Today, Governor Polis will sign into law SB24-218 – The Powering Up Colorado Power Distribution System Modernization Act, marking a major milestone in the state’s transition to clean energy. This comprehensive legislation introduces a series of policy changes aimed at modernizing our local electric grid, ensuring proactive investments and promoting 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 critical challenges facing Colorado’s energy landscape. It advances the electric distribution system’s ability to meet Colorado’s ambitious carbon emissions reduction goals. The bill also helps align electric distribution system plans with state energy goals, including those of the Colorado Energy Office Roadmap for reducing greenhouse gas emissions 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 to ensure the electric 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 for IBEW Local 111, Colorado’s largest utility union, called out 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 bill creates jobs, allocates grants for apprenticeships, and ensures there are good jobs waiting on the other side of graduation, with real long-term workforce planning requirements for Xcel Energy.”
This legislation will also help home and business owners connect planned clean energy projects by avoiding grid shortages, which could help unlock more than 300 MW currently on hold.
“With the governor’s signature, dozens of projects will move from the wait list to interconnection,” said Mike Kruger, president and CEO of the Colorado Solar and Storage Association, “bringing more clean energy, more clean air and more customer control over their projects means. energy bills.”
To enable more renewable energy and battery storage on the electric grid, the bill strengthens distribution system planning (DSP) by encouraging long-term infrastructure improvements by directly linking the utility’s DSPs to cost recovery. Utilities will be further required to prioritize investments in income-qualified communities or disproportionately affected communities with limited housing capacity, which will improve equity outcomes as the plan is implemented.
“This law is a critical step forward for Colorado to remain the West’s leader 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 provides critical resources for utilities, reduces interconnection wait times, and creates opportunities for new solar and storage development across the state.”
Xcel Energy’s next DSP will be the first in the country to integrate load and generation, allowing customers to participate in demand response programs and effectively utilize distributed resources. This new approach to planning also opens the door to essential components of a carbon-free energy future such as virtual power plants.
News item from COSSA
