Will Toor

Executive Director

Colorado Energy Office

Colorado Energy OfficeOverview

Our MissionTo deliver cost-effective energy services and advance

innovative energy solutions for the benefit of all Coloradans.

Low Income &

Residential Energy

Services

Commercial &

Industrial Energy

Services

Transportation

Fuels &

Technology

Public Affairs

Confronting the challenge of climate change

100% renewable electricity by 2040

Widespread electrification of cars, trucks, and buses

Creating good paying green jobs

Polis Administration Priorities

State Rankings

5th Crude oil production (2018)

6th Natural gas production (2018)

6th Electric vehicle market share (2018)

9th Wind capacity (2017)

12th Solar capacity (2018)

10th Coal production (2018)

14th Energy efficiency (2018)

Energy Consumption by Sector (2016)

23%Residential

20%Commercial

29%Industrial

28%Transportation

Source: Energy Information Administration

Jobs in Energy Colorado Cleantech Jobs Snapshot

Source: E2 Clean Jobs Report 2018

OIL & GAS JOBS 38,650 direct jobs in the oil and

gas industry in Colorado

Source: Oil and Gas Industry Economic and Fiscal Contributions in Colorado by County, 2014

Colorado Energy OfficeEnergy Economic Overview

Source: Resource Rich Colorado, 2018

Colorado Greenhouse Gas Inventory2014

Source: CDPHE 2014

Colorado greenhouse Gas

Inventory Update

Electric Utilities and

Generation

Colorado Electric Utilities

Investor

Owned Utility

Cooperative

Utility

Municipal

Utility

• Xcel Energy, Black

Hills

• 22 cooperative

utilities in Colorado

• 29 municipal utilities

in Colorado

Colorado Electric Utilities Ranked by

Customers Served (2017)

1. Xcel Energy: 1,459,117

2. City of Colorado Springs: 227,402

3. Intermountain Rural electric Assn.: 154,542

4. Black Hills: 95,951

5. United Power: 83,323

6. City of Ft. Collins: 72,523

7. Holy Cross: 56,709

8. Mountain View Elect Assn.: 51,497

9. La Plata Electric Assn.: 42,653

10. Poudre Valley REA: 40,598

Colorado Electric Utilities Service

Territories

2016

Colorado Electricity Generation2017

Colorado New Generation by Fuel Source1905-2016: Trend to renewables in last decade

82%Natural

Gas

2%Other

16%Wind

Black Hills Energy

28%Natural

Gas

44%Coal

3%Solar

2%Other

23%Wind

Xcel Energy

Colorado Electricity Generation2018 Generation by Utility

22%Natural Gas/Oil

11%Contracts

26%Renewables

41%Coal

Tri-State G&T

Recent Commitments by Xcel Energy

Colorado Energy Plan & Zero-Carbon Electricity by 2050

Credit: Xcel Energy

• Platte River Power Authority (PRPA) is a non-profit wholesale

electricity generation and transmission provider for the four

communities of Estes Park, Fort Collins, Longmont and Loveland.

• Dec 6: The PRPA Board of Directors passed a Resource

Diversification Policy which calls for a 100 percent carbon-free goal by

2030.

• Currently, 32% of their energy supply comes from carbon free

resources which that will increase to 50% by 2020.

PRPA 100% Non Carbon Energy Mix

Aspen

Boulder

Denver

Ft. Collins

Lafayette

Longmont

Nederland

Pueblo

Summit County

Colorado Communities Committed to

100% Renewable Electricity

Customer Savings from Carbon Reduction

Vibrant Clean Energy analysis findings:

Replacing all of Colorado’s aging coal plants with a mix of wind,

solar, natural gas and storage could save the state’s electric

customers in excess of $250 million per year.

Resulting in a cumulative saving of over $2.5 billion in through 2040,

while reducing emissions by 510 million metric tons and increasing

electric sector jobs.

The $2.5 billion savings is in addition to all the coal-fired power

plants having their debt repaid.

Xcel Energy

Utility Load Trends:

Flattening of Demand in IOU Territories

Tri-State

Black Hills

• Xcel Energy's energy savings

account for approximately 1.6% of

electric sales under newly

approved targets. Previously

energy savings investments

accounted for 1.3% of electric

sales.

• Black Hills energy savings

account for approximately

1.23% of electric sales under newly

approved targets. Previously

energy savings investments

accounted for 1% of electric sales.

Energy Efficiency Savings

CEO Efficiency Programs

• Access to financing: C-PACE, RENU, CO Clean Energy Fund

• Updating Energy Codes

• Weatherization

• Agricultural Efficiency

• Industrial Efficiency (SEM)

• Energy Performance Contracting

Energy Efficiency in Buildings

Colorado Gas Utilities Ranked by

Customers Served (2017)

1. Xcel Energy: 1,378,528

2. Colorado Springs Utilities: 202,514

3. Black Hills: 178,893

4. Atmos Energy: 119,146

5. Colorado Natural Gas: 21,391

6. City of Ft. Morgan: 4,678

7. City of Trinidad.: 4,134

8. City of Walsenberg: 1,651

9. Town of Rangley: 996

10.City of Center: 806

11.Ignacio Municipal Gas: 484

12.Town of Aguilar: 263

13.Clean Energy, LLC: 148

Oil & Gas Production

Mountain States Natural Gas Production (1989-2016)

Mountain States Crude Oil Production(2000-2017)

Colorado Methane Emissions2014

Source: CDPHE 2014

Colorado greenhouse Gas

Inventory Update

.

