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Xcel Reduces WindSource Premium
February 14, 2007
Xcel Energy agreed to reduce the
premium it charges for its WindSource green pricing program. The
agreement emerged on December 1 as a result of a rate case
settlement with the Colorado Public Utilities Commission (PUC) in
Denver. The PUC approved the rate case settlement agreement on
December 1. Beginning January 2007, Xcel will charge $0.009 per
kilowatt-hour (kWh), which represents a 14% reduction in the premium
Xcel customers pay to purchase renewable energy.
During the rate case, the
Colorado utility had applied to the PUC for permission to increase
the premium for WindSource. However, Western Resource Advocates in
Boulder intervened in the case, which is a process whereby the
public can present their points of view to the PUC. Western Resource
Advocates argued successfully that wind energy is currently selling
cheaper than Xcel’s fossil generation, and the increase would
discourage customers from subscribing.
You remember that last year Xcel
had to exclude WindSource customers from its rate increases caused
by record high prices for natural gas and coal to power its Of
course, the costs from wind energy systems are immune to fuel price
fluctuations.
Western Resource Advocates
publishes a list of all utility green pricing programs available to
Colorado consumers who wish to purchase electricity generated from
renewable energy resources at:
http://www.westernresourceadvocates.org/greenpower/signup/colorado.php
As part of the rate case
settlement, Xcel also agreed to address the long wait that many
customers face subscribing to WindSource. The delay is a result of
Xcel building capacity to serve its green pricing program one
turbine at a time. The company waits until the output from a single
turbine is fully subscribed before installing new capacity at the
wind power plants in northern Colorado that serve WindSource. The
company agreed to reduce the wait period for WindSource subscribers
as part of the settlement.
The utility also agreed to
participate in roundtable discussions with Colorado renewable energy
industries to develop ideas for new, environmentally friendly
products in addition to WindSource (i.e. from renewable energy
sources other than wind generation). Read the details about the PUC
Decision No. C06-1379:
http://www.dora.state.co.us/puc/docket_activity/HighprofileDockets/06S-234EG.htm
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