Xcel CEO: No Plans to Expand or Duplicate SmartGridCity
By SGN Staff
Aug 25, 2010 - 2:25:11 PM

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When Xcel Energy broke ground on its pioneering SmartGridCity pilot program in Boulder, Colorado, a little over two years ago, it was expected to be a shining showcase for what the Smart Grid and its technologies could do. But staggering cost overruns, budgeting and other procedural irregularities, and harsh criticism from regulators and some early supporters have tarnished the project. So... Xcel has announced that it will not duplicate or expand SmartGridCity. Xcel Energy CEO David

You might also be interested in ... . SmartGridCity Meltdown: How Bad Is It? . Boulder SmartGridCity Cost Overruns: How Bad is it Really? . SmartGridCity Video . What Next for SmartGridCity? Xcel Wants to Test Dynamic Pricing . Smart Grid Lessons Learned .

Eves told the Denver Post "We would not do that again over the whole service area." The program, considered by Xcel to be a one-of-a-kind experiment, was intended to provide for more efficient electricity distribution, reduce power outages, help customers understand and manage their energy consumption and more. But the initial project estimate of $15.3 million ballooned to $44.8 million because of the unanticipated difficulty — and expense — of drilling through large amounts of rock to lay fiber-optic cable to 23,000 homes. Permitting costs, negotiations and other related expenses added to the total cost. Also, local support for the project appears to be dwindling. Next week, Xcel will meet in hearings with the Colorado PUC in an effort to hold onto a rate increase approved earlier to recover project costs. The city of Boulder, which had previously supported Xcel's cost recovery request, withdrew from the PUC proceedings on Friday. The city's filing said there was not a consensus among city council members as to the value of the project or the "prudence of this investment."

 

Quick Take: This is another Smart Grid "Uh oh" moment. As Jesse Berst said in his commentary on the project earlier this month, "Even if some of the participants made mistakes, they deserve credit for the courage to be pathfinders. But will regulators and ratepayers see it that way? Or will this loom as a giant stop sign?"

 

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