Xcel Vitality helps gasoline business group pushing false claims in Colorado


Xcel Vitality is supporting a brand new gasoline business effort in Colorado that has printed false claims in regards to the prices of electrification. The brand new gasoline business group launched the identical week that Xcel Vitality started looking for approval from the Colorado Public Utilities Fee to extend its gasoline charges. If accepted, the gasoline charge enhance would additional elevate the already elevated price clients are paying for gasoline this winter. The speed enhance would additionally come on prime of the surcharges clients stand to pay over the subsequent two years to cowl the prices of the terribly excessive gasoline costs that Xcel Vitality and different utilities bought throughout February Storm Uri one yr in the past.

The brand new gasoline business group calls itself “Coloradans for Vitality Entry” and launched final week with an internet site and op-ed within the Colorado Solar. The web site lists the brand new group’s members together with Xcel Vitality and Black Hills Vitality, investor-owned utilities that promote electrical energy and gasoline in Colorado, together with Atmos Vitality and Summit Utilities, which promote gasoline in Colorado and different states. Different members embody unions, the Colorado Farm Bureau, and the American Public Fuel Affiliation, the commerce affiliation for publicly-owned gasoline utilities.

Xcel Vitality is concerned with the gasoline business group regardless of additionally being a member of the Colorado Useful Electrification League, together with the Colorado Vitality Workplace, cities of Denver and Boulder, and environmental teams. When requested for remark, Xcel Vitality wouldn’t present a proof to EPI for its involvement with each the gasoline business and electrification efforts in Colorado.

Fuel business group web site contains false claims about heating prices

The “Coloradans for Vitality Entry” web site features a false declare that warmth pumps price extra to function than gasoline furnaces; in actuality, greater gasoline costs imply that properties utilizing environment friendly warmth pumps are prone to be cheaper to maintain heat this winter than properties that depend on gasoline furnaces. 

The gasoline business group’s web site claims:

“The U.S. authorities’s Vitality Data Administration forecasts that properties heated with pure gasoline will spend $746 this winter in comparison with properties heated with an electrical warmth pump will spend $1,268.”

However the declare that warmth pumps are dearer to function than gasoline furnaces isn’t supported by the info within the cited supply, which offers estimates of the electrical energy and gasoline payments for patrons with gasoline heating and electrical heating usually, not the prices of heating with warmth pumps that are considerably extra environment friendly than different sorts of electrical heating.

The supply for the gasoline business group’s declare is the Vitality Data Administration’s Winter Fuels Outlook, which states:

“We anticipate households that use pure gasoline as their major house heating gasoline will spend $746 this winter, 30% greater than they spent final winter. This enhance in pure gasoline expenditures comes from each greater anticipated costs and better anticipated consumption.”

The Vitality Data Administration goes on so as to add:

“We forecast that U.S. households that warmth primarily with electrical energy will spend a median of $1,268 this winter on their electrical energy payments, which is 6% greater than final winter. This enhance is a results of our forecast of 1% extra electrical energy consumption and 5% greater residential electrical energy costs.”

A spokesperson for the EIA confirmed in an e mail to EPI that its Winter Fuels Outlook price estimate is for the typical price of all the electrical energy invoice this winter for households that use electrical heating of all kinds, not households that use warmth pumps. Most households that depend on electrical heating within the U.S. nonetheless use much less environment friendly electrical resistance heaters corresponding to baseboard heaters, which have remained a standard characteristic in households in some areas of the nation for many years. Electrification advocates promote warmth pumps as a result of they’re extra environment friendly and assist to maintain heating prices low. Latest expertise advances imply that warmth pumps now work nicely in areas with chilly climates.

The gasoline business group’s declare can be false as a result of it doesn’t replicate the truth that gasoline clients additionally pay further electrical energy prices that aren’t accounted for within the EIA determine. As an alternative, the business group compares the EIA determine for the typical prices of a complete electrical energy invoice for all makes use of of electrical energy – not simply heating. The EIA Winter Fuels Outlook states this explicitly: “We forecast complete winter expenditures for all makes use of for every major heating gasoline, not simply the portion attributable to heating. For instance, the expenditures included for households that warmth primarily with electrical energy on this report would additionally embody electrical energy used for home equipment and lighting.” A spokesperson for the EIA additionally confirmed this to EPI.

The Colorado Solar issued a correction to take away an identical false declare within the op-ed by the gasoline business group.

A current evaluation from RMI discovered “that this winter, vitality expenditures in properties with high-efficiency, cold-climate electrical warmth pumps are prone to be decrease than in properties with gasoline furnaces.” That evaluation seemed particularly at winter heating prices in Denver, together with 4 different cities.

Xcel Vitality gasoline clients face a number of invoice will increase

The RMI evaluation additionally highlighted how gasoline costs are way more risky than electrical energy costs. Fuel costs have been notably risky during the last yr, and can enhance Colorado gasoline clients’ payments in a number of methods.

First, gasoline utilities move on the prices of bought gasoline on to clients, and gasoline costs have risen this yr globally and in Colorado. Elevated gasoline exports imply that gasoline costs within the U.S. are more and more tied to world markets the place gasoline is dearer. The Colorado Solar reported in November that Coloradans will see “double-digit hikes of their gasoline utility payments” this winter:

Rising gasoline fees will push the typical Xcel client’s price up greater than 14% within the final three months of this yr, whereas gasoline payments in some areas served by Black Hills Vitality will go up 50%. Atmos Vitality and Colorado Pure Fuel have additionally filed gasoline price will increase starting from 11% to 24% for the typical residential client in peak winter months. 

