Xcel denies request for extension

BOULDER – Xcel Energy has denied a request from the city of Boulder for an extension to a franchise agreement that expires in August.

The Minneapolis-based utility told City Manager Jane Brautigam in a letter dated May 6 it is not prepared to agree to the extension.

Jay Herrmann, regional vice president of customer and community service, wrote in the letter that the city “wishes to influence the composition of our electric generation portfolio,” adding that the franchise agreement “cannot legally be the vehicle for choosing the composition of our power supply serving only our customers residing in Boulder.”

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The letter implied that the city of Boulder wanted to include in the franchise agreement that Xcel would be required to reduce carbon output for the energy it supplies to the city.

He added that to influence change to how Xcel generates electricity, the city could participate in Public Utilities Commission proceedings.

“Based on the amount of time, effort and resources already committed to the city’s list of priorities and the target date of May 21 to complete negotiations, we were surprised by a new and substantive request only four weeks prior to the negotiation deadline,” Herrmann wrote.

Brautigam was not immediately available for comment.

The request was a two-year extension of the current franchise agreement, set to expire in August, in order to complete a study on reducing the city’s carbon output.

Though Xcel agreed to the study, the utility first wanted a new franchise agreement supported by the city in order to put the agreement on the ballot in November, said Craig Eicher, Xcel’s Boulder region area manager.

Tom Henley, Xcel’s spokesman, said the company is concerned that another issue will surface again if the two-year extension were approved and negotiations would restart.

If the franchise agreement does terminate, Xcel would still provide utilities for Boulder residents.

However, among other things, the city might have to pay Xcel to attach signs or cameras to utility poles, and Xcel wouldn’t have to pay the city a 1 percent fee for installing underground utility lines.

Henley said Xcel will still work with the city and still hopes to get a 20-year franchise agreement on the November ballot.