Category Archives: Politics

Coal is Not the Solution to Poverty

A refreshing report published by the Overseas Development Institute this month concludes that:

“The evidence is clear: a lasting solution to poverty requires the world’s wealthiest economies to renounce coal, and we can and must end extreme poverty without the precipitous expansion of new coal power in developing ones.”

Beyond Coal: Scaling up clean energy to fight global poverty

Read the full report here.

Federal Energy Regulatory Commission clears way for rural clean energy

In a decision yesterday, the Federal Energy Regulatory Commission (FERC) rejected a proposed fee from Tri-State Generation and Transmission that would have acted as a serious barrier to rural electric utilities like Delta-Montrose (located in West-central Colorado) from accessing local clean energy by making it uneconomical.

This decision is expected to help communities across the West develop their own local sources of clean, affordable energy – creating jobs, reducing emissions, and investing in local economies!

In March, Clean Energy Action and its supporters submitted a petition, joining approximately 120 individuals and organizations led by Delta-Montrose to urge the Federal Energy Regulatory Commission (FERC) to protect rural access to clean, affordable energy.

On June 16th, FERC responded, rejecting Tri-State’s penalty because it would “undermine the Commission’s prior order in Delta-Montrose” by making the cost of accessing local clean energy prohibitively high.

In FERC’s previous Tri-State and Delta-Montrose decision (last year’s Delta-Montrose proceeding) the Commission  ruled that Delta-Montrose was not only allowed but obligated to purchase electricity from qualifying local renewable energy facilities. In its decision, FERC relied on the 1978 Public Utilities Regulatory Policies Act (PURPA), which seeks to “encourage cogeneration and small power production” from renewables.

In turn, Tri-State responded by attempting to impose a penalty to recover revenues it claimed would be lost if rural communities began to rely on local sources of clean energy.

FERC ruled that the proposed lost revenue penalty “should be rejected” because it “undermine[s] the Commission’s prior order finding that, under PURPA, Delta-Montrose must purchase” energy from qualifying local facilities.

In doing so, the Commission has essentially reaffirmed and clarified last year’s decision that local access to clean energy should be prioritized and protected. This anxiously-awaited decision is widely seen as an important step forward for communities working to developing local sources of wind, solar, and geothermal!

Mon. 6/27: A Community Discussion About Our Energy Future with Alice Jackson, Xcel VP for Rates and Regulatory Affairs

Please join Clean Energy Action and Empower Our Future for:

A Community Discussion About Our Energy Future with

Alice Jackson, Xcel VP for Rates and Regulatory Affairs

Monday, June 27th
7 pm
First Presbyterian Church
1820 15th St, Boulder 
(Corner of Canyon and 15th)
This will be an excellent opportunity to hear Xcel’s top PUC witness discuss all that is going on at Xcel and to share with her the concerns of the Boulder community about climate change, decarbonizing our electricity, supporting competition in the solar industry and our vision for a livable future.

Updated Trends in U.S. Delivered Coal Prices: Volatility in U.S. Coal Prices Increases Pressure to Phase Out Coal Power

Clean Energy Action has questioned the practice of making long-term continued investments in coal-fired power plants for years. These concerns are driven by several factors including carbon dioxide emissions which in many states make coal plants the largest source of greenhouse gas emissions, emission of pollutants like mercury and sulfur dioxide, increasingly unfavorable economics, and the uncertainty of future coal prices and supplies.

The price of coal has changed greatly over the last two decades. This volatility puts continued investments in coal-fired power plants at risk of becoming stranded assets – assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities. Rather than adding pollution control equipment or other investments to keep coal plants online, regulators and utilities should consider making plans to phase out coal power.

Coal plants can’t operate without a stable supply of coal over their entire lifetime, which means that the long-term stability of coal prices and supplies are essential to the solvency of a coal plant investment.­­ In 2013, CEA published a detailed analysis of historical coal prices in each U.S. state to gain insight into their stability. The study revealed that prices rose steadily over the preceding decade, thereby continually increasing costs for coal based utilities.

In light of the recent coal industry bankruptcies, we updated this report to include more recent data and found that instability in the coal industry was paralleled by decreasing coal prices and persistently rising production costs, resulting in dangerously low profit margins. Our analyses indicate that utility commissions, utilities, and political leaders should seriously consider the unpredictable nature of fossil fuel markets when making decisions about long-term energy investments. Our findings point to the long-term economic benefits of investing in “free fuel” renewable energy resources such as wind and solar that have stable and affordable prices.

Leeds School of Business: Xcel’s proposed wind project to add 7,000 jobs, over $1 billion to GDP

An analysis of the economic impacts of Xcel Energy’s proposed Rush Creek Wind Project indicates that the proposed investment in wind generation would produce net economic benefits for the state of Colorado.  The study was prepared by the Leeds School of Business and funded by Xcel Energy.

Investing in 300 wind turbines made in Colorado that collectively produce 600 megawatts of wind energy would reduce “future generation of electricity using gas-fired and coal-fired resources.” Along with investments “in purchasing and erecting the wind turbines, the project will include the creation of access roads, pouring of foundations, installation of transmission lines, and construction of substations.” In total, the study projects that these investments will result in a projected net increase of 7,136 jobs (Table 1, page 6) in Colorado.

Reductions in operating expenditures, “notably – fuel costs,” will result in lower revenue requirements for Colorado ratepayers as wind generation lowers the projected revenue required to generate electricity by 0.7% (Table 3, page 12). From 2016 through 2040, the study projects that the combination of these savings for consumers and investment in renewable generating capacity  will increase Colorado’s projected GDP by over $1 billion (Table 1, page 6).

You can access the full study here.