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Xcel Energy gets $100 million for wildfire prevention, grid durability funding

The U.S. Department of Energy gave Xcel $100 million to increase the company's efforts toward wildfire prevention and power grid resiliency during extreme weather.

DENVER — Xcel Energy was awarded $100 million in federal funding to help its efforts in preventing wildfires and increasing the resiliency of its power grids during extreme weather conditions, the company said in a release Wednesday.

Xcel said the U.S. Department of Energy (DOE) selected them to receive the funding, which the company matched through a $140 million cost share. According to a document from the DOE, this funding is part of the department's Grid Resilience and Innovation Partnerships program, which aims to "enhance grid flexibility, improve the resilience of the power system against growing threats of extreme weather and climate change, and ensure American communities have access to affordable, reliable, clean electricity when and where they need it."

Xcel said the funding will support multiple projects that aid wildfire mitigation and grid resiliency in Colorado, Minnesota, New Mexico, Texas and Wisconsin. According to the DOE, seven of these projects will be implemented in states within the company's West/Southwest territory. 

Xcel said that changing climate conditions, including prolonged wildfires in regions with regular fire seasons, have increased the frequency and intensity of weather-related impacts to its power grids.

“We recognize that the year-round risk of wildfires has grown, along with the severity of storms and other weather events that threaten the grid,” said Bob Frenzel, chairman, president and CEO of Xcel Energy. “This funding from the Department of Energy will enhance our ability to meet this rising challenge with decisive action while reducing carbon emissions and ensuring reliable affordable and clean power for our customers.” 

RELATED: Fire departments train for better communication during urban wildland fires

Projects funded by this payment that focus on grid resiliency will involve the following steps, per the release:

  • Adding fire-resistant coatings to 6,000 wood poles.
  • Improving equipment safety features in power lines and electric vehicle chargers in high fire risk conditions.
  • Moving high-risk distribution circuits underground.
  • Enhancing vegetation management.

Xcel said projects will also build on existing programs, which include:

  • AI-monitored drones that ensure power line safety.
  • Wind strength testing.
  • Satellite identification of trees that are at risk.
  • Modeling software that predicts the spread of fires.

Design and planning for the projects begin in 2024, and are expected to be complete by late 2028, Xcel said. Some of the anticipated outcomes and benefits of these projects include the following, according to DOE's document:

  • Undergrounding and system hardening projects near essential community infrastructure including hospitals, police and fire stations and high-density residential complexes, among others.
  • Enhanced processes and tools as protocols for managing public safety power shutoffs to reduce the risk of immediate wildfire danger.
  • Enhanced procurement pathways and support services for minority-, women-, and veteran-owned businesses.  
  • High winter-storm and wildfire-risk communities targeted for the project are also disadvantaged communities, which will directly benefit from undergrounding and tree hazard clearing.

Xcel said it has invested more than $450 million in wildfire prevention measures in Colorado since 2019 "to strengthen its systems and better protect communities and the natural environment." 

The company said funding will also aid provisions for communities of color through the Resilient Minneapolis Project, "which aims to support underserved communities in Minneapolis by providing solar, battery and microgrid technologies," allowing "critical services to be delivered to communities in the event of a grid outage."

RELATED: $253 million lawsuit against Xcel Energy claiming power plant mismanagement is underway

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