Boulder Demands Xcel Energy Compensate Customers After Outages

UPDATE: The Boulder City Council is taking urgent action against Xcel Energy, demanding immediate compensation for customers affected by December’s disruptive power shutoffs. In a scathing draft letter, the Council accuses the utility of “eroding the trust” of its customers, citing failures in communication and missed emissions targets as critical issues.

The letter, which will be voted on at a special meeting tonight at 6 p.m. at the Penfield Tate II Municipal Building, outlines three major requests: a plan to reduce public safety power shutoffs, improvements to energy infrastructure, and compensation for those who suffered financial losses. The draft, dated January 13, 2024, is the second in a series of communications aimed at holding Xcel accountable.

“You have eroded the trust of your customers and that is a substantial concern,” the letter states, highlighting the growing frustrations among Boulder residents. Many have reported increased outages due to high winds, exacerbated by Xcel’s decisions regarding safety protocols. The Council emphasizes that these outages disproportionately impact low-income households and small businesses, particularly during critical periods like the holiday season.

According to a survey conducted by the Boulder Chamber, 256 businesses reported losing an average of more than $25,000 due to the power outages. Some businesses even faced losses exceeding $100,000 during the crucial weekend before Christmas. This financial burden has intensified calls for Xcel to establish a fund to assist those hardest hit by these shutoffs.

“At a minimum, the city believes a fund should be set up by Xcel to mitigate the financial harm to low-income households and small businesses,” said Carolyn Elam, Boulder’s sustainability senior manager.

Xcel Energy has acknowledged the Council’s concerns, stating through a spokesperson that it values its partnership with Boulder and recognizes the challenges posed by its public safety power shutoffs (PSPS). “It is a tool used solely to protect public safety, and we do not use it lightly,” the spokesperson said.

The letter also outlines ongoing frustrations regarding Xcel’s failure to meet its 2022 and 2024 emissions goals, which were deemed foundational for the city’s energy partnership established in 2020. Boulder plans to continue its partnership with Xcel for now but warns that it reserves the right to exit the franchise agreement this year if expectations are not met.

In the draft, the Council demands that Xcel deliver a comprehensive plan addressing the need for public safety shutoffs, improve its communication strategies, and enhance the reliability of its service. Specific expectations include:

  • Rebuilding a key transmission line through the city.
  • Improving energy affordability for residents and businesses.
  • Progressing toward ambitious emissions milestones outlined in Xcel’s 2021 Clean Energy Plan.
  • Remediating water contamination from the Valmont Power Station.
  • Transitioning Pearl Street businesses to electric energy.
  • Collaborating with Boulder on innovative carbon-free energy solutions.

The Boulder City Council’s letter, which is accessible on the council’s agenda portal, is markedly more assertive than its first draft. Key phrases are emphasized, showcasing the Council’s escalating concerns about Xcel’s performance and the impact on the community.

As the 6 p.m. vote approaches, the community watches closely, eager to see how Xcel responds to these pressing demands. With nearly tens of thousands of customers affected by the December outages, the urgency for action has never been clearer. Boulder residents are left hoping for a resolution that ensures reliability and accountability from their energy provider.