Fort Collins - Electric Energy Supply Policy

May 25, 2010

Summary

On March 25, 2003, the Fort Collins City Council approved the Electric Energy Supply Policy. Among other objectives, the policy directs the municipal utility to increase the amount of electricity generated from renewable energy. The policy specifies that a minimum of 2% of electricity be generated by renewable energy by 2004, increasing to 15% by 2017. In November of 2003, the City Council approved an electric rate increase of 2% to fund the energy policy objectives, with 1% directed for demand side management (DSM) programs and 1% for renewable energy. Renewable energy comprised 2.3% of purchased power for 2004, and 6.3% for 2008. Platte River Power Authority (PRPA) supplies all renewable energy to Fort Collins under a single wholesale tariff structure. Qualified renewable energy sources are limited to:

• Solar-energy systems (photovoltaic or solar thermal electric)
• Wind turbines
• Geothermal systems
• Biomass generation systems
• Hydroelectric units with a nameplate rating of 10 megawatts (MW) or less

Renewable energy delivered to municipalities under this tariff shall be comprised of either: (i) energy generated from renewable energy sources, inclusive of the environmental attributes associated with those sources, or (ii) Platte River system energy combined with renewable energy certificates (RECs) from qualified sources. The purpose of the policy is to provide strategic objectives regarding system reliability, rates and the environment to guide the electric utility into the future as it continues to provide the citizens of Fort Collins with reliable and competitively priced electric service, in partnership with PRPA. Policy objectives include the following:

• Reduce per capita electric consumption 10% by 2012 (from 2002 baseline);
• Reduce per capita peak day electric demand 15% by 2012 (from 2002 baseline);
• Work with PRPA to increase the city's percentage of renewable energy to 2% by the end of 2004 and 15% by the end of 2017;
• Continue to provide high standards of reliability
• Continue to provide competitive electric rate