Matters Memo

City of Boulder City Council Agenda Item Meeting Date: August 27, 2026 Agenda Title Xcel Energy Partnership Update

Staff Contact  

Jonathan Koehn, Director, Climate Initiatives Carolyn Elam, Senior Manager, Climate Initiatives

Executive Summary This item provides an update to City Council on the Xcel Partnership, emphasizing efforts related to wildfire mitigation, power reliability and 2027 and 2030 Franchise emissions milestones. Specifically, Xcel will present on the following topics: 1. Updated forecasting on grid emissions specific to the 2027 and 2030 Franchise milestones. 2. Highlights of system investments that are underway or planned that are intended to address reliability issues and future economic growth. 3. Updates on wildfire mitigation work, including progress on three undergrounding projects. 4. Progress and plans for the 9216 Transmission Line rebuild.1 5. Updates on the Pearl Street and Gas Planning Pilot projects.

1 Transmission line that runs from Boulder Hydro north through Mount Sanitas, including section along Sunshine

Canyon and segment within the city limits along Grape Avenue and Floral Street.

Staff will also provide an update on the Power Reliability and Resilience Council Priority Project. In addition to providing council an overall update on the partnership efforts, this study session is intended to identify any additional data or research that is needed to support council in the Council/Community Forum, scheduled for October 8, and for the final roadmap deliverable for the 2026 Power Reliability and Resilience Council Priority Project. Staff continue to see the City’s Partnership with Xcel Energy as a priority, particularly in advancing wildfire mitigation, grid reliability and resilience, building and transportation electrification, and local clean energy solutions. At the same time, progress remains uneven across the Partnership’s goals. Xcel has made significant investments in wildfire mitigation and grid reliability, and systemwide emissions declined in 2025; however, resource adequacy challenges, potential extensions of fossil generation, affordability concerns, and uncertainty regarding progress toward the 2030 emissions milestone warrant continued City attention and engagement. Overall, the Partnership is delivering meaningful progress in several areas, particularly wildfire mitigation and system reliability investments. However, progress is less clear in areas where outcomes depend on broader system conditions, including emissions reductions, affordability, and the transition away from gas infrastructure. These areas warrant continued attention and may require additional action or acceleration from Xcel to meet the expectations established by council.

Questions for Council 1. Is the Partnership delivering the outcomes Council expected, and are there areas where Council expects Xcel to change course or accelerate progress? 2. Is there additional information that council would like to receive ahead of the Council/Community Forum?

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Environmentally Sustainable - Accelerates progress towards the community’s ambitious climate and energy goals through a culture of shared environmental stewardship across Boulder. Specifically, the Xcel Partnership is central to the community’s goals of 100% emissions-free electricity, decarbonizing buildings and transportation, and providing affordable programming to diverse populations to increase access to and participation in local climate actions.

Safe - Ensures that all residents are secure and cared for during emergencies and natural disasters. Specifically, efforts are focused on improving the reliability and resilience of electric infrastructure to mitigate existing and future hazards and risks, including utility-ignited wildfire and power disruption. Citywide Strategic Plan Strategy #2 - Advance efforts to enhance regional disaster prevention, preparedness, and response that leverage existing partnerships and prioritize city investments. Expands efforts in preparedness and resilience strategies by leveraging the City’s Energy Partnership with Xcel. Strategy #9: Increase community and ecosystem resilience to the current and future impacts of climate change. Improves grid reliability and resilience and supports more resilient buildings and infrastructure. Strategy #10: Continue advancement toward the city’s goal of an eighty percent reduction in emissions and the community’s goal of a seventy percent reduction by 2030. Expands efforts that eliminate carbon from (“decarbonize”) the built environment, vehicles, and operations and replace fossil fuel-based energy systems. Ensures progress towards emissions-free electricity.

Alignment with Additional City Plans This project aligns with the City’s Climate Action Plan and Hazard Mitigation Plan, as well as the City’s Franchise and Energy Partnership Agreements with Xcel Energy. It is also closely aligned with City Council’s priority on wildfire resilience, including the planned comprehensive assessment and analysis of current and planned City wildfirerelated programs, projects, and actions.

