Change is in air for wind power

Colorado voters have approved an amendment requiring utilities to get part of their electricity from the sun, wind or plant and animal waste.

Voters OK measure to require more use of renewable energy

Colorado voters have approved an amendment requiring utilities to get part of their electricity from the sun, wind or plant and animal waste.

With more than half of the precincts reporting, Amendment 37 was gaining momentum as the votes came in.
“I think this is a big win for Colorado consumers,” said state Rep. Lola Spradley, R-Beulah, who sponsored the measure. “It puts the public back in Colorado’s Public Utilities Commission.

“Consumers will see their electric bills virtually unchanged. But it will create up to 2,000 jobs over the next 20 years, and agricultural communities will have additional benefits.”

The amendment requires the state’s seven largest utilities to get a portion of their retail electricity sales from renewables, beginning with 3 percent in 2007 and climbing to 10 percent by 2015. Four percent of the renewables should be solar sources.

Utilities cannot charge their residential customers more than 50 cents per month to recover the costs. If there are cost overruns, the measure requires the PUC to make a decision to overrule it.

Utilities, a majority of which have opposed the proposal, warn it might cost ratepayers “hundreds of millions of dollars” to comply with the amendment. Xcel Energy, the state’s largest utility, claims the solar energy requirement alone will cost $355 million.

“We will abide by the law if a majority of Coloradans support it,” said Xcel spokeswoman Margarita Alarcon. “Consumers should know we have a pretty good track record in renewable energy. But we still remain concerned about the cost impact, especially to business customers.”

Alarcon said Xcel already is on track to add 500 megawatts of wind power in Colorado. This tripling of wind power would eliminate the need for newer projects until 2010, even if the amendment passes.

Spradley said the utilities are trying to “scare people with horror stories” when in reality there is a little chance of any rate hike. She referred to studies by Ron Binz, a former consumer counsel, who concluded that Colorado ratepayers would probably save $14 million over 20 years.

A wind farm at Lamar, which generates 162 megawatts, employed more than 400 workers during its construction phase. And Xcel Energy, which buys the power from it, estimates the project will save $7 million during the next 20 years.

“Sixteen other states have done this and we haven’t seen any cost overruns; independent studies have shown there won’t be any cost overruns,” Spradley said. “On the other hand, utilities never make their cost studies public.

“Given the improving renewable energy technologies and declining costs, we think it is very unlikely that there will be any cost overruns.”

What’s next

• What it does: Requires utilities to get a portion of electricity from wind, solar and plant or animal waste, beginning with 3 percent in 2007 and increasing to 10 percent by 2015. Four percent of the renewables should be solar sources.

• What does it mean to consumers: Customers won’t see any immediate rate hike related to the amendment. And depending on the type and size of projects over the next 20 years, utilities can charge a maximum of 50 cents per month to residential customers.

• What it means for utilities: Xcel is already set to add 500 megawatts of wind power through 2005. But it needs to add some solar projects to comply with the bill. Xcel estimates the solar requirments alone will cost $355 million over the next 20 years

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