SB 13-252 INCREASING COLORADO’S RENEWABLE ENERGY …

SB 13-252 INCREASING COLORADO’S RENEWABLE ENERGY STANDARD FOR ELECTRIC COOPERATIVES
Progressive 15Energy and the Economy SummitJune 26, 2013GeoffreyHierCREA Director of Government Relations
Colorado Electric Cooperative Renewable Energy Standard History
2004 Amendment 37 passed requiring 10% for IOU’s and municipal utilities and electric distribution cooperatives with over 40,000 meters – (Contained an opt out provision for muni and cooperatives)2007 HB 07-1281 Supported by CREA – 20% for IOU and 10% for all Cooperatives, large Municipals by 20202010 HB 1365 – 30% for IOU’s, no change for Cooperatives
SB 252 – Sens. Morse/Schwartz and Reps Ferrandino/Duran
With a lifespan of only 12 days in the Senate and 29 days in total, SB 252 passed both chambers on mostly partisan votes (Democratic Senators Hodge and Tochtrop opposed the bill)Governor Hickenlooper has signed into lawThe primary sponsors all live in areas served by utilities not significantly impacted by the legislation.
SB 252 Major Components
Expanded RES definition to include coal mine methane and trash-to-gasRevision and repeal of multiplierNew 20% RES for Tri-State and IREA1% DG mandate - .75% mandate for co-ops with less than 10,000 meters – applies to all 22 co-ops2% rate capAnnual PUC reporting requirementsCosts may only be recovered from Colorado cooperatives
Cooperatives Affected
Short answer, all in ColoradoIREA and Tri-State members more significantlyCooperatives serving Progressive 15 members:HighlineElectric Mt. ViewHigh West EnergyMorganCounty ElectricIREAPVREAK.C. ElectricUnited PowerMt. ParksY-WElectric
Potential Costs
Based on current demand projections, there is no need for additional generation resources for cooperatives until approximately 2018Any renewables obtained will be replacing existing generation resourcesDG is generally more expensive than utility scale generationDG usually has to be subsidized by members
IREA receives renewable energy through Xcel wholesale contract, getting to 20% not practical given contractual constraintsTri-State will need 500-700 MW to comply by 2020Wind is currently the least expensive resource @$1.2million/MWCost for wind 600-840 million dollarsBack up gas generation = 300 million dollarsTransmission costs ???Total estimated compliance costs 1-2 billion for Tri-State members
An Imperfect Bill
Requiring Tri-State to only recover costs from Colorado members creates inequitiesRetail DG requirement is unclear and could be unobtainable for some cooperatives2020 deadline is unrealistic2% rate cap is uncertain20% too much, too soon
Executive Order 2013-003
The reasons for signing the legislation outweigh the reasons for vetoing the bill, but this bill is imperfect. Some of the concerns raised during the legislative process were not given due consideration. Top among these concerns are the feasibility of the implementation timetable, and consumer protections. The advisory committee will work to fully address these concerns, culminating in proposals for the 2014 legislative session.
ADVISORY COMMITTEE
The Director of CEO appoints an advisory committee, the Chair of the PUC and the Attorney General or their designee are non-voting members.11 voting members total9 from specified groups2 future appointments from stakeholder TBD
Designated Appointments
Tri-State G&TCREAIREAA renewable energy representativeA environmental advocateA representative of a non-profit proficient in electric resource planningA rep actively engaged in agricultural businessA rep actively engaged in livestock productionA rep actively engaged in irrigation production