. Xcel Energy filed for PUC approval of its 2024 “Just Transition Solicitation” (JTS) on Oct. 15, 2024. The JTS is Xcel's proposal for how much energy they will need to build or acquire to serve its customers over the next five years.
The primary objective of the JTS is to balance the provision of adequate energy generation and reliable service with rate affordability and continued progress on emissions reductions. Xcel’s proposal is called a “Just Transition Solicitation” as it also focuses on supporting communities where coal plants are retiring, which includes community assistance payments and incentivizing new energy development to locate in these communities.
The Commission approved a plan that may result in the acquisition of over 6,000 MW of new generation, a level that would make it the largest acquisition ever approved by the PUC. This level of new generation can be augmented once large energy users (referred to as large load customers) commit to Colorado by signing binding agreements. The Commission also established a significantly more flexible process to acquire additional capacity to timely respond to new loads and support economic growth.
The Commission’s approach is meant to protect existing ratepayers from what parties argued could create up to a 50% increase in average residential rates by 2031 if large customer loads do not materialize but costly new energy generation has already been built to serve them.
After concluding its deliberations on Phase I, Commissioners also discussed a number of public comments sent by local governments, businesses and economic development organizations. The Commissioners expressed an interest in considering a future, separate process that would open a direct line of communication with these companies and organizations to better understand their concerns and experiences, particularly with large load customers, and whether they relate to energy generation or separate service issues.
The JTS is one of the largest cases heard by the Commission in recent history. Twenty-four organizations (or parties) intervened in the case and the Commission received hundreds of public comments in writing and over the course of four public comment hearings.
A formal, written decision will be issued in the coming weeks. Parties have 20 days after the final decision issues to file a request for rehearing, reargument or reconsideration. Once this Phase I process is complete, Xcel can move to Phase II.
For More JTS Information:
Xcel Energy’s Energy Resource Plan, Proceeding No. 21A-0141E
On Sept. 4 the Commission approved, with modifications, a proposal from Xcel Energy to implement an expedited process for the near-term procurement (the “NTP”) of tax-advantaged clean generation along with limited amounts of firm generation. The Colorado Energy Office, PUC Trial Staff and the Office of the Utility Consumer Advocate joined Xcel in this filing. As proposed, the NTP process will acquire up to 4,000 MW of renewable energy and hybrid projects; 200 MW of thermal generation; and an additional 300 MW of firm dispatchable generation (e.g., thermal generation or energy storage). The primary purpose of the NTP is to secure as much cost-effective electric generation under construction or placed in service as soon as possible consistent with the goals articulated in the recent letter from Governor Polis to several state agencies.
Next Steps for Xcel Energy’s “Mountain Energy Project,” Proceeding No. 25A-0044EG
Xcel Energy’s “Mountain Energy Project” is a proposed $155 million, long-term solution to ensure utility gas service for approximately 33,500 customers in Grand Lake, Granby, Winter Park, Dillon, Frisco, Copper Mountain, Breckenridge, Leadville and other surrounding communities.
The project involves new gas utility facilities, such as compressed natural gas (“CNG”) and liquified natural gas (“LNG”); customer energy efficiency improvements; and alternative electric service and facilities. The project addresses gas supply constraints at the Marshall Compressor Station in Boulder County, which feeds natural gas to the Eastern Mountain Gas System running through Summit, Grand, Lake and Eagle counties.
A nearly unanimous settlement agreement was filed on July 29. The Colorado Office of the Utility Consumer Advocate opposed the settlement agreement. An evidentiary hearing was held Aug. 12-14 and statements of position by intervenors are due Sept. 12. A final Commission Decision is expected in November 2025.
For more information, please visit the PUC’s Key Proceedings webpage: Mountain Energy Project Proposal.
