Here’s the release from the PUC via Governor Polis’ office:
Today, the Colorado Public Utilities Commission voted to approve Xcel Energy’s roughly $110 million investment in new electric vehicle infrastructure and programs. The Commission provided an emphasis on support for programs that benefit lower-income households and communities impacted by transportation pollution, including a rebate for customers who qualify based on income to purchase electric vehicles, to ensure that the benefits of electrification are broadly shared.
“Xcel filed a plan to accelerate Colorado’s transition to vehicle electrification,” said Will Toor, Director of the Colorado Energy Office. “With today’s decision, the PUC tapped the accelerator. The decision clearly keeps Colorado moving forward toward vehicle electrification by providing important investment in EV infrastructure.”
Earlier this year, the state released the Colorado Electric Vehicle Plan 2020 that calls for putting 940,000 electric vehicles on the roads by 2030 in order to reduce greenhouse gas pollution and improve air quality. This target is part of Colorado’s Greenhouse Gas Pollution Reduction Roadmap. The Plan approved by the PUC provides support to make significant strides toward meeting the state’s vehicle electrification goals.
Infrastructure is a key barrier to widespread EV adoption. Xcel Energy’s Transportation Electrification Plan includes support for expanding access to public charging, charging at home, and at multi-family homes. The plan also advances support for fleet investments in vehicle electrification. To help customers understand the transition, Xcel will offer education and outreach programs. The plan approved today largely adopts Xcel’s plan and will result in a significant investment in the charging infrastructure needed to meet the state’s EV goals.
The Colorado Energy Office advocated for point of sale rebates to reduce the upfront cost and make it easier for Coloradans to purchase. As part of its decision, the Commission concluded that state law permits a utility transportation electrification plan to include rebates for customers to purchase new or used electric vehicles. The Commission approved a $5 million pilot program to provide rebates to income-qualified customers that will enable lower-income customers to enter the EV market.
With support from CEO and other intervenors, the PUC adopted provisions that require Xcel to identify communities most heavily impacted by transportation pollution, to work with those communities, and to target vehicle electrification investments in those areas.
“Transportation is the leading source of greenhouse gas pollution in Colorado, “ said Keith Hay, Director of Policy at the Colorado Energy Office. “The PUC’s decision is a downpayment on transition to cleaner air and lower emissions. We are especially encouraged that the PUC adopted recommendations focusing on equity in the transition to transportation electrification.”
Electrifying transportation will reduce greenhouse gas pollution, lead to cleaner air, save drivers money, and provide benefits to Xcel’s customers:
The Colorado Electric Vehicle Plan 2020 concluded that meeting the goal of 940,000 EVs by 2030 could help Colorado reduce annual ozone-forming pollutants by an estimated 800 tons of NOx, 800 tons of volatile organic compounds (VOC), and up to 3 million tons of greenhouse gas emissions. An analysis performed by M. J. Bradley & Associates found that under a high EV growth scenario, economic benefits would total $1.3 billion per year by 2050, with 80% of the benefits accruing to EV drivers and the rest to utility customers.
The M. J. Bradley & Associates also found that meeting state EV goals would put downward pressure on future rates, delaying or reducing future rate increases, thereby reducing customer bills by roughly $3 per month in 2030 and rising to potentially $42 per month in 2050. A second study by the International Council for Clean Transportation found that by 2030, the lifetime cost savings of an EV over an internal combustion engine will be more than $3,000.
Xcel Energy customers who are EV owners will see additional annual cost savings from reduced fuel and maintenance costs of approximately $260–$276.