Local governments need Xcel to step up on clean heat (Opinion)

Colorado’s energy transition has reached an inflection point. State regulators recently directed Xcel Energy to curb climate pollution from its gas operations by 41% by 2035, a landmark requirement that reflects both mounting climate risks and the need to shield residents from escalating utility costs. Yet, despite a corporate pledge to deliver carbon-free energy by mid-century, the utility’s short-term decisions remain rooted in gas expansion and replacement—choices that will shape energy bills and carbon emissions for decades.

Xcel’s gas system stretches across the Front Range and the I‑70 corridor, serving roughly 1.5 million customers. Even as high-efficiency electric heat pumps and emerging geothermal networks become more available and affordable, the company continues to add new gas load—connecting more than 14,000 new gas customers in 2024 alone. Each new hookup cements fresh dependence on a sprawling pipeline network that is costly to maintain and increasingly out of step with state and local climate goals.

That upkeep is not cheap. Xcel has proposed spending $300 to $400 million every year just to maintain and repair aging pipes—many installed in the mid-to-late 20th century. The utility’s latest Gas Infrastructure Plan would layer on an estimated $2.85 billion between 2025 and 2029 to expand and upgrade its gas system. By the company’s own projections, gas rates could climb about 60% between 2025 and 2040. Add to that the roller-coaster of commodity prices, a 2024 rate increase, and record profits from Colorado operations, and it’s clear why customers are feeling squeezed.

Local governments across Colorado see both the financial and climate risks of doubling down on gas and are already charting a different course. Communities are revising building codes to remove long-standing biases toward gas equipment, adopting energy performance standards, and advancing comprehensive sustainability plans. They are investing in efficiency, weatherization, beneficial electrification, and geothermal solutions because these strategies reduce pollution, stabilize energy costs over time, and improve resilience during extreme weather.

The momentum is visible in projects on the ground:

• Avon built an all-electric public works facility to demonstrate modern, efficient heating in cold climates.
• Eagle County is retrofitting facilities with geothermal heat, cutting operating costs while slashing emissions.
• Boulder County’s St. Vrain Community Hub integrates efficiency and electrification to lower energy use and improve comfort for staff and visitors.
• Northglenn’s net‑zero City Hall shows how municipal buildings can produce as much clean energy as they consume.
• Westminster’s all‑electric courthouse underscores the feasibility and reliability of fossil‑free heating in essential public buildings.

Collectively, these efforts signal where Colorado is heading. Yet Xcel’s long-term planning still emphasizes replacing and expanding gas infrastructure, rather than collaborating on community-scale solutions that can reduce system costs and emissions. That misalignment is untenable given state law: beyond the 41% cut by 2035, Xcel must also reduce climate pollution from its gas system 22% below 2015 levels by 2030. Meeting those targets cannot be reconciled with adding customers to the gas network and investing billions in assets that may be stranded before they are paid off.

The path forward is not mysterious—it’s about partnership and timing. Local governments know their building stock, land-use plans, and growth patterns. Working with the utility early, they can identify:

• All-electric new developments where gas lines are unnecessary, avoiding costly infrastructure from the start.
• Uneconomic or leak-prone pipeline segments that could be retired cost-effectively with electrification or networked geothermal.
• Targeted “non-pipeline alternatives” such as weatherization, heat pumps, and demand flexibility to defer or eliminate expensive gas projects.
• Community transition plans that prioritize affordability for low- and moderate-income households and protect small businesses from rate shocks.

Data sharing is essential. Local leaders need neighborhood-level information on gas asset conditions, leak rates, and cost drivers to plan equitable transitions. Likewise, Xcel needs insight into local timelines for code updates, electrification incentives, and major public projects. Aligning these calendars can prevent redundant investments, save ratepayers money, and accelerate pollution reductions.

There’s also a clear opportunity for the utility to pilot—and then scale—alternatives to traditional gas replacement. Networked geothermal districts, block-by-block electrification paired with weatherization, and strategic use of thermal storage can deliver reliable heating while shrinking operational costs and emissions. When designed with community input, these solutions enhance resilience, improve indoor air quality, and create skilled local jobs.

Colorado ratepayers should not be on the hook for 20th-century pipelines that are increasingly incompatible with 21st-century climate and affordability objectives. The utility can honor its carbon-free commitments by prioritizing investments that lower bills over the long term, reduce exposure to volatile fuel prices, and meet state clean heat targets. Local governments are already proving what works. It’s time for Xcel to match that leadership: engage early, share data, and plan a thoughtful, phased shift away from fossil gas.

Colorado’s clean heat future is not hypothetical—it is being built right now. With genuine collaboration, the state can protect ratepayers, meet climate obligations, and modernize its heating systems in a way that is cleaner, safer, and more affordable for everyone.