Colorado Settlement Demonstrates the Benefits of Collaboration

Last week, the Colorado Public Utilities Commission approved a comprehensive settlement on the Xcel Energy General Rate Case, Renewable Energy Plan and the Solar*Connect application. Of the 26 interveners across those cases, 22 signed onto the settlement after months of negotiations and seemingly endless discussions among parties with diverse perspectives and priorities. 

The results include the elimination of the controversial Grid Usage Charge as well as the virtually undiscussed proposal to assess an auxiliary fee for all energy storage systems. Instead the utility will be offering pilot programs for time-of-use rates and residential demand rates. Of particular interest to renewable developers is that the capacity in the Solar*Rewards rebate program was expanded from 108 Megawatts (MW) to 225 MW over the next three years.

SEIA is pleased with the programs for low-income customers in the settlement – which include a rooftop installation option, a dedicated low-income Solar*Garden solicitation, and a standard offer low-income Solar*Garden. Xcel also agreed to take on the 5 percent low-income obligation that every solar garden must have.

Additionally, the settlement sets up the framework for stakeholder groups to continue discussing program implementation, interconnection, energy storage policies and rate design. It also approves a utility application, renamed Renewable*Connect, in which Xcel will procure up to 50 MWs to sell renewable subscriptions to its customers.

The settlement is a very positive outcome for SEIA and our member companies. There are understandable concerns, as in any negotiation, and no one party walked away with everything they asked for. But how does that saying go? It isn’t a successful negotiation unless everyone is a bit unhappy?

This settlement happened only because parties around the table wanted to make it work, with particular credit to Xcel for initiating the discussion and staying at the table.

Utilities and Commissions across the country can take lessons from this process – as I sincerely believe we achieved more by collaborating than fighting. Perhaps other states can emulate this “Colorado way” when initiating and conducting energy discussions.