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SE_SCEE_2018A 03/29/2018 11:29:48 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
SELECT COMMITTEE COMMITTEE ON SENATE SELECT COMMITTEE ON ENERGY AND THE ENVIRONMENT
Date 03/29/2018
Attendance
Garcia A
Guzman A
Priola *
Cooke X
Scott X
Time 11:29:48 AM to 12:22:43 PM
Place SCR 352
This Meeting was called to order by Scott
This Report was prepared by David Beaujon
Hearing Items Action Taken
Xcel Energy Colorado Energy Plan Committee Discussion Only

Xcel Energy Colorado Energy Plan - Committee Discussion Only


11:30:26 AM  
Mike Nasi, Coalition of Ratepayers, discussed
the Xcel Energy's Colorado Energy Plan (CEP) and its possble effect on
electricity rates in Colorado.  The plan is a request before the Public
Utilities Commission to approve a process that would enable the utility
to develop a cleaner energy mix and reduce its carbon emissions in Colorado.
Under the CEP, Xcel Energy is proposing to retire 660 megawatts at two
coal-fired generating units at the Comanche power plant in Pueblo.  It
also seeks to add new wind and solar generation facilities, and additional
natural gas-fired facilities, to replace the retired coal capacity.  

11:39:53 AM  

Mr. Nasi explained that Xcel Energy underestimated by nearly $500 million the cost to implement the CEP.  He identified costs related to the CEP including the cost to decommission coal fired power plants that are not adequately addressed in the plan submitted by Xcel Energy to the Colorado Public Utilities Commission.  He also explained how accounting methods, such as accelerated depreciation and the annuity method of depreciation, overstate the value of the CEP or underestimate its costs to ratepayers.

11:48:57 AM  
Mr. Nasi discussed the Colorado Public
Utilitiy Commission's process for reviewing the CEP and he expressed concern
about the transparency of certain aspects of this process.  He also
expressed concern about the adequacy of the Office of the Consumer Counsel's
review of the plan and he identified costs to ratepayers that the the office
did not adequately consider, including transmission costs.  He also
explained how the CEP relies on unrealistic assumptions concerning the
continuation of renewable energy subsidies.
11:56:48 AM  
Mr. Nasi discussed the cost of decommissioning
coal fired power plants under CEP and identified the assumed social cost
of carbon that is used by Xcel Energy to calculate the benefits of decommissioning
these facilities.  He explained that this assumption overestimates
the effect of decommissioning these facilities on carbon levels in the
atmospher and related benefits.
12:02:36 PM  
Mr. Nasi responded to questions from the
committee about the cost of implementing the CEP.  He also compared
the cost of renewable energy and coal fired power plants and identified
subsidies for renewable energy that affect its cost competitiveness with
other energy sources.  He also responded to questions from the committee
about the effect of electric utility deregulation on ratepayers and he
discussed Texas' electricity market that is deregulated.


12:22:43 PM   Committee Adjourned






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