Boulder was chosen as Xcel’s SmartGridCity and implementation of the project began in 2008. As the SmartGrid project unfolds, though, considerable challenges and cost-increases are being encountered and citizens are wondering if the SmartGridCity is, in fact, a meltdown.
Key points pulled from filings to the Colorado Public Utilities Commission regarding Xcel’s request for Certificate of Public Convenience and Necessity (CPCN) resulted in the compilation of the following points and allegations related to Xcel’s Smart Grid:
— Xcel didn’t file a CPCN before the project started in 2008 because they didn’t think they needed to for what they deemed a research project.
–Without a CPCN there was no opportunity for the PUC or other interested parties to consider capping costs to protect ratepayers
–A traditional cost-benefit analysis wasn’t performed prior commencing the project
–The original $15.3 million project estimate soared to $27.9 million and at last report to $44.8 million due to higher costs of permits, tree trimming, software and negotiations; and to the amount of rock they had to drill through for fiber optic lines.
–Several key Xcel project executives left early last year
–Xcel asked the PUC last year to OK a rate increase to recoup some of its project costs. That’s when the commission decided Xcel needed a CPCN to prove the project is prudent and in the public interest
–As the project nears completion, only 43% of Boulder residents have smart meters, which the company says allows a side-by-side comparison
–The metering system is not providing as many in-home benefits anticipated as part of a Smart Grid program