Boulder sends Xcel RFP for providing wholesale power to municipal utility

The city of Boulder is asking Xcel Energy Inc. (NYSE: XEL) to temporarily sell power for Boulder’s proposed municipal electric utility.

City officials said Thursday that buying Xcel power for a limited time would ensure a smooth transition and reliability of service as Boulder gradually shifts its supply to a larger percentage of renewable energy.

The arrangement is not unusual in the utility industry, according to the city. Xcel Energy has at least eight wholesale power contracts in Colorado, and city officials have met with Xcel representatives to discuss the possibility.

The request for proposal that the city submitted to Xcel outlines options for Boulder’s gradual departure from Xcel, including an option to step down purchases of Xcel wholesale power over five years.

The city announced the RFP late Thursday afternoon. Xcel officials, in an emailed statement, said, “We just received the 50-plus page document late this afternoon and need to review it in detail.  We are interested to see what Boulder has requested.”

Xcel Energy has 30 days to respond to the request for proposal. If the company chooses not to submit a proposal, the city will work with other providers who have expressed an interest in selling clean energy to a Boulder utility.

Boulder has sought to create its own utility to achieve a greater mix of renewable energy, including wind and solar, while reducing greenhouse-gas emissions that lead to climate change. The Boulder City Council in May passed an ordinance creating a municipal electric utility, which paved the way for the city to seek financing to form it.

Xcel does not want to sell its assets, saying it can help Boulder reach its clean-energy goals faster and more economically than the city can do on its own. Xcel has sued the city over its formation of the municipal utility, and has long contended that Boulder cannot condemn Xcel’s assets through eminent domain without first gaining approval from the Colorado Public Utilities Commission and the Federal Energy Regulatory Commission.

on Facebook on LinkedIn