2024

When global forces pushed gas prices sky-high in the winter of 2022-2023, many Coloradans saw their heating bills double and triple overnight. That season showed how exposed we are when relying on methane gas for space and water heating: prices can fluctuate unpredictably, homes and businesses feel the strain, and greenhouse gas emissions from burning fossil fuels continue to threaten our climate. Thankfully Colorado was already planning for a cleaner, more affordable way forward. 

Recognizing buildings as a top contributor to climate warming emissions, WRA helped pass a pivotal 2021 law requiring Colorado’s gas utilities to file comprehensive Clean Heat Plans. These plans must include measurable activities to cut emissions directly linked to gas use in buildings. Over the ensuing years, WRA engaged in rulemaking with the Colorado Public Utilities Commission and Air Pollution Control Division to implement the legislation in a robust and enforceable manner that would drive deep, cost-effective emission reductions. 

When Xcel Energy, the state’s largest utility, submitted its inaugural Clean Heat Plan in August 2023, it proposed continued reliance on a variety of measures: energy efficiency, electrification, recovered methane, and green hydrogen, as well as investments in ineligible resources like certified gas and carbon offsets, which, at WRA’s urging, the Commission rejected. 

WRA and our partners responded with detailed expert testimony. We made it clear that real pollution reductions will only come from reducing the combustion of fossil fuels in homes and businesses. 

Our modeling showed that switching to electric heat pumps — especially as Colorado’s power grid continues adding wind and solar — could deliver as much as 80% of the needed emissions cuts. We also demonstrated that unpredictable gas prices make electrification and efficiency far more appealing for consumers, and that these strategies bring important air quality and public health benefits. 

Roughly two out of three buildings in the Interior West still use fossil gas for cooking, heating water, or space heating, making rapid electrification both critical for the state’s climate strategy and an opportunity to protect residents from the volatile gas market. 

 After considering our testimony, analyses, and legal arguments, the Commission approved Xcel Energy’s revised landmark Clean Heat Plan in June 2024. The utility is now authorized to invest up to $440 million to shrink customers’ reliance on fossil fuels. 

The primary measures to meet these goals include promoting electric heat pumps and ramping up energy efficiency through building weatherization and smart upgrades. The Commission limited investment in uncertain technologies like hydrogen, deeming it too expensive, and restricted the utility to spending just $10 million on recovered methane. 

By focusing more heavily on proven strategies, the state expects this plan to prevent over 860,000 tons of climate pollution annually by 2027 — the equivalent of taking 160,000 cars off the road for an entire year. 

Throughout the proceedings, WRA advocated for a Clean Heat Plan that prioritized low-income households by ensuring a portion of the program funds would go directly to rebates and support for home upgrades. State regulators agreed, designating at least $88 million of the funding for low-income communities, a move that helps ensure those who can least afford heating costs aren’t left behind. The Commission also supported on-bill financing — an approach WRA endorsed — that lets customers pay for energy-efficient appliances and weatherization gradually through their monthly utility bill, rather than facing large, upfront costs. 

While this marks a critical win for WRA — and for Colorado — it also signals a much broader opportunity. If a major utility can pivot away from decades of fossil gas use without undercutting reliability or affordability, other states across the Interior West and beyond will take note. 

Over the next several years, WRA and policymakers will be watching to see how quickly Coloradans adopt heat pumps, how effectively low-income households tap into rebates, and whether the construction and HVAC industries ramp up a new workforce skilled in installing and maintaining electric heating systems. 

In the meantime, WRA will continue pushing for robust implementation and accountability across the state. We will monitor Xcel’s progress to ensure its Clean Heat Plan delivers on its promises — both in reducing emissions and providing real consumer benefits — and we will remain actively involved in utility rate cases, infrastructure proposals, and future rulemaking to ensure we continue to make progress in the transition away from methane gas. 

Our work in Colorado shows that building electrification and strategic energy efficiency can deliver reliable, affordable heat while slashing climate pollution. WRA is using this same research and model to advance building decarbonization policy in other states across our region. 

Your support allows WRA to develop innovative policy solutions like clean heat and helps utilities across the region embrace electrification and efficiency. That means a cleaner, healthier future not just for Coloradans, but for families and businesses across the West.