House OKs renewable energy increase for rural electric co-ops

A bill to increase the share of renewable energy distributed by rural electric cooperatives will return to the Senate after passing the House on Tuesday.

Senate Bill 252, sponsored by Senate President John Morse, D-Colorado Springs, and House Speaker Mark Ferrandino, D-Denver, aims to increase renewable energy from rural electric cooperatives from 10 percent to 20 percent by 2020.

It passed the House by a 37-27 vote with an amendment from Mike McLaughlin, D-Durango, to decrease the renewable energy share from 25 percent to 20 percent.

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Current law requires that co-ops provide 10 percent of their power via renewables by 2020. The new measure, if passed in its current form, would double that requirement.

The bill drew criticism from the Poudre Valley Rural Electric Association, an electric distribution cooperative supplied by Tri-State Generation and Transmission Association. Poudre Valley REA serves more than 35,400 homes and businesses, including large industrial customers such as the Owen-Illinois bottling plant and Vestas’ wind turbine blade manufacturing plant, both located in Windsor.

Poudre Valley REA has said an increase of 25 percent in electricity generation from renewable energy sources would lead to a 15-percent rate increase for members.

Brad Gaskill, CEO of Poudre Valley REA, said the change to 20 percent would mean a rate increase of only slightly less than 15 percent.

“That’s on top of any other rate pressures we’re facing,” Gaskill said.

Vestas has testified in support of the measure, though Gaskill said other industrial users oppose it.

Vestas, because it benefits when utilities buy more renewable power such as wind, stands to gain from the bill.

But non-renewable energy and other rural customers don’t have that advantage.

“They’re not going to get the benefit …. like Vestas is,” he said. “It’s definitely going to impact everybody in rural Colorado that’s served by an electric cooperative… no matter whether you’re a residential account, a small business or industrial account.”