Opinion: The next struggles for Boulder’s municipal electric utility
The Colorado state constitution gives cities the absolute right to create their own electric utilities. We now have had positive votes in three elections — replacement of the franchise fee in 2010, conditional authorization to create the muni and provisions for funding the process in 2011, and this year when Xcel, through surrogates, put its own item on the ballot. The next steps are negotiations and court proceedings over the price for the distribution system and how the parts will be separated between the two utilities. And there will be proceedings at the Federal Energy Regulatory Commission over whether Boulder’s departure will “strand” any of Xcel’s generation facilities. The roots of this struggle go back about a century. Very briefly, to eliminate multiple sets of wires being run down streets and the resulting competition that dampened profits, both governments and electric companies opted for regulated monopoly status. The regulators were supposed to design rules that creat