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Colorado and Xcel slated for $250 million grid award

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Transmission power lines in Weld County for the Colorado and Xcel grid award headline.

NEWS BRIEF

Colorado Public Radio reports that the U.S. Department of Energy plans to award the Colorado Energy Office and Xcel Energy $250 million for the CO2TX transmission project. The award, which will take months to finalize, would help complete a $1.2 billion set of investments in a multistate transmission route connecting Colorado more closely with Texas and eastern grids.

The project would update high-voltage transmission lines and substations. State officials said the upgrades could increase electricity transfer capacity into Colorado from 210 MW to 700 MW, with potential for nearly 2,000 MW. Xcel expects the project to be operating around 2030, according to CPR.

What to know

The proposed federal award is not final. If completed, the transmission upgrades are intended to move more electricity into Colorado and connect with Xcel’s Power Pathway network, while a separate Power Pathway land-condemnation ruling remains under appeal.


Reporting: Colorado Public Radio · 09-24-2026

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