But the utility today will continue with its plan seeking a $180.2 million hike in electric rates. The Colorado Public Utilities Commission will begin reviewing the proposal today.
Acknowledging “customer confusion” over the proposal that would have levied a fee for residents and small businesses who install solar panels, the utility yesterday said that it would withdraw that part of its request before the PUC.
“We made this proposal in good faith as a reasonable approach to provide for a fair allocation of costs and benefits between customers with solar panels and customers without solar panels,” said Karen Hyde, vice president of rates and regulatory affairs for Xcel in Colorado. “However, we appreciate that the proposed rate mechanism has caused significant customer confusion.”
“Confusion” was actually classified by opponents as “outrage” over the proposal, with solar energy advocates and businesses expressing concern over losing customers as a result. Xcel Energy had estimated the annual charge to be about $23. But solar energy advocates said their calculations were as high as $150-$200 for more sophisticated solar homes.
Xcel said the bill is necessary to cover a share of the costs for the distribution and transmission system used to serve the homes and businesses. The utility is also convening a workgroup to open a dialogue over the issue.
“We believe there should be a discussion about the issue,” said Hyde. “Given the confusion that our proposal has caused, we believe that our pending rate case is not the best forum in which to have that dialogue.”
Meanwhile, Gov. Bill Ritter — an outspoken proponent of the New Energy Economy — praised Xcel for withdrawing the proposal, saying it would have been a step backward for the state’s push for sustainability and green jobs growth. He said the proposal would have “stifled job growth, inhibited future economic development and penalized those voluntarily investing in clean energy.”
“We appreciate Xcel’s concerns about the cost of distributing power and maintaining the electric grid, and we will work with Xcel to study these issues moving forward,” said the governor. “The New Energy Economy has become a key bright spot in the state’s overall economy. We must do all we can to encourage growth as we lead Colorado toward a new energy future.”
What will be reviewed by the PUC today, however, is a proposal to raise electric rates by an average of $4.98 per month for the typical residential customer, and by $5.40 per month for the typical small-business customer.
If approved, the rates would go into effect around January 2010.
The utility says the increase is necessary to “address recovery for continuing investment in generation and utility operations.”
But Xcel filed for another electric rate increase of $112 million in November 2008, which took effect last month. The utility said both increases are necessary to recover costs for $1.7 billion of investment in its generation, transmission and distribution systems.
Having just posted earnings of over $117 million — an 11-percent increase in second-quarter profits — Sen. Morgan Carroll, D-Aurora, is asking citizens to contact the PUC and demand, “No more rate hikes.”
“Tell them to reject this money grab,” she said.
Source: http://www.thedenverdailynews.com/article.php?aID=5203
