On January 21, 2025, Xcel Energy-Colorado announced the Mountain Energy Project, its largest non-pipeline alternative initiative aimed at reducing natural gas consumption and emissions. This project is designed to enhance the reliability and comfort of customers served by the Easter Mountain Gas System across Grand, Lake, Eagle, and Summit counties.
The Mountain Energy Project integrates non-pipeline alternatives, such as energy efficiency and conservation programs, with new modular liquid natural gas and compressed natural gas technologies. This approach intends to meet the increasing demand for natural gas while maintaining low customer bills and addressing environmental concerns.
Robert Kenney, president of Xcel Energy Colorado, emphasized that the initiative represents a shift away from traditional natural gas pipeline expansions. Instead, it focuses on alternative projects that fulfill the needs of new and existing customers as communities grow. The project is also aligned with Colorado's clean energy goals and aims for net-zero natural gas service by 2050.
With an estimated overall cost of $155 million, Xcel Energy's preferred portfolio for the project is the most cost-effective among the four evaluated. The Colorado Public Utilities Commission will review the proposal, with a decision expected by the end of 2025.
Industry experts have expressed optimism about the potential impacts of the Mountain Energy Project. Mike Henchen from the Rocky Mountain Institute highlighted its promise in deploying non-pipeline alternatives at scale, which could lead to significant reductions in gas demand and emissions.
Justin Brant, Utility Program Director at the Southwest Energy Efficiency Project, noted that such initiatives will be crucial for achieving the state's greenhouse gas emissions targets while also improving public health and reducing energy costs for residents.