HomeMy WebLinkAbout20131898.tiffSTATE OF COLORADO
OFFICE OF THE GOVERNOR
136 State Capitol
Denver, Colorado 80203
Phone (303) 866-2471
Fax (303) 866-2003
June 28, 2013
Board of County Commissioners of Weld County
1150 O Street
PO Box 758
Greeley, CO 80632
Greetings:
RECEIVED
JUL 0 2 2013
WELD COUNTY
COMMISSION..
John W. Hickenlooper
Governor
Thank you for contacting us with your views on Senate Bill 13-252. After careful consideration,
I decided to sign this bill into law. Let me explain the reasons.
The wind energy industry employs more than 4,000 Coloradans, primarily in rural areas. Income
from wind farms is also providing a much needed financial buffer for agricultural communities
suffering through the current drought. SB 13-252 expands the definition of renewable energy to
include gas produced in waste -to -energy facilities as well as coal mine methane. This expansion
will create significant benefits for Colorado. Each waste -to -energy facility creates millions in
economic activity, and most of the proposed facilities have been targeted toward rural areas. The
inclusion of coal mine methane, in addition to creating jobs, will allow Colorado to more safely
develop coal gas production.
Opponents of the legislation voiced concerns regarding a potential increase in electricity rates.
We took these concerns very seriously. We also wanted to base our decision on facts and not
rhetoric. Rural electric associations currently operate with a 1 percent rate cap on a 10 percent
renewable energy standard. SB13-252 provides for a 2 percent rate capon a 20 percent
renewable energy standard. This provision is specifically designed to prevent significant costs to
ratepayers. The rate impact is equal to roughly $2 per month for an average household and $10
per month for the average Colorado farmer. Also, this cap does not compound. If it did
compound, I would have vetoed the bill. No utility is required to incorporate renewable energy
that causes it to exceed the 2 percent cost cap.
Utilities with even higher renewable energy standards have not shown cost increases higher than
those without, and in some cases, the renewable energy purchases are mitigating cost increases.
In fact, many utilities across the country have saved money by incorporating more renewable
sources into their generation portfolios. Wind, for example, can cost as little as 2.75 cents per
kilowatt hour, which is lower than the average cost of new natural gas generation.
Opponents of the bill also argued that reaching a goal of 20 percent renewable energy by 2020 is
not achievable. During the final days of the legislative session lobbyists for the REAs agreed to a
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2013-1898
timetable of 20 percent by 2022, but this attempt at compromise did not hold up. We actively
supported that effort and, while it was disappointing that we could not find agreement that
worked for all the stakeholders (including agricultural interests), our administration is committed
to resuming these discussions. We have directed the Colorado Energy Office to form an advisory
committee to evaluate feasibility of the timetable as well as monitor potential rate impacts.
After several meetings with opponents and proponents of the bill, we came to the view that
changes to the law, if necessary, can be addressed in the next legislative session.
Again, thank you for writing to express your opinion on this important piece of legislation.
John W. Hickenlooper
Governor
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