Xcel to cut solar project by half

The utility cited transmission line uncertainty as reason.

Posted: Saturday, June 5, 2010 12:00 am

ALAMOSA — Xcel Energy announced Friday it will cut its solar development plans by at least half, if not more, because of uncertainties over the in-service date for a new transmission line out of the San Luis Valley.

   Mark Stutz, a spokesman for the utility, said Xcel would file a series of proposed reductions to the Colorado Public Utilities Commission regarding the level of solar power generation the company had hoped to bring online by 2015.

 The company originally had been approved for 355 megawatts of solar development. Now that total could range anywhere from 60 MW to 185 MW, depending on the development scheme chosen by the utilities commission.

A megawatt of generation typically is enough to serve 750 homes.

The San Luis Valley was expected to receive the majority of that development and Karen Hyde, a vice president for the Xcel Energy, said the company's focus on the valley would remain.

"Our commitment to the development of solar resources from the San Luis Valley over the long term has not changed," she said in a written statement.

"But because we cannot guarantee the ability to move power to the grid when these solar resources become available, we are compelled to step back from our original plans and seek this reduction."

Xcel and the Tri-State Generation & Transmission Association had proposed the transmission line as a means of exporting solar power out of the valley and as a way to improve the grid's reliability in the area.

But the $180 million proposal has met stiff resistance in utilities commission hearings from Trinchera Ranch, which sits in the path of the line.

The ranch has developed a series of alternatives that it argues would increase reliability and allow for energy export.

"If in the future new transmission is needed for export, we believe there are better, less impactful and cheaper ways to build transmission than the utilities are proposing," ranch spokesman Cody Wertz said.

It also has spurred opposition from the SLV Renewable Communities Alliance, which argues that widespread rooftop and small-sized solar developments would have less environmental impact and create more jobs.

The biggest impact in the valley from the reduction will come in Alamosa County where three photovoltaic projects totaling 102 megawatts either have been approved or are awaiting approval by the county.

All three projects hoped to secure a power purchase agreement from Xcel.

The company's original development plan of 355 megawatts also envisioned the construction of a concentrated solar power plant with storage capacity in the valley.

Xcel's Stutz said the biggest proposal for 185 MW of development would include such a plant, while two other proposals would be limited to 90 MW and 60 MW, respectively, of photovoltaic development.

Concentrated solar thermal technology gathers the heat from the sun and uses that heat to power a turbine, while photovoltaic technology converts the sun's rays directly to electricity.

The reduced development will mean less tax revenue and fewer jobs for the county.

County Administrator Barry Shioshita estimated that a 35 MW photovoltaic plant could produce $200,000 in annual property taxes for the county.

While such a plant could have anywhere from 50 to 150 construction workers, it likely would result in five to seven permanent jobs once online.

And while the county has yet to receive any formal applications for a concentrated solar power plant, Shioshita said it has had informal discussions with a company that hoped to build a 250 MW plant on 3,000 acres.

He said the company's projections included up to 1,700 construction jobs and 75 permanent jobs.

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