On July 29, 2025, Sierra Club joined a settlement submitted to the Colorado Public Utilities Commission (PUC) that would approve a $48.7 million non-pipe alternative (“NPA”) project on Xcel Energy’s system—the largest NPA ever proposed in the United States. NPAs are projects that avoid the building of costly, polluting gas infrastructure and increase the use of electrification and energy efficiency.
Sierra Club intervened in the PUC proceeding on Xcel’s Mountain Energy Project application to advocate for urgent, effective implementation of the NPA portfolio and to minimize the project’s reliance on supplemental compressed natural gas (CNG) and liquefied natural gas (LNG).
Following testimony submitted by Sierra Club and other parties, most of the parties reached a settlement that would approve the Project and advance Sierra Club’s priorities. The settlement directs Xcel to start implementing the NPA portfolio immediately, broadens the range of electrification projects included, and establishes a working group to facilitate community engagement and support effective implementation. It also directs Xcel to propose a pilot electric rate to reduce energy costs for residents with heat pumps by 2026 – supporting adoption in the area and electrification across Xcel’s system. The settlement also substantially reduces Xcel’s reliance on LNG, from the originally-proposed 8 LNG tanks to 5, and puts guardrails on the use of supplemental gas supply in the future. Sierra Club will participate in proceedings in 2028 that will determine the Project's long-term path forward, to continue advocating for electrification and against unnecessary gas investments.
The PUC held an evidentiary hearing from August 12-14, and is expected to decide whether to approve the settlement later this year. Sierra Club was represented in this case by Staff Attorney Jim Dennison.