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Colorado PUC Reaffirms Electric Competition
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today released the following statement on the Colorado Public Utilities Commission's decision to reject a portion of Xcel Energy's proposed long range resource plan that would have deterred wholesale electricity competition in the state.
"We applaud the Colorado PUC's action to reaffirm wholesale competition in Colorado," EPSA said. "This is a time when Colorado needs more options available to it, rather than a few that were self-selected by the utility at the expense of the customer. The competitive procurement process allows all suppliers to compete on the same footing and ultimately results in the most effective and efficient way to meet consumers' needs and attract more renewable energy, energy efficiency and demand response programs."
Xcel's proposal would have prevented competitive power suppliers from vying to meet the state's energy needs by imposing a 58 percent mandate on the amount of generation that must be owned by Xcel, exempt of any competitive bidding process. The PUC rejected this proposal and said that any self-built Xcel generation instead must compete with resources offered by competitive suppliers, reaffirming the benefits of a transparent and robust competitive procurement process for Colorado. The PUC decision mandates that future resource needs be met through a competitive procurement process using an independent evaluator.
The commission further said bidding should be open to diverse proposals from all credit-worthy suppliers and that debt equivalency cannot be used by the utility in reviewing bids. Debt equivalency is the practice of treating power purchase agreements with suppliers immediately as debt while not similarly recognizing a utility's self-built generation as debt until the unit is completed: this time lag tilts the playing field unfairly in favor of utility-built generation. The PUC's written decision will be released in September.
EPSA commended the Colorado Independent Energy Association (CIEA) for its strong leadership in rebutting Xcel's proposals and preserving a strong competitive framework in the state. In 2006, competitive suppliers provided more than half of Xcel's power for Colorado consumers.
"EPSA believes competitive wholesale markets are proving the best path to achieving environmental goals, more efficient use of existing resources, additional new supply and the overall best deal for consumers, given the realities of increased costs and higher demand. We are confident the competitive power sector will play an even greater role in the future," said EPSA.
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.