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Update–Windsource Transparent Recalculation Postponed

Submitted by Leslie Glustrom on December 28, 2010 – 12:50am

Many supporters of Clean Energy Action are subscribers to Xcel’s “Windsource” program. In recent years, the “Windsource” program has been modified to include not just  wind but also solar and other clean energy sources that are used to meet Xcel’s Renewable Energy Portfolio standard under Colorado law. Consequently, the quotations around the “Windsource” name reflect that “Windsource” can also be providing solar or other non-wind clean energy sources.

The cost of Windsource is approximately $2 per 100 kwh–or about 2 cents/kwh. This is close to a 20% bill impact (on a 10 cent/kwh) charge while Xcel is meeting the Renewable Portfolio Standard with less than a 2% bill impact, as called for in Colorado law. The reason why Windsource has a 20% bill impact while meeting the Renewable Portfolio Standard has only a 2% rate impact are unclear.

In Docket 09A-772E I worked hard to understand how the Windsource premium was calculated. Despite numerous questions (called “Discovery Requests”) to Xcel and many days of hearing and cross-examination, the basis for the $2 per 100 kwh charge was still completely unclear.

Both the Administrative Law Judge and the full Public Utility Commission agreed that the “Windsource” calculation was not clear and in two separate decisions Xcel was directed to recalculate the “Windsource” premium as part of its 2011 Renewable Energy Standard filing.

After the issuance of these decisions calling for Xcel to recalculate the “Windsource” premium, Xcel asked the Commission to excuse it from filing a 2011 Renewable Energy Standard plan and the Commission granted Xcel’s request. As a result, the recalculation of the “Windsource” premium in a transparent fashion has again been postponed until at least Xcel’s 2012 Renewable Energy Standard filing expected in May 2011 with testimony and hearings expected to last through much of 2011.

Xcel was directed to make a “compliance” filing of the Windsource calculation, which it did on December 14, 2010 and that filing is attached. Once again, the numbers in Attachment B of this compliance filing are completely unclear–particularly Columns 2 and 3 which are the incremental costs and the incremental GWh (Gigawatt hours) for the Windsource program–but which do not have any supporting spreadsheets or calculations.

Xcel’s compliance filing from December 14, 2010 shows (on Attachment B) that the Windsource premium should be about $1.86 per 100 kwh (instead of the $2.12 per 100 kwh that is being charged) but since the difference between the two rates is less than 20%, Xcel does not have to make a change to its “Windsource” premium.

The key decisions in the 09A-772E docket are attached and the key “Windsource” provisions are summarized below. All documents in the 09A-772E docket can be found by searching the PUC website for the 09A-772E docket number and specifying that it is for the electric industry.

Recommended Decision R10-0586 (June 11, 2010)–See Paragraph 135 on page 32 for the Adminstrative Law Judge’s decision that Xcel should recalculate the Windsource premium.

Decision C10-1033 (September 23, 2010)–See Paragraph 12 on page 5 and Paragraph 43 on page 14 for the full Commission’s decision requiring Xcel to “clearly explain how the Windsource premium is calculated”  in the 2011 Renewable Energy Standard filing.

Decision C10-1221 (November 10, 2010)–See Paragraphs 8-11 on pages 3-4 allowing Xcel to not submit a 2011 Renewable Energy Standard filing and allowing Xcel to recalculate the “Windsource” premium in a “compliance filing.” Compliance filings are not typically subject to questioning or cross-examination.

At this time it appears that it will likely be late 2011 before the Commission will once again rule on whether the “Windsource” premium has been calculated in a transparent and proper fashion.

[The CEA website is having problems with file attachments. Please contact Clean Energy Action or Leslie Glustrom if you would like the documents discussed in this blog. Thank you.]

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