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Utility Fights Dirty in City's Battle for Clean Local Energy

Posted: 10/14/11 05:10 PM ET

2011-10-12-images-insertlocalpowerboulder_1.jpgIn just three weeks, citizens of Boulder, CO, will vote on whether to begin a big, formal process to unplug from Xcel Energy's system and plug into local energy self-reliance. The vote to form a municipal electric utility could set a precedent for communities across the United States to keep millions of dollars local instead of sending them to remote electric utilities each year.

The vote on ballot measures 2B and 2C is the culmination of a multi-year struggle by the city of Boulder meet the Kyoto greenhouse gas emission targets by getting less coal power and more renewable energy from its investor-owned utility.

At every turn, the utility has stalled local efforts.

When the city first considered municipalization, Xcel offered to finance and build a local smart grid but has since been allowed by the state's public utility commission to charge Coloradans for significant cost overruns. When the city asked Xcel to bring in more clean energy, the utility offered to build a new wind plant and import its power from across the state only if Boulder citizens agreed to pay more when the wind blew and pay when it didn't, too. Despite the ill nature of the offer, the city offered to put it on the ballot along with a vote to municipalize, but Xcel refused, demanding that the city also offer citizens a separate "status quo" measure.

In contrast, a Boulder-owned utility offers enormous clean energy and economic opportunity without having to beg a big, private company. The city could increase renewable energy production by 40% from multiple, local sources without increasing rates, according to a citizen-led peer-reviewed study. The economic value of local energy ownership would multiply within the city's economy to as much as $350 million a year, according to research by the National Renewable Energy Laboratory.

But with $100 million a year in revenues from Boulder ratepayers on the line, Xcel's fight is getting as dirty as its nearby Cherokee coal plant. Xcel has dumped over $450,000 into a vote no campaign, 10 times the expenditures of the grassroots groups supporting the municipalization ballot measure. The utility's front group has flogged a web advertisement that falsely asserts that electricity will be unreliable if the city has control, even though 1 in 7 Americans gets their (reliable) electricity from municipal utilities. Xcel has posted job notices on light poles offering residents up to $12 an hour to work as "grassroots" utility flaks. And in a purely spiteful move, Xcel also succeeded in banning Boulder resident Leslie Glustrom from participating at the Public Utilities Commission, where she had asked tough questions about Xcel's new coal power plants and proposed rate increases.

Locals are fighting back. Citizens for Boulder's Clean Energy Future has organized a crack team of technical and financial experts to model the impact of the municipal utility and is pounding the pavement to counter Xcel's campaign of misinformation. The coalition has received endorsements from dozens of local elected officials and businesses, two local newspapers, and nearly one thousand residents. Even President Obama's former green jobs advisor Van Jones starred in a video endorsing Boulder's effort for local energy self-reliance.

The battle for local control isn't just in Boulder. Recently a number of Massachusetts towns have pursued municipal electric plants when the private electric company took too long to restore power after Hurricane Irene. And in nearby Longmont, CO, citizens may vote to use their existing fiber optic network to provide better Internet broadband services (if citizens can overcome the $250,000 being spent by private providers CenturyLink and Comcast).

The stakes are high. Buying electricity from Xcel sends $100 million out of the Boulder economy each year, and helps perpetuate a centrally controlled grid reliant on coal-fired power (and often hostile to wind power). Ratepayers across America may not have the chance to weigh in on Boulder's vote this November, but they should watch intently (and donate if they like), because Boulder citizens may be firing the first "shot heard round the world" for local control of their clean energy future.

 

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D-Driller
my micro-bio is empty
04:26 AM on 10/24/2011
I think this is a great first step in "Repowering America". Boulder should be able to start their own power collective; however, like the Xcel debacle, where the rest of us in the state has to pay for the failed Boulder smart grid, the City of Boulder should not be allowed to use the rest of the states power gen as a "backup", nor should any costs be incurred by the rest of the state, including but not limited to state grants, subsidies, etc. Do it, but do it alone. Reap the benefits as well as suffer the defeats.
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HUFFPOST BLOGGER
Anne Butterfield
Progressive energy views
10:38 AM on 10/20/2011
Today the Denver Post endorsed 2b2c. see it here. http://www.denverpost.com/opinion/ci_19150675

and here you can see al other sorts of endorsers... http://www.renewablesyes.org/?page_id=241
07:23 PM on 10/18/2011
Yes, the utilities fight like hell to keep their stranglehold. Yet in Denmark, Germany, Austria, Luxemburg there are close on 500 local authorities already or on the way to 100%+ (i.e. they are net exporters of energy) energy autonomy. I mention some examples in my Sustainability Primer at http://www.lmhdesign.co.uk/sustainability.php and one in my eBook 'How to build an ECOTOWN' on Lulu.com. A fuller eBook documentation is in the works. Mike Hohmann, CleanEnergyPundit
Genders
Love, Tolerance, Enlightenment
08:18 PM on 10/16/2011
Go Boulder!

