Xcel sues city of Boulder, challenges municipal utility

BOULDER – Public Service Co. of Colorado, an Xcel Energy Inc. (NYSE: XEL) company, is suing the city of Boulder and City Council, contending that Boulder illegally formed a light and power utility, according to a lawsuit filed Tuesday in Boulder District Court.

Public Service Co. of Colorado contends that the city of Boulder overstepped its authority when it established a municipal utility, according to the lawsuit. The company has requested an order striking down the ordinance the Boulder City Council passed last month creating the utility.

City Council members voted unanimously May 6 to create the utility, giving the city…