The $20,000 Heating Mandate: How Polis’s Utility Commissioners Eliminate the Backup That Worked
Colorado families who lost power during December’s windstorms discovered which heating system works when grids fail. Natural gas kept homes warm for three days while electric heat pumps sat useless waiting for electricity that couldn’t come. One hundred thousand households learned this lesson between December 17 and December 20 when 100 mph winds knocked the grid offline. Two weeks earlier, Governor Jared Polis’s three Public Utilities Commission appointees finalized mandates requiring utilities to eliminate natural gas heating entirely by 2050.
The PUC’s Clean Heat Plan, adopted December 2, 2025, requires utilities to cut natural gas emissions 41% by 2035 and 100% by 2050. Xcel Energy’s one million customers plus Black Hills Energy and Atmos Energy customers face the mandate. Xcel’s testimony to PUC stated: “Costs can be in excess of $20,000 per home” for retrofitting to electric heating. Total customer costs could reach “additional billions of dollars, even after rebates.”
A 2024 National Renewable Energy Laboratory study examined whether Colorado households would save money switching from natural gas to heat pumps. Only a small minority would see long-term savings from even the cheapest heat pumps. For high-efficiency cold-climate heat pumps needed for Colorado winters, approximately zero percent of households would save money. The mandate eliminates the heating that worked in December and forces families toward systems that don’t pencil out financially and failed when the grid went down.
Gas ratepayers fund the transition whether they participate or not. Utilities requested “hundreds of millions of dollars” in rate increases to fund beneficial electrification programs. The PUC approved Xcel’s Clean Heat plan in 2024. Costs are embedded in rates now. About 10% of Colorado emissions come from home heating—massive expenditure for marginal emissions impact while creating total grid dependence.
Xcel Energy’s November 2025 rate filing requested a 10% increase raising average residential bills from $100 to $110 monthly. Colorado families opening January utility bills discovered the result: electricity costs 38% higher than 2019. Since 2020, four rate increases stacked on top of each other—consumer advocates call this “pancaking.” Less than half the average bill pays for electricity. The remainder covers regulatory compliance, infrastructure mandates, and clean energy transitions. Xcel’s $10 billion Clean Energy Plan flows entirely to ratepayers. The $1.7 billion Power Pathway transmission project already appears on customer bills.
Common Sense Institute projects electricity costs rising $504 yearly by 2030. Through 2040, households face cumulative increases of $6,400 to $9,280. If consumption increases 20% from electrification mandates, annual costs could hit $467 to $549. Families of four face $1,300 in reduced disposable income by 2030. These projections assume grid reliability. December proved grids can’t maintain power in severe weather. The PUC mandates eliminating the backup system that worked.
Time-of-use rates compound the burden. Peak pricing applies 5 to 9 PM weekdays—when families cook dinner, do laundry, and charge vehicles. Solar customers without batteries receive less compensation for midday generation. Regulators claim “revenue neutrality” but working families cannot shift electricity usage away from evening hours. Retirees and flexible workers can adjust schedules and save money. Working families with children pay premium rates for basic needs. Economic discrimination is built into rate structures.
Joseph Pereira, deputy director of Colorado Office of Utility Consumer Advocate, called Xcel “disconnected from the community,” noting utilities “continue to act in a manner that none of these outside forces seem to play into the equation” while “everyone is tightening their belt.” Xcel’s assistance program serves 60,000 income-qualified customers with bills limited to 1.5% of income. The utility aims to double participation to 120,000. Middle-class families face the squeeze: too wealthy for assistance, too poor for $20,000 retrofits, forced to pay premium rates during dinner hours.
The PUC’s three commissioners making these decisions face no voters. All serve at Polis’s appointment. Eric Blank joined the commission in 2020. Megan Gilman was appointed in 2021. John Gavan became chairman in 2019. When December’s winds knocked power offline for three days, these commissioners had already finalized mandates eliminating the heating that kept families warm.
HB 23-1161, effective January 1, 2026, requires new gas furnaces and water heaters to meet ultra-low nitrogen oxide standards. The Democratic legislative supermajority passed the bill with Polis’s backing. When equipment fails after typical 10 to 15 year lifespans, replacement options narrow to compliant models at higher prices. Anyone shopping for replacements this January discovered choices eliminated. Families with functioning equipment face no immediate impact, but when equipment fails—and it will—higher costs and limited options await.
Denver’s “Energize Denver” ordinance, effective March 2023, makes replacing broken gas appliances with gas equipment burdensome. Owners must submit proposals to Community Planning and Development before permitting. The city grants emergency replacement exceptions but delays and expenses mount. Commercial and multi-family buildings face the tightest restrictions. Single-family homeowners aren’t exempt—they’re later in line.
Boulder adopted an all-electric mandate effective December 2024 requiring gas-free construction for new homes, additions of any size, and major remodels affecting over 50% of square footage. Gas stoves and fireplaces are prohibited. Property owners bear cost differentials. New buyers lose choice. City Council passed the ordinance unanimously without voter input.
Fort Collins considers similar bans. Aspen already adopted strict energy codes. Progressive cities lead, other municipalities follow, rural areas eventually comply through state mandates. City councils pass ordinances without voter input.
Natural gas is more common in rural areas. The $20,000 retrofit cost hits rural households with lower incomes harder. Rural electric cooperatives pass all costs to members because they lack shareholders to absorb losses. When grid failures hit rural areas, longer restoration times leave households without power for days. The PUC mandate eliminates the backup heating that matters most when infrastructure fails.
Infrastructure investment and incentive programs prioritize the Front Range where denser populations justify utility spending. Rural areas with dispersed populations don’t. Urban Democratic legislators drive policy. Rural Republican legislators are outvoted. The three PUC commissioners answering to Polis make decisions affecting every household’s heating costs and backup options.
The 2050 endgame envisions complete natural gas elimination. Total dependence on electric grids that failed in December becomes mandatory. Elderly and vulnerable populations face highest risk when grids fail. December demonstrated the stakes: natural gas operated independently for three days while electric systems didn’t.
December 17 winds exceeded 100 mph. Xcel shut off power to 69,000 customers to prevent wildfires. Broken poles extended outages. Another 69,000 lost power when winds returned. Some households went three days without electricity. Homes with natural gas heat stayed warm. Gas delivery operates independently from grids. Electric heat pumps stopped. Two weeks earlier, twelve Polis appointees across PUC, legislature, and local governments finalized mandates eliminating the system that worked.
January 2026 brings the bills and eliminated choices. The targets supposedly justifying these costs remain unmet. Winter is beginning. The backup heating that worked faces elimination by 2050. The commissioners making these decisions face no voters.
Support Independent Local Journalism — High Country Advocate was created as a real alternative to regional media that too often silences dissenting voices while taking sides in the political struggle. Producing in-depth, unflinching reporting like this series and others is expensive: servers, editing, research time, and legal review all add up quickly. If these articles have informed you or given you new perspective, please consider supporting HCA with a paid subscription — every subscriber helps keep this reporting strong and independent. 