PSCo Customers Pay Much More Than the 2% Rate Cap for Renewable Energy
Friday, December 9th, 2011Public Service Company of Colorado (PSCo) has been allowed to circumvent the consumer protections that were intended to cap ratepayers’ costs for renewable energy. The result is that ratepayers are paying much more than they’ve been led to believe to fund PSCo’s renewable energy strategy.
Through a series of complex financial mechanisms, PSCo ratepayers are now paying considerably more than the 2% limit they were promised for renewable resources, according to a filing Trinchera Ranch made to the Public Utilities Commission on December 2.
Due to a lack of transparency in the system, ratepayers may believe that the costs for renewable resources are funded entirely by the 2% Renewable Energy Standard Adjustment (RESA) rider that shows up on their bills. Instead, the rider does not include costs for nearly half of the renewable resources on Public Service’s system and is based on dramatically underestimated forecasts of the costs of the renewable resources that are covered by the rider.
“Despite the clear intent of both the voters and the Legislature with respect to this so-called maximum retail rate impact cap, both the spirit of this funding limit and likely the letter of the law have been ignored,” charged Trinchera in its filing before the PUC.
You can read the filing in its entirety here.
Denver Post Applauds Xcel Decision to Walk Away
Thursday, November 3rd, 2011
Still sees threat to Ranch, opportunity in utilizing existing corridor
Today, the Denver Post complimented Xcel’s recent decision to back away from a proposed transmission line over La Veta Pass. The Editorial also notes that they would like to see Tri-State look at alternatives, specifically a “scaled-back project…in the existing corridor” to address reliability issues in the San Luis Valley.
We welcome the Denver Post’s recognition of the current playing field and will continue our fight toward a win-win solution. We know, as does Tri-State, that the Valley can have improved electrical reliability, increased renewable energy projects and protect a spectacular part of Colorado through other cheaper, better alternatives.
Below is the Denver Post editorial:
Editorial: Tri-State and Trinchera should seek compromise
With Xcel dropping plans for a solar transmission line through the historic ranch, we hope the smaller utility finds a new plan.
By The Denver Post
Xcel Energy’s decision to walk away from a $180 million power line project is good news for the historic Trinchera Ranch and owner Louis Bacon, but the danger to the scenic treasure is not over.
That’s because another utility, Tri-State Generation and Transmission Association, is still interested in the idea.
That’s an unfortunate and, in our view, unnecessary development.
Continue reading the editorial here.
New Plan Outlines Xcel’s Reasons for Dropping Transmission Proposal
Thursday, November 3rd, 2011In another filing made by Xcel earlier this week, they outlined their specific plans to walk away from the proposed transmission line over La Veta Pass. Citing success in meeting Colorado’s renewable energy requirements without the line, decreased electric demand, low natural gas prices and tax credits set to expire, Xcel clearly presents their justification to no longer pursue this project.
Here are a few examples from the report that Xcel uses to justify their decision:
- Continued Statewide Decline in Energy Demand: “The need for 2018 has dropped from a projected need of over 2000 MW in 2007…to now only 292 MW today.”
- Expensive Large-Scale Solar vs. Cheap Natural Gas: “the incremental costs of this form of solar facility (over natural gas alternatives) call into question whether this technology would be considered now to be a ‘cost-effective’ resource.”
- Expiring Tax Credits: Xcel is “pessimistic about the extension of the 30% Investment Tax Credit for solar beyond 2016 (after which time it is scheduled to be reduced to 10%).”
- Xcel satisfied 30% RES through 2028: Xcel describes other relevant factors in its 2011 Electric Resource Plan, including that Xcel can “expect to be in compliance with…the RES through 2028.”
We will continue to share updates and new information as we receive it and just what that information means for the Valley. In the meantime, we remain committed to fighting for a win-win solution for the people of the Valley that helps to improve energy reliability, bolsters renewable energy and conserves and protects this spectacular region of Colorado.
Xcel Backs Away from San Luis Valley Power Line
Tuesday, November 1st, 2011Xcel, late yesterday, announced that for financial and other reasons the proposed Southern Colorado transmission line no longer makes sense. In its electric resource plan filed with the PUC, Xcel highlights several factors that led to its decision, including the economy and reduced energy demand. Our immediate reaction is below:
“The plan Xcel released yesterday is a significant development. We are analyzing it and need to identify what it means for the proposed transmission project. Most importantly, we want to understand what it means for the San Luis Valley.
Trinchera Ranch remains committed to fighting for a win-win solution for the people of the Valley that helps to improve energy reliability, bolsters renewable energy and conserves and protects this spectacular region of Colorado,” said Cody Wertz, Trinchera spokesman.
While we review and analyze the filing’s hundreds of pages, we wanted to share a few articles from yesterday’s filing, they are included below.
Denver Post, “Xcel may kill controversial San Luis Valley power-line project”
Denver Business Journal, “Xcel to back away from San Luis Valley power line”
Pueblo Chieftain, “Xcel likely to drop SLV solar, transmission line proposal”
Trinchera Ranch Takes Controversial Transmission Project to Court
Friday, October 14th, 2011Trinchera Ranch has filed an appeal of the Public Utility Commission’s decision to grant Xcel and Tri-State permission to build a giant transmission line over La Veta Pass. Citing numerous violations of due process, egregious violations, and speculative evidence, Trinchera Ranch is asking the Costilla County District Court to reverse the decision recently made by the Commissioners.
The appeal, which can be read here, articulates a clear outline of the legal missteps and the erroneous decision made by the PUC and how the trumped-up “need” for this project slowly faded from existence.
Below are a few of the errors made by the Commissioners, as outlined in the appeal:
- Xcel and Tri-State did not adequately study alternatives. As the appeal states on page 28, “The law requires [Xcel] to study feasible alternatives to their Project and that such study be performed prior to their filing for a CPCN.” Trinchera presented several alternatives, but the Commissioners never forced Xcel and Tri-State to adequately review or present alternatives, which is a glaring violation of the law.
- The Commissioners ignored evidence showing Xcel’s retreat from solar development. Xcel publicly touted its plans to export at least 1100 MW of solar energy out of the Valley. However, not even one hour after the PUC gave the utilities a thumbs-up to build the line, Xcel released a new plan that develops no new solar in the Valley after 2013. The Commissioners’ decision, as explained on page 38, is not supported by the evidence and should be reversed.
- Unlawful discussions regularly occurred between Commissioners, Tri-State and Xcel. On page 35, the appeal lists several state laws that apply to the Commissioners, yet the facts show the Commissioners regularly met with Xcel, Tri-State and others, including discussions of issues that related to the case. This is not only unethical, it is illegal. One Commissioner recused himself to avoid the appearance of impropriety; the other two should have followed suit.
Again, we urge you to read the entire appeal to see just how many more errors the Commissioners made in their complicit approval of this project. What you’ll read is disappointing and Coloradans deserve better decision-making from the PUC – it’s just one more reason we are in this fight.
We have always and will continue to push for better, cheaper alternatives that improve reliability, increase solar development and preserve the integrity of the San Luis Valley, including the Sangre de Cristo Mountain corridor. Our appeal in District Court allows the residents of the San Luis Valley more time to learn the truth about the alternatives, the utilities’ hidden motivations to build this transmission line and their eroding justifications before the public comment-driven federal environmental impact statement process begins.
That potentially lengthy process could start up soon but the public could receive as little as 14 days’ notice. We will keep a vigilant eye on announcements and ask the residents to do the same because public involvement and comment in that process is vital.
Stay tuned for opportunities to get involved and make your voice heard. This fight is just getting started.