Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up1/24/2019
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Last week, a majority of Colorado state legislators urged the Colorado Public Utilities Commission (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.
In response to the legislators’ letter, Tri-State has sought to highlight the support from its member co-ops for its argument that the Colorado PUC does not have jurisdiction in the dispute. The Denver Post reported: Tri-State spokesman Lee Boughey said in an email Friday that 34 of its member cooperatives have filed statements supporting the position that the state utilities commission doesn’t have jurisdiction in the contract dispute. The Grand Junction Daily Sentinel reported: Tri-State spokesman Lee Boughey said that 34 of Tri-State's members, or 80 percent, have made filings with the PUC in support of its position that the DMEA issue is not up to the PUC to decide. "Legislators should be aware that the vast majority of our members disagree with DMEA, and in fact have intervened on Tri-State's behalf at the PUC. We would encourage legislators to reach out to the co-ops in their districts for feedback when they're asked about these kinds of matters," Boughey said. But an analysis of the filings submitted by co-ops to the Colorado PUC shows that Tri-State’s claims are false. And requests for comment from the general managers of ten co-ops in Colorado returned only two responses - both disputing that they “have intervened on Tri-State behalf.” Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge1/20/2019
By Joe Smyth | joe@cleancooperative.com | @joesmyth
A majority of Colorado’s state legislators are urging the Colorado Public Utilities (PUC) to determine the amount that Delta-Montrose Electric Association must pay to exit from Tri-State Generation and Transmission Association.
In a letter this week to Colorado PUC Chairman Jeff Ackermann and Commissioner Frances Koncilja, 17 Colorado State Senators and 35 State Representatives wrote: We submit these comments in support of the filing last month by Delta-Montrose Electric Association (DMEA) asking the Colorado Public Utilities Commission to set a just, reasonable, and nondiscriminatory charge for DMEA’s exit from Tri-State. As members of the Colorado General Assembly who care about rural economic development and allowing all Coloradans access to less expensive power from local and diverse generation sources, we urge the Commission to strongly consider exercising its jurisdiction under Colorado law and setting an exit charge fair to both DMEA and Tri-State’s remaining members. More corporate customers want renewable energy options. What happens when an electric utility can’t offer that? By Joe Smyth | joe@cleancooperative.com | @joesmyth United Power has been meeting with other electric cooperatives this month, in an effort to build support for its proposal to change the bylaws of its power supplier, Tri-State Generation and Transmission Association. Those meetings follow United Power’s invitations to discuss its “grave concerns about key elements of Tri-State’s key generation products and services” directly with the 42 other co-ops that buy power from Tri-State.
At a presentation to Mountain Parks Electric on January 3, United Power New Business Director Jerry Marizza explained that United Power was not proposing to simply raise the 5% limit that Tri-State imposes on local renewable energy development to a higher level. Instead, the proposal for a partial requirements contract option would assure that Tri-State continues to provide a portion of United Power’s energy purchases, while allowing United Power to meet its electricity load growth by pursuing its own local renewable energy projects, or buying wholesale power from other providers. United Power staff said the proposal would also give the co-op the ability to provide its major customers with lower rates and renewable energy options that aren’t possible with the current Tri-State contract. One example Marizza noted were commercial customers that now expect to be able to build larger on-site solar arrays to help power their operations: “All this stuff is happening at the distribution level. Ikea - they will not build a facility unless they get to put a megawatt of solar on their roof. That’s just a fact, okay? If you want an Ikea, you’re going to have to deal with that fact. And you can’t come to them and say ‘I’d love to accommodate you, but Tri-State’s contract won’t allow me to.’ That’s not an answer, it really isn’t.” The Ikea store in Centennial, Colorado has a 1.1 megawatt rooftop solar array. Next Colorado PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis12/20/2018
By Joe Smyth | joe@cleancooperative.com | @joesmyth Colorado Governor John Hickenlooper announced this week that John Gavan will serve as the next Commissioner of the Colorado Public Utilities Commission (PUC), beginning January 7, 2019. Gavan will replace PUC commissioner Wendy Moser, whose term ends next month, and join Commissioner Frances Koncilja and Chairman Jeffrey Ackerman, whose terms continue until January 2020 and January 2021, respectively.
