[bouldercouncilhotline] Hotline: Model Runs

[kohls at bouldercolorado.gov]

Sender: Cowles, Macon

It doesn't take a model run to realize that if we had to pay nearly $1 billion for purchase of the distribution system and to pay for the rest of Xcel's "in your dreams" costs, we would choose not to purchase the assets because rates for power would have to increase substantially.

There is no reason FOR THE CITY to run models based on implausible assumptions, and it would not be prudent to do so. If Xcel's assumptions are going to be modeled, let XCEL run the model with the ridiculous assumptions and then make the case to the public that the results should be seriously considered by people who are trying to choose well for the City's future.

As discussed last night, the outcome of creating a municipal utility--if that is what the citizens choose--may depend on a negotiated settlement as to the acquisition of the distribution system. I reject the idea that we should let Xcel know what is the City's break point by modeling it for them and then engaging in a public discussion of it. That would be ill-advise, to say the least.

If the parade of horribles inherent in Ken's numbers does arrive, then we can terminate the project before issuing bonds, thus keeping the city's exposure for the next few years to an amount of money that is only 60% of the current Climate Action Funding. That is a small amount of money compared to the potential upside: boosting the economic vitality of the entire city and protecting the environment of the planet we inhabit. 

Macon Cowles
Boulder City Councilor