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IEP Presentation September 23, 2010 A Walk Around the West Starting With Colorado. Nicholas G. Muller, Executive Director Colorado Independent Energy Association.
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IEP PresentationSeptember 23, 2010A Walk Around the West Starting With Colorado Nicholas G. Muller, Executive Director Colorado Independent Energy Association
CIEA was formed in 1991 to represent non-utility power producers of all types; CIEA’s 40 members include most IPPs who have PPAs in Colorado.
IPPs • Operating in CO for 20+ years • Contribute to the dependability of the regional electric system • Provide approximately 48% of Xcel’s electricity in CO during peak periods • Cost-effective power delivery • Competitive bidding throughout US • Innovative and creative energy solutions • Lead the way with projects of all types • Gas-fired generation, wind, solar, biomass and small hydro • Under the current bidding rules at the CO PUC, an IPP’s bid includes interconnection costs with the utility and the cost of new transmission needed for its project.
Importance of competition • Generation of all types is cheaper at wholesale level • Holds down costs as new transmission is developed for new renewable generation
CIEA commitments • Fuel-neutral • Supports all types of renewable and non-renewable energy projects, both large and small • Advocates transmission policies that are non-partisan and non-discriminatory • CIEA attends regular meetings with Xcel and the other utilities here and participates in the generation and transmission dockets at the Colorado PUC.
New Colorado energy legislation • SB 100 encourages investment in new transmission for renewables – being modified • HB 1281 and HB 1001 increase the Renewable Portfolio Standard (RPS) • Requires set percentage of generation to come from renewables including wind and solar • The focus should be on the need for the ratepayers to have cost-effective, environmentally-sensitive generation and transmission.
The Colorado PUC can help • optimize competitive markets • continue to support the PUC bidding rules for new generation • support true coordination of transmission planning • Not just by Xcel and Black Hills, but also by all others who own transmission in Colorado • HB 1365 is an effort to substitute gas for coal plants, since gas plants are essential for balancing intermittent resources such as wind and solar.
New gas-fired generation • Essential going forward because it can be ramped up and down, where this is difficult with coal plants • Less than half the carbon output of coal. • Recent shale gas discoveries • 97-year supply of natural gas • Prices expected to stay in the $6 - $8/MMBTU range for the foreseeable future
Here in Colorado we have good PUC bidding rules for new generation over 30MW, and a very competitive power market at the wholesale level.