"We appreciate Wendy’s service to the PUC," said Hickenlooper press secretary Jacque Montgomery in an email, "Mr. Gavan was a consensus choice of both the Governor and Governor-elect Polis. He is an engineer and brings experience in energy and telecommunications. We believe Mr. Gavan will be an excellent addition to the PUC." The Colorado PUC regulates electric utilities in the state, and will likely play a significant role in efforts to shift the state toward renewable energy. Governor-elect Jared Polis campaigned on a goal of moving Colorado to 100% renewable energy by 2040 or sooner, and said after the election that goal will be among his top priorities. The Polis campaign website highlighted the importance of “Appointing Public Utilities Commissioners who support consumers and renewable energy” among the ways that "We can spur investment in new local renewable energy projects."
By Joe Smyth | joe@cleancooperative.com | @joesmyth
United Power will dedicate the largest battery storage system in Colorado next week, a 16 megawatt hour Tesla Powerpack in Longmont that the electric cooperative expects will save its members $1 million each year.
But recent policy changes by Tri-State Generation and Transmission Association, United Power’s wholesale power supplier, aim to discourage other cooperatives from pursuing similar projects, creating uncertainty for the deployment of battery projects in much of rural Colorado and New Mexico. United Power shifted its focus to battery projects last year, after the co-op reached the 5% limit on local renewable energy generation imposed by Tri State. Over the past several years, United Power sought to reduce its purchased power costs by building several solar arrays in its service territory that deliver power at a lower cost than power sold by Tri-State. Blocked from pursuing more local solar projects, United Power developed a strategy to use batteries to help control its peak demand. Last month, United Power also wrote to other co-ops expressing "grave concerns" about Tri-State, including the high cost of power it sells to member co-ops and "Tri-State’s reluctance to embrace additional sources of renewable energy generation due to constraints of its largely fossil fuel generating fleet." Controlling peak demand will help the co-op manage its purchased power costs - which could slow the growth revenue that Tri-State receives from United Power. So this past summer, Tri-State changed its Policy 115, which describes how the 5% limit will be implemented. Tri-State inserted language into the policy to include “energy storage devices, such as batteries,” even though the policy was designed to deal with co-ops’ renewable or distributed generation projects. A June 2018 copy of the proposed changes to Tri-State Policy 115 shows the edits to the policy in red, before those changes were finalized.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Delta-Montrose Electric Association (DMEA) took a major step forward in its effort to end its contract with Tri-State Generation and Transmission Association, by filing a formal complaint last week requesting that the Colorado Public Utilities Commission (PUC) "exercise its jurisdiction over Tri-State as a public utility" and "establish an exit charge that is just, reasonable, and nondiscriminatory."
On Monday morning, the Colorado PUC ordered Tri-State "to satisfy the matters in the complaint or to answer the complaint in writing within 20 days." On Monday afternoon, DMEA filed a request that the PUC establish a schedule for the hearings process that would result in a decision by July 11, 2019.
DMEA has sought for years to loosen the restrictions that Tri-State imposes on electric cooperatives, which prevent DMEA and other Colorado co-ops from pursuing more local renewable energy projects. In October, DMEA members voted to give the electric cooperative more financial options to pursue a buyout of its Tri-State contract.
DMEA noted in a press release that it "will partner with Guzman Energy," the same power supplier that supported Kit Carson Electric's $37 million buyout of its contract with Tri-State. Guzman Energy announced today that it is seeking Requests for Proposal for up to 200 megawatts of wind energy and 50 megawatts of solar energy, and has obtained a $200 million capital commitment to help bring on that new renewable energy. Guzman Energy President Chris Riley confirmed that a portion of the 250 megawatts of wind and solar would be used to serve DMEA, if the co-op succeeds in ending its contract with Tri-State.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
United Power, the largest electric cooperative that buys power from Tri-State Generation and Transmission Association, is seeking changes to Tri-State's bylaws that would give more flexibility to United and other co-ops to purchase power from other providers.
