Boulder may not be able to reach its goal of 100% renewable energy by 2030 with Xcel
As we consider a 20-year franchise with an investor-owned utility, it is worth remembering that Xcel is Colorado’s only utility with large, coal-fired power plants set to operate past 2030.* How will Xcel square our carbon goals with their need to deliver profits for shareholders?
One way might be creative accounting for carbon. Xcel’s “80% Carbon Reduction” is not the same as “80% Renewables.” Xcel could claim a “reduction in carbon” by, for example, shifting from coal to gas. We want more renewable energy, not merely the replacement of one fossil fuel for another.
Xcel’s “Path to 2050 Aspiration” includes “natural gas with carbon capture and storage” and “advanced nuclear” (neither of which has been proven at scale). Xcel’s path does not align with Boulder’s goal of 100% renewable energy, nor our expedited timeframe.
The Gap between 70% and 100% Renewables
Bridging the gap between Xcel’s goal of 70% renewable energy and Boulder’s goal of 100% by 2030 is likely to cost take $100’s of million of capital to build the renewable energy sources necessary to bridge the gap, that Xcel would charge to us (plus their profit). This is because any services (renewables, microgrids, etc.) Xcel provides to Boulder that go beyond what Xcel provides to other customers are services that Boulder taxpayers would have to pay for. (State law CRS 40-3-106.) These would cost Boulder taxpayers unknown millions of dollars extra.
To be clear, the Franchise Agreement (para. 14.4) plainly says Xcel does not have to spend a dime on anything that it has a “good faith belief” the PUC will not allow the Company to recover [from the ratepayers]. In other words, Xcel will only spend other people’s money.
What About Boulder’s 2020 RFP?
The City’s 2018 Request for Indicative Pricing (RFIP) showed that Boulder could save $40 million per year on energy costs at 89% renewable power by purchasing from vendors other than Xcel. And, even at higher costs, Xcel would be providing only 53% renewables. (https://www-static.bouldercolorado.gov/docs/RFIP_One-pager-1-201902061233.pdf) We think this standard – 89% renewables at a cost of 2/3 of Xcel’s wholesale price – should be the one Xcel should meet or beat?
Note, analysis of the City’s June 17, 2020 RFP is underway and could uncover an even better deal.