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The Colorado RPS story

RPS: 3 strikes in the CO Legislature


-RPS bill introduced in the Colorado legislature:
2002, 2003, 2004
-Failed each time
RPS: 3 strikes in the CO Legislature
-Support due to promise of rural economic development
RPS: 3 strikes in the CO Legislature
-Opposition from rural electric cooperatives
-Fear of electricity price increases
-Philosophical opposition to ‘mandates’

“We are not opposed to renewables…is it the best public


policy to put into Colorado statutes a mandate for a
particular fuel mix? We would also have this position if they
legislated requirements on the use of coal, nuclear or gas”
-Exec. Director, CO Rural Elec. Assoc.
RPS: 3 strikes in the CO Legislature
-After 2004 failure, RPS supporters changed
tactics. (the 3 strikes rule)
2004: RPS by ballot initiative
-RPS advocates bypassed the Legislature and the PUC, and went
straight to the voters
-An expensive and controversial strategy
-’Amendment 37’ opposed by Xcel and many others
-Proposed amendment more aggressive than failed bill
2004: RPS by ballot initiative
-’Amendment 37’ approved by voters, ~ 54%-
46%
-10% renewables by 2015, of which 4% solar.
-Applied only to larger (40,000+ customers)
municipal utilities (“munis”) and rural electric
associations (“REAs”).
-These munis and REAs can “opt out” if their
members vote to do so.
more details on how the 2004
amendment worked
-Amendment set 1% cap on cost
-Amendment itself vague on details -
PUC filled them in
more on the solar requirement
-4% of 10% = 0.4%, of which half must be
customer-sited
-Xcel built 8 MW solar plant in San Luis Valley
still more solar

Xcel offered generous subsidies for customer-


sited PV systems: $2/watt, plus another
$2.50/watt for the future REC stream.
10/09 update: $2/watt, plus $1.50/watt
2/09 update: $2/watt, plus $0.70/watt
9/10 update: $2/watt, plus $0.45/watt
10/11 update: $1/watt, plus 9¢/kWh
10/12 update: $0/watt, plus 15¢/kWh
8/14 update: $0/watt, plus 1¢/kWh
Differing views on the CO RPS…

Dave Lock, Executive Director, Colorado Municipal Utility’


Association, presentation at the ABA Renewables Conference,
July 20th, 2005
CO RPS - summary
Amendment 37, passed in 2004
Required 10% renewables by 2015
Applied mostly to Xcel - others could “opt out”
Had a 4% (of the 10%) solar requirement
CO RPS – 2007 update
HB 1281, passed in 2007, significantly modified
the CO RPS
Raised the numbers to 20% by 2020 for Xcel
10% by 2020 for REAs, munis
CO RPS – 2013 update
•HB 10-1001, passed in 2010, significantly
modified the CO RPS - again
•Raised the numbers to 30% by 2020 for Xcel
and Black Hills.
•Still 10% by 2020 for REAs, munis
•Changed the solar requirement to 3% of IOU’s
retail sales must come from ‘distributed
generation’ by 2020.
– Half of that (1.5%) must be customer sited.
CO RPS – 2013 update
•SB 252 signed by Governor Hickenlooper 6/13
•Added coal bed methane and landfill gas to list of ‘qualifying
renewables’
•Increased co-op renewables requirement from 10% to 20%
by 2020
•Set a 2% cost cap
•Has an ‘out’ via reporting

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