The work to potentially create a municipal power authority begins for Boulder officials, armed with razor-thin approval Tuesday of two ballot issues.
The measures allow the city to sever ties with Xcel Energy so it can provide its own clean electricity and can increase the existing utility occupation tax by $1.9 million annually — about $1.20 more per month for a residential customer — for planning and legal costs.
Boulder officials said Wednesday that they will request documents from Xcel to determine the scope of the power system and equipment in an effort to develop a good faith offer.
City consultants estimated the cost of buying Xcel’s lines and paying for stranded costs at less than $200 million. Xcel’s estimates range from more than $500 million to $1 billion.
The cost information might have to come through the condemnation process in district court, said City Attorney Tom Carr.
“This isn’t going to be a very easy process,” Carr said.
Xcel agreed in a statement on the election results.
“We are disappointed in the outcome, but this is just the first step in a lengthy process,” the statement read.
“We’re not for sale. We don’t want to sell our system,” added Xcel spokeswoman Michelle Aguayo. “We’ll go through the next steps, but this is new ground for all of us, and we’re feeling our way. I can’t tell you what is next, or how this plays out.”
The community is divided over whether municipalization is the right way ahead, judging by the narrow win, said David Miller, chairman of Boulder Smart Energy Coalition. The group of community and business leaders backs clean energy but is concerned about the feasibility of the city operating a utility.
“It’s up to the city to start the condemnation process and up to us to keep an eye on what they are doing and keeping their promises,” Miller said.
City Manager Jan Brautigam said as information is gathered, the City Council will have opportunities “at any point until we issue bonds to say we won’t move forward.”
Councilman Macon Cowles said the city is not divided about the goals of reducing the carbon footprint on electricity and to add more renewables to the system.
