Xcel Will Include Cost Of Global Warming Pollution In Energy Purchase

The Xcel Energy request for bids for 2,500 megawatts of additional electric supply in Colorado, which the company issued on Friday, will include a cost for global warming pollution.  All bids will be evaluated by assessing a cost of $9 per ton of carbon dioxide discharged.   This reflects growing recognition of likely national and state public policy action to regulate global warming pollution.  

“Xcel joins a growing group of major western utilities who use hard dollar figures to estimate the serious risks associated with global warming pollution,” said Vickie Patton, Senior Attorney, Environmental Defense.  “This underscores the disconnect between what is happening on the ground in the West to begin addressing global warming pollution and the inaction in Washington.”  

“This is the first time in Colorado history that global warming pollution has been accounted for in determining our future energy needs,” says John Nielsen, Energy Program Director at Western Resource Advocates.   “This is not only economically and environmentally prudent for Colorado but it is consistent with the establishment of greenhouse gas caps being debated in Congress.” 

Carbon dioxide is the chief pollutant contributing to global warming.  Left unchecked, increasing emissions of global warming pollution pose serious threats to Colorado’s water supply, agriculture, and outdoor recreation economy.

Xcel’s action is consistent with a growing trend across the western United States where companies are accounting for the impacts of global warming in recognition of likely national and state policy action to regulate global warming pollution.  In 2004, Idaho Power’s resource acquisition plan included a $12 per ton cost of carbon dioxide.  Similarly, PacifiCorp, a major western utility serving Wyoming, Utah, Oregon, Washington, Idaho and California, now assesses an $8 per ton carbon dioxide cost in evaluating new resources.  In December 2004, the California Public Utilities Commission required Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric to assess an $8-$25 per ton cost on carbon dioxide in acquiring new resources.   The California Commission will decide in a future proceeding the precise imputed cost.  

The new Xcel guidelines are available on-line at http://www.xcelenergy.com/docs/corpcomm/2005PSCoDispatchableRFP.pdf.
Xcel has operations in 10 Western and Midwestern states, and is the fourth-largest electricity company in the nation. 

Western Resource Advocates is an environmental law and policy center working in the Interior West to restore essential lands, waters, and habitats, and assure that energy demands are met in environmentally sound and sustainable ways.  www.westernresourceadvocates.org