Clean Heat Plans

In 2021, the General Assembly (SB 21-264)  required gas distribution utilities—utilities that procure and distribute gas to retail customers (e.g. Black Hills, Colorado Natural Gas)—to reduce greenhouse gas emissions 4% by 2025 and 22% by 2030, from a 2015 baseline.

To show that they are meeting these targets, gas utilities began filing Clean Heat Plans to the Commission starting in 2023. These plans can include a range of measures, including: 

• Energy efficiency programs, which could allow you to add more insulation at a reduced cost.
• Recovered methane, including the gas that is captured at landfills and water purification facilities.
• Green hydrogen, where water is converted to hydrogen through electrolysis using renewable energy.
• Beneficial electrification, which could allow you to switch from a gas furnace to an electric heat pump for heating, or from a gas to an electric stove for cooking at a reduced cost.

SB264 requires that utility plans be of the lowest reasonable cost, meaning a reasonable cost that still allows them to manage reliability and other state goals. Specifically, the legislation set a cost cap of 2.5% of annual gas bills for all full-service customers. The Commission may approve costs in excess of the cap only if it finds the Clean Heat Plan to be in the public interest, that it includes mitigations for income-qualified customers, and that the benefits exceed the costs.