The rapid adoption of efficient electric appliances like heat pumps and building energy efficiency measures is the most cost-effective way for Xcel Energy to reduce greenhouse gas emissions from its gas utility, according to a report released today (July 19) by Western Resource Advocates, Natural Resources Defense Council (NRDC) and the Southwest Energy Efficiency Project (SWEEP). The report outlines how to rapidly scale up the deployment of energy efficiency and efficient electric appliances, and does not rely on alternatives, such as green hydrogen and renewable natural gas, which are roughly five times more expensive, have adverse air quality impacts, and are not able to achieve the deep, long-term economy-wide emission reductions required by Colorado statute.
"This report shows that a market transformation toward efficient electric appliances is feasible, and that electrification and efficiency are the most effective way for Xcel's gas utility to achieve its GHG emissions targets, protect our climate, save households money, and improve our health," said Meera Fickling, senior policy advisor at WRA. "We recommend that Xcel invest now in efficient electric appliances in buildings. The company has an opportunity to serve as a model for other utilities of how to transition from harmful fossil fuels."
In 2021, Colorado passed legislation requiring the state's gas utilities to reduce their greenhouse gas emissions 4% by 2025 and 22% by 2030, relative to 2015 levels. By this measure, Xcel Energy, Colorado's largest electricity and gas provider, must reduce emissions from its gas system by 28% from current levels in the next seven years. Xcel must file a Clean Heat Plan by Aug. 1, 2023, that details the steps it will take to meet these emissions reduction goals. It will be the first utility in the nation to submit such a plan.
In the new report - A Path to Pollution-Free Buildings: Meeting Xcel's 2030 Gas Decarbonization Goals - experts from WRA, NRDC and SWEEP outline how to drive a steep reduction in emissions from the gas utility and demonstrate how Xcel can cost-effectively meet Colorado's targets.
This report's key findings and recommendations include:
- Prioritizing replacing air conditioners, gas furnaces and boilers, and gas water heaters with efficient electric appliances.
- Accelerating gas efficiency savings.
- Frontloading spending to stimulate the market for efficient electric appliances and promoting workforce development and customer education.
- Ensuring robust incentives for low-income households.
The Colorado Public Utilities Commission will hold public hearings on Xcel's Clean Heat Plan in late 2023 or early 2024 and is expected to rule on the filing by mid-2024.
Western Resource Advocates is a regional nonprofit advocacy organization fighting climate change and its impacts to sustain the environment, economy, and people of the West. From deep and scientific policy analysis to highly effective legal strategies, the organization is creating a healthier and more equitable future for local communities. For more information, visit WesternResourceAdvocates.org.
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James Quirk
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