Boulder, Xcel Energy working on partnership
Feb. 27—Several months after voters approved a 20-year franchise agreement with Xcel Energy, Boulder is in the process of finalizing its initial partnership projects, appointing members to its community advisory board and awaiting official confirmation from the Colorado Public Utilities Commission.
The November vote effectively put Boulder's decade-long effort to form its own municipal electric utility on hold in favor of working with Xcel Energy to achieve the city's climate goals, including 100% renewable energy by 2030. The newly established partnership prioritizes reducing greenhouse gas emission, electrifying transportation and buildings, boosting the system's resilience and ensuring equity.
However, the city and Xcel Energy are still waiting for the Colorado Public Utilities Commission to adopt the franchise. Xcel Energy filed an application requesting approval on Dec. 21, but three parties — the Office of Consumer Council, PUC staff and a Boulder resident — filed to intervene.
"While it's not typical in a franchise for there to be much of an engagement with external parties or even the Public Utilities Commission, I think it's no surprise that just with some of the nuances of our franchise agreement, there was some interest," energy manager Carolyn Elam said.
Staff noted in a memo that the PUC has not yet outlined next steps, but the litigation could take up to 10 months to resolve. In the meantime, the city and Xcel are continuing the partnership as planned.
Given the long history surrounding Boulder's efforts to form its own electric utility, Jonathan Koehn, Boulder's interim director of climate initiatives, recognized in a Boulder City Council study session on Tuesday that a community divide remains.
"To many, the vote last November was overdue, and to many, it was a disappointment," he said. "And while I believe there is general agreement around our community's energy goals, I do think there's still some division on the best way to get there."
While Boulder and Xcel will be partnering for the foreseeable future, the franchise agreement offers exit opportunities, three for any reason and several more if Xcel is not meeting certain benchmarks. Opting out would require a six-person vote of the Boulder City Council or a majority vote of Boulder voters, according to the city.
"We spent nearly 10 years in an adversarial relationship with Xcel so the partnership was built recognizing that reality, which is why we have those opt outs," Koehn said.
Part of the work that's been ongoing since voters approved the franchise includes documenting the city's municipalization efforts and archiving records in such a way that Boulder could revisit the idea of municipalization down the road. Additionally, the city had to repay about $1.45 million to its general fund that had previously been allocated for municipalization work, including staffing and unplanned litigation expenses. By suspending some of the technical and legal work prior to the November vote, Boulder repaid that fund, according to Koehn.
Moving forward, the city and Xcel will focus on some of the main project areas, which include distribution planning; advocating for climate policy; moving toward 100% renewable electricity; upgrading Boulder's streetlights to be more energy efficient; moving the utility lines underground; and continuing to work on communication and engagement.
As part of its engagement efforts, the city recruited up to 15 people to serve on the city's energy partnership advisory panel, which will meet to review and discuss energy issues and provide feedback on any projects and programs that come out of the partnership. Boulder on Friday closed applications for the panel. There were more than 70, which staff sees as an indication of the level of community interest.
Boulder City Council did not offer much feedback in its Tuesday study session. Mayor Sam Weaver acknowledged that there is a lot of community interest in the partnership but emphasized the importance of ensuring the information is understandable for all.
"Between the wildfires in California ... and what just happened in Texas, I think there will be interest in it, but it will not not be a very technical, geeky way," he said.
Weaver believes Boulder residents will be most interested in knowing: "What are we doing in partnership with Xcel that will make a difference in our community's ability to get through those things?"
