Colorado Strengthens Electricity Grid with $250 Million Investment
STATEWIDE, Colo. (KRDO) – Governor Jared Polis announced that Colorado is set to receive a $250 million investment from the U.S. Department of Energy to enhance the electricity connection between Colorado and Texas.
Xcel Energy Services Inc. is contributing an additional 80% of the funding, demonstrating a significant commitment to this project.
According to the governor’s office, the Colorado Energy Office (CEO) and Xcel Energy will collaborate on a project that connects the western and eastern electrical grids. This initiative aims to meet increasing electricity demand and expand access to lower-cost power.
The new connection will extend from Lamar to the May Valley substation, directly linking it to the Colorado Power Pathway network. Officials claim this will alleviate grid strain and reduce outages.
Governor Polis emphasized the benefits, stating, “This means lower costs and fewer outages for Coloradans. By strengthening Colorado’s electric grid and expanding our ability to share power with other regions, we can better protect families and businesses during extreme weather and periods of high demand while continuing to save people money.”
The project, known as the Colorado-to-Texas Western-Eastern Intertie Modernization Initiative (CO2TX), aims to improve electricity flow between large power grids, which currently face limitations in sharing capacity. The overall project cost is expected to be $1.2 billion, with this funding being a crucial part of it.
The initiative will include replacing outdated equipment and upgrading existing power lines with higher-capacity wires. This upgrade will increase electricity transmission capacity from 210 megawatts to 700 megawatts, with potential expansion to 2,000 megawatts as demand grows.
This funding is part of the Infrastructure Investment and Jobs Act of 2021 and is sourced through the Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) initiative, which facilitated Colorado’s selection for this investment.
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