Public Interest Groups Seek Intervention in Xcel Energy Data Center Tariff Proceeding

Denver, CO —

Public interest organizations today filed a petition with the Colorado Public Utilities Commission (PUC) seeking intervention in Xcel Energy’s proposed tariff for data centers and other large load customers. The groups hope to ensure the PUC adopts the strongest possible protections for residential utility customers to prevent electricity cost increases and minimize data centers’ harmful impacts to the grid, while ensuring that load growth supports affordability, reliability, and Colorado’s clean energy transition. With the Colorado legislature’s postponement of legislation placing guardrails on data centers, the groups noted that it is even more important for the PUC to take meaningful action in this proceeding.

In April, Xcel Energy announced a large load tariff proposal that public interest groups say takes steps in the right direction but must be improved. Xcel’s proposal would create a new large load rate class for customers with new or incremental loads greater than 50 megawatts and modify policy for transmission cost allocation. The utility is also proposing an optional Clean Transition Tariff that would allow large load customers with clean energy goals to receive electricity from zero-emissions sources that Xcel would not otherwise acquire, including geothermal, nuclear, long duration storage, and carbon capture and storage. Finally, Xcel proposes an optional Speed-to-Market Pathway to allow data centers that require accelerated timelines or greater flexibility to enter into tailored contracts.

Public interest groups hope to see improvements on Xcel’s initial proposal, including:

• Stronger protections against shifting infrastructure costs onto existing customers, which would increase household energy bills;
• Clearer pathways for large loads like data centers to support investments in non-emitting resources that strengthen the grid and deliver direct benefits to Colorado households;
• Greater consideration of customer-sited distributed energy resources, virtual power plants, demand flexibility that can reduce strain on the grid and avoid costly infrastructure expansion; and
• Safeguards to ensure that data center growth does not increase reliance on fossil fuel infrastructure or undermine Colorado’s clean energy and affordability goals.

If the groups are granted intervention, they will present arguments in favor of these improvements during the upcoming proceeding.

“Colorado is at a pivotal moment as new large electricity users like data centers come onto the grid,” said Rebecca Curry, policy director at Rewiring America. “As energy demand grows, we need policies that protect households from rising costs while making the grid more flexible, resilient, and affordable. Large new energy users should help invest in and drive the kinds of solutions that directly benefit communities – such as home energy upgrades, demand flexibility, and distributed energy resources that can reduce strain on the grid and avoid costly new infrastructure.”

“The data center boom is coming to Colorado, but that doesn’t mean we can’t find innovative ways to work together on the grid,” said Courtney Fieldman, director of utility programs at SWEEP. “These large new loads have significant potential for flexibility, and a well-designed tariff can transform that potential into a real asset — reducing costs for everyone while supporting Colorado’s clean energy progress. By looking at new pathways like virtual power plants (VPPs), smart demand response, and clean distributed energy, we believe we can protect families from rising bills and create a stronger, more resilient system that works for us all.”

“Coloradans are already feeling the impacts of the data center boom in our state, and it is imperative that we put meaningful protections in place,” said Emma Hardy, associate attorney for Earthjustice’s Rocky Mountain Office. “Especially on the heels of the legislature’s failure to pass data center legislation, the PUC must prevent cost increases for residential utility customers and minimize harmful impacts on our grid.”

Earthjustice represents Rewiring America and Southwest Energy Efficiency Project in the intervention.