Kristen Cheriegate | ICAST Policy Manager
==========
Xcel Energy’s Clean Heat Plan for Colorado Moving Forward
Colorado’s largest investor-owned utility, Xcel Energy, should soon receive a written order from the state’s Public Utilities Commission to finalize and implement its “2024-2028 Clean Heat Plan.” The plan directs more than $440 million over the next three years towards electrification and energy efficiency, primarily through incentives that can be combined with federal electrification tax credits. One-fifth of the funding is reserved for low-income customers. Additionally, customers will receive higher rebates if they choose more advanced technologies, like high-efficiency cold-climate heat pumps. Xcel aims to provide 20,000 heat pump conversions this year alone and just under 100,000 by the end of 2026. The plan will cause electricity rates to increase by 1.1% and gas rates to rise by 7% over the next four years; however, Xcel projected that it would need to increase base rate revenue even without the plan.
The Clean Heat program advances the goals of Colorado’s 2021 Clean Heat Law, which requires gas distribution utilities to help transition homes to clean heating and reduce their greenhouse gas emissions to 4% below 2015 levels by 2025 and 22% below by 2030. While many states have energy efficiency and electrification rebates and incentives, Colorado stands out for the roles and contributions required of gas utilities.
Biden-Harris Administration Announces Millions to Expand Federal Weatherization Program
The U.S. Dept. of Energy (DOE) recently announced the award of $53.6 million in Sustainable Energy Resources for Consumers (SERC) grants. These funds will enable 14 state and territorial weatherization offices to provide low-income households with energy-saving measures and materials not traditionally included in DOE’s Weatherization Assistance Program. SERC grantees will conduct expanded retrofits of low-income residential buildings and utilize technologies such as solar photovoltaic panels, cold climate air source heat pumps, and triple-pane windows. Grantee projects include:
- $1,500,000 for “Decarbonization of LI communities via electrification in Delaware”
- $1,300,000 for “Smartflower Ground-Mounted Community Solar and 1-4 Unit Solar Installations” in Massachusetts
- $4,301,375 for “Solar for Ohio’s Appalachian Region (SOAR) and Toledo Green & Healthy Homes Program”
- $1,307,271 for “Increasing Energy Efficiency and Reaching Electrification” in Utah
New York Announces Energy Affordability Guarantee Pilot Program
The New York State Public Service Commission (PSC) has approved the Energy Affordability Guarantee pilot program, designed to reduce the energy burden for low-income households that fully electrify their homes. This pilot program will work in tandem with the pre-existing EmPower+ program administered by the New York State Energy Research and Development Authority. EmPower+ provides low- and moderate-income households with no-cost and subsidized energy efficiency and clean energy upgrades. The Energy Affordability Guarantee pilot program will provide roughly 1,000 EmPower+ participants with tailored bill assistance to ensure they pay no more than 6% of their annual household income toward electricity costs.
The multi-year pilot program is funded through a $50 million appropriation in New York’s FY2025 State Budget. In addition to mitigating energy burdens, the PSC expects that the pilot program will fill in key information gaps regarding the electrification of low-income households, such as the incremental electricity consumption and cost associated with operating heat pumps across different customer and housing profiles.