In letters sent last week to the other electric cooperatives that buy power from Tri-State, United Power board president James Vigesaa wrote that "the Board members and management of United Power have grave concerns about key elements of Tri-State’s key generation products and services," including Tri-State's reluctance to embrace renewable energy and the high cost of power it sells to member co-ops. A United Power representative said that letters were sent to the board presidents and general managers of each of the 42 other Tri-State member co-ops. Other electric cooperatives in Colorado and New Mexico have noted similar concerns about the high cost and heavy reliance on coal of the power they purchase from Tri-State, and have responded in a variety of ways. In September, Poudre Valley Electric Association urged Tri-State to study if adjusting its fuel mix could lower costs, as reports from Rocky Mountain Institute and Moody's Investors Service have found. Delta-Montrose Electric Association is pursuing an end to its contract with Tri-State, as Kit Carson Electric did in 2016. La Plata Electric Association is studying its options, and last month contracted with three consulting firms to analyze its contract with Tri-State and other power supply options. United Power's letter suggests another approach: instead of only allowing all-requirements contracts, which require each co-op to purchase 95% of its power needs from Tri-State, United Power's proposal would "amend the Tri-State bylaws to include a partial requirements membership relationship." By Joe Smyth | joe@cleancooperative.com | @joesmyth At the Clean Energy Means Business Summit in Denver this week, representatives of municipalities and companies in Colorado discussed how they are pursuing their renewable energy goals, including navigating the challenges and opportunities of working with electric cooperatives in Colorado. The event, organized by the Colorado Solar Energy Industries Association and the Compact of Colorado Communities, also included presentations from solar energy developers, electric utilities, and state officials.
Craig Edwards, Director of Corporate Services at Aurora Organic Dairy, discussed how the company considers a variety of options for on-site renewable energy projects at its operations in Colorado and Texas, and said, “We’re just wrapping up a couple solar installations at two of our dairy farms here in Colorado, they’re our first steps towards our clean energy strategy.” Edwards said that the Aurora had sometimes faced challenges in working with electric cooperatives as it pursues on-site renewable energy projects, but had found success by discussing the company’s goals with co-op staff. Aurora is still negotiating with other electric cooperatives about future projects: We’re still working through many different negotiations with many of our co-ops. Each one of our locations we operate in has a unique mix of renewable energy sources and possibilities, we have a co-op for each one generally, so we look at everything on a case by case basis.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
At the 2018 Colorado Rural Electric Association Energy Innovations Summit this week in Denver, electric utility industry officials discussed changes in energy technologies and utility business models, such as increasing customer choices and declining costs of distributed renewable energy. But while there was broad agreement about the opportunities provided by cheaper renewable energy, there were disagreements about the scope and pace of business model changes underway in the industry - and the implications of those changes for the hundreds of electric cooperative directors and staff attending the conference.
Steve Collier, Director of Smart Grid Strategies at Milsoft Utility Solutions, delivered a presentation titled “Revolutionary Change in the Electric Industry: Threats and Opportunities,” which focused on the implications for electric cooperatives of what he described as an “eroding monopoly.” Collier explained: What choices do customers have other than buying from you, all that that they have ever bought? Do they have choices? Yeah they have choices. Primarily distributed energy resources. But we’re not just talking about rooftop solar, we’re talking about a whole variety of options that they have to reduce the amount of electricity that they buy from you.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Delta-Montrose Electric Association members voted to approve changes to the electric cooperative's articles of incorporation this week, creating new financing options that will help the co-op end its contract with its power supplier, Tri-State Generation and Transmission Association. Under the new articles of incorporation, Delta-Montrose Electric Association (DMEA) will be able raise money by issuing capital stock, “which could be used to fund DMEA’s potential Tri-State buyout,” according to a press release.
