Colorado approves ballot to require green power supply

DENVER, Colorado, US, 2004-11-10 Refocus Weekly

The state of Colorado has become the first in the U.S. to use an election ballot to require utilities to source green power.

Fifty-two per cent of voters approved Amendment 37 as part of the presidential election on November 2, marking the first state-wide renewable-energy portfolio standard to come directly from a popular vote rather than through the legislature. The largest utilities in the state now must generate 3% of their electricity from renewable energy sources by 2007, 6% by 2011 and 10% by 2015.

The measure affects only seven utilities that service more than 40,000 customers, and includes a provision that 4% of the green power must come from solar. Residential increases will be capped at 50¢ a household.

Currently, 2% of electricity sold in Colorado comes from renewables.

Sixteen other state legislatures have passed renewable-energy targets for their utilities. Colorado's legislature had rejected such targets four times in recent years, due to public concerns over potential cost increases for power.

Xcel Energy had opposed the ballot measure because it requires a percentage of energy sales to come from renewables, and sales can fluctuate significantly, the utility argued. It also expressed concern over the uncertainty of the federal energy production tax credit of 1.8¢/kWh for wind, which makes it difficult for utilities to plan.

Xcel has 223 MW of windfarms in Colorado and it had already planned to expand its wind investment by another 500 MW, although it has not made any significant investments in solar photovoltaic or concentrating solar power.

Xcel is reviewing bids for 17 new windfarms, following its solicitation for green power last month as part of its ten-year plan to ensure adequate power supplies. The bids exceed 2,000 MW and a final selection is expected by next month.

In addition to the existing 223 MW of wind capacity and the 500 MW from Xcel, utilities in the state will need to develop another 500 MW to meet the requirements of the standard, according to Platts. The set-aside for 4% from solar sources would require 80 MW of PV capacity to be developed in the state, but that provision may be challenged by utility stakeholders.

“The state will have a total of 1,200 MW of wind capacity by 2015 under Amendment 37, but would have had over 700 MW without the standard,” says Jack Ihle of Platts, “While we expect the new standard to be effective, the difference won't be as large as some might have expected.”

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