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Xcel’s Ballooning SmartGrid Costs Get Partly Deflated at the PUC

Submitted by amyguinan

When implementation of Boulder’s SmartGrid City began in 2008, it was one of the first and most comprehensive experiments in the nation with smart-grid technology, which uses computers to manage electricity distribution and allows for communication between utilites and consumers.  At the time, the total cost for SmartGrid implementation was estimated at $100 million and Xcel’s share at $15.3 million. The remainder would be paid by companies partnering in the pilot.

By last year, however, Xcel’s share had ballooned to $44.5 million.

In an unexpected move in January, The Colorado’s Public Utilities Commission ruled Xcel could include only two-thirds of the $44.5 million cost of the smart-grid test in its rate base. The remaining $16.6 million will be off limits until Xcel can show the Boulder-based project’s benefits to Colorado ratepayers, the commission said.

“I’m struggling with how quickly those costs have escalated,” said PUC commissioner James Tarpey. Tarpey noted in testimony that an Xcel official had said that if there had been a cap on expenses, the utility would not have conducted the pilot. The message, Tarpey said, was: “Yeah, we really want to do it, but not with our money.”

For more information, see Mark Jaffe’s Denver Post article, here: http://www.denverpost.com/search/ci_17021599

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