These greater gasoline costs are already exhibiting up on Xcel Vitality gasoline clients’ payments this winter. “Colorado’s Xcel clients may see their month-to-month pure gasoline payments rise by $27 over final winter’s fees, even when they use the identical quantity of vitality,” Westword reported in December.

Xcel Vitality spent greater than $1 billion on gasoline in 2021, up 57% from the $689 million it spent in 2020, in keeping with its newest submitting with the Securities and Alternate Fee. The identical submitting reveals that Xcel Vitality generated extra revenue from its operations in Colorado than any of the opposite states through which it operates.

On prime of these greater gasoline costs which might be robotically handed by way of to clients, Xcel Vitality can be looking for approval from the Colorado Public Utilities Fee to extend its gasoline charges 13% over the subsequent three years. This new request comes lower than a yr after Xcel Vitality’s earlier gasoline charge enhance that took impact lower than a yr in the past in April 2021.

The Workplace of Utility Client Advocate, which represents the general public curiosity in proceedings earlier than the Colorado Public Utility Fee, filed a protest objecting to Xcel Vitality’s proposed gasoline charge enhance. If accepted by the Fee, Xcel Vitality’s proposal would quantity to a rise of $8.13/month for a median residential gasoline buyer, starting in November 2022.

Lastly, gasoline utilities in Colorado are additionally looking for approval from the Public Utilities Fee to cost clients for the extraordinarily costly gasoline they bought throughout Winter Storm Uri, which froze energy crops and gasoline operations in Texas a yr in the past and led to gasoline worth spikes throughout the nation, together with Colorado. Xcel Vitality is looking for to cost gasoline clients ​​$287 million for the extraordinarily costly gasoline the utility bought throughout these few days, which may imply a month-to-month surcharge of $6.20 for the typical gasoline buyer for the subsequent two years in keeping with the Colorado Public Utilities Fee. Black Hills Vitality, Atmos Vitality, and Colorado Pure Fuel are additionally looking for so as to add surcharges to their gasoline clients’ month-to-month payments for the subsequent two years to pay for the hundreds of thousands of {dollars} they spent on gasoline throughout the February 2021 storm and gasoline worth spike.

Gas business web site options picture of gasoline range with out correct air flow

The “Coloradans for Vitality Entry” web site additionally includes a inventory picture of a girl and youngster cooking with a gasoline range in a kitchen and not using a vary hood for air flow, which will increase the dangers of harmful air air pollution inside properties.

Screenshot of “Coloradans for Vitality Entry” web site

Cooking with gasoline stoves creates air pollution inside properties corresponding to nitrogen dioxide and methane. One evaluation discovered that “youngsters dwelling in a house with gasoline cooking have a 42% elevated threat of getting present bronchial asthma, a 24% elevated threat of lifetime bronchial asthma and an total 32% elevated threat of getting present and lifelong bronchial asthma.”

Cooking with a gasoline range in a kitchen and not using a vary hood for correct air flow can enhance the dangers of inside air air pollution. A brand new research from scientists at Stanford College decided that gasoline stoves emit methane air pollution even when they’re off, and likewise “​​discovered that households who don’t use their vary hoods or who’ve poor air flow can surpass the one-hour outside normal inside a couple of minutes of range utilization, notably in additional cramped kitchens, that are extra widespread in poorer communities.”

The U.S. Client Product Security Fee advises shoppers to “Set up and use exhaust followers over gasoline cooking stoves and ranges,” as does the American Public Fuel Affiliation.

Xcel Vitality additionally helps the American Fuel Affiliation

“Coloradans for Vitality Entry” isn’t the one gasoline business group that Xcel Vitality helps. The utility can be a member of the American Fuel Affiliation, which has led a marketing campaign towards electrification efforts in a number of states.

NPR caught the CEO of the American Fuel Affiliation offering deceptive statements in regards to the commerce affiliation’s involvement with gasoline business campaigns in a number of states:

Whereas the AGA says it “will completely oppose any effort to ban pure gasoline,” President and CEO Karen Harbert says her group maintains an arm’s size relationship with efforts to move preemption legal guidelines. “We aren’t coordinating these efforts and we aren’t state lobbyists,” she tells NPR. “We focus our actions, actually, on the federal stage.”

That distinction is essential as a result of a lot of the AGA’s finances comes from ratepayers by way of its member utilities. Meaning you, as a ratepayer, may very well be funding this work, even in the event you don’t agree with it.

However public paperwork reviewed by NPR and recordings of AGA executives reveal that the group is actively concerned in passing state-level payments, together with utilities and native gasoline commerce teams, that block crucial native motion to chop heat-trapping emissions.

A kind of paperwork advises AGA member corporations like Xcel Vitality to “Construct an area and/or state client coalition to function the spokesperson for the pure gasoline business”

Equally named teams that echo gasoline utility speaking factors have additionally appeared in different states. For instance, Southern California Fuel Firm, a Sempra subsidiary and AGA member, funded a company referred to as Californians for Balanced Vitality Options (C4BES) to advertise the continued funding and use of the gasoline system to native communities and governments. Paperwork detailed how SoCalGas focused “key Latino leaders” to help C4BES and push the concept of “renewable” gasoline as a substitute for electrification. Northwest gasoline utilities additionally launched a entrance group referred to as Partnership for Vitality Progress, which has raised over $2.8 million {dollars} for TV and social media promoting to battle electrification coverage in Oregon and Washington.

The Federal Vitality Regulatory Fee is contemplating new guidelines that might make it tougher for utilities to cost ratepayers for the lobbying efforts and political actions of commerce associations just like the American Fuel Affiliation.



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