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se_scee_2018a_2018-03-29t11:29:48z0 Hearing Summary

PUBLIC
BILL SUMMARY For XCEL ENERGY COLORADO ENERGY PLAN

SELECT COMMITTEE COMMITTEE ON SENATE SELECT COMMITTEE ON ENERGY AND THE ENVIRONMENT
Date Mar 29, 2018
Location SCR 352

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.