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Danielle Gronhovd: Xcel’s Electric Resource Plan conflicts with Boulder’s climate goals

Hyoung Chang / The Denver Post
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In 2016, the city of Boulder set two goals: to power their city with 100 percent renewable electricity by 2030 and to reduce Boulder’s greenhouse gas emissions to 80 percent below 2005 levels by 2050. Boulder’s ambitious and inspiring move toward clean energy stems from its acknowledgment of and determination to act on climate change. If Boulder is to meet this goal, however, privately-owned electricity service provider Xcel Energy must be on board. However, past years have shown that Xcel is not doing everything it can to switch to renewable energy and is fighting to hold onto fossil fuels. The proposal of Xcel’s Clean Energy Plan Portfolio is a step in the right direction, but the city cannot make exceptions for Xcel that do not directly contribute to reaching the city’s climate goals.

Boulder took a big step forward on climate action in 2011 by starting the process of municipalization, or changing ownership of the electric utility to the city. Municipalization would allow the city to control where energy comes from, thus enabling the city to meet its customers’ wants and needs, reach their climate goals, and incorporate more renewable resources. However, the road to municipalization is long, strenuous, and includes costly litigation with Xcel. Although the city is still in the process of creating their own utility, the city is also open to partnering with Xcel to find an alternative consistent with the community’s energy vision.

While Boulder’s energy may be in the hands of a municipally owned utility in the next few years, it is crucial to be engaged in current happenings about Boulder’s energy future with Xcel. It’s important for people to think about their energy use and the impact they have on the planet, or at the very least their community. Fossil fuels are hazardous to the environment and public health, whereas renewable energy benefits include clean air and water, diversified energy resources, and social and economic development through job creation.

Every four years, Xcel goes to the Colorado Public Utility Commission (PUC) and presents its Electric Resource Plan. The plan outlines what Xcel is going to build or buy with respect to energy generation. Xcel presented alternatives for how it’s going to reach these resource needs. Of special interest is its resource scenario called the Clean Energy Plan Portfolio (CEPP), which offers up to 1,110 megawatts (MW), enough to power approximately 721,500 homes. The goals of the CEPP includes retiring two coal plants 10 years early (660 MW), replacing the retired capacity with a combination of renewables and natural gas, reducing the Renewable Energy Standard Adjustment (RESA) from 2 percent to 1 percent, and for Xcel to own 50 percent of new renewables and 75 percent of dispatchable resources, which are sources of electricity that can be ramped up or shut down via power grid operators or plant owners.

As a graduate student studying conservation, these terms leave me with the impression that Xcel’s decisions are not being made in the public’s best interest. Taxpayer money is supposed to be used to support solar development. It is absurd that Xcel is proposing to reallocate it to compensate for shutting down coal plants. Reducing RESA, which is a surcharge on electricity bills, will mean less funding will be allocated to financial incentives for creating rooftop solar and community solar gardens. Another major concern is that Xcel would have a high percentage of ownership. This structure would drive competitors away, thus increasing cost to customers. Lastly, Xcel is looking to acquire more natural gas. Natural gas has been thought of as a bridge fuel, helping with the transition from high carbon fossil fuels, such as coal, to renewable energy. But this change does not fit with Boulder’s climate change goals, since it is a fossil fuel and contributes to climate change. In addition, taxpayers will be paying for gas-fired facilities to be shut down as more renewable energy comes online, just like we’re doing for stranded coal-fired power plants.

Right now, CEPP is simply an option; the PUC will decide on the motion for the approval of this portfolio the end of July. More importantly, the city will be able to review the ERP and to comment on the different scenarios in June. Talk to your city representatives and the PUC to voice your concerns with Xcel’s proposal of acquiring more natural gas, less funding for solar, and Xcel’s majority ownership of renewables and dispatchable resources. Help the city of Boulder fight for an energy democracy.

Danielle Gronhovd is a graduate student in Colorado State University’s Conservation Leadership through Learning program.