Mountain Energy Project FAQs

Breckenridge is tackling one of its biggest energy challenges head‑on, and we want our community's participation to move the needle.  The Mountain Energy Project is a major initiative designed to keep our homes warm, our bills manageable, and our future sustainable — all while avoiding a massive, and expensive, new gas pipeline and boosting long‑term reliability. Whether you’re curious, skeptical, excited, or just trying to figure out what this means for your home, this FAQ breaks down the essentials. Let’s dive into how this project supports Breckenridge’s community goals, improves energy resilience, and opens the door to new incentives and technologies for residents across town.

1. Why is Breckenridge participating in the Mountain Energy Project?

Breckenridge has local goals and Colorado has statewide requirements to cut greenhouse gas emissions; and most of Breckenridge's current emissions come from natural gas heating in buildings. The Mountain Energy Project specifically responds to long‑term gas reliability concerns in Summit County and aims to improve affordability by reducing exposure to volatile natural gas prices. But as an added bonus, the Mountain Energy Project also helps the Town move the needle on community-wide GHG reduction efforts.

2. Is there really a natural gas shortage here?

Yes. Xcel has identified a long‑term winter gas shortage in Summit County. The traditional fix—building a new pipeline—would cost around $300 million. Instead, the Mountain Energy Project offers a mix of incentives and solutions including demand‑side strategies such as weatherization, targeted electrification, and demand response to reduce winter peaks. Residents can receive significant incentives to make energy efficiency upgrades and retrofits that help reduce peak gas demand in the winter.

3. Will I be forced to switch from natural gas to electric heating?

No. The program is based on flexibility. Xcel’s approach combines non‑pipeline alternatives with backup gas investments, allowing residents to choose what is best for their homes. However, electrification of heating with cold climate heat pumps is a strategy to achieve community-wide SustainableBreck goals. It makes economic sense to electrify with the incentives provided in the Mountain Energy Project.

4. Why are electric heating systems part of the solution? Aren’t they more expensive to run? Conventional electric resistance heat is more expensive, but cold‑climate heat pumps are far more efficient than electric resistance and significantly more efficient than gas furnaces and boilers. When you account for equipment efficiency, and combine alongside

weatherization, solar, storage, or thoughtful time of use consumption, operating costs can look very different. And cold climate heat pumps offer cooling as well. As the climate warms, this technology can serve both heating and cooling needs.

5. What is being done to keep winter electric bills affordable?

The Mountain Community Coalition won a settlement provision for a new winter heat pump pilot rate. The proposed off‑peak winter rate is $0.041/kWh (compared to today’s $0.067/kWh) which will be filed for approval July 1, 2026. This pilot is expected to be available this coming winter, with a full rate proposal anticipated in 2027.

6. Will the electric grid be reliable enough if more people use electric heat?

Colorado is already undergoing major grid upgrades, including transmission and distribution improvements recognizing load growth across the nation. Electricity is increasingly powered by low‑cost renewables (52% of Xcel’s Colorado grid today), which improves both reliability and price stability over time.

7. How does this project benefit the community as a whole?

It helps reduce greenhouse gas emissions, avoids the need for a very expensive gas pipeline upgrade, stabilizes energy costs, and supports long‑term reliability. It also gives residents more tools—like weatherization and demand management—to manage their own energy use and bills.

8. What does “targeted electrification” mean?

It focuses incentives on homes and neighborhoods where switching to electric heat will have the biggest impact on reducing peak winter gas demand or fixing known bottlenecks in the gas system.

9. How will this affect older homes or unique mountain housing types?

Breckenridge recognizes that mountain communities have challenging housing stock—older homes, multi‑unit buildings, and cold‑climate considerations. Programs are being designed with these needs in mind, and the town is committed to ensuring transitions are technically feasible and fair.

 10. Is natural gas needed for electricity generation?

Electricity in Xcel’s Colorado service territory comes from a mix of sources that is becoming more renewable each year, driven by state requirements and company goals. Natural gas is currently used for winter heating demand and for meeting peak electric needs in summer. Other energy resources include solar, wind, and pumped hydro.

Xcel has committed to delivering 100% carbon‑free electricity and a net‑zero natural gas system by 2050. This means natural gas is expected to phase out over time. Any new natural gas infrastructure built now would likely become a stranded asset, leading to long‑term costs for customers. (See FoHI Gas Primer for more on gas system costs.)

11. Is there a difference in fire danger between gas and electric infrastructure?

Above‑ground electric infrastructure, such as transmission lines, can spark wildfires. In Summit County, most distribution lines are buried, but transmission lines remain a concern. To reduce fire risk, Xcel is investing about $1.9 billion in wildfire mitigation, including undergrounding lines, hardening infrastructure, and using Public Safety Power Shutoffs during extreme fire weather.

Gas pipelines are usually buried and present different risks, such as leaks that can cause explosions or localized air‑quality hazards.

More information on Xcel’s wildfire preparedness is available on their wildfire safety page.

12. Is there any intention to bury the LNG and CNG sites?

The LNG and CNG facilities proposed under the Mountain Energy Project are meant to be temporary. There are no plans to bury these tanks at this time.

13. Who can I talk to if I want more information or want to understand what this means for my home?

Residents can meet with Town of Breckenridge staff or High Country Conservation Center to review incentives, technical options, and approved contractors. There are several other stackable programs (Electrify Breck, HEAR) that offer incentives for fuel switching making it the best time in history to go electric in your home.