Clean Cooperative
  • Home
  • New ERA
    • New ERA federal register notice
  • News
  • Reports
    • Uncooperative: Colorado
    • Uncooperative: New Mexico
  • About

Holy Cross Energy plans to shift away from coal, aiming for 70% renewable energy

9/25/2018

 
By Joe Smyth | [email protected] | @joesmyth
Holy Cross Energy announced last week that it plans to shift its power supplies away from coal and increase its use of renewable energy to 70% by 2030, without any increase in the costs of it power supply. The Glenwood Springs based electric cooperative says the plan would lead to a 70% reduction in greenhouse gas emissions, compared to 2014 levels.

Holy Cross Energy CEO Bryan Hannegan highlighted why the co-op could shift to renewable energy without increasing costs: “Thanks to advances in technology and changes in energy markets, we have the opportunity to bring on new renewable energy resources at costs comparable to our existing supply. This will enable us to meet our clean energy goals while maintaining the reliable, affordable and safe service our members have come to expect.”

Other electric utilities in the state have also begun to increase their use of renewable energy, taking advantage of the fact that new wind and solar power in Colorado is now cheaper than existing coal plants, and responding to growing demands for cleaner energy from large electricity consumers including municipal governments and some major companies. But Holy Cross Energy is the first electric cooperative in Colorado to establish an ambitious renewable energy target. Let’s look at how Holy Cross Energy plan to achieve its goals.
Picture
Screenshot from Holy Cross Energy "seventy70thirty" website
A fact sheet provides some details about the strategies that Holy Cross Energy will pursue.  Some strategies are focused within the co-op’s service territory, such as developing at least one local utility scale clean energy project every three years, beginning in 2020. Holy Cross Energy will also continue to purchase power from its existing local renewable energy providers, which currently provide 13% of its power supply.

Some strategies will also require support and participation from co-op members, including energy efficiency improvements and a goal of adding at least 2 megawatts of new rooftop solar each year on co-op members’ homes and businesses. Holy Cross provides a variety of programs for its members to help support the co-op's renewable energy and energy efficiency goals, including rebates, energy assessments, and a renewable energy purchasing program.


Holy Cross Energy investigating sale of its share of the Comanche coal plant 
In addition to developing local renewable energy projects, Holy Cross Energy will also have to look beyond its service territory to 
reach its 70% renewable energy goal. That’s because Holy Cross Energy currently holds an 8% stake in unit 3 of the Comanche coal plant in Pueblo Colorado, along with Xcel Energy and Intermountain Rural Electric Association. While Comanche units 1 and 2 are scheduled to shut down by 2022 and 2025 as part of Xcel Energy’s Colorado Energy Plan, the larger and newer unit 3 will continue to run. And the co-op’s share of the 750 megawatt coal unit is by far its largest source of emissions - Comanche 3 accounted for 53% of the co-op’s power supply, according to a Holy Cross Energy representative.


In an interview last year, Hannegan acknowledged that Holy Cross Energy's stake in Comanche 3 would be the biggest challenge facing the co-op as it shifts to cleaner power. Here’s how Holy Cross Energy says it plans to deal with its stake in the coal plant, according to the fact sheet:

To increase the amount of renewable energy in the HCE power mix and reduce its greenhouse gas content, we will seek to sell some or all of the 60 MW of power we receive from Comanche 3 to another entity; and replace that with new, additional wind and solar resources constructed to meet HCE needs.

While this action will reduce the greenhouse gas emissions of the power supply we provide to our customers, HCE will still be responsible and accountable for our share of the greenhouse gas emissions associated with the operation of Comanche 3. We will also investigate options, such as a sale of the asset, that would permanently reduce HCE’s carbon footprint associated with Comanche 3.


Power supply agreements vary among Colorado co-ops
While its stake in Comanche 3 presents a particular challenge for Holy Cross Energy, the co-op could have an easier time pursuing new renewable energy projects than most other co-ops in the state, because of its agreements with Xcel Energy for the remainder of its power supply
. Holy Cross Energy’s fact sheet notes, “Our power supply and transmission agreements with Xcel Energy give us additional clean energy options that may not be available to other utilities.”