City Council History Since the City entered into partnership with Xcel in 2021, staff have regularly provided updates to council on partnership progress through Information Packets, Study Sessions and Matters Presentations. October 26, 2021, Xcel Partnership Update March 13, 2025, Xcel Partnership Update and Summary April 23, 2026, Power Reliability and Resilience Study Session and Summary

Analysis Background In November 2020, the community approved a new Franchise Agreement and Energy Partnership (Partnership) with Xcel. Unique to Boulder’s Franchise are milestone points

at which the community can evaluate Xcel’s progress towards grid emissions reduction and the value the Partnership delivers towards advancing the community’s goals and decide whether to continue under the Franchise. These milestones include the 5-, 10and 15-year Franchise anniversaries and 2022, 2024, 2027 and 2030 grid emissions targets. The four tenets of the Partnership are: •

• • •

Clean Energy - Expanding renewable energy, supporting building and transportation electrification and reducing greenhouse gas emissions across homes, businesses and city operations. Reliable Service - Improving grid performance, reducing outages and strengthening wildfire resilience. Affordable Energy - Working to keep energy bills manageable through smarter investments, efficiency programs and long-term planning. Collaboration & Transparency - Creating clear pathways for the community to participate, ask questions and stay informed about progress and decisions.

In 2025, concurrent with the 5-year Franchise anniversary, council conducted a review of the Partnership progress. While council elected not to exercise the Franchise opt-out provision, council identified several deficiencies and outlined these in a letter to Xcel. The letter also set out expectations for improvement that would be used to evaluate progress under future milestone reviews. Areas highlighted by council include:  







Wildfire Mitigation: There must be meaningful and measurable reduction of wildfire and PSPS outage risk to the community and to city infrastructure. Reliability and Readying our Grid for the Electric Future: Distribution system investments are necessary to replace aged infrastructure and expand system capacity; such solutions must modernize and enhance the reliability and resilience of the grid, ensure service quality is comparable to or better than that experienced by other municipalities in the region, and ready the system to meet the community’s future needs. 9216 Reconstruction: It will be imperative that as Xcel rebuilds this transmission line through the community and open space lands that there are strong community engagement and positive outcomes for the community. Affordability: Those most vulnerable must be protected from the impacts of rising utility costs; support and programmatic solutions are needed to help households, businesses, and neighborhoods advance their energy security, foster innovation, and modernize how customers produce, use, share and manage their energy. Progress on Grid Emissions: There remains expectation that, irrespective of federal pressures, Xcel will stand by its commitment to the community and the state to retire all its coal plants as scheduled or sooner, and that Xcel will remain







on track to exceed state-mandated emissions reduction goals consistent with your 2021 Clean Energy Plan. Further, progress must be made in partnering with the city on closing the gap to the community’s goal of emissions free electricity by 2030. Valmont Coal Remediation and Ash Cleanup: Xcel must make progress expeditiously in monitoring for and remediating water contamination and cleaning up the coal ash at the Valmont site, and to do so with the utmost care and assurance that there is no airborne migration of coal ash outside of your property boundary. Xcel must commit to funding adequate, independent air quality monitoring in conjunction with the coal ash remediation. Gas Infrastructure: Xcel must bring forward its best efforts on the Pearl Street project and Gas Planning Communities efforts to support residents and businesses in transitioning of a gas and allowing for the retirement of gas infrastructure. Local Distributed Energy Resources: Xcel must be a transparent, proactive, and supportive partner as the community explores and seeks to develop carbon-free energy systems and new business models for distributed energy resources.

Following the December 2025 PSPS and severe wind outages, council also adopted Power Reliability and Resilience as a 2026 priority project. Progress Toward Partnership and Council Expectations The following are staff’s assessment of progress against the expectations set forth by council: Wildfire Mitigation Xcel has made substantial investments in wildfire mitigation and system hardening, including targeted undergrounding, pole replacement, covered wire, sectionalizing, improved situational awareness, and vegetation management. These investments respond directly to Council's expectation for meaningful and measurable reductions in wildfire and PSPS risk. 

Targeted Undergrounding:  75th Street – Construction is underway. This project will underground the lines between the City’s Water Resource Recovery Facility south of Jay Rd. and Lookout Rd. Once complete, outage and wildfire risk will be reduced for the Heatherwood and Country Club neighborhoods, city critical infrastructure and adjacent communities.  Highway 36 – Xcel is actively working with the Colorado Department of Transportation (CDOT) to secure permitting and finalize design.

