Xcel Energy is embarking on a significant $1.2 billion transmission project aimed at enhancing electricity capacity and grid reliability. This initiative will modernize the Lamar DC Tie, a crucial link for power transfer between the eastern and western U.S. grids.
Shane Woodard, Xcel Energy’s director of field operations for transmission, emphasized that this tie acts as a hub, benefiting customers in Texas, New Mexico, and the broader region with greater reliability and resilience. The new line will connect Xcel’s Colorado subsidiary with its Texas affiliate, integrating into a grid that spans 17 states with 73,000 miles of transmission lines.
The project will receive a $250 million federal grant from the U.S. Department of Energy’s SPARK program, authorized under the Infrastructure Investment and Jobs Act of 2021. Colorado’s governor noted that this funding is essential for meeting energy affordability, reliability, and clean energy goals, highlighting the importance of interstate transmission.
The upgrade will triple the line’s capacity by replacing outdated equipment and leveraging advanced technology. While the federal grant covers only 20% of the project costs, the remaining 80% will be passed on to electric customers. Currently, Xcel is in the first phase of development and will provide updates as the project progresses.
