Senate Republicans advance renewable energy standard rollback

Colorado State Senate Republicans on Thursday passed a bill that would roll back Colorado’s 2013 Renewable Energy Standard on a party-line 18-17 vote. The measure, SB 44, reduces the requirement to 15 percent of all power generation by 2020. It would mean lowering the bar for clean energy sources 50 percent for large utilities and 25 percent for rural electric cooperatives. The existing standard is 30 percent for large utilities and 20 percent for rural cooperatives. Sen. Ray Scott, R-Grand Junction, who sponsored the rollback, argued that the 30 percent standard moves beyond the realm of productive incentive and into the realm of consumer burden. “Rolling back these standards to a reasonable level makes a lot of sense for the people of Colorado,” said Scott. “We’ve done a great job but let’s not get carried away, let’s just leave it alone.” Sen. Matt Jones, D-Boulder, a co-sponsor of the measure that created the standard, vehemently disagreed. “Testimony on this [rollback] bill told us that we’re going to meet the standard and that it’s critical to keep it because renewables are a job creator and cheaper,” he said, pointing out that both large utilities like Xcel and providers for smaller rural cooperatives, like Tri-State, have been choosing wind and utility-scale solar over other energy bids not just because of the mandate but because they’re cheaper. The Renewable Energy Standard has been a political hot potato since it passed, part of a larger partisan war over energy policy pushed by campaigning politicians and messaging groups and fueled by campaign finance realities as well as “old Colorado” versus “new Colorado” economies. Mostly rural extraction industry loyalty, even nostalgia, is pitted against mostly Front Range clean-energy-industry futuristic enthusiasm. On the floor, Jones argued that the inclusion of wind has saved Xcel ratepayers $40 million dollars since 2009 and that the renewable standard has made Colorado the leading state in the nation for clean tech — a 22,000 job, $1.7 billion industry in the state. Sen. Tim Neville, R-Littleton, agreed the standard has seen Colorado move ahead of the pack — but mainly for ratcheting up the cost of energy. “We once had the lowest energy costs in the western United States… now we have the second highest energy rates in the western United States,” he said. On the contrary, said Sen. John Kefalas, D-Fort Collins. He said that, in his semi-rural district, expanded renewables have lead to some of the lowest rates in the state. In their back and forth about whether renewables are, in fact, cheaper, lawmakers bitterly argued over tax subsidies. The data they cited on subsidies seemed fungible. At least, they used it to support what they wanted to say. DBL Investors, a clean-and-high-tech venture capital firm, completed a study of a century worth of federal subsidies and found that, on a per-year average, fossil fuels have received about 13 times the amount of federal assistance renewable energy has received. Yes, maybe, said Scott, but in recent years the tables have turned. In 2010, he said, the Energy Information Association found that solar and coal were subsidized at roughly the same level, while wind received nearly four times the subsidies dolled out to coal. Another point of disagreement was about what Coloradan’s actually want. Unsurprisingly, lawmakers from rural, and particularly coal-driven, districts were adamant that the standard is at least indirectly tied to some of the recent, devastating mine-worker layoffs in counties like Delta. Rural-area Republicans resoundingly agreed, emphasizing that even slightly higher electricity costs have an outsized impact on profit-margins in agricultural industries. “We need to listen to the people of Colorado,” said Sen. Larry Crowder, R-Alamosa, who said that his constituents have seen steadily increasing electricity costs. But the Union of Concerned Scientists pointed to the bipartisan Colorado College 2014 Conservation in the West poll, which found whopping voter support for candidates who support renewables: Poll: 76% of Coloradans more likely to support candidates who promote renewable energy @ColoradoCollege https://t.co/c7MVQgwRdP #coleg

Utility industry needs a variety of investments - Will Coal Investments Become Stranded Assets?

The utility industry is changing. Anticipating and embracing that change is a key strategy for Xcel Energy. In this complex energy evolution, the dialogue needs to extend beyond just coal. Investments in the grid, energy infrastructure and technology are needed to support the integration of new energy sources. The recently proposed electric rate case settlement agreement allows Xcel Energy to begin recouping investments made in its state-approved Clean Air-Clean Jobs Act Plan. The $1 billion of investments will result in the retirement and replacement of older coal-fired plants and provide emission controls on remaining plants. By 2020, these efforts will result in an 80 percent reduction in sulfur dioxide, nitrogen oxides and mercury emissions. It will enable the company to meet the EPA's overall targeted emission reduction levels 10 years early. The plan also contributes to the company's 35 percent planned reduction in carbon dioxide emissions in Colorado (compared to 2005 levels), while modernizing our power plants for the future. Xcel Energy supports renewable energy and the growing customer demand for it. This means investing in the most cost-effective renewable resources to keep energy prices affordable for everyone, without sacrificing reliability. Since 2010, the amount of solar on our Colorado system increased by more than 200 percent and wind has grown by more than 100 percent. Over 90 percent of the solar that exists in Colorado is on the Xcel Energy system. Our company has been the No. 1 provider of wind in the country for 10 consecutive years. Renewable energy sources are extremely valuable, yet intermittent. Without massive storage facilities, wind and solar resources need to be balanced with other generation sources so that power is there when our customers need it. This takes thought, sophisticated planning, and time to ensure reliability and affordable costs for our customers. David Eves is president and CEO of Public Service Company of Colorado, an Xcel Energy Company.

Black Hills agrees to solar owner refunds

Black Hills Colorado Electric is willing to refund $46,000 to about 850 local customers who have solar panels, but the utility is resisting a possible $165,000 fine by the Colorado Public Utilities Commission. The PUC, which oversees Colorado utilities, sent Black Hills a show cause letter on Jan. 21 that said the commission hadn’t authorized a $5 monthly fee being charged to customers with net meters — those that also measure power being generated by the customer’s solar panels. The PUC said Black Hills should refund that money and face the $165,000 fine as well. Black Hills answered the letter earlier this week, filing a proposed plan to erase the $5 fee and refund the $46,735 it generated since August 2013. But the utility disputes the fee was unauthorized. “We’ve reviewed the record of that rate case,” spokesman Brett Jones said Thursday. In related news, Black Hills offers payment help. Black Hills charges the fee to pay its costs for accepting electricity being generated by customers with solar panels, according to Jones. The commission threatened Black Hills with the fine in January, saying there were records of 9,000 billings that included the $5 fee. While the PUC can fine the utility up to $2,000 per offense, state law caps any total fine at $165,000 by law. If Black Hills pays any fine within 10 days, it can be cut by 50 percent. The $5 fee became an issue in December when an energy analyst for Western Resource Advocates, Gwen Farnsworth, was researching Black Hills rates and said she could find no authorization for that monthly charge. She notified the PUC staff and the commission agreed with the complaint, sending the show cause letter on Jan. 21.

Don’t change our state’s renewable energy standards

It is very disappointing to watch our newly elected state Senator attack Colorado’s renewable energy standards. He mistakenly thinks these clean energy standards are detrimental to Colorado. What about our children and grandchildren? Do they not have the right to enjoy our beautiful state the way we do? If we don’t step up to combat climate change, future generations will be harmed far more than we can even imagine. Clean energy policies, such as Colorado’s Renewable Energy Standard, are significantly cutting emissions of carbon pollution — the leading cause of global warming — according to a new report by Environment Colorado Research & Policy Center. The report, Moving America Forward, showed that Colorado’s Renewable Energy Standard saved 3.7 million metric tons of carbon dioxide from entering the atmosphere in 2012. That is comparable to the annual emissions from over 750,000 cars. This effort is building a strong clean energy economy and is helping us break our dangerous addiction to fossil fuels. Colorado has been a leader in clean energy action for years and we must continue this leadership. Clean energy benefits our economy and environment. The protections of these standards safeguard future Coloradans’ quality of life. Don’t jeopardize those qualities that make Colorado so special. Join me in asking our elected representatives to resist any rollbacks in our renewable energy standards. RICK BAER Grand Junction

Xcel Energy says proposed giant solar gardens don't look like 'community' projects

Xcel Energy Inc. warned state regulators Tuesday that a state-mandated solar garden program is encouraging large-scale projects that benefit commercial-industrial customers, but could sock all ratepayers with higher electric bills. When the utility opened the door to solar gardens in December, renewable energy developers proposed more than 400 projects, each with an output of 1 million watts. But Xcel officials said most of the proposals are concentrated fields of solar panels 10 times that size — with the electricity marketed to large businesses. “The statute has a 1-megawatt limit,” Chris Clark, president of Xcel’s Minnesota regional operations, said in an interview. “Most of the projects are a 1-megawatt garden next to a 1-megawatt garden next to a 1-megawatt garden.” Solar gardens are centrally located solar arrays whose output is shared by subscribers who pay an upfront or monthly payment to the developer. A 2013 state law requires Xcel Energy to set up the program, and the utility has publicly endorsed it. Under tariffs established by the state Public Utilities Commission, the solar power is sold to Xcel at above retail rates, resulting in a savings to participants, but at a cost to all customers. So far, no solar gardens have been approved by Xcel. That process is expected to take several weeks. In the meantime, the utility serving 1.2 million electric customers asked the PUC to take another look at the solar garden rules. Xcel said in a regulatory filing that energy developers proposing large solar gardens are “skirting” the typically ­competitive process used for big generating projects. Instead, solar developers stand to benefit from a rate structure “intended for small-scale development,” Xcel said. If all of the projects are built, it could add $50 million to all customers’ rates, Xcel said. That would be a 1.5 percent hike to all residential customers bills and up to 1.8 percent to commercial-industrial customers, Xcel said. “We are seeing the gardens being targeted to large commercial and industrial customers, which is not what we had anticipated,” Clark said. “We had envisioned more neighborhood-type gardens where neighbors in the community, nonprofits or a church or something would have a garden. We envisioned something that was different.” In January, Ecolab Inc., a Fortune 500 company based in St. Paul, said it would subscribe to community solar gardens to offset all of its Minnesota electrical needs — and save money while doing it. Clark said other large Xcel customers have told the utility that they’re being pitched solar garden deals. David Amster-Olszewski, CEO of SunShare, a Colorado solar garden developer, said Xcel has done a good job setting up the program. “This will spur a good discussion,” he said after reading the regulatory filing. He said SunShare’s proposed projects range in size from 1 megawatt to 9 megawatts. While the company is seeking large industrial customers as “anchors” in solar gardens, the goal is to sign up residential, small business and other customers as it has done on similar projects in Colorado, he added. Amster-Olszewski said about half of the 430 proposed Minnesota projects probably won’t get built, so the effect on rates won’t be as dire as Xcel suggested in its filing. Michael Noble, executive director of Fresh Energy, a St. Paul nonprofit that pushed for the solar garden program, said Xcel shouldn’t be surprised that energy developers are choosing the least expensive approach to solar — large, concentrated projects on inexpensive land on the fringe of the metro area. “The whole idea of community solar is that anybody who wanted solar could get it,” he said. “You didn’t have to have a sunny roof. You didn’t have an expensive solar system on your business. You could get the economies of scale at the lowest possible cost and get credit on your bill.”

NRG Energy to Sell Solar Directly to Consumers in Colorado

NRG Energy Inc. will sell solar power directly to consumers in Colorado as part of a push into renewable energy. NRG, the nation’s largest independent power producer, will join with SunShare LLC to build five so-called community solar projects in Denver and Colorado Springs, the companies said Wednesday. Under this model, anyone can get power from the sun even if they don’t have a good roof for panels. “These types of programs, whether with homeowners, commercial businesses or municipalities, allow us to democratize participation in renewable power consumption,” NRG Senior Vice President Craig Cornelius said in a phone interview. Colorado, which has one of the nation’s most aggressive renewable energy standards, was the first state to allow private developers to create community solar gardens in 2010. Unlike other large solar installations, which usually provide power to utilities, community projects sell directly to consumers who get a credit on their bills. The number of these types of solar farms has increased 64 percent since 2013, according to a Sept. 2014 report by the Solar Electric Power Association. NRG’s expansion into solar comes as its conventional fossil-fuel power business faces declining demand growth. Some consumers are opting for technologies that allow them to produce their own electricity. Solar-generated electricity has become increasingly attractive to customers as the price of panels have plunged by nearly two-thirds since 2011. ‘Untapped Opportunity’ With 75 percent of U.S. homeowners unable to install panels on their rooftops, community solar represents a “largely untapped opportunity,” said Cory Honeyman, an analyst with GTM Research. Utilities in 21 states now offer community solar programs, according to GTM. The Colorado installations will provide 8.2 megawatts of power, enough for 1,600 homes, and are expected to be operating by the middle of the year, NRG said. Customers, mostly businesses and municipalities, will sign a 20-year agreement to get electricity from the ground-mounted panels. NRG is providing the financing and will be the majority owner while SunShare will manage the customer contracts, the companies said. The projects could be dropped down into NRG Yield, a separately-traded unit that holds renewable-power plants, Cornelius said. NRG, based in Princeton, New Jersey, plans to bring these types of projects to other states, including Minnesota and Massachusetts, Cornelius said.

