PUC affirms November's split decision on Boulder's muni plans

Dec 31 - McClatchy-Tribune Content Agency, LLC - Charlie Brennan Daily Camera, Boulder, Colo.

The Colorado Public Utilities Commission on Wednesday affirmed the oral decision handed down at its meeting last month in which it ruled Boulder cannot acquire Xcel Energy facilities that exclusively serve customers outside city limits, and that the commissioners won't force the utility to share facilities with the city.

The commission on Nov. 4 had partially dismissed an application from the city of Boulder to acquire facilities, including substations and distribution infrastructure, outside city limits for the creation of a city-run energy utility.

But the commission also ruled that it would allow Boulder and Xcel to engage in discovery and allow the city to supplement its original application after it learns more about Xcel's system.

"In general, the city is grateful for the direction the PUC has provided," said spokeswoman Sarah Huntley in a statement. "The ruling details several areas the city will need to consider as it continues to pursue the possible creation of an electric utility.

"The PUC denied Xcel's request to dismiss the city's application in its entirety and granted the city's request to get discovery and file a more detailed supplemental application that does not include assets used exclusively to serve out-of-city Xcel customers. The city expects to receive from Xcel the information necessary to file a detailed supplemental application in early 2016."

Xcel issued a statement late Wednesday thanking the commission for its ruling.

"As demonstrated by the city's motion, and the Commission's decision to dismiss the aspects of Boulder's plan that are inconsistent with the doctrine of regulated monopoly, its original proposal did not meet the Commission's requirements," spokeswoman Michelle Aguayo said in a statement.

"The city will now have the opportunity to supplement and correct their plan in this proceeding, but we hope city leaders will instead be willing to work together with us to help develop a plan for Boulder to achieve the carbon-reduction it had set as its goal for municipalization."

In an interview, Heather Bailey, Boulder's executive director of energy strategy and electric utility development, said of the ruling, "I think for the most part, it affirms what we heard.

"I think it's pretty similar to what we heard on Nov. 4, because they said they wanted a detailed engineering plan (from Boulder). They wanted more detail, but they understand there couldn't be that, without our getting more information coming from Xcel."

Bailey said the timing for Boulder further supplementing its application to the commission will depend on commission Chairman Joshua Epel setting a calendar for discovery between Xcel and Boulder.

Commission spokesman Terry Bote, however, pointed out that language in Wednesday's decision doesn't ascribe such duties to Epel -- although it does state that "the Commission is receptive to motions for a technical conference on additional or alternative discovery procedures."

Huntley described the next phase of Boulder's municipalization bid as an "exciting" one, as city engineers anticipate receiving data needed from Xcel in order to "draw up a specific interconnection plan that works for Boulder customers as well as those who will remain with Xcel Energy. We are confident there are options that will be technically feasible and meet any parameters set by the PUC and the Charter requirements established by Boulder voters."

Boulder is targeting a December 2017 start date for a city-owned utility, but Huntley noted that the city "cannot control the litigation processes and their related timelines. Boulder's top priority over the next several months is developing the very best application possible for the PUC to consider. The city is also committing to doing all it can to support an expedited process."

The city has so far spent just under $7 million exploring and pursuing municipalization, according to Huntley, with the majority of those funds coming from a voter-approved utility occupation tax.

Charlie Brennan: 303-473-1327, brennanc@dailycamera.com or twitter.com/chasbrennan

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