By Institute for Energy Research ——Bio and Archives--May 7, 2013
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“The co-ops are on track to supply at least 10 percent of our power from renewable energy sources by 2020, and are considering additional purchases of these resources when they make economic sense…Colorado’s electric co-ops support renewable energy and energy efficiency, but we oppose inflexible legislative mandates that do not take into account the unique characteristics of each electric co-op system.”In 2004, Colorado became the first state to enact a Renewable Portfolio Standard (RPS) by ballot initiative.[4] The original RPS required large utilities serving 40,000 or more customers to generate 10 percent of electricity from renewable sources. Passed in 2007, HB 1281 extended the RPS to co-ops. In 2010, the Colorado legislature increased the RPS for investor-owned utilities to 30 percent by 2020. Until recently, Colorado was on track to meet its RPS mandates. Colorado generated about 5.7 percent of its electricity from qualified renewable resources in 2009, exceeding the 5 percent mandate.[5] However, the state fell short of meeting its 2011 mandate of 12 percent even though utilities generated 10.4 percent from renewable sources.[6] That utilities boosted renewable generation by more than 80 percent in two years but still fell short of the RPS underscores the folly of inflexible renewable electricity mandates. SB 252 will certainly drive up the cost of electricity in Colorado. If the Colorado legislature further increases costs for electric co-ops, rural families will suffer. Coloradans and all Americans deserve electricity derived from the most economical sources, not the most politically favored. IER Policy Associate Alex Fitzsimmons contributed to this post. [1] American Tradition Institute, “The Economic Impact of Colorado’s Renewable Portfolio Standard,” Dec. 2011, [2] According to EIA data, Colorado residential electricity prices were 9.03 cents/KWh in 2009 and 11.28 cents/KWh in 2013. In 2009, Colorado ranked fourth out of eight Mountain West states. In 2013, Colorado ranked second. Mountain West states include, in descending order of 2013 electricity prices: Nevada, Colorado, New Mexico, Arizona, Montana, Utah, Wyoming, and Idaho. [3] See Testimony of William J. Dalton, Staff of the Colorado Public Utilities Commission, Sept. 21, 2011, p. 20. Dalton estimated the cost of renewable acquisitions was about $343 million for 2012. Total electricity sales in Colorado were estimated to be $2.65 billion. [4] See DSIRE for more information on the history of Colorado’s RPS. [5] Institute for Energy Research, “The Status of Renewable Electricity Mandates in the States,” Jan. 2011, [6] The Energy Information Administration (EIA) estimates that Colorado currently generates 14 percent of its electricity from renewable sources. EIA includes all hydroelectric generation, even though the RPS excludes hydroelectric in existence before January 2005. However, SB 252 would extend eligibility to several new sources. Click here.
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