Vote No on 2C to Keep Our Options Open
This is not an either/or situation
We do not have to choose to municipalize or sign a franchise agreement with Xcel. We’ve been out of franchise with Xcel for nearly a decade. By staying out of franchise, at a minimum, Boulder would be free to pivot as new technology and new legislation on the horizon arises. Staying out of franchise allows us to find out the costs associated with public power. If we choose to pursue public power, alternative financing to complete such projects exists. And, if we decide to say no to a franchise, there is likely to be an even better option next year — courtesy of Xcel. Muni or not, let’s not give up our leverage with Xcel!
Renewable Energy developers can supply energy to Boulder more cheaply than Xcel
The city received responses … proposing to provide full requirements power supply to a municipal electric utility, … including both utility-scale solar, wind and battery storage projects as well as community solar and storage projects to be developed within city limits and in Boulder County.
In addition to bids for full requirements power supply, the city also received bids for individual projects …The city also received one proposal offering financing options for remaining activities to create a municipal electric utility (e.g. legal, regulatory, condemnation, engineering studies, power supply interconnection studies) as well as acquisition, separation, start-up and stranded costs.
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, the City’s June 17, 2020 renewable energy RFP submissions are being reviewed and could uncover an even better deal.
See industry news about the success other cities have had:
From the Gazette—report about the City of Fountain strikes electricity deal to lower costs and “Muni: A Fountain of Opportunity”
Guzman Energy has agreed to cover the cost of a $62.5 million exit fee that Delta-Montrose Electric Association is being charged by Tri-State Generation and Transmission Association to end its supply contract with Tri-State.