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."  Image from Jared Polis campaign website during the election
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." |
Recent ArticlesColorado 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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