Kit Carson Electric Cooperative recently signed a contract that will give it enough solar capacity backed by storage to meet all of its peak daytime needs by 2021, about nine months earlier than had previous been expected.
An agreement reached recently with solar developer Torch Clean Energy will give Kit Carson 21 megawatts of additional solar capacity, to a new total of 38 megawatts of solar. The deal will also produce 15 megawatts of storage capacity, the first for the cooperative.
Mindful of the wildfires in California and Colorado during recent years, location of the battery storage was chosen with the goal of improving resiliency of vital community functions in Kit Carson’s three-county service area. The majority of the battery storage will be at Taos, to meet needs of a hospital and emergency services in cases of disruption. The rest will be located near the Angle Fire ski area. If wildfire should cause power losses, the batteries will provide for four hours of electricity for pumping of water into the community water tank.
“If for some reason, we were separated from the grid, we would at least have some battery storage for a couple of hours,” said Luis Reyes, chief executive of the 23,000-member cooperative.
Battery storage will also help Kit Carson shave costs of transmission paid to the Public Service Co. of New Mexico and to Tri-State Generation and Transmission, said Reyes. Prices of neither solar nor storage have been divulged, but they will be.
Kit Carson first invested in solar in 2002. Then, in 2010, members of the coop voted to adopt a goal of 100% renewables.
In 2016, the coop began negotiating with wholesale provider Tri-State Generation and Transmission for an exit fee. It also hooked up with Guzman Energy, then a new full-requirements power supplier. With Guzman paying the $37 million exit fee, Kit Carson and Guzman in 2017 accelerated investments in solar energy.
According to the media kit on Kit Carson’s website, a collaboration of Kit Carson and Guzman, the co-op will save $50 million to $70 million over the life of the 10-year contract. Unlike the contract with Tri-State, which had a 5% cap on locally generated electricity, the contract with Guzman has no limit. Price increases for Guzman’s wholesale power are capped.
Chris Miller, chief operating office for Guzman, called it an “exciting time for Kit Carson, and for all local energy co-ops around the country that are setting ambitious goals and realizing the benefits of renewable energy capacity for the communities they serve.”
Guzman is also scheduled to begin delivering electricity to Colorado’s Delta-Montrose Electric Association beginning next Monday, and it has been courting other potential customers, including cooperatives and municipalities.
Beyond the solar capacity that will allow Kit Carson to hit 48% renewables, Kit Carson hopes to add wind generation from eastern New Mexico in coming years, putting it at 75% to 80% renewable.
Achieving the 100% renewables goal, however, will take something more. Reyes says Kit Carson hopes for further improvements in energy technology, possibly including hydrogen.
“In the next few years, some new technology will come into fruition that will provide energy for night and for cloudy days and will be a renewable product,” said Reyes in an interview with Mountain Town News.
Aurora Organic Dairy today published its 2019 Sustainability Report. The report provides a detailed and transparent update on the Company and its progress toward goals to improve its sustainability performance around three core pillars of Animals, People and Planet.
The Company announced updated goals that encompass three key areas:
Caring for the comfort and well-being of its cows and calves, always putting animal care at the forefront of farming practices.
Employee safety and wellness, and local community support.
Commitments to greenhouse gas (GHG) reduction, water efficiency and waste reduction, and one important new goal to commit to 100% carbon-neutral energy by the end of 2020.
“At Aurora Organic Dairy, we have a longstanding commitment to continuous improvement when it comes to our animals, people and planet,” said Scott McGinty, CEO of Aurora Organic Dairy. “While we are proud of our achievements, in today’s world, we cannot rest. We must continue to do more to support our animals and people, the environment and our local communities. Our updated sustainability goals strengthen this commitment.”
The Company’s sustainability goals – established against 2012 baseline data – include many initiatives that have bolstered Aurora Organic Dairy’s sustainability performance:
Aurora Organic Dairy farms improved the overall welfare of its animals through goals to reduce lameness, to perform fewer dehorning procedures, to used paired calf housing and to increase video monitoring.
Significant progress against People goals was made with increased training programs, communications around the value of benefits, bilingual communication and community centers in remote farm locations. Going forward, Aurora Organic Dairy will continue its focus on safety and on employee volunteerism.
