Colorado approves $1.9 billion wildfire mitigation plan with undergrounding, grid hardening
(UI) — Colorado utility regulators have greenlit Xcel Energy’s $1.9 billion wildfire mitigation plan, a multi-year initiative that includes major system upgrades such as undergrounding and infrastructure hardening to reduce wildfire risk.
According to Xcel Energy’s official statement, the plan was verbally approved by the Colorado Public Utilities Commission (PUC) in early June, with written confirmation expected soon. The company says the investment will support both new construction and upgrades across its service territory, focusing on protecting communities from increasingly severe wildfire threats driven by climate change and drought conditions.
“This is about keeping Colorado communities safe while modernizing and strengthening the grid,” said Robert Kenney, president of Xcel Energy Colorado, in the company’s June 6, 2025, press release.
Key components of the plan include:
- Undergrounding Power Lines: Xcel will begin moving overhead electric lines underground in select high-risk areas where it is feasible and cost-effective, reducing ignition sources during extreme weather events.
- Replacing Infrastructure: The plan includes replacing wooden poles with fire-resistant steel, reinforcing critical substations, and installing advanced protective devices to reduce the chance of sparks from downed lines.
- Enhanced Monitoring: Xcel will expand its weather and fire-risk monitoring capabilities, including real-time situational awareness tools and additional cameras across the system.
- Public Safety Power Shutoffs (PSPS): The utility plans to implement a PSPS program, temporarily shutting off power during extreme wildfire conditions to prevent ignitions.
- Improved Inspection & Maintenance: Xcel will conduct more frequent inspections and leverage new technologies like drones and infrared imaging to identify vulnerable equipment.
Xcel Energy says it is prioritizing wildfire mitigation while maintaining grid reliability and controlling costs for ratepayers. The PUC's approval follows months of public meetings and technical reviews.
The utility expects to begin rolling out these mitigation efforts immediately, with work scheduled over the next three to five years.
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