House Bill 1273, sponsored by Rep. Lola Spradley, R-Beulah, passed the Colorado House of Representatives by a vote of 39-26 Monday.
The bill would require Xcel Energy Inc. and Aquila Inc. to increase the amount of electricity used in Colorado generated by renewable resources. Xcel supports the bill, which passes the costs of building or buying the new resources along to ratepayers.
The bill moves to the Senate for consideration. Similar bills have died in the last two legislative sessions. Last year's bill passed the House and lost by a single vote in the Senate.
Sens. Ken Kester (R-Las Animas) and Terry Phillips (D-Louisville) are working on the measure.
Supporters of the bill have said it would aid rural Colorado and agricultural interests, and help create jobs as wind farms sprout in the state. Critics have said the bill would drive business out of the state by raising electricity rates and equate to a subsidy for rural areas paid by Denver residents.
Xcel and Aquila are the only power providers targeted by the bill. Utilities owned by cities or rural electric cooperatives are exempt. Xcel serves 70 percent of Coloradans with natural gas or electricity. Aquila serves about 35,000 customers in southern Colorado.
The bill would require the two companies collectively to have 500 megawatts of power in their portfolios by the end of 2006; 900 megawatts by Dec. 31, 2010, or 8 percent of their portfolios; and 1,800 megawatts by Dec. 31, 2020.