“We believe addressing our power supply costs is essential for long-term rate stabilization for our members. This was the primary driver behind our recommendation to amend and restate the Articles of Incorporation,” said Delta-Montrose Electric CEO Jasen Bronec in a statement. The DMEA board urged members to vote yes, including with a video that focused on how the changes would help DMEA finance a buyout of its contract with Tri-State. The co-op also hosted community meetings about the proposed changes. DMEA members voted by mail and at a special meeting on October 16, with 2,677 members voting yes (68%), and 1,248 voting no (32%).
By Joe Smyth | joe@cleancooperative.com | @joesmyth
The Poudre Valley Rural Electric Association board of directors is urging Tri-State Generation and Transmission Association to develop new policies to respond to a changing utility industry, and to study if adjusting its fuel mix could lower costs. In a resolution passed unanimously on September 19, the electric cooperative requested that Tri-State “work expeditiously in a transparent process to determine if significant cost savings are achievable by adjusting Tri-State’s fuel mix and provide the findings to Tri-State’s members by the end of calendar year 2018.”
Poudre Valley Rural Electric Association (PVREA) provides electricity to nearly 40,000 members in Larimer, Weld, and Boulder Counties, and this June was recognized as “Electric Cooperative Utility of the Year” by the Smart Electric Power Association for a community solar project that helped expand solar power opportunities for low and moderate income members. PVREA is also Tri-State’s second largest member cooperative by electricity sales, and the resolution emphasizes PVREA’s partnership with Tri-State, noting that it helped form Tri-State and “has a vested interest in Tri-State to be successful." Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado8/28/2018
By Joe Smyth | joe@cleancooperative.com | @joesmyth
The Colorado Public Utilities Commission approved Xcel Energy’s Colorado Energy Plan yesterday, greenlighting the plan to close two units at the Comanche coal plant in Pueblo Colorado, and replace that power with a mix of new renewable energy and battery storage projects along with existing natural gas plants.
Xcel Energy’s plan attracted national attention this year due to the proposals for large scale battery storage projects and unprecedented bids for cheap new wind and solar energy. In Colorado, the plan attracted support from labor, business, environmental, and community organizations, thanks to its expected economic and health benefits. A report this week from the Colorado Fiscal Institute found that closing the two coal units would reduce air pollutants in Pueblo and Colorado, leading to fewer asthma attacks, emergency rooms visits, and other health problems. A June report from the Leeds School of Business at the University of Colorado Boulder found that the plan would create hundreds of new jobs, boost local tax revenue, and provide a net positive economic impact to the state - mostly by avoiding nearly $1 billion in coal purchases from Wyoming. By Joe Smyth | joe@cleancooperative.com | @joesmyth A new report from the Rocky Mountain Institute (RMI) finds that Tri-State Generation and Transmission Association could save its member co-ops over $600 million through 2030, by taking advantage of low cost renewable energy resources and shifting away from its reliance on coal fired power plants. Moreover, the report shows that if Tri-State fails to cut costs and continues to rely on its higher cost coal plants, the generation and transmission association will face increased risks, including losing electricity sales because of defection by its member co-ops, as well as by those co-ops’ members.
The RMI report compares the costs of each of Tri-State’s coal fired power plants – broken down by the costs of fuel, fixed operations and maintenance costs, and variable operations and maintenance costs – to the range of bid prices for new wind and solar energy in Colorado that Xcel Energy received this year in response to it Colorado Energy Plan proposal. Even after adding costs for expanding transmission and other integration costs to bring those new renewable energy resources online, it costs more to keep running Tri-State’s coal plants than it would to add new renewable energy.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
The Delta Montrose Electric Association (DMEA) board of directors is urging members to support a proposal that would change the electric cooperative’s articles of incorporation, to support DMEA’s efforts to end its contract with Tri-State Generation and Transmission Association.
