Dive Brief:
- Xcel Energy has asked the Federal Energy Regulatory Commission (FERC) to exercise its jurisdiction over transmission to stop the City of Boulder (1) from taking possession of the utility’s infrastructure within its city limits through a District Court-ordered condemnation proceeding and (2) from using its Colorado constitution-granted right of home rule to push Xcel out and create a municipal utility.
- In its filing, Xcel asked FERC to rule that (1) Boulder cannot take transmission infrastructure without FERC approval, (2) approval must consider cost and system reliability impacts, and (3) FERC jurisdiction does not replace or override the Colorado Public Utility Commission's (CPUC) authority so the matter must go back to state regulators.
Dive Insight:
The City of Boulder is trying to create its own municipal utility but Xcel, the area's utility provider, does not want to sell its transmission and distribution system around Boulder.
Last fall, Xcel took questions on the rights to and the price of Boulder’s transmission lines, substations, and other grid infrastructure to the CPUC but, before the CPUC could do anything but affirm its jurisdiction, the City took the matter to the District Court.
Xcel has only said FERC has jurisdiction in the infrastructure transfer under the Federal Power Act because the line’s value exceeds $10 million and is "integral" to the regional system and the interstate system. Boulder estimates the cost of all assets at $120 million but does not specify a value for the transmission line.
Xcel claims Boulder is circumventing state and federal regulators.