The Colorado Public Utilities Commission today cut the amount that Xcel Energy can charge customers to finance its SmartGridCity project in Boulder by a third to $27.9 million.
The cut reduces customer rates by $5 million a year, according to Ron Binz, the utility commission chairman.
Since it was begun in 2008 the price of SmartGridCity — a high-tech system to better manage electricity distribution and consumption — has tripled to $44.5 million.
Xcel’s project was one of the first comprehensive smart grid pilots in the country.
“I’m struggling with how quickly those costs have escalated,” said Commissioner James Tarpey.
Under the ruling, the $16.6 million difference between what Xcel sought and the PUC awarded will be set aside pending Xcel’s demonstration that the project is bringing benefits to Colorado ratepayers.
“I’m not suggesting another dime could not be spent on SmartGridCity,” Binz said. “We just want to know what is going on.”
Xcel is reviewing the commission decision, said Karen Hyde, vice president for rates and regulation at the company’s subsidiary Public Service Company of Colorado.
Mark Jaffe: 303-954-1912 or MJaffe@denverpost.com
