Xcel Fee Proposal Slammed by State’s
Solar Industry

July 27th, 2009
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DENVER - Next week the Colorado Public Utilities Commission will conduct a hearing on Xcel Energy’s recent proposal to charge a fee for providing electricity to solar powered homes which need it. The state’s largest utility wants to charge a 2.6 cents per kilowatt hour fee based on the generating capacity of a home’s solar panels, and, not surprisingly, it is generating a negative response from the local solar industry.

Front Range solar installers, such as Namaste Solar , which received recognition at the stimulus bill signing back in February, say that, if approved by the Commission, Xcel would be the first utility to charge net-metered solar customers a fee for having access to electricity in the grid.

“It’s going to have a tremendously negative effect on the solar industry in Colorado if Xcel’s proposal is approved,” Blake Jones, president of the Boulder-based solar company told the Daily Camera. “Solar-system owners are actually providing a benefit to the utility, to the grid and to other rate payers.”

Currently, solar customers receive credit for excess electricity produced by the solar panels that flows into Xcel’s power grid.

“This is something that’s not happening anywhere in the country,” Jones said. “This is not a good thing. This is not part of the vision we have for Colorado’s new energy economy.”

The solar industry also points out that homeowners installing solar panels enable Xcel to add carbon-free energy while using existing infrastructure, which saves the company money on construction and transmission lines.

The fee would be on top of charges for electricity actually used and a $7 or $8 service charge already covering meter reading and billing. One big factor –current solar customers would be exempt from the new fee.

A COPUC hearing on Xcel’s solar proposal is planned for August 5th.

Tom Henley, a spokesman for Xcel Energy  defended the proposed hike. “”We have to build the system so the customer can use as much energy as they want.  Right now, solar customers have this backup to the grid for free.”

Filed Under: ARCHIVES • Feature Articles • Renewable Energy

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There Are 3 Responses So Far. »

  1. Comment by Ken Oatman on 27 July 2009:

    Thank you for posting this information, and helping to get the word out.

  2. Comment by cogas on 7 August 2009:

    Mr. Blake Jones, I am truly sorry “your vision” for the Colorado energy economy isn’t what you expected. My vision is to keep my energy costs down while not freezing to death, something you apparently cannot do with solar energy. But the war is not yet over, Mr. Jones; in this silly political climate you could still realize an energy surcharge for your very miniscule contribution to the overall energy use of Colorado. Afterall, you have the right governor in place; he hasn’t used much good judgement in his run so far.

  3. Comment by Patrick on 7 August 2009:

    Well cogas fortunately folks like you are becoming the minority in this state. Our state will be moving in the direction of CSU’s School of Environmental Sustainability and the Colorado Renewable Energy Collaboratory that includes CSU, CU, Colorado School of Mines, and the National Renewable Energy Laboratory. Combine that with the Northern Colorado Clean Energy Cluster that has begun to rapidly move these innovations from the lab to the marketplace.
    You can complain all you like or you might want to consider moving north to Wyoming or west to Utah where people are better at closing their eyes what happening around them because they are afraid of change. Be sure to enjoy the slower recovery of their economy while your there.

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