New Plan Outlines Xcel’s Reasons for Dropping Transmission Proposal
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.