Construction is targeted to begin before year end, 2026. This project will underground 5.5 miles of line along Highway 36 from approximately Jay Rd. to Neva Rd. and along Neva Rd. This line is among the highest risks for wildfire risk given its location and high winds speeds in this area. Because of the risks, this line has been included in all PSPS events to date, resulting in extended outages impacting north Boulder. Once complete, this project will remove a major potential ignition source along Boulder’s northern boundary, protecting the city, Niwot, Gunbarrel and city critical infrastructure, while also reducing PSPS impacts for Boulder.  Highway 93 – Xcel is actively working with the City (Open Space), Boulder County and CDOT to secure permitting and finalize design. Construction is targeted to begin before year end, 2026. This project will underground from east of the Eldorado Substation along Eldorado Springs Dr. and Marshall Rd., and south from Eldorado Springs Dr. to Golden. The team is also evaluating undergrounding along Thomas Ln. although this may not be feasible due to floodplain issues.3 While a limited number of customers are served by this line within the city, this line is the one that has been attributed to the Marshall Fire.4 It is also a line that has experienced damage from high-speed winds along this corridor. 





9216 Rebuild: 9216 is the more than century-old transmission line that runs from Boulder Hydro northeast to Boulder’s Sunshine (base of Sunshine Canyon) and Boulder Terminal (28th and Mapleton) substations. This line runs through the highest wildfire risk areas to the west of Boulder. The section along Sunshine Canyon has been the source of multiple wind-related outages, including during the Marshall Fire and December 2025 severe wind events. The first phase of construction is underway, which rebuilds the line from Boulder Hydro to where it connects with the Sunshine Canyon segment. The remaining rebuild will be part of phase two, with construction beginning in 2027. Wildfire Hardening: Extensive pole replacements have been underway throughout Boulder County, as well as within the city limits. This work includes replacing old poles with larger ones, creating more spacing between wires, installing covered wires and replacing fuses and other protection devices with non-sparking equipment. These efforts improve the resilience of the overhead infrastructure to high-speed winds, reducing risk of outage and wildfire ignition. Sectionalizing and Improved Situational Awareness: Extensive weather stations and infrared cameras have been deployed throughout the region. New devices

3 Alternative would be a wildfire-hardened rebuild. 4 Noting that Xcel continues to dispute that their equipment was a source of the fire.





have been installed that Xcel can operate remotely to isolate and de-energize sections of its system. Vegetation Management: Xcel has deployed multiple crews who are working throughout the Boulder Region, including within the city, to increase clearance between vegetation and power lines in high-risk areas. Outreach and Engagement: In partnership with the City and the Office of Disaster Management, educational sessions have been held throughout the community to help vulnerable residents be more prepared for outages. During events, Xcel has distributed emergency kits to participants.

The Partnership has accelerated significant wildfire mitigation investments. Because of the City’s knowledge of Xcel’s system, which was gained through the municipalization project, staff have been heavily engaged in design, prioritization and implementation efforts. Once the projects outlined above are complete, staff expects they will result in a material reduction in wildfire ignition and PSPS risk to the community. Benefits have already been realized in terms of reduced PSPS impacts on the community. During the March 2026 PSPS event, new monitoring and sectionalizing capabilities allowed Xcel to avoid an outage in west-central Boulder and delay and shorten an outage in north Boulder. Similarly, pre-planning coordination reduced impacts to City critical infrastructure and allowed the city to more effectively prioritize the deployment of resources during the event. The scale of system hardening and targeted undergrounding represents meaningful progress toward reducing wildfire ignition and PSPS risk. Staff will continue to monitor whether these investments translate into sustained reductions in wildfire and outage risk as projects are completed. Power Reliability In addition to wildfire mitigation efforts, several substantial reliability projects are underway that include:     

Adding and upgrading transformers at Sunshine and NCAR substations. Underground cable replacement for cable serving West Pearl and Civic Center area. Constructing new power lines to serve high growth areas. Planning for future substation needs for CU South. Improved replacement of aged infrastructure.

Xcel and the City have formed a task force to conduct in-depth reviews of recent outage data. As a result of this ongoing analysis, already nearly a dozen work orders have