For the Planet, Aurora Organic Dairy achieved significant reductions in water and energy. Its milk plant achieved a 71% solid waste landfill diversion rate, and normalized GHG emissions were down 11%. The Company is committed to reducing its GHG emissions by 30% by 2025. Given the urgent need to address climate change globally, Aurora Organic Dairy has made an important commitment to 100% carbon-neutral energy by the end of 2020.
“This last year was a milestone for Aurora Organic Dairy in terms of environmental stewardship,” said Craig Edwards, Director of Sustainability for Aurora Organic Dairy. “We installed solar arrays at our High Plains and High Ridge Dairies in Gill, Colo. and we committed to 100% carbon-neutral energy by the end of 2020. To get there, we will invest in renewable energy projects directly and will support additional projects by purchasing Renewable Energy Certificates and Verified Emission Reductions to address 100% of our electricity and fuels use across our Company farms, raw milk transport, milk plants and headquarters.”
Of all the states in the US, Colorado may be the best prepared for a genuine, large-scale energy transition.
For one thing, thanks to its bountiful sunlight and wind, Colorado has enormous potential for renewable energy, most of which is untapped. The state currently generates only 3 percent of its electricity from solar and just under 18 percent from wind.
The political climate is favorable as well. As of earlier this year, Democrats have a “trifecta” in the state, with control over the governorship and both houses of the legislature. Gov. Jared Polis campaigned on a promise to target 100 percent clean electricity by 2040. In their last session, he and the legislature passed a broad suite of bills meant to boost renewable energy, reform utilities, expand EV markets, and decarbonize the state economy.
Over the last year or so, energy systems modeler and analyst Christopher Clack, with his team at the energy research outfit Vibrant Clean Energy (VCE), has been taking a close look at what Colorado is capable of in terms of clean energy, and what it might cost. (The research was commissioned by renewable energy developer Community Energy.)
VCE has built a model called WIS:dom (ahem, “Weather-Informed energy Systems: for design, operations, and markets”). It can simulate the Colorado electricity system with incredibly granular accuracy, down to a 3-kilometer, 5-minute range, year-round. Using that tool, they have simulated various clean-energy initiatives the state might take, and their impact.
Huddled in a construction trailer last year, a team overseeing development of an affordable housing complex in the Colorado mountain town of Basalt agreed to make a bold statement about future energy use.
No natural gas lines were to be laid through the red soil to Basalt Vista, an affordable housing project. Electricity instead fuels kitchen stoves and delivers hot showers. Electricity, not gas, warms chilled autumn air. All units also have charging equipment for electric cars.
Beneficial electrification, the concept in play, has been defined as the application of electricity to end uses that would otherwise consume fossil fuels. That includes both transportation but also buildings. The U.S. Energy Information Administration says residential and commercial buildings sectors account for about 40% of total U.S. energy consumption.
Basalt Vista serves as a demonstration of building electrification but also as a living laboratory with national implications. New technology designed in a partnership with the National Renewable Energy Laboratory allows homeowners greater decision-making in energy allocations. Holy Cross Energy, the local electrical utility, also has been using the all-electric units to understand implications for its operation as it shifts toward increased renewables. The co-op expects to be at 70% renewable by 2021 and has ambitions to go higher.
While multiple California cities are considering bans on new natural gas connections, building electrification remains an infant concept. Natural gas remains the go-to fuel source for heating and other purposes in new construction in most places. In Colorado, legislators and other state officials have begun considering how to reduce use of natural gas as they plan how to achieve the goal adopted earlier this year of 90% reduction in economy-wide carbon emissions below 2005 levels by 2040.
Existing buildings pose a major challenge, as they often cannot be readily reconfigured. But even new construction in Colorado’s colder climate zones will test the application of existing technology. Basalt Vista, located 18 miles down-valley from Aspen, ranks at the edge.
Grading of the site had begun in June 2018 when Auden Schendler, a member of the Basalt Town Council and also vice president of sustainability for the Aspen Skiing Co., made his case for electrification of the units. The concept, a crucial strategy for solving the challenge of climate change, needed to be demonstrated, he told the development partners.