Every US nuclear reactor is a cooling system, failure away from melt down and explosion spewing cancer all over the world.

Rooftop solar, offshore wind and waste bio char bio fuels are cheaper, or soon will be, than nukes, new coal, and oil wars. In combination, these green energies are 24/7, forever, clean, safe, ready to replace all fossil and nukes in 7-15 years, Carbon, land and fresh water negative.

Solar: http://solar.gwu.edu/Research/EnergyPolicy_Zweibel2010.pdf 1-2 cents per KWH after the first 20 years and the loan is paid off.

http://cleantechnica.com/2011/06/10/solar-power-graphs-to-make-you-smile/

Far more solar than any other energy: http://cleantechnica.com/2011/08/23/solar-power-intro-3-key-solar-power-points-top-solar-power-news/

http://www.sunelec.com/ 75 cents per Wp.
cheapest new solar panels 1-2$/Wp http://www.ecobusinesslinks.com/solar_panels.htm

Wind 6 months energy payback: http://www.treehugger.com/files/2008/01/wind_turbine_lca.php
http://www.wind-works.org/articles/EnergyBalanceofWindTurbines.html 3 months

http://cleantechnica.com/2011/03/18/offshore-wind-energy-cheaper-than-nuclear-energy-eu-climate-chief-says/

http://www.plancanada.com/biochar_basics.pdf
2$ per watt waste bio char energy plant. 100 GW electricity
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PoloniumMan
"It worked." J. Robert Oppenheimer
08:25 AM on 10/16/2011
Boulder should consider one of the small modular nuclear reactor systems under development. Nuclear is much more reliable and would require far less land per MWh. The smaller reactors won't rely on an external power source to remove decay heat in the event of a shutdown. Nuclear power plants also have a very low marginal cost of production, most of which is in the form of good salaries for the people working at the plant.
Genders
Love, Tolerance, Enlightenment
08:19 PM on 10/16/2011
Why? The don't exist yet, they are a disaster waiting to happen, and they have a waste problem. Not to mention they will probably be more expensive.
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HUFFPOST COMMUNITY MODERATOR
Pennsanic
Be nice to the US or we'll bring you democracy too
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PoloniumMan
"It worked." J. Robert Oppenheimer
09:20 PM on 10/16/2011
Not yet, but neither does a reliable windmill. There's no hurry, Boulder doesn't need additional power, they just want to replace existing coal generation.
"...disaster waiting to happen"
I guess you missed the part about the being designed with passive safety systems.
"...probably be more expensive."
Not likely. The scale of these reactors means that the components can be assembled in a factory instead of on site. This will help control costs. A site can be scaled up to meet growing demand by adding additional modules.
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HUFFPOST SUPER USER
Charles Mills
10:17 AM on 10/17/2011
Aside from disaster concerns... do you actually have any idea how limited the supply of fissionable materials actually is?
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PoloniumMan
"It worked." J. Robert Oppenheimer
11:11 AM on 10/17/2011
(when was the last tsunami to hit Boulder?) I have a very good idea how much there is. What's important is the number neutrons per fission event - i.e. is there are enough to sustain a chain reaction as well as breed new fuel? The answer is yes, just not with our current once-through fuel cycle. If we build the right kind of reactors, the uranium we have already dug out of the ground will last the US for centuries. Even with our current fleet of light water reactors and fuel cycle, there's plenty of fuel for the life of a new the reactor.
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HUFFPOST SUPER USER
Andrew Harvey
Don't F with the Jesus
08:10 AM on 10/15/2011
1) If you read the original article, you'd find that Glustrom was taken out of the discussion by a court of law

2) This argument that Xcel takes 100 million dollars a year out of the boulder economy is absurd. The plant that produces the power is a stones throw from the city, and those people must live in Boulder, or its surrounding areas. I call that reinvesting the community

3) How would buying power from a wind farm (over a hundred miles east) ameliorate the "taking money out of Boulder" problem?

