Community and Small-Scale Grid Innovation - Smart Grid (R) Evolution: Electric Power Struggles - page 179

Boulder's website includes a detailed Climate Action Home Page, with the assertive
headline “Let's show the world how it's done” (City of Boulder 2014b ) . Boulder's first
substantive program designed to reduce greenhouse gas emissions was the 2002 Climate
Action Plan (CAP). In 2006 the city added the CAP tax, describing it as “the nation's
first tax exclusively designated for climate change mitigation.” In 2012, voters approved
a renewal of the CAP tax. The CAP now includes an outline of Boulder's work plan
leading to the eventual operation of its own electric system. Boulder was awarded a
2013 Climate Leadership Award, with “its goals, implementation strategy, and stakeholder
engagement” recommended as “a model” for other U.S. locations (U.S. Environmental
Protection Agency 2014 ) . Municipalization of the city's electricity forms a central
component of the award-winning strategy, however, and its feasibility remains uncertain.
The city has approved ordinances which allocated $214 million to negotiate purchase
of Xcel's electricity system assets, including the substations, distribution lines, and other
infrastructure (City of Boulder 2014a ). This is a legally required step before the city can
file for condemnation of the electricity system which serves Boulder citizens. However,
some of the property is outside of Boulder city limits, and may serve county residents.
The Colorado PUC has argued that they , not the City of Boulder, have the right to
approve the condemnation of the electricity system. The City of Boulder disagrees and the
matter is under review (City of Boulder 2014a ). Condemnation cannot proceed until the
Federal Energy Regulatory Commission (FERC) determines the value of the assets being
condemned; a determination that is likely to take several years.
At the time of writing, the city still has initial implementation of its new municipal
utility slotted for 2016. Boulder residents have demonstrated the motivation to configure
their own community energy system, with smart grid as a key component. At this point,
we cannot predict whether Boulder will be allowed to or afford to municipalize (or how
successful their effort will be). Still, when attempting to create a municipal electric grid
that boasts “Clean Local Energy,” it probably helps to be listed as the most educated city in
the United States (Kurtzleben 2011 ; City of Boulder 2014c ).
The ongoing battle for the Boulder electricity system shows how difficult it is for any
community to gain control of its electricity system. The process is dependent on state laws
allowing municipalization, the implementation of that policy by state agencies such as the
PUC, approval by federal agencies such as FERC, and the ability of the municipality to
buy out the existing franchisee. The relative economic prosperity, educational level, and
political acumen of Boulder's residents have enabled the city to fund the necessary studies,
understand the results of these studies, and begin to navigate the complicated politics at
state, regional, and federal levels. Those characteristics also make Boulder a customer that