Colorado PUC decision codifies environmental justice advocates’ settlement with Xcel Energy

Colorado's capitol building with the PUC building in the background

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The Colorado Public Utilities Commission (PUC) has voted in favor of the recommendation of administrative law judge Kelly A. Rosenberg to approve Xcel Energy’s 2026-27 Renewable Energy Compliance Plan, as amended by a settlement between Xcel and other stakeholders that include the Environmental Justice Coalition (EJC), a group of non-profit advocates that comprises GRID Alternatives and Vote Solar, which was represented in the proceeding by legal counsel from GreenLatinos.

In a statement celebrating the decision, EJC members pointed to the benefits of the settlement it helped bring about to promote equitable access to renewable energy, which include a $1.5 million shift in program funding to  increases in incentive amounts and increased outreach and engagement with income-qualified communities, and material accessibility for Spanish-speaking Coloradans.

“We’re pleased with the outcome of this proceeding,” said Jamie Valdez, Colorado transportation and energy advocate with GreenLatinos. “The EJC worked hard to ensure GreenLatinos members and low-income households across Colorado will be able to enjoy the benefits of a just energy transition with reliable, affordable electricity, regardless of their socioeconomic status, and this decision by the PUC advances those goals.”

Benefits of the settlement listed by VoteSolar include:

  • An increase to incentive amounts in the Xcel Solar*Rewards Residential Incentive, from $2 to $3 per watt for income-qualified/disproportionately impacted community customers 
  • An increase in incentive amounts in the Enhanced Renewable Battery Connect Incentive, from $800 to $1,000 per kW for those customers
  • The rollover of more than 200 MW of statutorily-earmarked solar capacity from a previous Xcel community solar program to the new Inclusive Community Solar program
  • The provision of Spanish-language versions of Xcel’s important program webpages, forms and marketing materials
  • A commitment from Xcel to collect data regarding and assess the effectiveness of its outreach and engagement campaigns that target income-qualified participant enrollment in its programs

“Stakeholders involved in shaping the Renewable Energy Plan brought forward bold, community-centered ideas to ensure the benefits of clean and affordable energy, like solar, reach everyone,” says Claudine Custodio, regulatory director for Vote Solar. “We are proud to have reached a compromise that advances programs designed to lower energy bills and deliver meaningful, long-term savings for families struggling with rising utility costs.”

Energy Outreach Colorado’s requests for exceptions denied

As part of the proceeding, Energy Outreach Colorado (EOC) had requested for $25 million from accumulated Renewable Energy Standard Adjustment (RESA) surplus funds to provide bill assistance for income-qualified customers over a five-year period.

EOC argued this was necessary due to the severe underperformance of income-qualified community solar during the 2022-2025 Renewable Energy Plan, which resulted in just 3.6 MW of the statutorily-approved 165 MW of income-qualified community solar capacity becoming operational.

The Commission ultimately determined that a Renewable Energy Plan proceeding was not the appropriate venue for EOC to advocate for this kind of generalized bill assistance proposal and noted the state legislature had already responded to the underperformance of past income-qualified community solar programs by enacting Senate Bill 24-207. 

However, the decision did acknowledge the affordability pressures facing IQ customers and encouraged EOC to pursue its $25 million bill assistance proposal in a more suitable proceeding, such as Xcel Energy’s next general rate case.

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