Boulder Transitions to Local Sustainable Energy

The City of Boulder, Colorado, is transitioning from Xcel Energy to local, sustainable energy—using wind and solar power—through municipalization.

| July/August 2012

  • Biking Boulder Power
    The city of Boulder, Colorado found that a local, sustainable energy utility could reduce the city’s carbon emissions by 66 percent, increase its use of renewables to 40 percent, and keep rates the same as, or lower than, those charged by Xcel.

  • Biking Boulder Power

The city of Boulder, Colorado, has won the right to take its power supply—and carbon emissions—from corporate control. The change came in November when voters passed measures allowing the city to begin the process of forming its own municipal power utility.

The city’s current supplier, Xcel Energy, sources more than 60 percent of its power from coal. Colorado activists tried for years to persuade Xcel to transition to local, sustainable energy, arguing that the state’s plains, mountains, and 300 days of annual sunshine give it abundant potential for the development of wind and solar power. They found Xcel’s take-up of renewables frustratingly slow. Xcel is investing $400 million in its coal-powered plants, and its plans for renewables stops at 30 percent in 2020, with no further increase until 2028.

“Municipalization”—the legal process whereby the city would form its own utility company—has been on the table since 2004. When Xcel countered, offering a city-wide smart grid in 2008, Boulder accepted. But Xcel didn’t do a cost-benefit analysis prior to starting the project, and consumer cost rose from a projected $15.3 million to (at last count) $44.8 million.

Meanwhile, the corporation’s reliance on coal affected its use of wind power. Coal plants can’t be switched on and off as the wind blows. When there was more electricity generated than needed to meet consumer demand, Xcel would curtail wind power purchases in favor of selling power from its coal plants.

Fighting Xcel Energy for Local, Sustainable Energy

As Xcel’s 20-year franchise with Boulder came due for renewal, city officials were skeptical about the corporation’s willingness to meet their clean energy goals. Analysis showed a municipal utility could work, prioritizing climate change action over profits to shareholders. In 2011, the city drafted two ballots to fund the planning process, authorize the city to form the utility, and issue bonds to buy the distribution system—providing that the new municipal utility’s rates would be equal to or less than Xcel’s.

Thus began a closely fought battle between corporate money and grassroots activism. Xcel financed a “vote no” campaign to the tune of nearly $1 million, buying extensive (and some said, misleading) advertising and hiring door-to-door canvassers. Additionally, Leslie Glustrom, research director for the climate group Clean Energy Action, was banned from carrying out her watchdog role at the Public Utility Commission—which regulates Xcel.

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