Colorado co-ops fight increased RPS

April 23, 2013 | By Travis Mitchell

Colorado is closing in on new legislation that would more than double the renewable portfolio standard (RPS) for the state's rural electric co-ops, setting a goal of 25 percent of generation by 2020.

Rural electric power has unique challenges when it comes to renewables. Credit: iStock.

SB 252 targets co-ops with 100,000 meters or less and would primarily impact the Tri-State Generation and Transmission Company and the Intermountain Rural Electric Association. CleanTechnica notes that co-ops serve 25 percent of Colorado's population and span 70 percent of its land.

Clean, renewable energy already has a foothold in Colorado's power mix. The state's RPS dates back to 2004 and investor-owned utilities (IOU) are facing the ambitious goal of 30 percent renewable generation by 2020. The state's co-ops are currently held to a 2007 statute that requires 10 percent renewable generation in that same period.

But while they are on track to reach the 10 percent goal, the proposed jump is too high and too fast for rural co-ops to accomplish, according to Jim Van Someren, communications manager at Tri-State G&T.

The updated proposal would count renewable energy generated from community-based projects at 1.5 kWh of generation. Generation from eligible sources built after January 2005 would be counted as 1.25 KwH. SB 252 also broadens the definition of energy resources that can be included in the RPS. Eligible sources can now include coal mine methane and synthetic gas (produced by solid waste), along with new hydroelectric power systems of 10 MW or less. Hydroelectric power systems from January 2005 with a capacity of 30 MW or less will also be considered.

Rural co-ops and renewables

Colorado's tiered RPS landscape is not uncommon in the U.S., as many states have different mandates for different types of utilities. In Oregon, for example, the state's largest utilities have an RPS of 25 percent by 2025. The smaller utilities must reach 10 or 15 percent, depending on size.

Tri-State G&T estimates that SB 252 would cost its member co-ops about $4 billion over 20 years. This includes the cost of transmission, generation and backup power needed to support the increased renewables. Van Someren said 18 co-ops in Colorado would feel a measurable financial pinch.

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Tri-State G&T estimates that SB 252 would cost its member co-ops about $4 billion over 20 years.
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Environmental advocates, however, have praised the proposal, touting it as a way to expand renewable energy access to people in all parts of the state.

"This is a responsible piece of legislation that is good for Colorado's present and future. It will create new jobs and protect the health of Colorado families by encouraging cleaner energy production and the capture of dangerous greenhouse gasses such as methane," said John Nielson, energy program director at Western Resource Advocates, in a statement.

Van Someren told FierceEnergy that the new goals are "onerous," unrealistic and unachievable, and have been proposed by legislators from urban areas of the state that do not understand the business model of municipal utilities.

Making renewables work

The co-ops' strong opposition to the more ambitious RPS doesn't mean they aren't pursuing a cleaner, more renewable power mix.

Tri-state announced in December 2012 the completion of the 67 MW Colorado Highlands Wind Project and has just signed on for an expansion.

"By no means are we opposing renewable energy," Van Someren said. "Absolutely we are integrating that on a constant basis into our generation portfolio."

Kent Singer, executive director at the Colorado Rural Electric Association, said in a recent article that co-ops aren't opposed to more renewable power, but that mandates are not an economical way forward.

"Colorado's electric co-ops support renewable energy and energy efficiency, but we oppose inflexible legislative mandates that do not take into account the unique characteristics of each electric co-op system," Singer wrote in Colorado Country Life magazine.

SB 252 has passed the state House and now faces a Senate vote. It is unclear if the governor will veto the bill, but co-ops are continuing to work with legislature to create a reasonable solution.

http://www.fierceenergy.com/story/colorado-co-ops-fight-increased-rps/2013-04-23