Senate Bill 26-022

Colorado legislation passed in 2019 directs utilities to file voluntary plans to reduce greenhouse gas emissions 80% by 2030 and 90% by 2050.

We submitted our voluntary Clean Energy Plan to the Colorado Air Pollution Control Division. This filing forms the foundation of our Sustainable Energy Plan. This plan includes several projects and programs to reduce carbon emissions from our operations, manage our long-term costs and maintain our industry-leading reliability.

We explored joint ownership/partnerships with Xcel Energy on the Power Pathway Project, identifying the project as a potential solution to our transmission constraints.

Despite our interest, Xcel Energy found that they required the entirety of the project for their own purposes. In testimony filed at the Public Utilities Commission, Xcel Energy ‘s President stated, “I do not anticipate a structure where any of these other utilities own a portion of the Pathway Project. Rather, it would be developed consistent with the approach reflected in our Direct Case, with Public Service owning the project.”

In November of 2021, Xcel filed a non-unanimous settlement agreement at the PUC which states: “At this point in time, Public Service (Xcel) does not anticipate that a joint ownership/partnership arrangement will materialize for the Pathway Project.”

We applied for the three  Department of Energy Grid Resilience and Innovation Partnership grants (rounds 1, 2 and 3) over three years to seek federal funding support for for substation and transmission line projects. All grant applications were denied. 

2022: Submitted first application for Department of Energy (DOE) Grid Resilience and Innovation Partnership Round I Grant (GRIP Grant) seeking federal funding support from the Infrastructure Investment Jobs Act for substation and transmission line upgrades.

2023 Roadblock: DOE does not move forward with our first GRIP application.

2023: Second DOE GRIP grant pursued. Partnered with the Colorado Energy Office on the “Rocky Mountain Region Transmission Coalition” application for a $40 million grant to connect our transmission system to renewable resources in the San Luis Valley.

2023 Roadblock: DOE does not award our second GRIP Grant application.

2024: Third DOE GRIP Grant pursued. Applied for a $58 million DOE Round 2 GRIP Grant seeking federal funding support created in the Bipartisan Infrastructure Act for substation and transmission line upgrades.

2024 Roadblock: DOE does not award third GRIP grant application (2024).   

We took the first steps to join the Southwest Power Pool's Regional Transmission Organization. Joining SPP will secure us access to a broader, lower-cost transmission network, and will allow us to access more renewable energy.

Pike Solar, the largest solar facility in the region, went online in 2023. The 175-megawatt solar array is located south of Colorado Springs.

Substation expansions are necessary as we redesign our system to enable us to better import electric resources from outside our community. The Sustainable Energy Plan outlined several substation expansion and transmission line projects, which we have completed or are in progress. These include:

• Kelker Substation expansion (2023)

• Briargate Substation and transmission line (2023)

• Cottonwood-Fuller transmission line (2023)

• Williams Creek Substation (2023)

• Horizon Substation (2024)

 

In October 2023, we fielded requests for proposals to explore options for an additional 1,500 megawatts of new electric generation and up to 200 megawatts of battery energy storage. 

Demolition activities at the site of the former Martin Drake Power Plant were completed in 2024, following nearly a century of electric generation in downtown Colorado Springs.

During 2023 and 2024, we went to market to acquire renewable energy projects needed to help achieve emissions reduction targets. The bids received exceeded budgeted forecasts by 50% to 60%.

In 2024, City Council approved a five-year rate case that includes a 6.5% annual increase in electric base rates through 2029. More than 50% of these electric system investments are driven by regulatory requirements, including compliance with our Clean Energy Plan targets.

The Utilities Policy Advisory Committee studies the feasibility of nuclear power generation in Colorado Springs.

The elimination of federal clean energy subsidies, including the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for wind, solar, and battery projects, and new tariffs imposed on materials necessary for utility infrastructure, have made the current market for new projects even more expensive. 

In July 2025, we joined CORE Electric Cooperative, Platte River Power Authority and United Power to explore an innovative transmission solution that will better serve our member-customers. 

The collaboration aims to reduce electric transmission congestion, enhance system reliability and expand access to renewable energy sources, all while supporting the state of Colorado’s ambitious carbon reduction goals.

The four utilities have agreed to continue to evaluate future transmission options that can best support each utility’s needs while advancing shared goals for reliability, affordability and sustainability.

A new site for 400 megawatts of new natural gas-fueled, hydrogen-capable electric generators, and 100 megawatts of battery energy storage. When paired with battery storage, these new units will enable us to balance large quantities of renewable energy brought into our system. 

Jackson Fuller Energy Storage is a 100 megawatt battery installed at our Jackson Fuller substation. It supports the Sustainable Energy Plan's goal of acquiring new energy resources that reduce emissions and manage costs so we can meet the growing demands of our community. The system became operational in May 2025.

The Utilities Policy Advisory Committee studies the feasibility of nuclear power generation in Colorado Springs.

Our entry into the Southwest Power Pool (SPP) Regional Transmission Organization (RTO) in 2026 will significantly expand our access to regional energy resources and transmission line capacity. This expansion will occur at a much faster pace and lower cost than if we were to secure these resources ourselves.