[bouldercouncilhotline] Hotline: Not all roses at Colorado Springs Electric Utility

[cmosupport at bouldercolorado.gov]

Sender: Wilson, Ken

Some interesting issues in Colorado Springs, where their Municipal Electric Utility is having some problems.  In the first article (below) they have decided to retrofit emissions controls on their 87 year old coal plant rather than retire it.  This looks like an economic decision, partially due to huge expenses to rebuild their distribution grid after the Waldo Canyon fire.  I briefly talked to one of their utility people at a meeting last week and he said that the rebuild of that part of town for just electric distribution would be more than $10M of unbudgeted expense.  It certainly isn't good news for the environment.

The URL below the article is a link to a recent discussion they are having on whether or not to sell the electric utility and whether they should change the governance structure.

In general, municipal utilities have been struggling during the recession.  Many have delayed plans for more renewable energy and plans for improving distribution grids.  Their economics have been difficult, with pressure not to raise rates, causing staff cuts and project delays.

Ken Wilson

Colorado Springs Council delays plans on retiring power plant
Posted:   07/19/2012 07:37:39 AM MDT
July 19, 2012 1:38 PM GMTUpdated:   07/19/2012 07:37:47 AM MDT
By Andrew Wineke

Read more: Colorado Springs Council delays plans on retiring power plant - The Denver Post<http://www.denverpost.com/portal/breakingnews/ci_21110257/colorado-springs-council-delays-plans-retiring-power-plant?_loopback=1#ixzz22z5Y2Ihv> http://www.denverpost.com/portal/breakingnews/ci_21110257/colorado-springs-council-delays-plans-retiring-power-plant?_loopback=1#ixzz22z5Y2Ihv
Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse


COLORADO SPRINGS -  —The Martin Drake Power Plant isn't going anywhere just yet.

The future of the coal-fired power plant south of downtown has been the subject of fierce debate in recent weeks, as Mayor Steve Bach and others have called on Colorado Springs Utilities to consider decommissioning the 87-year-old, 254-megawatt unit.



However, City Council, acting as the Utilities board, voted 7-2 Wednesday to go ahead with plans to install emissions control equipment from the local company Neumann Systems Group and delay a study of retiring Drake until 2013.



Council President and board chairman Scott Hente said Utilities is dealing with millions of dollars of costs related to the Waldo Canyon fire and more unbudgeted expenses wouldn't help. Plus, he said, Utilities has a contract with Neumann Systems.



"It just seems like this was probably the right thing to do," Hente said. "Let's not forget that Drake is a money maker for us: It's efficient, it's reliable and it's paid for."



Neumann Systems CEO David Neumann praised the board's decision.

Read more at: http://www.gazette.com/articles/drake-141895-neumann-utilities.html


Read more: Colorado Springs Council delays plans on retiring power plant - The Denver Post<http://www.denverpost.com/portal/breakingnews/ci_21110257/colorado-springs-council-delays-plans-retiring-power-plant?_loopback=1#ixzz22z5Q6MI7> http://www.denverpost.com/portal/breakingnews/ci_21110257/colorado-springs-council-delays-plans-retiring-power-plant?_loopback=1#ixzz22z5Q6MI7
Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse


Here is the link to the discussion on selling the utility:

http://www.koaa.com/news/should-the-city-sell-part-or-all-of-colorado-springs-utilities-/