The city of Boulder produces enough hydroelectric power from eight plants along North Boulder Creek to provide electricity to about 8,000 homes.
Now the city will receive credit for some of that energy to apply toward its goal of meeting Kyoto Protocol standards for reductions in greenhouse gases.
Boulder reached a tentative settlement with Xcel Energy on Friday ending a legal dispute over who can claim credit for the hydro-generated electricity, which Boulder sells to Xcel. Boulder and Xcel agreed to split the credit evenly.
The plants are expected to generate about 450,000 megawatt hours of electricity through 2017, the remaining term of Boulder’s contract with Xcel. Boulder will retain credits for 225,000 megawatt hours.
The Colorado Public Utilities Commission had ruled that Xcel could receive credit for all of the hydroelectricity. Xcel is required by state law to increase its generation of renewable energy, and it has used renewable-energy credits from the Boulder electricity toward that goal.
Xcel spokesman Mark Stutz said Friday that the utility is meeting its renewable-energy requirements ahead of schedule without the Boulder electricity credits, mainly through wind power.
“We’re pleased that we have reached a tentative agreement with the city of Boulder,” he said.
Boulder filed a lawsuit in 2006 claiming Xcel shouldn’t get all of the credits.
“We generate the power, and renewable energy is a high priority for the city,” City Manager Frank Bruno said Friday. “We think we should be getting some of that credit.”
Boulder is striving to meet the Kyoto greenhouse-gas reduction standards, which means it must reduce its current carbon production levels by roughly 19 percent by 2012. If it needs to, the city can apply the hydroelectric credits to help accomplish that goal. If not, it can sell the credits to another organization trying to meet carbon-reduction standards.
“Our hope is that perhaps we’ll meet our goals without using the credits,” said Boulder Mayor Mark Ruzzin. “It’s like a bank account; money we have sitting in the bank we can perhaps use in the future.”
In November, Boulder voters approved a “carbon tax” to help fund the city’s plan to reduce greenhouse-gas emissions. Money generated from the tax, which will amount to roughly $2 per month for an average house and up to $35 a month for businesses, will pay for projects including rebates for businesses that buy energy-efficient equipment.
Staff writer Greg Griffin can be reached at 303-954-1241 or ggriffin@denverpost.com.
