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Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by f... Page 1 of 3 • Public Power Daily Monday, March 04, 2013 Boulder report finds city could dramatically reduce greenhouse gases, keep rates flat, by forming a city -owned utility The city of Boulder, Colo., which wants a lower carbon footprint and more renewable energy, is seriously considering forming a municipal electric utility to get those things. According to a Feb. 26 report, the effort would likely pay off, both in the near term and over 20 years. The analysis finds that, under at least some of the scenarios studied by city staff, "a local utility could operate effectively with cost savings and flexibility, creating significant advantages" compared to continuing the current arrangement with investor -owned Xcel Energy. The report goes farther, saying that Boulder could cut its greenhouse gas emissions by 50 percent and could procure half of its energy from renewable sources. "The opportunity exists for Boulder to transition to a new sustainable, low - carbon emission society, and it is coming much faster than anyone had anticipated just a few years ago," the city said. "The growing differential between the rising costs of fossil fuels and the declining costs of renewable energy technologies is setting the stage for the emergence of a new economic paradigm for the next century. Boulder is poised to drive this process to tackle climate change, secure energy independence, and grow a sustainable 21st century economy all at the same time." • "This is a really exciting night," said Heather Bailey, executive director of energy strategy and electric utility development, at a three -hour work session and public hearing held by the Boulder City Council on Feb. 26. She cautioned, though, that the February report does not decide the question of whether the city should form a municipal electric utility. That question is for the future, she said. The study does say "yes," however, to the preliminary question of whether Boulder could create a city-owned utility and meet the goals it has set for itself if it decides to go down that path, she said. "We believe the findings demonstrate that a municipal utility could be good for consumers, good for Boulder businesses and good for our planet," Bailey said. "We look forward to an informed conversation over the next couple of months about how best to proceed." The City Council is scheduled to vote April 16 on whether to continue to pursue municipalization. City leaders have said they also are open to a partnership with Xcel Energy to reach their clean energy goals. The 38 -page report, Boulder's Energy Future Municipalization Exploration, which runs to 287 pages including all attachments, is posted on the city's website, under "Boulder's Energy Future." The city has taken a slow, methodical approach to its quest for a greener energy supply. In November 2011, residents of Boulder approved two ballot measures on the city's energy future. One of those ballot questions authorized the city to explore the possibility of purchasing Xcel Energy's distribution system and forming a municipal utility, providing that customer rates would be no higher than the rates Xcel Energy is charging at the time of acquisition. The other ballot provided the funding • necessary to determine the actual costs of buying Xcel's system and starting a local utility. (See the Nov. 3, 2011 Public Power Daily.) http: / /www.naylometwork.com/ app -ppd /articles /print- V2.asp ?aid= 208951 3/6/2013