Commerce City Council Expected to Support resolution Opposing Xcel Solar Rebate Reduction

Background: On February 16th, 2011 Xcel Energy announced that they filled a request with the Public Utilities Commission to reduce the current Solar Rebate from $2.00 per watt to $0.25 per watt. At the same time, Xcel lowered the amount they pay for the Renewable Energy Credits from $0.35 to $0.01 per watt. These two actions account for an 88% decrease in the total rebate received by customer’s installing solar PV. The rebate program is also closed until the Public Utility Commission hearing in May.

Closing the Solar Rewards program not only prevents customer’s from accessing the rebates paid for by all Xcel customers, but also stops solar business dead in their tracks. Installers cannot sign up new customers for the rebate program, nor can customers access the rebates which are part of Amendment 37 approved by voters in 2005.

Xcel energy, for the past three and half years, has collected a percentage of every customer’s utility bill to pay for a portion of the solar rebates. Currently Xcel is collecting 2% of each customer’s bill.

The rebate program had been working well. Spurred by the passage of Amendment 37, there are now roughly 5,300 solar jobs and more than 400 solar businesses in Colorado. Colorado is now the #2 state in the US for solar jobs per capita.

If Xcel's actions are approved by the PUC, the solar industry predicts that as much as 75 percent of these jobs will be lost by the end of this year, causing Colorado to lose valuable solar industry infrastructure that took five years to build.

Commerce City is home to one solar instillation company, Douglass Roofing. Douglass has reported to us that job loss for them will be immediate if this proposal moves forward.

Commerce City has taken huge strides in the past few years to promote clean energy and new jobs.

Commerce City urges the PUC to support small business and reject Xcel Energy's request to dramatically reduce the solar rebate.

Wording of Proposed Resolution:

RESOLUTION OPPOSING XCEL REQUEST TO REDUCE SOLAR REBATE NO. 2011-15

WHEREAS, the Public Service Company of Colorado (Xcel Energy) recently reduced

the amount they pay for the Renewable Energy Credits from $0.35 to $0.01 per watt and filed a formal request with the Colorado Public Utilities Commission to reduce the current Solar Rebate from $2.00 per watt to $0.25 per watt; and WHEREAS, if approved, Xcel’s actions would result in an 88% decrease in the total rebate received by customer’s installing solar photovoltaic; and WHEREAS, the rebate program, spurred by the passage of Amendment 37, resulted in 5,300 solar jobs and more than 400 solar businesses in Colorado; and WHEREAS, the global economic crisis and recession made it difficult to operate businesses of all shapes and sizes, restricting access to capital, delaying hiring decisions and decreasing personal spending; and WHEREAS, municipalities such as Commerce City are equally affected by these economic uncertainties and ability to provide services and amenities; and WHEREAS, Commerce City implemented unique incentives to support new and existing business investment during these challenging economic times, with additional funding if “green” improvements such as solar energy are included; and WHEREAS Commerce City has taken tremendous strides to become a sustainable municipality and attract clean energy industries; and WHEREAS, it is anticipated as much as 75 percent of the solar jobs created by the rebate program will be lost by the end of this year, if not sooner should the Public Utilities Commission approve Xcel's request, causing Colorado to lose valuable solar industry infrastructure that took five years to build; and WHEREAS this industry is important to Commerce City’s long-term economic growth and development.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COMMERCE CITY, COLORADO AS FOLLOWS: 1. The City of Commerce City, Colorado opposes the request made by Xcel Energy to excessively reduce the amount of the Solar Rebate. 2. The City of Commerce City urges the Colorado Public Utilities Commission to reject Xcel Energy’s request to reduce the amount of the Solar Rebate and advance a more equitable agreement for rebate amounts that support the recovery of Colorado’s economy in a more sustainable manner.