Investor-owned utility Xcel Energy has proposed that Colorado Springs Utilities enter into a non-disclosure with Xcel subsidiary Public Service of Colorado “with the specific intent of exploring over the next 60 days if there is a value proposition that would provide for PSCo’s acquisition of and assumption of operations for CSU’s generation fleet.”
The “fleet” includes CSU’s entire generating portfolio, consisting of the Martin Drake Plant, the Ray Nixon Plant, the Front Range Power Plant, the Birdsall Power Plant, and five smaller generators.
The deal might also include PSCo acquisition of CSU’s high-voltage transmission systems.
City Council, sitting as the Utilities Board, will consider Xcel’s proposal at its meeting next Wednesday, July 16. Board member Val Snider expects that it will come to the floor at around 4:45 in the afternoon.
According to knowledgeable sources, the Utilities Board was originally slated to consider Xcel’s proposal at a closed meeting on Wednesday, but Councilor Joel Miller disclosed the letter’s contents at Tuesday’s Council meeting, forcing the board to bring it to open session.
It seems unlikely, according to the same sources, that Council will agree to go forward.
Councilmembers Miller, Don Knight, Keith King and Andy Pico have been strong proponents of continued municipal ownership of CSU’s generating facilities. If they can find a fifth vote, the potential deal would be dead.
In the apparently unlikely event that a mutually agreeable deal can be structured, Colorado Springs voters would have to approve it.
Click on the link below to see the letter expressing Xcel’s interest: