A judge in Boulder, Colo., on Sept. 4 struck another blow to that city's nearly decadelong effort to take over electric service from Xcel Energy Inc.
Judge Thomas Mulvahill granted Xcel Energy's motion to dismiss Boulder's request to condemn and take over Xcel's assets within the city. Boulder hopes to create a public utility so it can deliver 100% renewable electricity to some 107,000 residents of the city, which is northwest of Denver.
In May 2017, the city submitted a plan to the PUC to create a public utility. The PUC accepted it on condition that Xcel and Boulder reach agreement on which electrical assets need to be transferred and on the cost of those assets. In June, Boulder offered Xcel Energy, which operates in the city as Public Service Co. of Colorado, $82 million for its assets, 20% higher than its April offer of $68.5 million. Xcel has pegged the value of those assets in the hundreds of millions.
Boulder sued for condemnation, rather than "giving the PUC the opportunity to rule on the proposed designation of assets for transfer," the judge ruled. He said the city must first obtain the commission's approval as a precondition to condemnation.
"While the city believes that there is still a path forward, the city is now evaluating the impact of today's ruling on the project schedule, particularly the planned community go/no-go decision in 2020," said Steve Catanach, Boulder's director of climate initiatives, in a statement.
Meanwhile, the Colorado Public Utilities Commission on Sept. 4 decided that Boulder would not have to return to the commission with another application for approval of the transfer of Xcel's assets, representing a partial victory for the city. Catanach said that decision "provides the city a path forward to complete the PUC process, making key progress towards its municipalization effort." (Proceeding No. 15A-0589E)
The parties have 10 days to submit comments on the commission's order.
Xcel spokesperson Michelle Aguayo said the company is "working with Boulder on the process outlined by the Colorado Public Utilities Commission to ensure that any separation of the electric distribution system in Boulder is done safely and that no customer outside of the city will be negatively impacted by Boulder's efforts."
The Sept. 4 decisions "provide a step forward and further clarity in our effort to resolve this issue. We have a vision to achieve 100 percent carbon-free electricity by 2050, which aligns with Boulder's clean energy priorities, and we look forward to working with them, as we do all Colorado communities, to achieve their energy goals."
Xcel Energy in December 2018 announced its goal to decarbonize its power fleet by 2050. Boulder wants 100% clean power by 2030.
