Boulder–Xcel Energy Partnership Agreement Progress

In November 2020, Boulder voters approved a new energy franchise with Xcel Energy. This also created a formal partnership between the City of Boulder and Xcel Energy.

Through this partnership, the city and Xcel Energy are working to:

• Make the energy grid cleaner and more reliable,
• Improve building energy efficiency and reduce natural gas use,
• Support community-wide use of electric vehicles.

The partnership also allows Boulder to test and scale new energy technologies that could have benefits beyond our city.

This page tracks progress in three key areas:

• Total energy use
• Residential energy
• Commercial and industrial energy

The data presented on this page is provided by Xcel Energy as part of the Energy Partnership Agreement. Xcel Energy tracks and reports this information to support progress monitoring across shared goals. All figures reflect the most current data available from Xcel Energy at the time of reporting.

The number of electric and natural gas meters in Boulder has remained relatively stable since 2021. However, electricity use (measured in kilowatt-hours or kWh) went down in 2023 and 2024 (see Table 1). This drop is likely due to building upgrades and energy efficiency programs.

Table 1. Annual Energy Consumption

Natural gas use (measured in therms) dropped by 12% in 2024. This may be due to a warmer winter, which required less heating. Heating needs are measured using a unit called "heating degree days" (HDD), as shown in Table 2.

Table 2. Annual Heating Degree and Cooling Degree Days

In homes, energy efficiency helps cut down on both electricity and natural gas use. This reduces emissions and saves money. One way we measure progress is by looking at participation in Xcel Energy's demand-side management (DSM) programs, like Smart Thermostats and Single-Family Weatherization.

The Work Plan sets a goal of 2,788 households joining these programs each year. In 2023, Boulder exceeded that goal, especially in the Residential HVAC (heating, ventilation and air conditioning) program. In 2024, the total was lower, but there was strong growth in the Home Energy Squad® program.

Table 3. Annual Participation in Xcel Energy’s Residential Programs

Building electrification, switching from gas to electric appliances, also supports Boulder’s climate goals. It can reduce emissions, save money over time and improve comfort. The Work Plan aims for 2,316 households to participate in electrification programs each year. Data on this program can be found in table 3.

In 2024 Xcel Energy rebated:

• 564 heat pumps
• 62 heat pump water heaters
  While the target hasn’t been reached yet, participation is growing steadily and is expected to continue to increase with the 2025 Heat Pump Accelerator Pilot.

Note: These numbers only count homes that received rebates from Xcel Energy. Some homes may have installed heat pumps without applying for rebates.

Table 4. Residential Electrification Measure Participation

Looking at energy savings, homes using efficient furnaces, heat pumps and air conditioners saved a lot of electricity (see Table 5).

Table 5. Electricity Savings from Participation in Xcel Energy Residential Programs (in kWh)

For natural gas, the top programs were Residential HVAC and Single-Family Weatherization (see Table 6). Insulation and air sealing also helped, though participation in that program dropped in 2024.

Using less natural gas is key to reducing reliance on fossil fuels.

Table 6. Gas Savings from Participation in Xcel Energy Residential Programs (in therms)

The commercial sector includes businesses and multifamily buildings. These buildings use a lot of energy, so the potential for savings is high.

In 2024:

• Commercial electricity savings made up almost 88% of all electricity savings.
• For natural gas, commercial buildings only made up about 5% of total savings; homes led the way here.
• The Work Plan sets a goal of 762 commercial participants in Xcel Energy programs each year. Boulder hit that goal in 2022, but not since (see Table 7).

Table 7. Commercial Demand Side Management (DSM) Program Participation

The most popular program in 2024 was Small Business Energy Solutions, which offered free ASHRAE Level 1 energy assessments. In 2025, this program merged with Commercial Streamlined Assessments. Boulder County’s PACE program continues to help businesses join.

The goal for commercial electrification is 151 equipment installations per year. In 2024, only 2 commercial heat pumps received rebates from Xcel Energy (see Table 8).

Table 8. Commercial Electrification Heat Pump Installations

Still, electricity savings were strong in 2024:

• The Lighting Efficiency program led the way, helped by Boulder’s SmartRegs policy, which focuses on rental properties (see Table 9).
• The Small Business Energy Solutions program saved over 1.27 million kWh.

Table 9. Commercial Demand Side Management (DSM) kWh Savings

For natural gas, most savings came from:

• The Energy Design Assistance program which supports new buildings or major remodels.
• The HVAC + Refrigeration program, which encourages efficient heating and cooling systems, including commercial heat pumps (see Table 10).

Table 10. Commercial DSM Program Gas Savings in therms