“We know how to decarbonize the utility grid, we know how to decarbonize transportation mostly, but the big challenge is how to heat buildings without combusting fossil fuels,” he says. “Electrification combined with an eventually renewable grid is one way to do that.”
A year after that construction trailer huddle, the first duplex had been completed. “This is my house!” 13-year-old Isabel “Izzy” Walker beamed at the grand opening as she led her grandfather by the hand.
Her mother teaches preschool in the local Roaring Fork School District, which provided the land adjacent to Basalt High School. Of the 27 units, 14 will be available for purchase by school district employees. Employees within Pitkin County will have dibs on the other 13 units based on a lottery and subject to income restrictions. Completion is expected by early 2021.
As for saving money, Schendler’s second motivation, the first electric bills for summer came in at $12.65 and then $12.61. Habitat for Humanity Roaring Fork Valley, the developer, projects Basalt Vista homeowners can expect annual savings of $2,000 in utility costs.
Like much of the affordable housing in the Aspen area, Basalt Vista is heavily subsidized, most prominently $3.2 million in land donated by the school district and $3 million in infrastructure work by Pitkin County. Habitat for Humanity is also subsidizing each home by over $100,000, as home prices are based on what buyers can afford to pay: 28% of their gross monthly income for mortgage, insurance and taxes.
Energy improvements also are receiving more than $300,000 in help, including smart inverters and other assistance from electrical supplier Holy Cross Energy, discounted solar photovoltaic costs, and $107,500 from the Community Office for Resource Efficiency, a local nonprofit, for photovoltaic panels and heat pumps.
High-efficiency cold-climate air-source heat pumps provide the crucial technology at Basalt Vista. Heat in the outside air is absorbed and stored in a refrigerant as latent heat. Temperature of the refrigerant gas rises when compressed by an electric pump, providing the heat that can then be transferred to indoor water or air. Electricity facilitates the heat transfers.
Dramatic improvements in recent years have made air-source heat pumps useful in cold weather climates. Heat can be extracted from outdoor air as low as 22 degrees below Fahrenheit. Basalt normally can expect temperatures of 10 to 15 below zero in winter, a notch or two colder than Denver.
“A thousand feet higher and colder, I’m not sure we would have done it, to be honest with you,” said Scott Gilbert, president of the Habitat for Humanity chapter. Aspen is 18 miles away and 1,000 feet higher.
Megan Gilman, a zero-emissions building consultant from Edwards, says electric buildings in cold climates must be paired with on-site solar to produce the lowest long-term operating costs. Without that on-site production, electrification struggles to compete with natural gas, which has been cheap in Colorado for the last decade and is likely to remain so. Even more efficient equipment, including heat pumps, can help narrow this gap, she said.
An air-source heat pump can deliver 1.5 to 3 times more energy in the form of heat than the electrical energy it consumes. In the Basalt Vista homes, the heat is distributed from ceiling units, which do so more efficiently than the radiant base-board electric heaters installed in homes during the 1970s.
Basalt Vista constitutes a microgrid. A microgrid remains part of the broader electrical grid but has resources to remain functional at some reduced level if the grid connection is severed — particularly beneficial in a mountain area vulnerable to wildfires. Hospitals and military bases commonly have backup diesel generators or other resources to provide power in case grid electricity ceases.
All 27 units at Basalt Vista will have photovoltaic solar panels on the roofs and at least 7 units will have $15,000 lithium-ion battery packs, good for 10 years and 10,000 cycles. One battery can run the full load of two houses. With sparse use — refrigerator, microwave, and lighting — a battery can run a house for four days.
“If you have a certain amount of solar and storage in a microgrid area, you can separate from the bigger grid,” explained Steve Beuning, vice president for power and supplies at Holy Cross Energy. “You just have to rely upon those local resources. You might have some high priority loads you want to supply, but not other, non-essential demands.”
Greater flexibility while integrating higher levels of renewables in the electrical grid is another goal at Basalt Vista in a $1.65 million study sponsored by the Department of Energy and the National Renewable Energy Laboratory.
