(Image courtesy I-News Network via Jim Trotter)
Boulder residents will make a decision Tuesday, Nov. 5 on two opposing energy measures, the Xcel Energy-sponsored Issue 310 and the city’s proposed Question 2E.
Question 2E would allow the city to gain $214 million to create an electrical utility that uses more green energy and renewable resources. Issue 310 would require voters to approve a total dollar amount of debt the city plans to take on before it can use any funds on acquiring Xcel Energy’s distribution system in Boulder.
If the Boulder electorate decides to pass both measures, the one with the more votes will stand.
“If 310 is approved by the voters, it will present a significant barrier for municipals,” said Paul Komor, Energy Education director at the Renewable and Sustainable Energy Institute located at CU.
The measure, placed on the ballot via a citizens’ initiative earlier this year, would make it more difficult for the city to shift toward alternative sources of energy because it aggressively restricts debt, Komor said.
Some would like the city council to slow down on their path to municipalization, preferring to first be presented with the total estimate of debt it would incur to form a city-regulated energy utility.
“Implementing isn’t always necessarily practical,” said senior math major Nicklaus Koeppen, 21. “I’d rather give them time to develop, become more mainstream and prove that they can, the same way any company has to prove themselves in the industry.”
Xcel has contributed more than $300,000 to committees supporting 310, according to the Boulder County Clerk and Recorder’s Office. Junior environmental science and sociology major Kira Womble, 21, believes the energy giant is only trying to protect its stake in the Boulder market by trying to get 310 passed.
“Boulder is one of these cities where we set a precedent, and other people feel like they can follow it, like they can do it too,” Womble said. “If Boulder can municipalize and move toward renewable energies, I have a lot of hope for the future.”
According to bouldercolorado.gov, Ballot Question 310 reads:
“Shall Article XIII of the Charter of the City of Boulder be amended by the addition of a new section 188 “Limitations on Debt,” that provides (a) before the electric utility enterprise issues any debt, voters must approve the amount of the utility’s debt limit and the total cost of debt repayment that the utility will incur, both to be stated in dollars in any ballot question; and (b) the utility’s service area shall not extend to areas outside the city limits unless registered electors in those areas are permitted to vote in these debt limit and repayment cost elections; and (c) such elections shall be held on the dates of general municipal elections; and (d) any brokerage fees for managing any sale of bonds or other indebtedness shall be limited to one percent of proceeds?”
Ballot Question 2E reads:
“Shall the Boulder Home Rule Charter be amended pursuant to Ordinance No. 7920, to limit the portion of bonds or other obligations issued for the purpose of purchasing or otherwise acquiring the existing assets of the electric system and for paying stranded costs in one complete payment to an amount not-to-exceed $214 million, which amount may be increased annually by the Denver-Boulder-Greeley Consumer Price Index, and without limiting the authority of the utility to issue bonds or other obligations in any amount for all other lawful purposes in compliance with the Charter and other applicable laws, and without limiting the authority of the utility to pay stranded costs as a part of rates rather than as one complete payment; and limiting the underlying fees and other costs of issuance of the bonds to amounts paid by other similarly situated utilities; limiting the utility’s service area to an area supporting safe and reliable service to its customers; providing for elections at special or general elections; requiring the utility advisory board to advise the council on rate making; providing for customer choice for out of city customers; for out of city customers to be represented on the utility advisory board; and to provide that, if this ballot question receives more votes than all other initiatives which pertain to debt limitations or the adoption of a new Section 188 of the city Charter, then this measure shall become law and such other initiatives shall not be implemented?”
Contact CU Independent Staff Writer Kelly Ragan at Kelly.ragan@colorado.edu, twitter/kellyraygun.
