Boulder issues RFP tied to efforts to create electrical utility

BOULDER — The city of Boulder has issued a request for proposal that the city hopes will help clarify the path forward for its efforts to create a city electrical utility.

The submissions, due Aug. 14, could result in the city contracting with a private electricity provider for services, instead of the creation of a city-run utility.

For years, Boulder has sought to divorce itself from Xcel Energy Inc. (NYSE: XEL), which Boulder’s council believed was moving too slowly toward use of renewable sources for its electricity. Recently, however, the city has begun to consider whether a private solution might serve the community better.

 “We are interested to see what the open market can provide to Boulder,” said Steve Catanach, who heads the city’s local power project. “We know there are companies eager to show Boulder they can provide high levels of renewables and meet our energy goals at reasonable costs, and I look forward to seeing their proposals.”

The RFP, available online via BidNet, seeks bids that will help the city determine details for the electric utility, including the cost to purchase power from an independent power supplier; the amount of renewables a city-run electricity could achieve on day one of operations, and by 2030, when the city seeks to achieve 100% renewable electricity; and opportunities to participate in community-scale renewable power within the city limits and Boulder County, as well as large-scale renewable projects in the region.

The city is also seeking financing mechanisms to help the city complete municipalization. This could include financing for work leading up to the community vote, and/or — after voter approval — financing for start-up costs, separation costs and costs to purchase the electric distribution infrastructure from Xcel Energy.

A core focus of this phase of the city’s municipalization work is determining key details of the costs and benefits of a local electric utility prior to the community decision. The RFP builds on a 2018 request for pricing, which demonstrated that there are power providers that can provide a reliable electricity supply to Boulder while meeting the city’s energy goals at reasonable costs.

Meanwhile, the city’s negotiations with Xcel Energy continue in parallel to the city’s local power work. Staff will provide an update on the negotiations and a summary of public feedback at Tuesday’s city council meeting. 

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