Zero-Out ScenariosO&G Contribution Mobile Contribution

Industrial Contribution CEM Contribution

FRAPPÉAverage

Source: Front Range Air Pollution and Phtotochemistry Experiment results, Pfister and Flocke, NCAR,, 2017

FRAPPE Study – Metro Area Ozone Dominated by Oil & Gas Vehicles

2014: Colorado’s Air Quality Control Commission adopted first

methane rules for oil and gas upstream and midstream sector

Estimated to reduce VOC emissions by approximately 93,500 tons per

year and methane/ethane emissions by approximately 65,000 tons

per year, at a cost of approximately $42.5 million per year.

Creation of the Statewide Hydrocarbon Emissions Team

• Evaluate the cost-effective hydrocarbon emissions reductions from

statewide oil and natural gas sector

• Recommend new proposals for emission reduction by Jan. 2020

Colorado Methane Reduction Efforts

Electrification of

Transportation

Vehicles are now the Largest Source of

Carbon Pollution

Two types of EVs:

1. Battery Electric Vehicles (BEV): electric motor

2. Plug-in Hybrid Electric Vehicles (PHEV): electric motor + gasoline engine

2018 Nissan LEAF (BEV)

151 miles electric range

$29,990 MSRP

2018 Toyota Prius Prime (PHEV)

25 miles electric range, then 54 mpg gasoline

$27,300 MSRP33

EV 101

Automaker Investment in Electric Vehicle

Development

● Ford will invest $4.5 billion in electrified vehicles by 2020: including a

300 mile range fully electric SUV and a F-150 hybrid

● GM recently laid out a bold vision for a “zero crashes, zero emissions,

and zero congestion” future, announced plans for 20 new electric

vehicles by 2023 – including two by 2019, and rolled out the acclaimed

Chevy Bolt across the U.S.

● Toyota committed to having at least 10 new models of all-electric

vehicles by the early 2020’s

● Daimler AG announced a billion dollar investment to build electric

vehicles in the U.S. with production starting in the early 2020’s

● BMW reached 100,000 in global electric vehicle sales while promising a

dozen new models of electric vehicles by 2025

● Fiat-Chrysler to electrify portfolio (Wards Auto, July 2017)

● Volvo announced that “all the models it introduces starting in 2019 will

be either hybrids or powered solely by batteries” (New York Times, July

2017) 34

35

Nearly 100 Electrified Models by 2022

36

EV Battery Prices are Falling

Benefits of Electric Vehicles

Source: M.J. Bradley & Associates, Electric Vehicle Cost-Benefit Analysis

• Enough spare capacity to power all cars off-peak.

• Charging is flexible and can be managed to absorb variable renewable generation.

• Greater grid efficiency puts downward pressure on electric rates for all electricity

customers.38

EV Adoption Benefits Utility Customers

Source: MJ Bradley cost benefit study, 2017

39

Cost Benefit Analysis of EVs to Colorado’s

Grid

Colorado’s EV MarketAugust 2018

Source: autoalliance.org

Colorado Compared to Other States

Source: evadoption.com

Source: autoalliance.org

• Build out key charging corridors

that facilitate economic

development, boost tourism,

and reduce harmful air

pollution.

• Accelerate adoption of EVs and

ensure Colorado remains a

leader in the EV market.

• Serve as a living document.

Colorado Electric Vehicle Plan

Colorado Electric Vehicle Plan

“Increase adoption of EVs in the light duty sector by taking

steps to achieve the high growth scenario of approximately

940,000 EVs in Colorado by 2030, as projected in the Colorado

EV Market Implementation Study.”

• Accelerate adoption of EVs and ensure Colorado remains a

leader in the EV market.

Electrifying Our CorridorsProposed locations for fast-charging infrastructure

LEV: On November 16, 2018, the Air Quality Control Commission approved new low

emission vehicle (LEV) standards for new light-duty and medium-duty motor vehicles sold

in Colorado beginning in the 2022 model year. The new standards are estimated to reduce

carbon dioxide emissions by nearly 2 million tons annually by 2030.

ZEV: Adopting a requirement for manufacturers with sales in a state to delivery for sale a

minimum number of Zero Emission Vehicles. AQCC hearings will be held until May 2019 to

Consider adopting a ZEV mandate proposal.

Utility investment: utilities can play a key role in investing in EV infrastructure and

programs; may require legislation and/or PUC action

Financial incentives: state and federal tax credits play a key role in the early market

Maintaining Progress on Clean Vehicles

Transition to near zero carbon electricity

Transition transportation to widespread electrification

Increase energy efficiency across the state

Electrify buildings

Dramatically reduce methane emissions

Steps Towards Deep Carbon Reduction

Thank You