On Halloween, XCEL submitted a required 8-year plan for energy efficiency, also known as Demand-Side Management (DSM) in Colorado. They proposed to provide incentives to their electricity customers to reduce energy use by less than 1% per year. Ratepayers United of Colorado (RUC) says, “That’s not enough!”
“We find ourselves at a crossroads. Either we can begin to address climate change (and other environmental, health, and societal issues) by choosing to reduce our wasteful use of coal-derived electricity, or we can follow the sooty path of too-little-too-late that is being proposed,” says Dr Daniel Ziskin, the president of RUC. “We urge XCEL to revise their plan. Colorado needs twice the DSM they are proposing.”
XCEL claims that this is the most DSM that is possible given the uncertain market potential in Colorado. RUC notes that:
- In Minnesota, XCEL already exceeds the DSM they are proposing for Colorado, and now Minnesota mandates XCEL to double their target. Colorado should lead - not play “catch-up” to other states.
- XCEL bases their conclusion on a 2005 study that is far too conservative and given the rapid change in public attitudes and the Governor’s position, outdated about the likely savings that could occur if Coloradoans were encouraged to save energy.
- The test XCEL proposes to determine if DSM measures are cost-effective is flawed because it downplays or neglects societal benefits such as reduced pollution, global warming gases, price stability, and the jobs created by keeping money in state. These factors are now required by law to be included in their cost/benefit analyses.
- XCEL bemoans their potential lost revenue if people use less energy, indifferent to the savings the ratepayers of Colorado will experience. XCEL fails to account for the large bonuses the Colorado legislature recently enacted for which they are eligible.
- DSM is by far the cheapest form of energy (i.e. it costs less than 3 cents to save a kilowatt hour, but at least 6 cents to generate a new one). Yet XCEL chooses to promote more costly options instead.
RUC is intervening in this case before the Public Utilities Commission (PUC). We hope environmental and consumer groups and all Coloradoans join our urgent call to action: make XCEL comply with the spirit and the letter of the law (HB 07-1037). The PUC must be emboldened by Governor Ritter’s Climate Action Plan which aims to reduce CO2 emissions by 20% by 2020. Colorado needs real reductions in energy consumption, not foot-dragging.
XCEL must be compensated fairly for their efforts. We support – and Colorado law now mandates - a generous reward structure that allows XCEL to sell less energy and still make a bigger profit. The company, ratepayers, and the environment can all benefit. Doubling XCEL’s Halloween DSM proposal is the “win-win-win” solution.