Commission Approves Tri-State Generation & Transmission’s ERP, Proceeding No. 23A-0585E
The Commission approved Tri-State Generation & Transmission Association’s preferred Electric Resource Plan (ERP) on Aug. 1. The plan would add 1,657 MW of new resources from 2026 to 2031, including 400 MW of wind, 300 MW of solar and 650 MW of battery storage, along with 307 MW from a new natural gas plant in Moffat County. In addition, Tri-State plans to replace turbines at the J.M. Shafer gas-fired plant to boost capacity.
Tri-State’s portfolio meets reliability targets and achieves an 80% reduction in greenhouse gas emissions in Colorado in 2030 relative to 2005 levels. The new resources are needed in part due to the retirements of the Craig and Springerville, AZ coal-fired power plants, slated for 2028 and 2031.
PUC Begins Rulemaking Process to Implement Pipeline Advanced Leak Detection, Proceeding No. 25R-0280GPS
The PUC’s Pipeline Safety Program opened a “Notice of Proposed Rulemaking (NOPR)” in May 2025 to implement advanced leak detection and repair rules. The rules are in response to SB21-108, “Public Utilities Commission Gas Utility Safety Inspection Authority.” The purpose of the rule amendments is to require the use of advanced leak detection technology and implement more stringent leak survey requirements.
The PUC Administrative Law Judge held an Aug. 5 public hearing on proposed changes. This rulemaking is in addition to the rules that were effective May 30, 2024, which included an increase in civil penalty limits, a minimum civil penalty requirement, a mapping requirement, a leak reporting requirement, and updates to the adoption of federal rules. Learn more about this proceeding at: Pipeline Safety Rulemaking
Distribution System Plan Proceedings
The PUC’s Key Proceedings website includes background information on Distribution System Plans along with links to current and past proceedings. Currently, Xcel Energy and Black Hills Colorado Electric have open DSP Proceedings. Learn more at Distribution System Plans | Public Utilities Commission
Xcel Energy’s Distribution System Plan and Virtual Power Plant Proposals, Proceeding No. 24A-0547E
Xcel Energy filed for approval of its 2025-2029 Distribution System Plan on Dec. 16., 2024. On Jan. 31, 2025, Xcel Energy filed its Aggregator Virtual Power Plant Program (VPP). The Commission consolidated these applications because of the similarity and overlap of issues in Proceeding No. 24A-0547E. In this consolidated proceeding, Xcel requests approval of:
- Certain distribution system planned investments over the plan time frame, and its planning methodologies;
- A new bill rider called the “Grid Modernization Adjustment Clause” and the associated cost approval framework;
- Approval of several “non-wire alternative” proposals, which could be alternatives to traditional distribution projects;
- Approximately $4.9 billion in total distribution-related capital spending in the 2025 to 2029 timeframe, to be recovered through a new rider on bills.
The Company also requests approval to implement a virtual power plant program. A Virtual Power Plant (VPP) is a network of decentralized energy resources, such as home solar panels or battery storage. VPPs support the electric grid by aggregating these smaller energy resources to balance electricity supply and demand, improve grid reliability, and support the integration of more renewable energy sources. The VPP application proposes to spend about $78.5 million to acquire 25 MW of capacity per year for a period of 5 years.
The PUC hosted a virtual public comment hearing on Aug. 26. More information on this proceeding is available at: Distribution System Plans | Public Utilities Commission.
Black Hills Requests Approval for 2025 Distribution System Plan, Proceeding No. 25A-0062E
On July 24, 2025, the PUC held an evidentiary hearing to review Black Hills Colorado Electric’s 2025 Distribution System Plan (DSP), which outlines how the company will invest in and modernize its electric grid. The plan will demonstrate how the Company will ensure reliable service for customers while supporting Colorado’s clean energy goals.
A Settlement Agreement among all but one of the parties was filed on July 7. A Commission Decision is expected in November 2025. Learn more about this proceeding and Distribution System Plans at the PUC Key Proceedings webpage: Distribution System Plans | Public Utilities Commission.
Commission Program and Other Updates
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