Colorado’s 2021 Clean Heat Standard set ambitious, nation-leading goals for the state’s gas utilities to reduce greenhouse gas emissions at least 22% below 2015 levels by 2030. Since Xcel Energy, Colorado’s largest electricity and gas provider, began implementing its first Clean Heat Plan in late 2024, it has provided incentives to tens of thousands of customers to improve the efficiency of their homes and install electric heat pumps and heat pump water heaters.
However, despite positive initial results, Xcel is not on track to meet the 2030 clean heat goal; under its base forecast, the utility’s emissions are projected to be 4% higher than its 2015 emissions in 2030 and far higher than Colorado’s statutory goal.
In this report, we present a detailed Pollution-Free Buildings portfolio for Xcel that, if adopted, would enable the utility to meet its 2030 clean heat goals, get on track to meet or exceed its 2035 goals and establish Colorado as a national leader in building decarbonization. And we explain why, as gas sales decline, regulators must shape clean heat programming — and related utility policies and investments — to maintain affordability for customers over the mid- to long-term.
