A bill in Colorado to optimize the electric grid for clean energy has gone into effect

Today, Governor Polis will sign SB24-218, the Powering Up Colorado Modernizing Energy Distribution Systems Act, marking a significant milestone in the state’s transition to clean energy. This comprehensive legislation introduces a series of policy changes designed to modernize our local energy grid, ensure proactive investment and support the adoption of clean energy technologies.

SB24-218, sponsored by Senate President Steve Fenberg, Senator Chris Hansen, House Majority Leader Monica Duran and Representative Kyle Brown, addresses the most important challenges facing Colorado’s energy landscape. Expands the capacity of the electric distribution system to meet Colorado’s ambitious decarbonization goals. The bill also helps align electric distribution system plans with the state’s energy goals, including the Colorado Office of Energy’s Greenhouse Gas Pollution Reduction Action Plan Version 2.0.

“As more Coloradans choose cost-effective clean energy technologies like electric vehicles and heat pumps, our utilities must be able to quickly connect them to a safe and reliable distribution grid,” said Will Toor, executive director of the Colorado Energy Office. “This bill is a step in the right direction, ensuring the energy grid keeps pace with our efforts to protect the climate, improve air quality and lower energy costs for Coloradans across the state.”

Nate Gutierrez, business manager of IBEW Local 111, Colorado’s largest utility workers union, emphasized the immediate benefits for a skilled workforce and improved infrastructure, saying, “We are investing in our future in more ways than one.” said IBEW. “This law creates jobs, allocates subsidy money for apprenticeships, and ensures there are good jobs after graduation that meet real-world long-term job planning requirements for Xcel Energy.”

This legislation will also help home and business owners connect planned clean energy projects, avoiding grid shortfalls, which could help unlock the more than 300 MW currently on hold.

“With the governor’s signature, dozens of projects will be moved off the interconnection waiting list,” said Mike Kruger, president and CEO of the Colorado Solar and Storage Association, “which means more clean energy, more clean air and more customer control over their utility bills. “

To accommodate more renewable energy and battery storage on the grid, the bill strengthens distribution system planning (DSP), incentivizing long-term infrastructure improvements by directly tying a utility’s DSP to cost recovery. Utilities will also be required to prioritize investments in high-income or disproportionately distressed communities with limited housing options, improving equity outcomes as the plan is implemented.

“This law is a key step forward for Colorado to remain a leader in the West in distribution system planning,” said Sara Birmingham, vice president of state affairs for the Solar Energy Industries Association. “Neighboring states should take note of Colorado’s thoughtful approach to developing this framework, which secures critical resources for utilities, reduces interconnection wait times, and creates opportunities for the development of new solar and storage solutions across the state.”

Xcel Energy’s next DSP will be the first in the country to be load- and generation-aware, enabling customers to participate in demand response programs and efficiently utilize distributed resources. This innovative planning approach also opens the door to key elements of a zero-emission energy future, such as virtual power plants.

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