2030 Ready: Our Colorado Clean Energy Plan
Overview
Our customers value renewable energy, and we are proud our Colorado energy supply is one of the cleanest in the state, powered 100% by natural gas-fired generation and renewable energy. With the December 2024 approval by the Colorado Public Utilities Commission (PUC) of our Clean Energy Plan, “2030 Ready,” we are on track to power our customers’ homes and businesses with 75% renewable energy by 2030, achieving an 82% reduction in greenhouse gas emissions. Our plan will add 350 megawatts (MW) of new renewable resources to our system by 2027, cost-effectively exceeding the state of Colorado’s requirement calling for electric utilities to reduce emissions by a minimum of 80% by 2030.
“Our 2030 Ready Plan builds on a clean energy journey that began over a decade ago when we became the first utility in the state to move away from coal.”
— Campbell Hawkins, Black Hills Energy’s vice president of Colorado operations
New renewable energy projects:
- 200 MW utility-scale solar project to be built in Pueblo County (energy to be procured through a long-term power purchase agreement)
- 100 MW utility-scale project to be built in Pueblo County (utility built to own project)
- 50 MW battery storage facility to be located at the Pueblo Airport Generating Station (PAGS)
Jan. 1, 2025, update: The Colorado PUC has approved a new monthly surcharge on customer bills to help fund the Clean Energy Plan. Starting on Jan. 1, 2025, customers will see a new line item on the bill, the Clean Energy Plan Rider (CEPR). At the same time, the PUC approved a reduction in the Renewable Energy Standard Adjustment from 2% to 1.5%. The net impact is approximately $0.50 per month for residential customers, or 0.5% of the total annual bill.
Highlights of our 2030 Ready Plan:
- 82% reduction in greenhouse gas emissions by 2030 based on 2005 levels
- 75% of our customers’ electricity generated by carbon-free sources by 2030
- 350 MW of new renewable resources, including solar and battery storage
- Opportunities for customers to save money as renewable energy reduces generation costs
Frequently asked questions
What are you announcing?
We are announcing the approval by the Colorado PUC of our Colorado Clean Energy Plan, “2030 Ready." Our plan will add 350 MW of new renewable energy resources to our Colorado electric system, resulting in 75% of our customers’ energy needs powered by renewable energy resources by 2030. Our plan cost-effectively achieves an 82% reduction in greenhouse gas emissions, exceeding the state’s requirement for electric utilities to achieve a minimum reduction of 80% by 2030.
What factors were considered in the planning process?
The resource planning process is grounded in our commitment to our customers and the steps necessary to provide them with safe, reliable and cost-effective energy in the near- and long-term. Through extensive analysis and modeling, we arrived at a preferred generation portfolio to meet our customers’ energy needs, while cost-effectively achieving the state’s emissions reduction requirements.
How will Black Hills Energy achieve the required emissions reduction?
Our 2030 Ready Plan will add 350 MW of new, utility-scale, clean energy resources, including solar and battery storage. With these additional resources on our Southern Colorado system, we will achieve an 82% emissions reduction by 2030.
How will this be paid for?
Black Hills Energy is leveraging $150 million of tax benefits over 10 years through the federal Inflation Reduction Action. This will be paired with an estimated $1.50 line item on residential bills called Clean Energy Plan Rider (CEPR).
What percentage of renewable energy will be on your system in 2030?
As a result of our 2030 Ready Plan, about 75% of our customers’ electricity needs will be powered by renewable energy by 2030.
Where will the renewable energy come from?
The new renewable energy resources will come from three projects — a 200 MW utility-scale solar project to be built in Pueblo County, a 100 MW utility-scale solar project to be built in Crowley County, and a 50 MW battery storage facility to be located at our Pueblo Airport Generating Station.
When will the new renewable energy be placed into service?
The new renewable energy resources will be added to Black Hills Energy’s Southern Colorado system by 2027.
Will all this renewable energy on your system affect system reliability?
No. Our ability to serve our customers with 75% of their power supplied by renewable energy by 2030 is possible in large part due to the flexibility provided by the Pueblo Airport Generating Station (PAGS). The power supplied by PAGS, our modern, highly-efficient natural gas-fired generating station, is critical to this effort. Because of the intermittent nature of renewable energy-based generation — meaning, the wind doesn’t always blow, and the sun doesn’t always shine — we must have a consistent source of generation available to be dispatched at all times. PAGS is the most efficient means of maintaining reliable service to our customers, 24 hours a day and 7 days a week.
Does your 2030 Ready Plan signal a change in the way you operate in Colorado?
Not at all. Leadership in emissions reduction is nothing new for Black Hills Energy in Colorado — we retired our last Colorado coal plant in 2013, becoming the first electric utility fleet in the state to be coal-free. Over the past nine years, we have replaced emission-intensive coal plants with lower emission natural gas generation, wind generation, and solar generation, while maintaining system safety and reliability. Our 2030 Ready Plan is built upon years of phased-in renewable generation developments that have resulted in our energy supply being one of the cleanest in the state, powered 100% by natural gas and renewable energy.