After missing its 2022 and 2024 emissions-reduction benchmarks under its franchise agreement with Boulder, Xcel Energy is expected to meet the 2027 target, according to city staff. That benchmark calls for a 67% reduction from 2005 emissions levels.
Boulder’s 2027 goal limits Xcel’s emissions to 11.5 million tons. The utility expects to emit 8.1 million tons in 2027, Xcel representatives told city councilmembers at a study session. Emissions are expected to fall to 3.8 million tons by 2030, compared with the city’s goal of 6.9 million tons.
The targets were included in the agreement Boulder signed when it renewed Xcel’s franchise in 2020, after voters chose to end the city’s decade-long effort to form a municipal electric utility. The utility missed benchmarks calling for emissions reductions of 52% in 2022 and 61% in 2024. Although the agreement imposes no penalties for missing the targets, Boulder may choose to leave the franchise in 2028 if Xcel fails to meet its emissions requirements.
The outlook beyond 2027 is less certain, according to the city staff memo. Failed projects, construction delays and customer growth have left Xcel short of the resources needed to meet its statewide goals, city staff said, raising questions about whether the utility will meet Boulder’s 2030 target. Xcel presented a more confident outlook to councilmembers, saying 85% of the utility’s Colorado energy supply is expected to come from renewable sources by 2030. The shift would reflect a 90% decrease in emissions compared with 2005.
Working with Xcel is part of Boulder’s climate action plan, which calls for decarbonizing the electricity grid and moving away from natural gas. Boulder aims to obtain 100% renewable electricity by 2030, but the city must roughly double its current pace of emissions reductions to meet its broader climate goals.