Leading Solar Experts to speak at Solar Power Colorado 2015: The Next 25 Years

Leaders in solar business, policy and technology will be speaking later this month at Solar Power Colorado 2015: The Next 25 Years. The annual conference of the Colorado Solar Energy Industries Association will acknowledge the quarter century history of COSEIA while focusing on the future. The conference takes place February, 23-25 at the Omni Resort in Broomfield and registration is open at http://coseia.org/conference/. “We are delighted that inspirational leaders in the solar industry from around the nation are coming to engage in stimulating conversation that we hope will lead to great insights into the best path forward,’’ said Rebecca Cantwell, executive director of COSEIA. Headlining the opening CEO panel will be the new CEO of RES Americas, Glen Davis, and Abengoa Solar’s U.S. executive Frederick Redell, along with home grown Colorado solar leaders Paul Spencer of Clean Energy Collective and Lou Villaire of Grand Junction’s Atlasta Solar. Exploring the Future of Utilities will be utility leaders including Marc Romito, renewable energy program manager for Arizona Public Service, Beth Chacon of Xcel Energy, Derek Elder of Grand Valley Power and Heather Bailey, who is spearheading Boulder’s efforts to create a new municipal utility. They’ll be joined by veteran utilities executives David Freeman and Julie Blunden in a session moderated by Tanuj Deora, EVP of the Solar Electric Power Association. Panel sessions will explore all the hot-button solar issues of the day. Looking into the future of energy storage and batteries will be speakers from Solar City, Rocky Mountain Institute, Iron Edison and the Energy Storage Association. A session moderated by Rick Gilliam of Vote Solar looking at state policies will feature Jacqueline Patterson, Director, Environmental and Climate Justice Program of the NAACP, along with Wirth Chair at CU Mark Safty and speakers from SunShare, Fort Collins Utilities and more. Climate Change policy is on the minds of everyone from the President to the United Nations and the our panel will feature top experts on national, state and global policy including leading climate scientist Kevin Trenberth from NCAR, John Jimison of the Energy Future Coalition, and Laura Farris of the EPA. New solar financing models are cropping up for solar energy systems both big and small, and our panel of experts will include top Colin Murchie of Sol Systems and Blake Jones of Namaste Solar, along with experts from the Colorado Energy Office and NREL. Looking at what it will take to build a more intelligent energy system is the subject of a panel on The Internet of Energy that will feature Ameet Konkar, Enphase Senior Director of Strategic Initiatives; Vince Guthrie of Ft. Carson, Chris Black of Tendril and Paul Denholm of NREL. Solar thermal technologies and financing methods are developing quickly and Andrew East, CEO of AET Solar will share his approach, as will Patrick Sheppard, the President of VaporGenics. John Perlin, author of Let It Shine: The 6000 year story of Solar Energy will be the luncheon speaker on Feb. 25. Solar Power Colorado also features a prominent exhibit hall where leading solar organizations from numerous industry segments will show off their newest technology and solutions. They include CED Greentech, SolarEdge, Battery Systems, NESCO, Sunbandit, Enphase, Solectira, eGauge and many more. Visit 2015 Solar Power Colorado Exhibitors to see our current list of exhibiting companies from around the country.

Don't hobble Colorado renewable energy rules

By just about every metric imaginable, Colorado's renewable energy standard has been a success. It has created jobs in the wind and solar industries. It has provided additional income for rural landowners. It has reduced the reliance on fossil fuels for electricity generation at a reasonable cost. What's not to love? Several GOP lawmakers have found something, it would seem. Last week, they used a 5-4 majority in a state Senate committee to advance Senate Bill 44, which would reduce the portion of energy generated from renewables. It would cut in half the 30 percent renewable requirement that investor-owned utilities, such as Xcel, would have to meet by 2020. It would also bust down the standard for rural electric associations from 20 to 15 percent from 2020 onward. In addition, Senate Bill 46, scheduled to be heard this week, would reduce the amount of energy rural co-ops are required to generate from what is called "distributed generation." In short, that is energy generated on the customer side of the meter. Neither of these bills is in the best interest of Colorado, which has been a leader in renewable energy development. The industry provides thousands of jobs for installers, manufacturers and maintenance, argues Pete Maysmith, executive director of Conservation Colorado. Maysmith said it's disappointing that the issue of clean energy development, which traditionally has enjoyed bipartisan support in Colorado, has become partisan. Furthermore, it would seem to be detrimental to constituencies that Republicans consider their own. Former Gov. Bill Ritter Jr. told us that the standard has been a boon to farmers and ranchers, who typically get $4,000 to $6,000 in annual lease payments for each wind turbine located on their land. Those payments can provide a buffer during lean years. It seems that rolling back renewable standards is popular in state legislatures. Last year, there were 14 rollback bills proposed around the country, with two of them passing, according to an analysis done by the Center for the New Energy Economy at Colorado State University. It's not unusual for such ideas to make the rounds, often pitched by one interest group or another. The sheer volume, however, doesn't make them good ideas. In fact, we would argue to the contrary in Colorado's case — and hope lawmakers keep the standards in place unchanged.