DMEA posted a video and background information on its website to explain the proposed changes, and the reasons the board of directors is recommending that members vote yes this October to support the proposal. According to DMEA: The revisions do three general things. First, they modernize and streamline language (which in some cases been in place since 1938). Second, they allow DMEA to take advantage of being governed by a newer Colorado cooperative law (called the Colorado Cooperative Act). Third, they give DMEA more financial flexibility by allowing it to issue capital stock to non-members. Those new financing options could be a first for electric cooperatives. DMEA says, “While we are not aware of any electric cooperatives that have issued capital stock to non-members, many other types of co-ops have,” including major agricultural cooperatives like Sunkist, Oceanspray, and Land O Lakes. DMEA will host a series of town halls next month about the proposed changes, and members will receive ballots the last week of September. DMEA members can cast their vote by mail, or in person at an October 16 meeting. By Joe Smyth | joe@cleancooperative.com | @joesmyth Efforts by two Colorado utilities to expand access to renewable energy were recognized this week with national awards from the Smart Electric Power Alliance. Xcel Energy Colorado President Alice Jackson was named “Power Player of the Year” for her role in bringing together stakeholders to develop a plan for the company to exceed Colorado’s renewable portfolio standard. Poudre Valley Electric Association (PVREA) won the award for “Electric Cooperative Utility of the Year” for its role in developing the Coyote Ridge Community Solar Farm, which helped expand solar power opportunities for low and moderate income members of the co-op. “To win this award is such an honor for Poudre Valley REA. We developed the Coyote Ridge Community Solar Farm as a mechanism to serve all our members with solar energy and we’re proud to be able to deliver that opportunity,” said PVREA President and CEO Jeff Wadsworth, “Many thanks to our partners and employees who worked on this innovative project that created solar energy opportunities for all our members, and to our members for supporting us in this endeavor.”
By Joe Smyth | joe@cleancooperative.com | @joesmyth
The Trump administration's latest proposal to subsidize coal and nuclear power plants is more expansive than earlier efforts, and a key change could impact utilities and ratepayers in the Western United States. That change follows a recommendation by Tri-State Generation and Transmission Association to expand coal plant subsidies to the Western region.
Moody’s Investors Service warns that some generation and transmission associations are heavily dependent on coal, and so face higher carbon transition risks. But Tri-State and Basin Electric are better positioned to navigate those risks, according to the investors report, because they benefit from “abundant wind resources” which “may enable these utilities to reduce rates for their customers where the price of new renewables undercuts that of existing coal.” By Joe Smyth | joe@cleancooperative.com | @joesmyth A report published last week by Moody’s Investors Service detailed several factors that generation and transmission associations and municipal utilities must consider as they navigate the transition from coal to clean energy. This latest report, "Public Power and Electric Cooperatives -- US: Prudent self-regulation is key to managing carbon transition risks," follows an earlier Moody’s report in April, which showed that many of the coal plants owned by generation and transmission associations and municipal utilities are more expensive than new renewable energy - including each of the coal plants owned by Tri-State Generation and Transmission Association.
This latest report provides more details about the risks and opportunities that these types of utilities face in the "carbon transition," and how those differ from investor-owned utilities because of differences in business model, governance, and rate-setting. But at a broad level, the Moody’s report notes, municipal utilities and generation and transmission associations “face the same growing imperatives to reduce emissions as their larger investor-owned utility (IOU) peers, driven by a combination of public policy at the state and local level as well as customer demands.” Senator Heinrich highlights “frustrations in New Mexico” with Tri-State’s limits on local solar4/20/2018
“When you have a co-op that’s willing to step up and invest in their own generation, and particularly clean generation, that should be supported.”
By Joe Smyth | joe@cleancooperative.com | @joesmyth
New Mexico Senator Martin Heinrich highlighted frustrations about Tri-State Generation and Transmission Association’s limits on local renewable energy projects, during a Senate Energy and Natural Resources Committee hearing yesterday focused on “Rural Energy Challenges and Opportunities.”