In the old utility model, centralized generation was designed to meet maximum demand. In most places, that demand occurs on hot summer afternoons and evenings. In the Basalt area, demand peaks during winter. The model being created at Basalt seeks to provide more interplay between generation and supply, modulating the demand to better correspond with local supply.
Chris Bilby, research and programs engineer for Holy Cross Energy, said the utility wants to avoid building excess generation, whether solar farms near Basalt or giant wind farms on the Great Plains.
“For most of the utility world, it’s all about managing the supply to meet the demand,” he said. That requires transmission and distribution, all of it costly. “What we’re trying to do is maybe ask, ‘Can we dim the lights’ — that’s an analogy — ‘to meet the supply, or shift use of members to times when there is surplus?’ That’s what we’re trying to get done.”
Router-sized devices in this experiment prioritize uses and also function as in-house — literally — moderators between supply and demand. This sorting of electrical uses will occur not just in time of crisis, but also in everyday life at Basalt Vista.
The control solution, designed to meet needs of Holy Cross, comes from a novel algorithm developed by researchers at the National Renewable Energy Laboratory. The algorithm, called real-time optimal power, optimally schedules flexible uses, such as hot water heaters or charging and discharging of batteries, based on real-time voltage and power measurements. The first four duplex units at Basalt Vista have 20 such controllers to manage the photovoltaic panels, batteries, electric vehicle charging, heating and cooling.
For example, can the charging rate of an electric vehicle be slowed or deferred altogether until supplies have become more plentiful? Heating water might also be juggled. “So maybe you don’t get a 40-minute shower, but you get a 20-minute shower,” Bilby said. This increased flexibility of customer use may yield higher levels of lower-cost renewables.
The devices have been produced by Heila Technology, a company founded by Massachusetts Institute of Technology alumni. Heila’s vision is to build a futuristic grid with bolstered resilience that that meets consumer energy needs while maximizing reliance on renewable energy. It has applied the electrical controls — the brains that prioritizes uses — used in large applications, such as factories, and crafted them for use in small settings, like a house. In effect, they can make a house in Basalt Vista a microgrid of its own. Not coincidentally, the company’s name of Heila is Swedish for brains.
Francisco Morocz, the chief executive of Heila, said Basalt Vista is a pilot project, trying to demonstrate how granular the control systems can be. The next step would be to optimize use of on-site battery storage and help make it a resource within the broader energy system.
The National Renewable Energy Laboratory believes the results will have implications for utilities, particularly municipalities and cooperatives, around the world, delivering results that can be scaled to hundreds of homes while significantly improving grid operations.
Scaling building electrification
Can all-electric homes such as those being built in Basalt be scaled? Costs of the Basalt Vista duplex and triplex units have been coming in at 15% per unit, roughly $40,000 to $50,000, more than conventional units. Technology is part of the increment. A heat pump water heater costs $1,800, compared to $600 for a 96% efficiency gas water heater, which is more expensive than the 85% efficiency models commonly found at big-box hardware stores.
Too, the construction trades have not geared up for all-electric homes. “Contractors were very wary of this. Bids were coming in at $10,000 more per unit than gas,” said Marty Treadway, program director for the Community Office for Resource Efficiency, or CORE. The local nonprofit donated $107,500 for photovoltaic panels and heat pumps.
“A prototype for affordable housing and a net-zero energy neighborhood makes a ton of sense for CORE,” Treadyway said. CORE has awarded $8.2 million in rebates and grants since 2011 to reduce emissions caused by buildings. The group’s primary funding comes from the Renewable Energy Mitigation Program, which exacts fees on large homes with high energy use in Aspen and Pitkin County if the homeowner or builder opts not to mitigate with on-site renewable energy.
Transportation constitutes Colorado’s second-largest source of greenhouse emissions, but buildings follow. For Colorado to slash emissions, it must figure out buildings. As Holy Cross’s Bilby points out, “You can’t do zero emissions with natural gas.”
In the southwest corner of Colorado, the sun beats down on the Ute Mountain Ute Reservation. High desert runs to the horizon in every direction, broken only by imposing mesas and Sleeping Ute Mountain. Just under 2,000 people live on the 580,000-acre-reservation, which sprawls across Colorado, New Mexico and Utah. But as temperatures rise with climate change, utility bills rise with them, and the Ute Mountain Ute tribe has begun transitioning to 100% renewable power — a movement towards energy sovereignty they have been forging for almost a decade.
