Xcel eyes deal in wind probe; utility proposes a $2.6 million settlement after it was accused of selling more wind power than it generated
Xcel Energy will use $2.6 million in shareholder money for a proposed settlement following a state investigation into the utility’s voluntary wind- energy program.
Under the pending agreement, Xcel will refund $1.6 million this year to Windsource customers and spend another $1 million to purchase renewable-energy credits that will ensure customers receive the alternative power for which they pay a premium price.
The settlement is subject to approval by the Colorado Public Utilities Commission.
An investigation last year by PUC staff found that Xcel was selling more power than it generated from Windsource, a program in which customers voluntarily pay a surcharge to support development of renewable energy.
The settlement enables Xcel to use its entire portfolio of renewable energy to sell to Windsource customers, instead of just the two relatively small wind farms in northern Colorado that originally were designated for Windsource.
As a result, the program will be able to grow beyond its current sold-out capacity of 47,000 customers.
“The benefit is that it allows more customers to participate and it allows more development of renewable energy,” said John Nielsen, energy-program director of Western Resource Advocates, a Boulder-based research group that helped draft the settlement.
For an average household that buys all its power from Windsource, Xcel’s $1.6 million refund would lower the extra cost from about $35 a month to $23, on top of normal power rates.
“This removes a great deal of uncertainty about the viability of Colorado consumers’ access to renewables,” said Arthur O’Donnell of green-power certification firm Green-e Energy.
The refund will be paid through 2009. Starting in 2010, Windsource rates will be based on the cost to build and acquire new renewable energy, which could result in higher Windsource premiums, Nielsen said.
By Steve Raabe
9 January 2009
Tags: Wind power, Wind energy
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