By Joe Smyth | firstname.lastname@example.org | @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.
By Joe Smyth | email@example.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."
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