Nations, states and communities around the world are establishing rapid decarbonization goals, including Colorado, which declared a target of 90% carbon-free energy by 2050. With increased pressure for immediate, large-scale changes to energy infrastructure, international policies for expanding renewables have played a critical role in increasing solar technology’s accessibility and efficiency. By combining this evolving technology with local knowledge, the Ute Mountain Ute Tribe is generating energy solutions rooted in its community.
“Our tribe likes to think outside of the box and take risks, and we believe in renewable energy,” said Tribal Community Services Director Bernadette Cuthair. In its first major stride towards net carbon zero, the tribe is building a large-scale solar array through a partnership with GRID Alternatives Colorado, an organization that helps low-income and underserved communities access renewable energy technology and job training. The $2 million project includes 3,500 solar panels that will offset at least 10% of the reservation’s overall energy usage, eliminating about 1,515 tons of greenhouse gas emissions by year one.
The tribe is considering building a large-scale renewable energy business to serve national markets, increase tribal revenue, and provide more training and jobs. “The solar array we’re building now is a 1-megawatt project, but we’re looking into what we could do with 200 or 300 megawatts next,” said Cuthair. “This is just the beginning for us as far as renewables.”
It’s estimated that in just six hours, the world’s deserts receive more energy from the sun than the entire human race consumes in a year. That presents infinite possibilities for areas like the Ute Mountain Ute Reservation. “One thing the tribe has a lot of is land,” said Scott Clow, the tribe’s environmental programs director. “When you look across all of that acreage, there are many locations well suited for solar projects — mainly flat land, and land that doesn’t have a lot of limitations of conflicting use.”
The National Renewable Energy Laboratory estimates tribal land in the Lower 48 states has the capacity to supply 17.6 terawatt-hours (TWh) of solar power, which is more than four times the total electric energy generated by the U.S in 2018. Through renewables, the Ute Mountain Ute and a growing number of tribes are empowering their communities and land — and helping the nation as a whole transition towards a more sustainable energy infrastructure.
“It’s a very exciting time for the tribe, because we’re headed in a different direction as far as sustainability and self-reliance,” said Cuthair. “This is a step towards energy independence for us, and it feels like we’re part of a movement. This is what we want our legacy to be.”
Avery White is a multimedia storyteller and journalist based in Brooklyn, New York. She covers resistance movements around climate change, social justice and immigration. Follow her on Instagram at @averyleighwhite. Email High Country News at firstname.lastname@example.org.
The Colorado legislature has had an extraordinarily productive year so far, passing a stunning array of climate and clean energy bills covering everything from clean electricity to utilities, energy efficiency, and a just transition. The list is really pretty amazing…
It got me thinking: Just how big a role are EVs going to play in decarbonization? How should policymakers be prioritizing them relative to, say, renewable energy? Obviously, every state and country is going to need to do both eventually — fully electrify transportation and fully decarbonize electricity — but it would still be helpful to better understand their relative impacts.
Nerds to the rescue!
A new bit of research commissioned by Community Energy (a renewable energy project developer) casts light on this question. It models the carbon and financial impacts of large-scale vehicle electrification in Colorado and comes to two main conclusions.
First, electrifying vehicles would reduce carbon more than completely decarbonizing the state electricity sector, pushing state emissions down 42 percent from 2018 levels by 2040 — not enough to hit the targets on its own, but a huge chunk. Second, electrifying vehicles saves consumers money by reducing the cost of transportation almost $600 a year on average.
Rapid electrification is a win-win for Colorado, a driver of decarbonization and a transfer of wealth from oil companies to consumers — but only if charging is managed intelligently.
EVs bring carbon and consumer benefits
First, the headline: Electrifying EVs…reduces emissions a lot.