been issued for repairs and replacement, including installation of new guards in areas prone to wildlife contact. Significant investments and collaborative planning are underway to address reliability concerns, and the Partnership has improved the City’s ability to identify and prioritize needed system improvements. However, it is too early to determine whether these investments will produce the sustained improvement in reliability and service quality expected by Council. Staff will continue to evaluate outage data and planned investments through the Power Reliability and Resilience Project. Chautauqua Undergrounding The first two phases of the Chautauqua project have been concluded, which undergrounded lines in the highest risk areas. The final phase is scheduled to begin in October 2026. The undergrounding efforts are funded through Xcel’s 1% undergrounding fund. Grid Emissions Xcel's systemwide emissions declined from 14.5 million short tons in 2024 to 13.5 million short tons in 2025. A further 17% reduction from the 2025 levels will be necessary for Xcel to reach the 2027 Franchise milestone and nearly 50% for the 2030 milestone. The Franchise milestones are 11.5 and 6.9 million short tons by 2027 and 2030, respectively. Xcel’s analysis on their 2027 emissions forecast was not completed in time for inclusion in the council memo but is expected to be part of their presentation to council. They have provisionally indicated they believe they will meet the target. Staff believes the 2027 milestone remains achievable, based on progress to date, early 2026 emissions reporting, and certain new renewable resources scheduled to come online. However, there are material uncertainties that could affect the trajectory. Specifically, due to a combination of some failed projects and associated time to find replacements, other construction delays and customer growth, Xcel has insufficient generation resources to meet its forecasted statewide electricity generation needs in 2027 and part of 2028. Xcel is making progress toward the emissions milestones, but resource adequacy challenges could require continued operation of fossil generation at precisely the time the system needs accelerated decarbonization. In a current PUC proceeding, Xcel has presented scenarios that include extending operation of legacy coal and natural gas resources while additional resources come online. Comanche Unit 2, which was scheduled to retire at the end of 2025, is currently expected to operate through at least 2026, with one scenario extending operation through March 2028. Hayden Unit 2 and

potentially Craig Unit 1 have also been identified as potential resources. While the emissions impact will depend on actual plant utilization, continued reliance on these resources could make achievement of longer-term emissions milestones more challenging. 7 While extending the operation of coal units is a concern, new renewable projects are also completing construction, such as the 335-megawatt Arroyo solar project due to begin operations in Pueblo later this year. Finally, of ongoing concern, even as coal units are extended, they all continue to suffer reliability concerns. Xcel’s largest unit, Comanche 3, has been undergoing repair since August 2025. Comanche 2 and both Hayden Unit 1 and Unit 2 have also had outages, as has Craig Unit 1. Beyond implications for emissions, these uncertainties raise reliability concerns. A scenario in which Xcel has insufficient resources to meet grid demands could result in load shedding solutions, also known as rolling brownouts. Again, the 2027 milestone remains achievable, but the trajectory toward the 2030 milestone presents some uncertainty. Continued reliance on existing coal and natural gas resources to address resource adequacy challenges could slow emissions reductions, even as new renewable resources come online. Staff will continue to monitor Xcel’s resource planning and emissions trajectory and assess implications for the City’s 2030 Franchise milestone. Shanahan Ridge Heat Pump Accelerator Pilot This project was a joint effort by the City, Boulder County, Rewiring America and Xcel. The pilot tested both the benefits of a bulk purchase program and navigational solutions for condominium-style multifamily housing. Through the pilot, 47 heat pumps were installed. The combination of rebates (primarily from Xcel) and discounted pricing resulted in an out-of-pocket savings of up to 65% for participants compared to market pricing. A key element of this project was making heat pumps more accessible to condominium communities that often face barriers due to the split ownership between the homeowners’ association and individual unit owners. Gas Planning/Pearl Street In 2025, Boulder was selected as 1 of 5 Gas Planning Communities as established under House Bill 24-1370 (along with Denver, Breckenridge, Golden and Winter Park). The joint Xcel/City team are currently reviewing the Boulder gas system to identify potential project opportunities with the goal of avoiding future gas system investments

7 Xcel is a co-owner of Craig Unit 1. In December 2025, the U.S. Department of Energy (DOE) issued a 202(c) Order

requiring the unit to remain operational through September 26, 2026. This date may and will likely be extended further. Xcel did not join the suit filed by co-owners Tri-State and Platte River Power Authority challenging the legality of the order.

