Colorado’s Energy Experience

And while we listen to the nonsense that alternatives cannot work because of cost, and other such nonsense here comes the state of Colorado. They have had an interesting experience in Colorado. From the Washington Post:

When Colorado voters were deciding whether to require that 10 percent of the state’s electricity come from renewable fuels, the state’s largest utility fought the proposal, warning that any shift from coal and natural gas would be costly, uncertain and unwise.

Then a funny thing happened. The ballot initiative passed, and Xcel Energy met the requirement eight years ahead of schedule. And at the government’s urging, its executives quickly agreed to double the target, to 20 percent.

Colorado’s experience may presage the national battle to come. As we saw Republicans fighting to save oil company tax credits in the Speaker Pelosi post they are fighting that battle in Colarado as well.

One advocate calls Colorado “ground zero” for the looming battle over energy.

Despite a continuing boom, oil and gas companies here are on the defensive. They are spending heavily as they try to prevent the repeal of as much as $300 million in annual tax breaks that would be shifted to investment in renewables and other projects.

The Colorado utility that had so vociferously opposed the imposition of a renewable mandate by the voters came around pretty quickly. Why?

Once Xcel executives began to come to terms with the new rules, they discovered that federal tax credits made wind power affordable, especially in relation to rising natural gas prices. The cost of wind power is relatively constant and provides a hedge against future emissions regulation, such as the cap-and-trade approach favored by presidential candidates Barack Obama (D) and John McCain (R).

“It was good for the system,” Xcel’s Prager said, referring to the utility’s mix of energy sources, “and it was good for the customer.”

By the end of 2007, Xcel had met Amendment 37’s goal and endorsed Ritter’s request to double it to 20 percent by 2020. That measure passed the Colorado legislature easily: With the utility on board and public sentiment clear, the bill collected 50 sponsors in the 65-member House.

One of the outgrowths is the filed plan by Xcel to shutter two coal fired plants.

Meanwhile, Xcel’s latest plan, filed with the Colorado Public Utilities Commission, calls for retiring two of its aging coal-fired power generators.

“We’ve reached this critical point where we’re seeing the deployment of these technologies accelerate,” said John Nielsen, an energy analyst with the nonprofit environmental group Western Resource Advocates. “There was slow progress over the last decade, and you’re now seeing this tipping point.”

In addition to greener energy Colorado is reaping the economic benefits of being in the forefront of the renewable energy industry.

Among the signs is the arrival of Vestas, a Danish wind turbine company, which announced Friday the construction of two more manufacturing plants and 1,350 new jobs, bringing the company’s total in Colorado to 2,450. ConocoPhillips announced this year that it will locate its alternative-fuels research operation in the state. The Colorado-based National Renewable Energy Laboratory is adding 100 jobs.

Aggressive movement towards alternatives is necessary, and the Colorado experience is showing that the shrill attacks against renewables are just so much excess wind. Read the Washington Post article here.

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1 Response to Colorado’s Energy Experience

  1. Jules Gordon says:

    Your Honor,

    I post a key sentence from your entry that makes a difference in this story:

    “Once Xcel executives began to come to terms with the new rules, they discovered that federal tax credits made wind power affordable, especially in relation to rising natural gas prices.”

    I have heard of this before. Actually, all this effort proves is that welfare payments draw all kinds.

    The wind companies see the future and it’s tax incentives.

    How about Nancy Pelosi et al get out of the energy business altogether.

    How about an entry that does not involve government hand outs, or senseless restrictions.

    Drill here-Drill now

    Jules

    Like

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