Colorado’s energy regulators are deliberating Xcel Energy’s request to build out new generating resources, even as business groups urged the commissioners to not “artificially” constrain the amount of power that industry experts concluded the state needs.

Xcel is asking the Public Utilities Commission to build 5,000 megawatts of new capacity over the next five years. 

Dave Davia, president and CEO of Colorado Concern, said that the Public Utilities Commission is skeptical of the magnitude of the request for generation and appears to be prepared to substantially pare down the $7.5 billion request. He told The Denver Gazette that the cost per 1,000 megawatts to build a new generation facility today is approximately $1.5 billion.

Business leaders earlier said the PUC should not substitute its judgment for what energy companies and industries have determined Colorado needs.

“System capacity cannot be expanded overnight, and the infrastructure decisions made today will define the limits and the possibilities of the Colorado we leave to those who come next,” Raymond Gonzales, president of the Metro Denver Economic Development Corporation, and Wendy Mitchell, president and CEO at Aurora Economic Development Council, said in an opinion piece in The Denver Gazette. “If forecasts are artificially constrained by the PUC, they do not produce savings or stability, but rather, delay development, drive up costs, and erode confidence among those seeking to invest, grow, create, invent and revolutionize.”

Energy reliability is key in attracting companies to Colorado, Gonzales and Mitchell also said.

“When economic development professionals compete to have projects select Colorado over other states, ensuring access to reliable, affordable, and innovative energy solutions is essential,” they said. “If we want a future that lifts communities, grows opportunity, and secures prosperity for the next generation, we have to power it.”

Monday’s meeting is the second hearing, in which energy commissioners discussed numerous elements of the multi-billion-dollar Xcel plan and decided on several technical and policy questions that will guide the utility company as the process moves forward over the months ahead.

They first met on the subject on Aug. 13.

At Monday’s hearing, the commissioners also discussed the distribution of community assistance payments tied to the retirement of coal power plants, the use of “just transition” credits, and a new “carbon free” future development fund.

Coal communities are facing significant challenges in redefining themselves to cope with the loss of what, for many, has been their the largest employer and primary source of income.

“This is our effort to give them a leg up on getting new resources that would provide not just property tax support but ongoing employment opportunities,” said Commissioner Tom Plant.

Commissioners appeared cognizant of the fact that Xcel’s customers will pay for these additions to Colorado’s power grid.

“This is essentially money being collected from all of the public service company’s ratepayers… not shareholders,” said Commissioner Megan Gilman. “That’s helpful framing to understand what’s appropriate as we navigate these difficult issues.”

Another debate centered on just transition modeling credits — incentives meant to steer new energy projects into coal communities. Commissioners split, 2–1, with Blank and Plant supporting credits as a way to spur investment, while Gilman raised concerns about arbitrariness and cost impacts on ratepayers.

The commission also debated the “Carbon-Free Future Development Fund,” applying a $100 million budget cap, expanding advisory board membership to include community representatives, and strengthening reporting requirements so that ratepayers can see tangible benefits from investments in emerging “clean” technologies.

Another hearing on this subject will be held on Thursday, Aug. 21, from 9 a.m. to noon and is available for remote viewing on the commission’s YouTube channel.