Xcel Energy proposes rate hikes, power shutoffs in $1.9B Wildfire Mitigation Plan
DENVER (KDVR) — Xcel Energy has submitted a proposed Wildfire Mitigation Plan for the next three years, and if it’s approved as is, the plan would increase residential bills by about 9.56% by 2028 and allow the company to shut off power if it believes its equipment could spark a wildfire.
The Colorado Public Utilities Commission will review the plan, and members of the public will be able to weigh in during the approval process. A typical residential bill would increase by about $8.88 per month by Jan. 1, 2028 “through incremental, bi-annual changes,” said Xcel.
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According to the provided budget for the plan submitted to the public utilities commission, implementation will cost about $1.9 billion — a costly plan that Xcel says will help “minimize risks associated with wildfires that could be caused by electric equipment.”
The company is facing at least 302 complaints, according to information the company gave investors, after the Boulder County Sheriff’s Office pointed to the electric and natural gas supplier as a possible second-ignition cause of the Marshall Fire on Dec. 30, 2021.
The company disputes that its lines were involved in the ignition. Still, the fire caused over $2 billion in estimated property losses, according to investigators.
“Keeping our customers and communities safe across our service territory is paramount,” said Bob Frenzel, president and CEO of Xcel Energy, in the plan announcement. “Our goal is to ensure that no catastrophic wildfire is started by Xcel Energy assets. And, while we’ve made significant wildfire safety progress in Colorado and achieved key goals, there is still work to be done to meet the evolving threat. This plan lays out our proposed path forward to help build a more fire-resilient Colorado, working in partnership with others who are also fighting to protect our communities.”
In the newly filed plan, the company is recommending a slew of investments and improvements that it says will help keep electricity from sparking more fires, including:
Adding hundreds of weather stations for more detailed information near Xcel’s power lines
Tripling the number of AI cameras for early smoke detection
Updating the schedule for inspecting electrical poles and equipment in wildfire risk zones
Using inspections to create 3D maps of equipment and terrain in high-threat areas
Expanding vegetation management in high-risk areas and “setting new standards for inspections, clearance, and pruning frequency”
Begin a multi-year process of identifying and replacing or upgrading equipment, moving targeted power lines underground, replacing and repairing poles, and rebuilding transmission lines
Adding more members to the wildfire risk team
Xcel plans more ‘Public Safety Power Shutoffs’
Xcel’s Colorado subsidiary is also facing scrutiny after turning off power during a strong windstorm in early April, a move it said was designed to prevent fires from sparking off the power lines — and a move it wants to recreate.
The company said in its June 27 filing that it wants to increase the number of lines with remote safety settings and also incorporate more shutoffs in the future. In a separate document filed with the Colorado Public Utilities Commission, Xcel shared details of how it plans to implement pre-emptive power outages.
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To decide when customers lose power during potential fire weather, Xcel has created a “dynamic decision-making process” that outlines how weather model forecasts, real-time weather station data, fire spread simulations and risk planning software will be used in combination with historical climate data to decide when the best time is.
There would be some mitigation of the power shutoff, according to the company, which proposed a backup energy rebate program. The company said that income-qualified, medical exemption rate and medical certification customers may have bigger impacts from power losses.
Because of this, it will “offer rebates to the customer purchase of Battery Energy Storage Systems and Vehicle-to-Home equipment to support the use of electric vehicle batteries.” The rebates, according to the company, are intended to cover all of the costs to purchase the equipment and install it.
However, the unexpected shutoff in April led to an investigation by Colorado’s Public Utility Commission — the same group now tasked with reviewing the proposed wildfire mitigation plan.
The company has created a four-step plan to determine when they will shut off power:
Watch period
During the watch period, Xcel employees will be in an elevated state of alertness and will be watching for low vegetation moisture, extreme wind speeds and low relative humidity.
Outage event confirmation
The event confirmation can take place as much as five days before a shutoff. This is the stage where the company determines if the risk to public safety is higher with power on than off.
Outage area scoping
In this stage, the company may refine the area where it will be turning off power, based on current and forecast weather. The analysis and refinement of the outage area could occur until the end of the outage.
Restoring power
“As soon as it is safe to do so, (Xcel) commences the restoration process.”
The plan also says that 48-72 hours before a power shutoff, the company will notify local offices of emergency management, local and state officials, the public utilities commission and “critical customers,” in addition to qualifying medical customers.
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In the 24-48 hour range before the planned shutoff, the company will inform the above agencies, plus potentially impacted customers. About an hour to four hours before the shutoff, the company will notify everyone again. The company also plans to issue updates “every 24 hours” during a power shutoff, and then finally provide notification of power restoration.
“Xcel Energy is committed to public safety, and to reducing the possibility and impact of wildfires for our customers, communities, and way of life in Colorado,” said Robert Kenney, President of Xcel Energy – Colorado. “This proposed plan utilizes strategies and technologies that have proven to be successful around the country in reducing wildfire threats from utility equipment. The plan builds on work that’s already underway, expanding the scope, pace, and scale of what’s already in place, while leveraging new and emerging technology to go even further.”
The timeline for when the plan will be discussed by the public utilities commission or when it will be available for public comment has not been announced.
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