Senator Heinrich noted that one electric cooperative in New Mexico ended its contract with Tri-State, in order to pursue more local solar energy projects, and he asked a representative of Basin Electric (which sells power to Tri-State) about Tri-State’s policies that have limited electric cooperatives in New Mexico from pursuing more than 5% of their power needs from local sources. Senator Heinrich's comments are shown in this video, and transcribed below.
By Joe Smyth | joe@cleancooperative.com | @joesmyth A report published last week by Moody’s Investors Service found that most coal plants owned by municipal utilities and generation and transmission associations are now more expensive than new renewable energy. From Moody’s press release:
Most municipal- or G&T-owned coal plants in the US are old and have high production costs. According to the report, 72.3% of these plants, or about 65.0 gigawatts, have operating costs exceeding $30 per megawatt hour, which Moody's views as the threshold above which coal plants are vulnerable to be displaced by cheaper generation options. The report provides costs and other details about several coal units, including those owned by Tri-State Generation and Transmission Association - the Escalante coal plant in western New Mexico, all three units at the Craig coal plant in northwest Colorado, and unit 3 of the Springerville coal plant in eastern Arizona. According to Moody’s report, each of those five coal units’ total production costs in 2016 were higher than that $30 per megawatt hour threshold. By Joe Smyth | joe@cleancooperative.com | @joesmyth Most residents of rural Colorado and New Mexico buy electricity from electric cooperatives, and most of the electric cooperatives in each state buy electricity from Tri-State Generation and Transmission Association. As part of their power supply contracts with Tri-State, each of those co-ops are currently limited to providing just 5% of their electricity needs from local renewable energy projects, and must purchase the rest from Tri-State.
Tri-State’s limits on local energy development are a growing problem for co-op members in both states, as more co-ops seek the cost savings and other advantages of renewable energy. Surveys of the 18 co-ops in Colorado and 11 co-ops in New Mexico that buy power from Tri-State show an increasing number of co-ops that are approaching the 5% limit. The survey results show that at least five co-ops have reached the 5% limit on local energy development, including United Power, La Plata Electric, Delta-Montrose Electric, San Miguel Power, and Mora-San Miguel Electric. Moreover, another eight co-ops are approaching the 5% limit, including Poudre Valley Electric, Otero County Electric, Central New Mexico Electric, San Luis Valley Electric, Sangre de Cristo Electric, Highline Electric, Southeast Colorado Power, and Sierra Electric.
Denver - Colorado Governor John Hickenlooper delivered the keynote address to the Climate Leadership Conference in Denver today, highlighting the state’s efforts to accelerate the transition to renewable energy by working with companies and municipalities throughout the state.
By Joe Smyth | joe@cleancooperative.com | @joesmyth
Utilities in Colorado are planning to add a lot more renewable energy over the next few years, for a variety of reasons. I’ve looked at a couple of the trends driving this energy transition such as 100% renewable energy commitments from the utilities’ major customers, including towns and cities like Pueblo and Boulder, and major companies like Aspen Skiing Company, Google, Vail Resorts, IBM, Anheuser-Busch, and New Belgium.
