PUC spanks Xcel; slashes 38% from SmartGridCity

1

Quick Take: Okay, Xcel made some mistakes in the way it (over)sold SmartGridCity and the way it handled consumer relations. But to call it a "dead end" as Colorado's PUC Chairman did? That's cold... and untrue. At the risk of over-generalization, SmartGridCity is (mostly) a technical success. Sadly, it's turning into a PR disaster. – Jesse Berst

Xcel Energy got a shot of bad news this week when Colorado regulators whacked 38% from the $13 million a year the utility charges customers to pay for the controversial Boulder-based SmartGridCity pilot project. That means Xcel can include about two-thirds of the $44.5 million total cost of the project in its rate base, according to a Denver Post news article. Xcel won't be able to get its hands on the  rest, about $16.6 million, until it can demonstrate the project's benefits to consumers. PUC commissioners, who early on generally supported the project, were pretty blunt about what they thought of it now. Commission Chairman Ron Binz, quoted in the article, said "This was supposed to be a shining city on the hill, and it looks like it's a dead end." Xcel has been including the entire $44.5 million in its rate base on a provisional basis since January 2010. The PUC-ordered rollback cuts the amount Xcel can charge for the project by about $5 million a year. So far, Xcel hasn't had a lot to say about the ruling. A spokesperson was quoted as saying the utility wants to examine the written order, and that the program has value for customers.

More on this topic ...

SmartGridCity cost recovery decision delayed by objections

SmartGridCity death reports greatly exaggerated, says Xcel spokesman

SmartGridCity meltdown: How bad is it?

Stay connected with SGN …

Drop by our Smart Grid News Talk forums

Get LinkedIn with Jesse

Join Smart Grid News on Facebook

Follow us on Twitter

Try our RSS feed

Get our email digest