Boulder can pursue municipalization

BOULDER – Boulder voters on Tuesday narrowly approved two measures that could lead to the creation of a municipal electric utility and set the stage for a lengthy legal battle with Xcel Energy Inc.

Voters approved ballot measure 2C, which authorizes the Boulder City Council to create a municipal utility if certain conditions such as rate parity are met, by a 13,555 to 12,622, or 51.8 percent to 48.2 percent, margin.

Measure 2B, which will provide the money needed to determine the actual costs of buying Xcel Energy’s system and starting a local utility by extending and raising the utility occupation tax, passed by an even narrower margin. 13,137 voters, or 50.3 percent, supported the measure, while 12,996, or 49.7 percent, voted against.

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The outcome shows residents of Boulder are ready to continue with policies that could lead to the creation of a more environmentally friendly utility, supporters say.

“It reinforces Boulder’s commitment to a clean-energy future, and it demonstrates our willingness to lead the state and nation into the new energy economy,´ said Shaun McGrath, co-chairman of the Boulder Clean Energy Business Coalition and former mayor of Boulder.

“This is the first, very important step in a long process. … Now some very hard work needs to take place,” McGrath said.

A spokesperson for Xcel Energy said the company still was formulating a response.

Xcel Energy has repeatedly said it does not want to sell the grid. The company spent $939,358 in the campaign against the measures, outspending supporters by more than 10-to-1.

“Voting to take over our electric distribution system is not the way for the city to reduce its carbon emissions or to obtain more renewable energy. These measures only set the stage for costly and lengthy litigation,´ said Jerome Davis, an Xcel Energy executive and the treasurer of its issue committee.

A press release from the Boulder City Manager’s Office said the vote does not mean municipalization is imminent and is the start of what could be a three-to-five year process. The release also noted the narrow margin.

“We need to recognize, however, that this was a close decision. There are still a lot of questions and concerns that we need to address. The city is committed to moving forward in a deliberate, but measured, thoughtful and inclusive way,” city manager Jane S. Brautigam said.

City staff will continue to study the costs of creating a utility and acquiring the grid. Much of the cost will only be known after negotiation, litigation or rulings by federal agencies.

Xcel Energy will continue to provide electricity to Boulder customers, and homes and businesses can expect to receive bills from the utility, the release said.