In contrast to Holy Cross Energy, eighteen of the 22 electric cooperatives in Colorado are currently limited to providing just 5% of their electricity needs from local renewable energy projects, and must purchase the rest from Tri-State Generation and Transmission Association.
Picture
The four electric cooperatives in Colorado that do not purchase electricity from Tri-State are Holy Cross Energy, Intermountain Rural Electric Association, Yampa Valley Electric Association, and Grand Valley Power. While those four co-ops may not face the same restrictions as those that purchase power from Tri-State, they could still face some limits. In response to an inquiry about its contracts with Colorado co-ops, a statement from Xcel Energy noted that “they do have limits to other generation resources,” but didn’t provide details about those limits. Here’s the full statement from Xcel Energy:
​
Holy Cross purchases “Full Requirements Service” from Public Service Company of Colorado (“Public Service”), an Xcel Energy operating company.  Full Requirements Service means it purchases all capacity and associated energy from Public Service in excess of power received from other suppliers (i.e., Holy Cross can acquire Economy Energy, purchase from qualifying facilities and from the Western Area Power Administration).  Until the existing contract’s termination, they do have limits to other generation resources. Pursuant to the existing contract, Holy Cross benefits from the efforts of Xcel Energy to add greater amounts of economic renewable energy to its Colorado system. For example the Colorado Energy Plan, recently approved by the Colorado Public Utilities Commission, will add another 1,800 MW of renewable energy driving the Public Service system to 55% renewable by 2026 as well as achieving a close to 60% reduction in carbon emissions.

Additionally, Public Service and Holy Cross have contracted to operate their transmission systems as an integrated transmission system to share the reliability of such an integrated  system. This transmission arrangement goes back to the Colorado-Ute Electric Association bankruptcy in the early 1990’s.

Public Service’s other wholesale power contracts are also full requirements service contracts which define and limit the types and quantities of power the other customers can acquire from other parties. The other wholesale customers are not parties to the transmission integration agreement referred to above.
Read More:

Holy Cross Energy: 
 Our new energy goal is set. 70% clean energy by 2030.
​

How are electric cooperatives navigating the transition from coal to cheap clean energy?

Energy News Network: Q&A: A Colorado scientist puts theory into practice as utility leader

Companies’ 100% renewable energy goals are getting results in Colorado

Tri-State’s limits on local energy development are a growing problem for co-op members​

Comments are closed.
    Tweet
      Sign up for email updates
    Sign up for email updates

    Recent Articles

    Project 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

    All
    100% Renewable Energy
    Basin Electric
    Black Hills Energy
    Carbon Capture
    Central New Mexico Electric
    Colorado Energy Plan
    Colorado Public Utilities Commission
    Colorado Rural Electric Association
    Comanche Coal Plant
    Craig Coal Plant
    Delta Montrose Electric
    DMEA Vs Tri State
    Dry Fork Coal Plant
    Empire Electric
    Escalante Coal Plant
    Generation And Transmission Associations
    Global Climate Action Summit
    Governor Hickenlooper
    Grand Valley Power
    Great River Energy
    Gunnison County Electric
    Guzman Energy
    Highline Electric
    Holy Cross Energy
    Intermountain Rural Electric
    Intermountain Rural Electric Association
    Jared Polis
    K.C. Electric
    Kit Carson Electric
    La Plata Electric Association
    Lignite Energy Council
    Minnkota Power
    Mora-San Miguel Electric
    Morgan County Electric
    Mountain Parks Electric
    Mountain View Electric
    Municipal Energy Agency Of Nebraska
    National Rural Electric Cooperative Association
    Net Metering
    Otero County Electric
    Platte River Power Authority
    Poudre Valley Electric
    Poudre Valley Rural Electric
    Sangre De Cristo Electric
    San Isabel Electric
    San Luis Valley Electric
    San Miguel Power
    Senator Heinrich
    Sierra Electric
    Southeast Colorado Power
    Springerville Coal Plant
    Tri State Generation And Transmission
    United Power
    White River Electric
    Wind Energy
    Xcel Energy
    Yampa Valley Electric Association
    Y-W Electric

    Archives

    October 2021
    May 2021
    November 2020
    July 2020
    February 2020
    November 2019
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    July 2017

    RSS Feed

  • Home
  • New ERA
    • New ERA federal register notice
  • News
  • Reports
    • Uncooperative: Colorado
    • Uncooperative: New Mexico
  • About