Progressive 15 Energy and the Economy Summit
June 26, 2013
Geoffrey Hier
CREA Director of Government Relations
Colorado Electric Cooperative
Renewable Energy Standard
2004 Amendment 37 passed requiring
10% for IOU’s and municipal utilities and
electric distribution cooperatives with
over 40,000 meters – (Contained an opt out provision
for muni and cooperatives)
2007 HB 07-1281 Supported by CREA –
20% for IOU and 10% for all
Cooperatives, large Municipals by 2020
 2010 HB 1365 – 30% for IOU’s, no
change for Cooperatives
SB 252 – Sens. Morse/Schwartz
and Reps Ferrandino/Duran
With a lifespan of only 12 days in the
Senate and 29 days in total, SB 252
passed both chambers on mostly
partisan votes (Democratic Senators
Hodge and Tochtrop opposed the bill)
 Governor Hickenlooper has signed into
 The primary sponsors all live in areas
served by utilities not significantly
impacted by the legislation.
SB 252 Major Components
Expanded RES definition to include coal
mine methane and trash-to-gas
Revision and repeal of multiplier
New 20% RES for Tri-State and IREA
1% DG mandate - .75% mandate for coops with less than 10,000 meters – applies
to all 22 co-ops
2% rate cap
Annual PUC reporting requirements
Costs may only be recovered from
Colorado cooperatives
Cooperatives Affected
Short answer, all in Colorado
 IREA and Tri-State members more significantly
Cooperatives serving Progressive 15 members:
Highline Electric
High West Energy
K.C. Electric
Mt. Parks
Mt. View
Morgan County Electric
United Power
Y-W Electric
Potential Costs
Based on current demand projections,
there is no need for additional
generation resources for cooperatives
until approximately 2018
 Any renewables obtained will be
replacing existing generation resources
 DG is generally more expensive than
utility scale generation
 DG usually has to be subsidized by
IREA receives renewable energy through Xcel
wholesale contract, getting to 20% not practical
given contractual constraints
 Tri-State will need 500-700 MW to comply by
 Wind is currently the least expensive resource
 Cost for wind 600-840 million dollars
 Back up gas generation = 300 million dollars
 Transmission costs ???
 Total estimated compliance costs 1-2 billion for
Tri-State members
An Imperfect Bill
Requiring Tri-State to only recover costs
from Colorado members creates
 Retail DG requirement is unclear and
could be unobtainable for some
 2020 deadline is unrealistic
 2% rate cap is uncertain
 20% too much, too soon
Executive Order 2013-003
The reasons for signing the legislation
outweigh the reasons for vetoing the bill, but
this bill is imperfect. Some of the concerns
raised during the legislative process were not
given due consideration. Top among these
concerns are the feasibility of the
implementation timetable, and consumer
protections. The advisory committee will
work to fully address these concerns,
culminating in proposals for the 2014
legislative session.
The Director of CEO appoints an advisory
committee, the Chair of the PUC and the
Attorney General or their designee are
non-voting members.
11 voting members total
9 from specified groups
2 future appointments from stakeholder
Designated Appointments
Tri-State G&T
A renewable energy representative
A environmental advocate
A representative of a non-profit proficient in
electric resource planning
A rep actively engaged in agricultural business
A rep actively engaged in livestock production
A rep actively engaged in irrigation production