Posts tagged Xcel Energy
City staff recommends that voters be asked to support a local power utility
Jul 15th
City Manager Jane S. Brautigam
Brautigam also said she is confident that the process following a vote for municipalization will provide adequate opportunities to address concerns raised by some that the cost of purchasing the system from the current provider, Xcel, could exceed current estimates.
A positive vote is required before the city can enter into acquisition negotiations and/or condemnation proceedings. During this process, the city would determine what the final price would be. If the costs of buying Xcel’s system turned out to be significantly higher than anticipated or would result in rate increases that were unacceptable to the community, council would be under no obligation to issue the bonds necessary to pay for buying the system and launching a utility. The city could then re-consider how to proceed.
“There are off-ramps in place that allow the city to move forward with its eyes wide open,” the city manager said. “Our community has spelled out both its goals and its expectations. City staff and elected officials take the responsibility of balancing these very seriously.”
The recommendation follows more than two years of discussions about whether to enter into another 20-year franchise agreement with Xcel Energy. In 2010, City Council rejected that option, determining that a business-as-usual contract for two decades was too long and would limit Boulder’s ability to take advantage of exciting changes in the energy industry. Since then, the city and the community have been involved in an intensive study and discussion of other options.
The Boulder community has set clear energy future goals. These include cleaner energy, with as much local generation as possible; reliability; rate stability and more local decision-making and control.
The city hired industry specialists to conduct a detailed financial assessment of the possible creation of a local utility. They have concluded that Boulder could buy the system from Xcel, pay off the debt associated with those costs, start a utility and operate it reliably while still making money. The local utility would be able to keep customers rates lower or equal to what they would be under Xcel, maintain emergency reserves and still have a net present value of $112 million over 10 years. The cost model developed by the consultants has some room for increased costs. This flexibility is spelled out in more detail in a staff memo to council.
The staff recommendation also includes support for an increase and extension of the Climate Action Plan tax. While a locally owned power utility would cover its costs entirely through its revenues once it was up and running, the city would need additional money to cover engineering and legal expenses before that time. It is estimated that the city would need about $1 million a year for three to five years before a final determination could be made about whether to issue bonds to buy Xcel’s system. This funding mechanism would allow the city to continue this process without impacting existing programs and services.
City Council is scheduled to meet on Tuesday, July 19, starting at 5 p.m., to discuss items for the November ballot. The full memo and other valuable information about the energy future project are available at http://www.boulderenergyfuture.com. There is also a comment form on this website if community members wish to give input to the staff team and City Council.
IBM to report on Smarter Cities Challenge Grant
May 27th
Boulder’s Energy Future: ‘Business Matters’ events scheduled
May 27th
The City of Boulder recognizes the importance of informing and engaging the local business community in the decision about the future of Boulder’s energy supply. In response to questions, the city is holding four ‘Business Matters’ meetings to provide information on the research and analysis to date, and to gather feedback.
Wednesday, June 8, 7:30 to 9 a.m., Boulder’s Dinner Theater, 5501 Arapahoe Ave.
Wednesday, June 8, 4:30 to 6 p.m., Namasté Solar, 4571 Broadway
Friday, June 10, 7:30 to 9 a.m., Hotel Boulderado, 2115 13th St.
Monday, June 13, 7:30 to 9 a.m., Covidien, 5920 Longbow Dr., Building #6, Red Rocks Auditorium
These events are being co-sponsored by the hosting businesses and the Boulder County Business Report, and the city appreciates their support.
The city is also holding the first two of its ‘Coffee Meetups’ series in late May and early June. These offer a more informal opportunity to receive status updates, ask questions and provide feedback. Scheduled events include:
Friday, May 27, 7:30 to 9 a.m., The Cup, 1521 Pearl St.
Friday, June 3, 7:30 to 9 a.m., Caffé Sole, 637R South Broadway
Additional ‘Coffee Meetups’ will be scheduled throughout the summer and will be posted on the project website.
Boulder’s Energy Future goal is to ensure that residential, business and other institutional customers have access to safe, reliable energy that is competitively priced, increasingly clean, and is as locally produced as possible – giving customers more choice and control in their power.
The city’s energy team is focused on gathering the facts and data needed to inform decisions about the best option for the community. While no decision has been made about how to accomplish this goal, analyses that take into account Boulder’s specific objectives are underway. Currently, three options are being explored:
Forming a new agreement with our current provider, Xcel Energy, that takes into account the community’s goals;
Creating a local power utility; or,
Leaving the system the way it is.
The city began receiving reports from consultants and committees who are studying the options in April. Over the next few months, council will evaluate the information and determine whether to put any measures on the ballot for voter consideration in November.
Anyone seeking more information about the Energy Future project is encouraged to visit www.BoulderEnergyFuture.com or call Andrew Barth at 303-441-1937 or Sarah Huntley at 303-441-3155.