Boulder, Colo. voters approve franchise agreement with Xcel Energy

Boulder, Colorado, voters approved a new 20-year franchise agreement with Xcel Energy on Tuesday, solidifying a partnership aimed at helping the city achieve 100 percent renewable electricity by 2030.

Voters’ endorsement of the agreement, according to unofficial results from the Boulder County Clerk’s Office, means that Boulder city officials will not pursue electric utility municipalization efforts at this time.

“If the result holds as expected, Boulder will pause its efforts to create a local electric utility and Boulder residents and businesses will remain Xcel customers in a new partnership,” said Emily Sandoval, a media relations official with the city of Boulder.

The franchise agreement puts Boulder on a pathway to advance its clean energy initiatives and sets forth six specific goals: to decarbonize, decentralize, democratize, add reliability, ensure competitive rates, and to add renewables. The partnership will help the city and Xcel work together to plan the future of the Boulder grid and to achieve 100 percent renewable energy by 2030.

“We’re pleased voters approved the franchise agreement with the City of Boulder,” said Michelle Aguayo, media relations representative with Xcel Energy. “We are stronger working together to advance our shared goals to reduce carbon emissions and believe we can serve Boulder and meet its energy goals.”

The city had been researching a municipalized electric utility and had received numerous responses to a Request for Proposals (RFP) it had released for one or more companies to provide electricity and renewables. The city council also was working on a parallel plan to create a new franchise agreement with Xcel. The city and Xcel Energy have operated without a franchise agreement since 2011.

In the end, voters passed the franchise agreement during the Nov. 3 election by approximately 53 percent to 47 percent.

“Our efforts to chart a new energy future for Boulder have always been guided by community input and participation,” said Boulder Mayor Sam Weaver. “We appreciate the direction from our voters to enter into a new partnership with Xcel Energy.”

Voters also passed a measure that will provide around $2 million in funds to the partnership. Those funds had originally been used to support the city-run municipal utility. “These funds will support innovative projects and pilot programs aimed at addressing the city’s climate and energy goals,” Sandoval said.

The Boulder City Council voted to place the franchise agreement on the ballot in late summer after months of negotiations between the city and utility and considerable community input.

“Climate and energy issues are urgent and difficult to face divided, and I hope that we can come together as a community to face challenges and seize opportunities,” Weaver said.

The 20-year franchise agreement would give the city the chance to end the agreement early under certain circumstances. City officials are allowed to opt-out of the franchise agreement in 2022, 2024 and 2028 if Xcel does not meet its emission targets. The city can also opt-out in 2026, 2031 and 2036 for any reason. An opt-out would require a six-person vote of the city council or a majority vote by Boulder residents.

The franchise agreement must be approved by state regulators, and the city expects the Colorado Public Utilities Commission will consider the matter early next year.