In the EV-grid scenario, electricity sector emissions fall 46 percent — the number is lower because about a third of the additional electricity demand from EVs is satisfied by natural gas — but overall state emissions drop 42 percent, more than two and a half times as much, representing 37 million metric tons of carbon dioxide. That’s thanks to an 80 percent drop in transportation emissions…
As I said, that in itself is not enough to meet the state’s emissions target. The state will have to force some additional cleaning of the electricity sector (and deal with other sectors) to do that, as this year’s package of legislation reflects. (I asked Clack if Vibrant ran a scenario without any new natural gas. Yes, he said. “It was $1 billion per year more expensive [around 1¢/kWh, or 15.9 percent more] and decreased emissions by an additional 14.8 metric tons per year.”)
But the drop in transportation emissions in the EV-grid scenario is sufficient to reduce more overall emissions than the entire Colorado electricity sector produces. EVs are a vital piece of the decarbonization puzzle.
The effect of all the new EVs on electricity generation is pretty simple: There will be more of it…
As you can see, in the cleaner-grid scenario, lost coal generation is replaced by a mix of natural gas, wind, and solar. In the EV-grid scenario, it’s roughly the same mix, just a little more of each — the addition of EVs raises total electricity demand by about 20 percent.
Bonus result: “The increase in generation capacity increases employment in Colorado’s electricity sector by approximately 68 percent by 2040.”
And now, here are the fun parts.
Shifting from internal combustion engine vehicles (ICEV) to EVs would save Colorado consumers a whole boatload of money, for the simple reason that electricity is a cheaper fuel than gasoline. Here are the average savings for a Coloradan that switches from ICEV to EV between 2018 and 2040…
So the average Coloradan will save between $590 and $645 a year — nothing to sneeze at. “The total savings between 2018 and 2040 are estimated to be $16 billion,” Vibrant says, “which equates to a savings of almost $700 million per year.”
You might think, with all the new EV demand added to the grid, electricity rates would go up. In fact, relative to the cleaner-grid scenario, the EV-grid scenario has an extremely small impact on rates (0.7 percent difference at the extreme)…
EVs are a climate triple threat
What this modeling makes clear is that when it comes to clean energy policy, EVs are a triple threat for Colorado (and, obviously, for other states, though the impacts will vary with weather and electricity mix).
For the electricity sector, as long as their charging is properly managed, EVs can provide much-needed new tools to help manage the influx of renewable energy…
For the transportation sector, EVs can radically reduce carbon emissions and local pollution. (Yes, EVs reduce carbon emissions even in areas with lots of coal on the grid.)
And for consumers, EVs save money, not only because the fuel is cheaper (and getting cheaper all the time) but because EVs are much simpler machines, with fewer moving parts and much lower maintenance costs.
Especially in states with electricity sector emissions that are already low or falling, transportation is the next big place to look for emission reductions, and EVs are one of the few options that can reduce emissions at the necessary scale and speed. Colorado is right to encourage them.
Deal sealed for electrical co-op’s exit from Tri-State but the fee unknown
Tri-State Generation and Transmission and one of its 43 member co-operatives, Delta-Montrose Electric Association, have come to terms. Delta-Montrose will be leaving the “family,” as Tri-State members are sometimes called, on about May 1, 2022.
What it cost Delta-Montrose to exit its all-requirements contract with Tri-State, however, will remain a secret until then. The figure was redacted in the settlement agreement filed with the Colorado Public Utilities Commission last Friday. The figure can become public after the split occurs next year, according to Virginia Harman, the chief operating officer for Delta-Montrose.
The split reflects a fundamental disagreement over the future of electrical generation and the pace of change that has festered for about 15 years. Those different visions became apparent in about 2005 as Tri-State managers sought to build a major new coal plant near Holcomb, Kan., in partnership with Sunflower Electric.
The utilities were shocked when Kansas denied a permit for the plant, based on the time at the still-novel grounds of its carbon dioxide pollution. When Tri-State finally got its permit for the coal plant in 2017, it had spent nearly $100 million with nothing to show.
Meanwhile, the electrical world had turned upside down. Wind had become the cheap energy, not coal, and it was being integrated into power supplies effectively. Even solar was in cost competitive in places.
Along among the then 44 member cooperatives, only Kit Carson and Delta-Montrose had refused the 10-year contact extensions to 2050 that Tri-State had wanted to satisfy money markets for long-term loans. Their contracts remained at 2040. The contracts of other member co-ops—including those serving Durango, Telluride, Crested Butte and Winter Park—go until 2050.
