Colorado energy regulators pave way for Xcel Energy PV rebates

The Colorado Public Utilities Commission on Feb. 22 approved a rate increase for customers of Xcel Energy that will allow the investor-owned utility to recover the cost of investments in renewable energy projects in order to meet targets set by the state's voter-approved Renewable Portfolio Standard (see PI 12/2004, p. 36). 

© Burdick Technologies Unlimited (BTU) For test only: If Xcel Energy finally starts its PV rebate program in March, Colorado will require more modules like these ones from United Solar tested at NREL in Golden.

The decision increases monthly rates by 0.6 percent, or about 35¢ per kWh for residential customers and 69¢ per kWh for commercial. The utility had initially asked the commission to approve a 1-percent increase. Based on the money it can collect through the decision, Xcel will now set up its rebate program for customer-sited PV projects up to 10 kW. 

According to Xcel spokesman Tom Henley, the utility may begin accepting applications on March 1. Rebates will be set at $2 per W and an additional $2.50 per W for Renewable Energy Credits (RECs), for a total upfront payment of $4.50 per W. A competitive bidding process will be used for solar projects larger than 10 kW. 

Xcel, which serves about 70 percent of the electrical load in the state, could bid for the associated RECs to comply with the solar component of the renewable mandate. A total of 4 percent of the overall 15 percent renewables requirement must come from solar. Of that, at least half must be customer-sited. According to Henley, Xcel estimates it will need 18 MW of PV by the end of 2007. 

Separately, Denver Mayor John Hickenlooper on Feb. 17 issued a request for proposals for a 1 to 2 MW installation at the Denver County Jail, planned for completion in 2007. Responses to the RFP are due in March.

To download the Denver RFP document, go to: http://www.denvergov.org/eform.asp?opt=1&formid=251

Garrett Hering
© PHOTON International, March 2006