Heath Urie of the Daily Camera reports that negotiations between the City of Boulder and Xcel Energy may extend into next year, with the sticking point being how much “green” electricity the company should provide. The City Council will receive a public update on the negotiations during a special meeting this evening. Below is his report filed Wednesday.

 BOULDER, Colo. — Boulder voters likely won’t get to decide whether to renew a franchise agreement between the city and Xcel Energy until late next year, as negotiations drag on over how much “green” electricity the company should provide.

According to a city memo, the private negotiations that have been ongoing for more than a year won’t be finished in time for a new agreement to appear on the November ballot this year.

City Manager Jane Brautigam said the city is just now “gearing up to really start more intensive negotiations” with utility officials.

Because the city’s agreement with the utility company expires in August next year, both sides are working to extend the contract through the end of 2010, Brautigam said.

The additional time will also allow for the Colorado Public Utilities Commission to review a potential deal prior to a public vote. The City Council will receive a public update on the negotiations during a special meeting Thursday night.

On Wednesday, Mayor Matt Appelbaum said it makes sense to wait until next year to ask voters to approve a new agreement, so the city can continue working with the utility giant to find common ground.

Some of the outstanding issues include asking Xcel for flexibility to create community-based solar “gardens,” converting the city’s street lights to more energy-efficient models and for the company to commit to environmental mitigation at the coal-based Valmont power station.

“I think it won’t be easy to get everything we want, but
certainly the city needs to push the envelope here,” Appelbaum
said. “Somebody needs to be out there pushing.”

The mayor said the ideal situation would be for Xcel officials
to partner with the city and jointly approach the Public
Utilities Commission for the regulatory authority needed for
larger projects.

“A lot of the things we want require regulatory approval,”
Appelbaum said.

Micah Parkin, of the Beyond Coal Coalition, said her group
plans to ask Boulder’s leaders tonight to rethink the entire
franchising process.

“One of our main goals is that they demand a cleaner energy
portfolio for the city,” Parkin said. “To be stuck with a
20-year contract and dependent on 71 percent coal is not in our
best interest as we try and reach our city’s climate goals.”

For several years, Boulder’s elected leaders said they were
willing to consider “municipalizing,” or taking over, the grid
from Xcel to provide the city with cleaner sources of energy —
using cities such as Fort Collins and Longmont as potential
models.

But last spring, the City Council agreed to shelve
municipalization, in part because Xcel agreed to invest $100
million in Boulder for “Smart Grid” upgrades.

Joe Fuentes, a spokesman for Xcel Energy, said the Smart Grid
investment is separate from the franchise negotiations, and the
company’s commitment to finishing the system won’t change.

Fuentes said he could not discuss details of the negotiations,
but he agreed with city officials that the two sides are
“working really well” together.

If the city can’t reach an agreement, or if voters reject it
next year, the two sides would return to talks. Power to the
city would not be disrupted under either condition, officials
said.