Kit Carson was the first to get out. In 2016, assisted by Guzman, it paid the $37 million exit fee required by Tri-State and set out, also with the assistance of Guzman, to develop solar farms in dispersed parts of its service territory in northern New Mexico. It aims to have 100% solar capability by the end of 2022.
In November 2016, Delta-Montrose informed Tri-State it wanted to buy out its contract, too. It asked for exit figure. The negotiations did not yield an acceptable number to both, and in December Delta-Montrose asked the Colorado Public Utilities Commission to arbitrate. The PUC agreed over protests by Tri-State that the PUC had no authority. A week was set aside in June, later delayed to begin Aug. 12, for the case.
No figures have ever been publicly revealed by either Tri-State or Delta-Montrose, although a court document filed early in July reported that Tri-State’s price had been reduced 40%.
Meanwhile, Tri-State got approval from its members to seek regulation for rate making by the Federal Energy Regulatory Commission. That could possibly have moved the jurisdiction over the Delta-Montrose exit to Washington. It would not affect review by Colorado, New Mexico or other states in which Tri-State operators of resource planning.
Delta-Montrose and Guzman have not completed plans for how the co-operative may develop its local energy resources. The co-op had reached Tri-State’s 5% allowance for local generation by harnessing of fast-moving water in an irrigation conveyance called the South Canal.
For Tri-State’s new chief executive, Duane Highley, the task at hand may be how to discourage more exits by other member co-op. Tri-State has argued that it moved slowly but has now is in a position to realize much lower prices for renewable energy generation. It is moving forward on both wind and solar projects in eastern Colorado.
Delta-Montrose, with 33,000 members, is among the larger co-ops in Tri-State. But even larger one, who together represent nearly half the electrical load supplied by Tri-STate have all dissatisfaction with Tri-State’s slow movement away from coal-fired generation.
In Southwestern Colorado, Durango-based La Plata Electric recently asked for an exit figure, too.
Along the Front Range of Colorado, United Power, by far the largest-coop, with 91,000 members and booming demand from oil and gas operators north of Denver, has wanted more renewable energy and greater ability to develop its own resources. Poudre Valley has adopted a 100% clean energy goal.
Delta-Montrose, with 33,000 members, is easily among the 10 largest co-ops.
The settlement agreement filed with the PUC says DMEA “shall not assist any other Tri-State member in pursuing withdrawal from Tri-State. The agreement also says that DMEA and Tri-State agree to not disparage each other.
More than 30% of Tri-State’s generation comes from renewables, mostly from hydropower. This total is little different from that of Xcel Energy. But Xcel in 2017 announced plans to close two of its aging coal plants, leaving it at 55 percent renewable generation in Colorado.
Tri-State, too, is closing coal plants. A coal plant at Nucla, in southwestern Colorado, west of Telluride, will close early next year, several years earlier than previously scheduled. However, it’s small by coal plant standards, with a nameplate capacity of 114 megawatts, and operates only part time.
A larger reduction is scheduled to occur by 2025 when one of three coal units at Craig, in northwestern Colorado, will be retired. But a Tri-State official, speaking at a beneficial electrification conference in Denver during June, suggested that a second coal plant could also be retired early. That second coal unit is co-owned with other utilities in Colorado and other states, all of whom have indicated plans to hasten their retreats from coal.
Tri-State last week also announced a partnership with former Colorado Gov. Bill Ritter’s Center for the New Energy Economy to facilitate a stakeholder process intended to help define what Tri-State calls a Responsible Energy Plan. See: Tri-State Announces Responsible Energy Plan 20190717
A long-standing legal dispute in the Colorado energy industry came to an end Monday when Delta-Montrose Electric Association announced it would withdraw from its membership in Tri-State Generation & Transmission, effective May 1, 2020.
The early withdrawal is part of a definitive settlement agreement between the two energy companies.
Delta-Montrose Electric Association, a rural utility provider on the Western Slope, said it underwent the effort to secure cheaper rates for customers and purchase more renewable energy.