Xcel Energy, a major electric and natural gas supplier in Colorado, has submitted a proposed Wildfire Mitigation Plan for the next three years. The plan aims to minimize the risk of wildfires caused by electric equipment, but if approved, it could lead to a residential bill increase of about 9.56% by 2028.

The Colorado Public Utilities Commission will review the plan, allowing members of the public to provide feedback during the approval process. According to Xcel Energy, a typical residential bill would increase by approximately $8.88 per month by January 1, 2028, through incremental, bi-annual changes.

To implement the plan, Xcel Energy estimates a cost of about $1.9 billion. The company states that these investments and improvements will help prevent electricity from sparking more fires. Proposed measures include adding hundreds of weather stations for detailed information near power lines, tripling the number of AI cameras for early smoke detection, and updating the schedule for inspecting electrical poles and equipment in wildfire risk zones. Additionally, Xcel Energy plans to expand vegetation management in high-risk areas and set new standards for inspections, clearance, and pruning frequency.

The proposed plan also involves a multi-year process of identifying and replacing or upgrading equipment, moving targeted power lines underground, replacing and repairing poles, and rebuilding transmission lines. Xcel Energy intends to add more members to its wildfire risk team to further enhance safety measures.

In light of recent events, including a strong windstorm in April where Xcel turned off power to prevent fires from igniting, the company plans to increase the number of lines with remote safety settings and incorporate more power shutoffs in the future. Xcel Energy has developed a "dynamic decision-making process" that combines weather model forecasts, real-time weather station data, fire spread simulations, and risk planning software to determine when power should be shut off to mitigate fire risks. The company aims to minimize the impacts of power outages by offering rebates to help customers purchase Battery Energy Storage Systems and Vehicle-to-Home equipment.

Xcel Energy's proposed plan comes after facing criticism and 302 complaints following the Marshall Fire in December 2021. Although the company disputes its involvement in the ignition, investigators estimate over $2 billion in property losses caused by the fire.

Robert Kenney, President of Xcel Energy - Colorado, emphasizes the company's commitment to public safety and reducing wildfire threats. He highlights that the proposed plan builds on existing work while leveraging new technologies.

The timeline for the plan's review by the public utilities commission and availability for public comment has not yet been announced.However, Xcel Energy's proposal marks an important step in their efforts to create a more fire-resilient Colorado.