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Natural gas plays a vital role in achieving Colorado’s low-carbon energy future. Protecting energy choice is a key driver of our economy and helps families thrive. A diverse mix of energy sources, including natural gas, works together to provide affordable, reliable, and efficient energy that we can count on today and for generations to come. Coloradans should have the ability to choose the energy source that is best for their needs.

Coloradans support energy choice

Coloradans Support Energy Choice

Nearly 80% of Coloradans want the ability to choose the type of energy and appliances for their home and business. This is important to the more than 2 million homes and businesses in Colorado that use natural gas for heating, water heating, cooking, and industrial processes. As Colorado continues to grow, access to all sources of energy helps our businesses prosper and families thrive. (EIA)

Energy Affordability Matters

Many Colorado towns struggle with providing affordable housing for residents. A vital aspect of affordable housing is affordable energy. In 2024, the average monthly residential bill for Atmos Energy customers was $57.80. Enacting policies that restrict customer choice and mandate households and businesses to convert to electric appliances and equipment will have significant cost implications for the customer to heat their home, which is unfair to citizens who are already struggling to feed and care for their families on stretched budgets.

  • Utility bills for an all-electric home (where natural gas is not provided) increases energy costs by approximately $1,200 annually for the average home in Colorado. 
  • On average, it costs about 42% more to heat a home with electricity versus natural gas. (U.S. Dept. of Energy)
  • Natural gas is 3.5 times more affordable than electricity. (U.S. Dept. of Energy)
  • Natural gas prices are stable and projected to be 30-50% less than the price of other fuels through 2050. (AGA)
  • Affordable energy bills are crucial for approximately 23% of Colorado households that qualify as income-eligible and need utility bill assistance. 

Energy Efficiency Matters

  • A home with natural gas in Colorado produces approximately 36% fewer carbon dioxide emissions every year than an all-electric home.  (GTI)
    • When considering the full energy cycle, you use less overall energy and produce less carbon emissions with natural gas. By using natural gas directly to fuel appliances and equipment, you are receiving 92% useful energy. This is compared to the generation of electricity, which loses about 62% of useful energy from generation to delivery to a home or business. (AGA)
    • The direct use of natural gas to fuel appliances is 2.5 times more efficient than delivered electricity, and results in a lower carbon footprint than an all-electric home (AGA). In 2024, electricity generated for Colorado comes from (CEO):
      • 29% natural gas
      • 32% coal
      • 39% renewable (wind, solar, hydroelectric)
    • Modernization of the natural gas delivery system and the growth of renewable energy have led to energy-related carbon dioxide emissions hitting 30-year lows. From 2017 to 2023, Atmos Energy has reduced methane emissions from distribution mains and services by 23% (as reported to EPA in accordance with 40 CFR 98 Subpart W).

    Energy Reliability Matters

    Winter in Colorado can be extremely cold, and having access to reliable energy is essential for the health and safety of residents. "Electrification", or migrating all energy  use away from natural gas to only electricity, would jeopardize Colorado's energy reliability and leave homes and businesses dependent on only one energy source. It takes a diverse energy mix to help make sure that energy is there when it's needed.

    • Colorado has a mix of overhead and underground distribution electric lines, but natural gas pipelines are underground which provides reliable and continuous energy for Coloradans.

    What would be the impacts of eliminating natural gas in Colorado?

    • The average Colorado home using natural gas saves approximately $1,250 compared to an all-electric home. (AGA) As U.S. electric rates continue to rise, natural gas service will continue to save customers even more.
    • An all-electric home emits approximately 36% more carbon dioxide every year in Colorado. (GTI)
    • A new home in Colorado abiding by ‘electric ready’ building codes may cost an additional $11,430 to $15,100 to construct. (NAHB)
    • Existing homes replacing natural gas equipment with electric equipment may require upgrading their electrical system to handle the additional electric load.  (NAHB)
    • In cold climates, homes with an electric heat pump will require a backup electric resistance system to maintain the desired temperature setting, which will be inefficient and expensive. Heat pumps deliver about 95-degree air, compared to a natural gas furnace, which delivers about 125-degree air that is warm and comfortable.
    Green house with white text
    Green house with white text

    Average annual savings determined using GTI Energy’s “Energy Planning Analysis Tool” (EPAT), https://cmicepatcalc.gti.energy. All-Electric Cost for the analysis is based on 2024 EIA eGRID electric rates and Atmos Energy Colorado average rates for 2024. Gas and electric costs for this analysis assumes a 2,000 square foot home of a residential customer in Atmos Energy’s Colorado service territory with natural gas space heating, water heating, cooking range, and clothes drying appliances. 

    Average carbon savings determined using GTI Energy’s “Energy Planning Analysis Tool” (EPAT), https://cmicepatcalc.gti.energy. Analysis is based on 2022 EIA eGRID source generation electric emission factors and assumes a 2,000 square foot home of a residential customer in Atmos Energy’s Colorado service territory with natural gas space heating, water heating, cooking range, and clothes drying appliances.

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