Under Senate Bill 252, rural electric cooperatives will have to get 20 percent of their power from renewable energy sources, like this wind farm outside Hatch, N.M. Solar is another popular source of renewable power. La Plata Electric Association plans to break ground on a new solar farm near Ignacio this summer./Photo by Steve Eginoire
Up for renewal
Governor still undecided on renewable energy bill
by Tracy Chamberlin
Over the past couple of weeks, Gov. John Hickenlooper has been signing bills into law by the bundle. One bill, however, is missing from the stack.
Over the past couple of weeks, Gov. John Hickenlooper has been signing bills into law by the bundle. One bill, however, is missing from the stack.
It’s SB 252, which would require Tri-State Generation and Transmission Association, the energy provider for La Plata Electric Association, to get 20 percent of its power from renewable sources by 2020. This doubles the 10 percent standard required under current law, passed in 2007.
The bill has been controversial since its introduction in April, and is still being debated even after the legislative session ended May 8. Proponents are heralding it as a victory, while opponents are asking the governor to veto it.
Among those opposing the edict are Tri-State and the Colorado Rural Electric Association, of which LPEA is a member. LPEA’s Board has not taken a stand.
CREA Director Kent Singer penned a piece in the organization’s monthly publication in opposition to the bill, and CREA representatives, along with those from Tri-State, met with the governor Tuesday.
As of press time, Hickenlooper hasn’t made any decision to sign or veto the bill.
He’s “still reviewing the legislation, and talking to people on all sides,” according to Eric Brown, director of communications for the governor. If he decides not to take any action before June 7, the bill will become law without his signature.
As the clock runs out on the governor, it starts ticking for Tri-State and the rural electric cooperatives it supplies in the state.
La Plata Electric CEO Greg Munro said he’s not certain what to expect from the new legislation, calling it “a really complicated” bill.
“There’s a lot of work to do to figure this out,” he added. “… which we can.”
One of the biggest obstacles to making a 20-percent standard is the capacity of the current system of transmission lines.
“The need for new transmission is real,” said Lee Boughey, Communications and Public Affairs senior manager for Tri-State.
The permitting, right-of-way acquisitions and construction processes, along with other requirements, generally make building transmission infrastructure a 10-year endeavor, according to Boughey.
And they only have 6½.
Munro also sited concern over Tri-State’s current infrastructure’s ability to handle the additional requirements, adding that whatever the local co-op can bring to the table will help.
LPEA has been working for the past decade to promote renewable energy in the area, Munro said, specifically mentioning incentives the co-op offers for solar.
The co-op can get 5 percent of its power from local renewables, and it is currently sitting at 4.5 percent through a variety of sources including solar, wind and biomass.
This summer, LPEA plans to break ground on a solar farm near Ignacio, and could potentially start selling shares in the farm by the fall.
Another obstacle for implementation of SB 252 is the money. Numbers used to describe how much it could cost end with the word “billion.”
That doesn’t mean customer’s rates are suddenly going to skyrocket. Imbedded in the bill is language capping the rate increase at 2 percent each year, but not everyone’s in agreement on what that cap really means.
Boughey said it’s unclear how the cap would be implemented. Munro said it’s “going to take some lawyers.”
The current law, passed in 2007, set a 10-percent standard from renewables by 2020. This new bill doubles that requirement to 20 percent with about half the time in which to do it.
It also doesn’t apply to urban providers, only affecting 18 of the rural electric co-ops that Tri-State serves in Colorado.
Tri-State, CREA, lawmakers and others sat down at the table to develop the 2007 legislation, HB 1281.
“We’ve been working in good faith to meet the 10 percent standard,” Boughey said, adding that Tri-State is on target to meet that goal
He touted Tri-State’s efforts to expand its renewable energy sources, including the recent expansion of the Colorado Highlands Wind project in northeastern Colorado, along the Nebraska border. Construction is slated for this summer to turn the 67-megawatt wind farm into a 91-megawatt facility.
“There’s a significant difference in how the legislature approached HB 1281 and how (they) approached HB 252,” Boughey said.
The 2013 bill was debated for several hours during every phase of the legislative process, passing the first senate tally by a single vote.
Co-sponsored by Speaker of the House Mark Ferrandino (D-Denver) and Senate President John Morse (D-Colorado Springs), it ultimately passed both houses.
The state Senate voted 18-17, with Sen. Ellen Roberts (R-Durango) voting against it, and the state House 37-27, with Rep. Mike McLachlan (D-Durango) voting in support.