Portland, Maine (Platts)--7Sep2007

If Colorado utilities experience delays in upgrading their "backbone"
high-voltage transmission systems, then the state could face an energy crisis,
according to a report issued this week by the Colorado Energy Forum, a group
advocating for utility infrastructure investment in the state. 

     "Utilities across Colorado are working together to develop new
transmission projects that ensure reliable electric service and further
renewable energy development," Bruce Smith, CEF executive director, said in a
statement. But "regulatory hurdles and siting challenges could delay needed
projects, which could thwart the large renewable energy development that many
policymakers are now seeking." Colorado this year increased its renewable
portfolio standard to 20% by 2020 for investor-owned utilities and 10% for
municipal and cooperative utilities.

     The group estimates that while Colorado will need 4,900 MW of new
capacity or conservation by 2025, it is already facing transmission
constraints according to the September 5 report.

     Despite federal and state efforts to encourage new transmission, "there
are significant challenges, including uncertainties associated with the
regulatory treatment of transmission lines; cost recovery issues; and
permitting and siting difficulties that need to be addressed in order to
encourage and facilitate investment in transmission infrastructure," the
report said. State utilities estimate that about $2 billion in transmission
upgrades are needed by 2015, the report said.