THE GREENEST CITY

Xcel: Boulder could be 'most green city worldwide' by 2020 under new franchise; Utility to offer details of new electricity deal to Boulder City Council
Heath Urie, June 6, 2011 (Boulder Daily Camera)

"If Boulder renews its contract with Xcel Energy instead of becoming a municipal utility, the company claims Boulder will be the "most green city worldwide" by 2020…But that could come at a cost of higher utility rates…until wind power becomes cheaper than coal or natural gas.

"Xcel officials…are prepared to offer the city an energy plan that would provide up to 70 percent renewable energy to Boulder within the first year of a new 20-year franchise agreement…By 2020, the company claims Boulder would reach 90-percent renewable energy. Currently, an average of 10 to 15 percent of Boulder's electricity comes from renewable sources."

Xcel in Colorado (click to enlarge)

"…David Driskell, Boulder's executive director of community planning and sustainability, said…the city welcomes Xcel's ideas…Steve Pomerance, a former Boulder councilman who actively has participated in the city's "Energy Future" campaign, said he's skeptical…[because] it appears to be only a wind purchase deal with an unclear pricing structure…[and not] a comprehensive solution…including efficiency, local solar, demand management and…emerging technologies…[Leslie Glustrom, a longtime utility watchdog who has also been tracking Boulder's energy options closely, expressed similar concerns]…

"Boulder officials have been considering whether to renew the city's now-expired franchise agreement with the utility giant -- which is worth about $100 million a year -- or pursue becoming a municipal utility. Either way, the city wants a greater mix of renewable and reliable energy…Xcel representatives will provide details about the proposal…before the council votes…"

Xcel has a lot of wind in Colorado (click to enlarge)

"…Xcel would meet the city's ambitious renewable-energy goals though a 20-year power-purchase agreement that involves the renewable energy credits from an already planned expansion of Xcel's wind farms in southeast Colorado…Renewable energy credits allow a company -- or a city -- to claim ownership of renewable energy such as wind or solar power. In other words, Xcel would go ahead with its plans to add wind power to the grid, but Boulder would get to claim the benefits…

"Xcel's plan would have Boulder pay the difference between the cost of the wind energy and Xcel Energy's savings from having the wind energy on its system…At some point, Xcel expects wind power to become less expensive than fossil fuels, so Boulder would [then get money back]… Boulder would pay Xcel for the cost of integrating new sources of wind power into its system, the cost of supplementing wind power when it's not available and a premium to show the Colorado Public Utilities Commission that there is a benefit to all Xcel customers…"