But perhaps the biggest reason that utilities in the region are pursuing more renewable energy is that the low costs of wind and solar energy have continued to fall, opening up a huge market: replacement power for existing coal plants. Cheap renewable energy has already meant that when utilities needed new power generation in recent years, they have mostly chosen renewable energy. Nationwide, wind and solar power represented about two-thirds of all the new electricity generation capacity that was brought online in both 2015 and 2016, according to the US Energy Information Agency. But as the costs of building new wind and solar projects have kept dropping, renewable energy is now becoming cheaper even than continuing to run existing coal-fired power plants - as Colorado Governor John Hickenlooper recently noted, “Coal is no longer the low-cost fuel." By Joe Smyth | joe@cleancooperative.com | @joesmyth A look at two Colorado electric cooperatives navigating the implications of solar power’s declining costs
Emily Bowie at San Juan Citizens Alliance writes about how the La Plata Electric Association (LPEA) board of directors is discussing the implications of the declining costs of solar energy. Bowie describes how the “board’s touchiest topic is how the declining costs of renewable energy (and rising costs of coal) should impact LPEA’s future.” Some board directors are concerned about how declining solar power costs could encourage more customers to install their own rooftop solar arrays, and what that might mean for the electric cooperative. Other board members are more focused on the opportunity for LPEA to take advantage of falling solar power prices, by pursuing its own solar projects. As LPEA director Bob Lynch put it, “I want to be part of a plan that figures out how to use solar to help all our members.” By Joe Smyth | joe@cleancooperative.com | @joesmyth The town of Breckenridge passed a resolution last week establishing a goal to power the community with 100% renewable electricity by 2035. Breckenridge joins other Colorado towns and cities that are pursuing 100% renewable energy, including Pueblo, Boulder, and Nederland. Aspen achieved its 100% renewable energy goal in 2015, while other towns and cities including Denver and Durango are also considering renewable energy goals. The responses from the utilities that serve those Colorado towns and cities show that these 100% renewable energy goals are helping push the region toward a cleaner electricity grid, achieving a broader impact than sustainability goals that remain within the boundaries of a municipality. That’s consistent with a new report by global management consulting firm McKinsey & Company, which argues that cities should focus their sustainability efforts on four strategic areas for maximum impact. First among those four strategic areas is using their position as major electricity consumers to help decarbonize the electricity grid: While cities may believe they have little influence over the grid mix, in fact, they often represent a major portion of any local electric utility’s customers, potentially giving them significant leverage to shape the emissions profile of the electricity consumed within their metropolitan area. Still, capturing this opportunity will not be easy, and cities cannot do it alone. Utilities and regulators must play a central role in ensuring the overall mix of renewables is appropriately balanced at a system level and that critical components such as energy storage are in place to ensure grid reliability. Nevertheless, cities have an essential role to play by setting clear decarbonization goals, aggregating demand for renewables, promoting energy efficiency, and shifting more urban energy consumption to electricity (especially in transportation and heating). Lowering the emissions intensity of the electricity grid is an especially impactful way that municipalities in the Rocky Mountain region can advance their sustainability goals, because the region’s grid is more dependent on coal, and therefore more carbon intensive, than other parts of the US. But as these Colorado towns and cities seek to accelerate the transition to renewable energy, they face varying challenges in working with the different utilities and electric cooperatives that sell electricity in Colorado. Colorado towns and cities are served by two investor owned utilities, 29 municipal utilities, and 22 rural electric cooperatives, according to the Colorado Energy Office
Let’s look at four Colorado municipalities pursuing renewable energy goals, each with a different electricity provider: Breckenridge, Pueblo, Aspen, and Durango. By Joe Smyth | joe@cleancooperative.com | @joesmyth Next week, United Power will switch on its biggest solar project yet. At 16 megawatts, the SR Platte solar array will produce enough electricity to power 2,700 homes, and help the electric cooperative save money on its electricity purchases.
