Kerwin: Don't Let A Good Crisis Go to WastePublished on: Thursday, August 20, 2020
August 19, 2020
COVID killed the muni. A popular recent talking point of muni opponents. Xcel and Yates saw an opportunity and they circled like vultures.
The argument that Boulder’s budget crunch somehow makes Muni less viable couldn’t be further from the truth. Because how are we going to pay for Muni?The SAME way we were always going to pay for Muni, with Municipal bonds. Except, now municipal bond rates are at historical lows! The 20-Year Bond Go Index average rate is down to 2.05%. This will make Muni less expensive and save Boulder citizens more money over the coming decades. Meanwhile, Xcel still gets their guaranteed 10% return on capital.
Don’t be fooled by Xcel. The 20 year cost of a franchise agreement will be significantly more expensive than Muni. Boulder will not have flexibility and will be at the whims of Xcel’s decision making. Boulder will not be able to reach the goal of 100% clean electricity by 2030 without a Muni.
Follow through on your campaign promises and put a Muni option in front of voters in 2021.