Colorado’s energy services are reliable and priced lower than the national average. Our state is a top producer of oil, coal and natural gas, and is among the top 10 states for wind energy production and potential.
Colorado consumers are efficient energy users, ranking 37th in per capita energy consumption. Per capita energy expenditures are 16% below the national average.
Colorado ranked 13th nationwide in energy efficiency, according to the 2014 State Energy Efficiency Scorecard. The state is committed to proactive efforts to make the state even more energy efficient, saving natural resources, reducing our carbon footprint, and saving money for businesses. By 2020, investor-owned utilities must obtain 30% of their electricity from renewable energy resources, with 4% coming from solar energy.
Electricity
Colorado has a traditional regulated market for electric power. Xcel Energy is the largest electricity and natural gas utility in the state. Many Colorado municipalities operate their own utilities, and there are also 26 rural electric associations (REAs) operating in rural areas of the state. It is no surprise that the state is experiencing a surge in wind and power installations as a result of our renewables portfolio standard.
64% of Colorado’s electricity is generated by coal, the most inexpensive source of electricity. 20% of Colorado’s electricity is generated by natural gas. Hydroelectric and wind power combined account for 17% of the state’s electricity generation.
Colorado is ranked the least expensive state for electricity, natural gas and other forms of energy (Nerd Wallet, 2015).
Natural Gas
Colorado is a top natural gas-producing state, and is part of the transportation corridor for shipping gas from the Rocky Mountain supply region to the Midwest and West markets. Colorado’s natural gas production is growing, and construction of the Rockies Express Pipeline was recently completed to help move the rapidly increasing output to the Midwest.
Residential Customers: Colorado ranks 3rd lowest in average price of natural gas, at $8.47 per thousand cubic feet.
Commercial Users: Colorado ranks 4th lowest in the country, at $7.48 per thousand cubic feet.
Water
The primary source of the state’s water supply comes from five major river basins – the Platte, Arkansas, Rio Grande, Upper Colorado (includes Yampa, White and Green Rivers) and the Lower Colorado (includes Gunnison, San Juan and Dolores Rivers). Ground water is also an important resource, supplying 18% of the state’s drinking water. The quality of drinking water is excellent in Colorado; 99% of all drinking water systems are in full compliance with all federal drinking water standards.