But because of its contract with its electricity supplier, Tri-State Generation and Transmission, United Power is unlikely to build more solar arrays any time soon, so it's shifting its focus to energy storage. |
Recent ArticlesProject Tundra coal carbon project faces delays, higher costs, and departing contractor
Lignite Energy Council shouldn’t be funded by utility ratepayers, Minnesota Attorney General argues Major co-op supports Biden coal debt relief proposal that NRECA has sought to undermine Basin Electric faces growing pressure on coal from co-ops, insurers, and banks Tri-State: Moving a cooperative power provider from coal to clean energy Tri-State will replace coal plants with a gigawatt of new wind and solar United Power and La Plata Electric ask Colorado Public Utilities Commission to determine Tri-State exit fee Colorado Rural Electric Association spent electric cooperatives’ money supporting Republican politicians Colorado Public Utilities Commissioner questions "whether or not Tri-State has been candid with us" Rural America could power a renewable economy - but first we need to solve coal debt Tri-State explores FERC rate regulation to limit state oversight Poudre Valley Electric sets "80 by 2030" carbon free goal Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power Colorado Public Utilities Commission will oversee Tri-State resource planning Colorado communities and state Energy Office urge Public Utilities Commission oversight of Tri-State Reports examine the impacts of Tri-State's high wholesale power costs Tri-State executive involved with anti-Clean Air Act group since 2005 US Congressional Committee requests details of Tri-State funding to anti-Clean Air Act group Renewable energy projects stalled in 2018 among Tri-State member co-ops Second co-op asks Tri-State to pull “Better Together” ads Tri-State won’t allow co-op members to attend annual meeting Tri-State expects member co-ops to support bylaw changes at annual meeting Rocky Mountain Farmers Union calls on Tri-State to adopt flexible contracts and more clean energy Co-ops in Colorado push for change at Tri-State Will Municipal Energy Agency of Nebraska remain reliant on coal? Tri-State ad campaign tells co-ops they’re “better together” La Plata Electric concerned Tri-State debt will lead to higher rates Colorado Public Utilities Commission asserts jurisdiction over Tri-State More Colorado co-ops announce clean energy goals Ski industry climate change efforts shift to electric utilities and their regulators Public Utilities Commission rejects Tri-State motion to exclude Colorado Energy Office from exit charge case Tri-State claims that co-ops "have intervened on Tri-State's behalf at the PUC” don’t add up Colorado state legislators urge Public Utilities Commission to determine Tri-State exit charge United Power says Tri-State policies are turning away large customers Next PUC Commissioner John Gavan "consensus choice" of Governors Hickenlooper and Polis Tri-State policy change discourages battery projects in rural Colorado and New Mexico Colorado Public Utilities Commission orders Tri-State to "satisfy or answer" exit charge complaint from Delta Montrose Electric United Power seeks solutions to "increasingly outmoded G&T business models" Clean Energy Means Business Summit highlights renewable energy opportunities and challenges in rural Colorado Governor-elect Jared Polis says moving Colorado toward more renewable energy will be a top priority Electric cooperative officials discuss cheap renewable energy and an “eroding monopoly” Delta Montrose Electric members vote for new financing options, supporting a potential buyout of Tri-State contract Poudre Valley Electric requests Tri-State policy changes and fuel mix study Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy What do corporate renewable energy commitments mean for electric utilities? Colorado Energy Plan approval will mean new renewable energy investments in rural Colorado Report: Tri-State could save $600 million by shifting from coal to renewable energy Delta Montrose Electric seeks new financing options to end contract with Tri-State Wind energy jobs in rural Colorado attract bipartisan support Colorado Energy Plan analysis shows switching from coal to renewable energy will boost jobs and local tax revenue Poudre Valley Electric and Xcel Energy Colorado President win national awards from Smart Electric Power Alliance Latest coal plant subsidy proposal could hit electricity bills in the West Moody’s report: “High quality renewable resources” could help Tri-State and Basin Electric navigate rising carbon transition risks Senator Heinrich highlights “frustrations in New Mexico” with Tri-State’s limits on local solar Moody’s report shows Tri-State’s coal plants are more expensive than new renewable energy Tri-State’s limits on local energy development are a growing problem for co-op members Governor Hickenlooper discusses Tri-State at the Climate Leadership Conference Bids for Xcel’s Colorado Energy Plan include a proposal for the world’s largest battery New wind and solar power in Colorado is now cheaper than existing coal plants Companies' 100% renewable energy goals are getting results in Colorado What does cheap solar mean for electric cooperatives? Colorado towns and cities are helping push utilities to embrace renewable energy How are electric cooperatives navigating the transition from coal to cheap clean energy? Blocked from building more solar projects, United Power shifts to community batteries Economic reality sets in for Tri-State efforts to expand the Holcomb coal plant Solar projects in the works in Grand and Jackson counties Mountain Parks Electric grapples with solar Categories
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