A 20-year agreement between Xcel Energy and the city of Boulder will be allowed to expire at the end of the year, the Boulder City Council decided late Tuesday night.
The council voted 6-2 to abandon the long-term franchise agreement with the utility.
“The world has changed; the energy-supply world has changed dramatically,” said Councilman Matt Appelbaum. “I honestly can’t imagine signing a multi-decade agreement.”
Voters this fall will have to decide whether to impose a tax on the utility — to make up for the $4.1 million in franchise fees — while the city studies other options for its energy future.
The current franchise agreement allows Xcel to use Boulder’s streets and rights of way in exchange for a fee that’s collected from customers.
In place of a franchise agreement, the council indicated that voters should instead be asked to impose an “occupation tax” on Xcel for five years.
The council’s decision comes after City Manager Jane Brautigam’s last-minute recommendation not to pursue a renewed franchise agreement.
On Tuesday, Brautigam told the council that while the core agreement would “serve the city well” if sent to voters and approved, several so-called side agreements “don’t meet all of our needs.”
The side agreements lay out commitments between the city and Xcel, including how the two parties would collaborate on initiatives that encourage energy efficiency.
“I’d like to see greener energy, cheaper energy, and I’d like to boost the economy by creating green jobs,” said Councilman Macon Cowles. “I think the best thing to do is to put the Xcel franchise to the side, and let’s explore what the avenues are for a greener energy future.”
