Recently, questions have been raised about Holy Cross Energy’s ability to satisfy the demand for electricity in our territory as electrification occurs throughout our region. Let me assure you that Holy Cross Energy is absolutely capable of meeting your future electrification needs, and we are already planning our power supply and system capacity expansions with electrification in mind.

The Holy Cross Energy Power Supply Roadmap uses energy demand growth trends and adds expected energy demand growth from the electrification of the building and transportation sectors over the next decade to determine Holy Cross Energy’s expected energy requirements. Our roadmap then outlines the new generation resources needed to meet expected future demand, and these added resources will be the subject of a request for proposals to be issued in early 2025.

We also have other options. Should Holy Cross Energy be unable to obtain its own resources economically, our wholesale agreement with Xcel Energy allows us to buy any additional energy needed. We also have the option to purchase energy from the wholesale market.

Finally, continued investment by Holy Cross Energy, its members, and its communities in energy efficiency, rooftop solar, and energy storage systems, can further reduce the demand for electricity and the need for expansion in grid infrastructure. Therefore, Holy Cross Energy believes it can procure any additional energy demand due to electrification.

Using the roadmap as a guide, Holy Cross Energy is currently developing a Distribution System Plan that will describe the necessary upgrades of substations, transformers, and other Holy Cross Energy infrastructure needed to ensure the reliable delivery of energy. This plan will guide the capital investments Holy Cross Energy will make to deliver the energy expected from the roadmap through 2033. By outlining these infrastructure needs now, Holy Cross Energy can obtain the required equipment and construct these system improvements well before any impact from expected electrification.

Electrification is not new. A recent white paper from RMI (formerly Rocky Mountain Institute) reminds us that in the 1950s, electricity demand grew at a staggering 9 percent compound annual growth rate. The 1960s saw 7 percent, the 1970s 5 percent, and even in the 1980s, it was 3 percent before settling to 2 percent or less in recent decades. According to the Rhodium Group, current forecasts suggest a much more modest growth rate of 1.5-2.5% through 2035.

Even Holy Cross Energy’s “High Electrification” scenario, which assumes wildly successful electric vehicle adoption and building electrification, forecasts only a 2% per year growth rate that could be reduced through additional investments in energy efficiency and self-generation by our members.

Holy Cross Energy regularly updates both its Power Supply Roadmap and Distribution System Plan, incorporating the latest available data on electricity demand, economic trends, consumer behavior, and any known local or state mandates that may lead to increased or decreased energy demand in the future. Updating these plans regularly with a 10-year time horizon will allow Holy Cross Energy to plan and execute the necessary investments to ensure safe, affordable, and reliable delivery of clean energy by our members and their communities, just as we have done for over 85 years.