and allowing for the permanent retirement of portions of the gas system. While the Pearl Street project precedes Boulder’s selection as a Gas Planning Community, it is expected to be one of the projects the efforts seek to advance. Strategic reductions in investment and the gradual pruning of the gas system will be essential for mitigating the financial consequence of reduced gas sales as residents and businesses electrify. Absent more aggressive curtailment of gas system costs, customers who lack the ability to electrify may face significant increases in utility costs as gas sales decline and system costs are spread across a smaller customer base. Gas system planning presents an opportunity to reduce future system costs and better protect customers who may be less able to transition away from gas. However, affordability remains an area of concern, particularly for lower-income households and other customers with limited ability to make upfront investments in electrification. Staff will continue to evaluate how Xcel’s infrastructure planning, rates, and customer programs affect energy cost burdens as part of the Partnership. Looking Forward Looking forward, staff’s focus will be on ensuring that the Partnership’s substantial investments translate into measurable outcomes for Boulder residents. This includes sustained reductions in wildfire and outage risk, continued progress toward the 2027 and 2030 emissions milestones, protection of customers from increasing energy costs, and effective planning for the transition away from fossil fuel infrastructure. Several potential projects have already been identified for inclusion in Xcel’s next Wildfire Mitigation Plan, which is expected to be filed in 2027. City staff will also be participating in an upcoming PUC rulemaking on Quality of Service. Finally, staff will continue to monitor concerns over Xcel’s resource adequacy and will provide updates to council as part of regular information packet updates on the City’s efforts at the PUC.

Anticipated Fiscal and Workplan Impacts This information update does not request additional or modify current City funding or staffing. The Partnership does require ongoing staff capacity across Climate Initiatives and other City departments.

Equity Analysis Frontline communities are disproportionately impacted by climate risks, including flood, fire and extreme weather. Older, less-efficient housing stock, including manufactured housing, increases vulnerabilities to extreme weather and energy cost burden. Analysis also shows residents of manufactured housing communities, medically dependent residents and lower-income households are disproportionately impacted by power reliability.

The City is working through the Xcel Partnership and other programs to address these disparities by improving access to weatherization, energy efficiency, cleaner appliances, distributed energy resources, and preparedness resources. The Power Reliability and Resilience Project is specifically examining whether investments in grid infrastructure and resilience solutions are reaching communities that experience disproportionate impacts from outages and PSPS events.

Climate, Resilience, and Sustainability Considerations The energy used to heat, cool and power buildings; produce materials and goods and deliver services; and to fuel transportation is the leading source of our community’s emissions. Energy conservation and transitioning to clean energy solutions has long been a priority of the community’s climate action. As the provider of Boulder’s electricity and natural gas service, Xcel and their progress towards statutory emissions reduction goals is central to the community’s ability to achieve its climate goals. Boulder, like the western United States as a whole, is realizing the acute effects of global climate change in the form of more frequent drought, increasingly warmer and dryer winters and weather extremes. Already, Boulder has realized a near doubling in extreme heat days and a seven-fold increase in fire risk days. The evolution of the electric grid resulted in the construction of hundreds of miles of overhead high voltage power lines running through forests and grasslands to carry electricity from where it is generated to city gates. While it has always been true that a spark from a power line could start a fire, the risk grows as the areas these lines run through become increasing stressed by chronic drought and disease. Similarly, it has always been windy in Boulder, but the strongest and most destructive winds are typically in the winter months. When poles snapped or power lines broke free in high winds in the past, there was likely also snow on the ground. Today, winters are increasingly dry creating the perfect recipe for wildfire. The City’s Partnership with Xcel provides a platform to advocate for and advance energy solutions that reduce risks and advance the community’s climate, equity and resilience goals.

Community Engagement As part of the 2026 Power Reliability and Resilience Project, several community engagement efforts have been underway including an online survey through Be Heard Boulder, listening sessions with community groups, and a power resilience workshop with non-profits and frontline leaders. The results of this engagement will be provided to council as part of the memo packet for the October 8, 2026, Council/Community Forum. The City of Boulder/Xcel Energy Partnership Community Advisory Panel serves as a key forum for gaining community input into the partnership efforts.

Engagement to date affirms significant community concern about power reliability, wildfire risk (associated with Xcel’s system), rising utility costs, poor customer service and slow progress towards emissions reduction goals. The Community Advisory Panel, in particular, has expressed frustration over the missed emissions milestones and insufficient progress towards closing the gap on the community’s goal for emissions free electricity. The Panel also regularly identifies opportunities to enhance the use of local distributed resources, improve consumer education and better support adoption of clean technology solutions. Other ongoing themes include a lack of transparency and poor communication around outages, and challenges getting issues resolved through Xcel’s customer service platforms.

Next Steps for City Council Staff will work with Xcel to provide responses to any outstanding questions council may have. Council will next take up the Power Reliability and Resilience Project on October 8, 2026, with the Council/Community Forum.

Digital Accessibility The City of Boulder is committed to digital accessibility. Some content may not be fully accessible due to technical limitations or issues. For alternate formats or accommodations, please visit Accessibility | City of Boulder or contact accessibility@bouldercolorado.gov.

Attachments None