4) Is it not customary to require electricity users to pay for the power, regardless of whether the wind is blowing? The power's on regardless, isn't it?
03:56 PM on 10/15/2011
1) The original request was from Xcel to have her removed and the commission reversed history by kicking her out. It was upheld by an administrative law judge but that doesn't mean it was normal or that this has happened before. The court just upheld the commission.

2) The Valmont plant closes in 2017 per Xcel. It is not absurd to say a sizable share of over $100M is taken out of the local economy. Profits and corporate overhead are considerable. In any case, the local utility will need qualified people so many that may live in the area can just shift employers but would now have a local focus.

3) Boulder could actually own the wind farm so the dollars would stay local, but wind is not the only resource. Our local solar industry has been badly hurt by Xcel policy and indifference. That is why the solar industry backs this. Xcel cuts or stops the rebates at its own whim and write rules that limit the local solar industry unnecessarily except to keep Xcel profiting from coal plants. They also buy the hydro power Boulder generates at wholesale and sells it back to us at retail. All of these take dollars out of the local economy.

4) Paying for power is not the issue. It is who does it and where it comes from at what price both in dollars, our health and the planet's. Coal power pollutes our air and water and kills people every year.
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HUFFPOST SUPER USER
Andrew Harvey
Don't F with the Jesus
08:37 PM on 10/15/2011
You argue that if the city ran its own power plant, there wouldn't be any profits or overhead? Is profiting from retail distribution a bad thing? Didn't the commission find other bidders for the work? Isn't the utility regulated on how much it can charge?
06:17 PM on 10/15/2011
Glustrom was removed for purely political reasons because she spoke truth to power. She challenged Xcel's power including their wasteful expenditures on a new 1B coal plant that Colorado did not need, slipped through the PUC like a knife through butter after they tanked their stock in ‘02 (they make money on generation facilities rather than distribution) that we'll be paying for 60 years, not to mention that the price of coal is going up 7-10% a year after their "computer model" projected price rises of less than 2% a year for 35 years. In just 3 years, they have met their 35 year projection! The PUC did not question this silly projection at all. Those rises are also passed on to Colorado ratepayers. With coal supply constraints, even 10% rises will seem small for a majority of the life of this plant. The PUC said that Xcel wanted her removed, and they would do what Xcel wanted. The admin. Law judge will not go against the PUC. Find a time when any of them did. Glustrom also outed Xcel on spending tens of thousands of dollars on expensive dinners and entertainment charged to guess who – Colorado ratepayers. You are either disingenuous or naive to think there is meaningful oversight of Xcel in Colorado – they have always, and continue to play, not by the law, but house rules.
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HUFFPOST SUPER USER
Ron Shook
07:10 AM on 10/15/2011
John,

It just goes to show how energy illiterate our citizens are, if something as important as this receives no comments in over half a day. It's a perfect example of the sort of local initiative that should evolve out of the Occupy movement making communities more resilient and equitable. There isn't anything more important than energy and environment at a time when conventional energy is diminishing along with the environment.

I, for one, appreciate your report and hope that you'll be able to report on an appropriate outcome before long. When does this vote come up?
04:17 PM on 10/15/2011
The vote is happening now (mail in ballot) and ends Nov. 1

This is an incredibly important step, not just for our local community, but all communities that would pay the same rates for increased use of renewables with a growth path to even more when storage technology comes of age. We are under siege from a more than 10 to 1 money blitz by a utility that skirts our election laws that are not designed to cope with a billion dollar corporation messing in local politics. They use fear, misinformation and astro-turf groups to scare out their vote, undermining our local democracy. I have heard the craziest paranoia. My wife has been flipped off for having a "Boulder Light & Power" sticker on our car. Our signs have been stolen, vandalized and finally burned. Xcel has manage to whip up a frenzy in what should be a community discussion. The opposition is paid (through their front group) and hired gun "experts" (expert in killing municipalization efforts) to confuse and scare folks. Our business and citizens groups fight back. Learn more at RenewablesYES.org

We need progressives across the country who want to see renewable energy go mainstream to support us with any donation they can.

City government has been silenced by election laws but apparently a corporation that supplies the city its power and street lighting is not considered a contractor and speaks loudly. If you want to help, even small donations on the RenewablesYES.org website will help.