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.
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.
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.
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