Colorado's House passed HB 1273 on a 39-26 vote Monday morning (February 9, 2004). The official vote tally can be viewed at the end of this Newsletter.  The bill would require investor-owned utilities to provide 500 megawatts of electricity from renewable energy sources by 2006, 900 megawatts by 2010, and 1,800 megawatts by 2020. These energy investments promise significant rural economic development benefits and thereby attract political support from many rural interest groups representing agriculture, banking, economic development and local governments. 

The Colorado Rural Electric Association (CREA) is mainly concerned about possible rate impacts and a mandated fuel mix.  While every effort has been made to exempt the REA's from the Bill, CREA doesn't feel the exemption is airtight.  During its testimony in support of the bill, Xcel said they are forecasting a rate impact of 6 cents per month in 2006 for the average residential customer.  Xcel sells wholesale power to four of CREA's 22 member cooperatives.

Speaker Spradley, as sponsor of HB 1273, addresses the mandate issue by saying it is the responsibility of legislators to set policy for the Public Utilities Commission.  "It was the legislature that established a franchise system for investor-owned utilities and a commission to regulate them. Just as an elected board oversees rural electric cooperatives and city councils govern municipal electric utilities, the legislature has an obligation to set policy for the PUC that is in the public interest." 

Colorado Rural Electric Association opposes HB 1273

The CREA Board of Directors maintained its opposition to HB 1273 following an appeal by rural leaders to reconsider their position.  On January 29th rural leaders and renewable energy advocates met with CREA's 26-member Board of Directors. 

Colorado Farm Bureau President, Alan Foutz thanked CREA for initiating communication on an issue of vital importance to the economic health of rural communities.  "Our Board supports renewable energy development as a high priority because our members are asking for it," Foutz explained.  Farmers Union President, John Stencel highlighted a series of community forums cosponsored by a number of rural organizations. "Participation in these forums was extraordinary," Stencel said, "And we feel an obligation to respond."  The CREA Board interacted with five experts who presented information on federal energy legislation, a renewable energy overview, opportunities for wind cooperatives, pending renewable energy standard legislation, and the perspective from a wind developer. 

CREA represents 22 rural electric associations serving much of rural Colorado.  During its January 30th board meeting, members decided to table a motion to become neutral on HB 1273 and allow board members to consult with their local associations.

During the House Committee hearing on HB-1273 the following Tuesday, CREA Executive Director Ray Clifton said, "It was not a solid vote within our group as to where to stand. While a majority of our members do not support this legislation, there are 3, 4 and maybe 5 who have a different view."   He was responding to a letter supporting the bill from one of his member organizations, Holy Cross Energy. The House Transportation and Energy Committee reported HB 1273 to the Floor on a 12-1 vote.

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• DON AMENT, Colorado Commissioner of Agriculture
• LARRY PENLEY, President, Colorado State University
• LOLA SPRADLEY, Speaker of the House, Colorado General Assembly
• KIRK JOHNSON, Executive Director of Environmental Affairs, National Rural Electric Cooperative Association
• JIM NICHOLS, farmer, county commissioner, and former Minnesota Commissioner of Agriculture
• LARRY FLOWERS, National Wind Technology Center, and RALPH OVEREND, Research Fellow, National Renewable Energy Laboratory
• REAGAN WASKOM, Water Resources Specialist, CSU Cooperative Extension
• DAVE MILLER, Commodity Services Director, Iowa Farm Bureau Federation
• RANDY SMITH, Director of Rural Affairs, Northwest SEED (Sustainable Energy & Economic Development), state of Washington