Colorado Regulators Approve Xcel Renewable Buildout But Warn of Rising Costs

By: Mark Jaffe | The Colorado Sun

Aiming to get energy generation and storage projects started before federal tax credits expire, the Colorado Public Utilities Commission on Jan. 28 approved an expedited list of 1,700 megawatts of projects for Xcel Energy.

Still, the commission expressed reservations about the cost and operating efficiency of so many projects and wants more data and analysis.

“It doesn’t feel right to me,” PUC Chairman Eric Blank said. “I treat customer money like my own money. … I am looking for a little certainty that we are not going to deeply regret this.”

The Trump administration’s tax and spending bill, signed into law July 4, curtailed two key tax credits for renewable energy development: the production tax credit and the investment tax credit.

The investment tax credit is equal to 30% of the cost of a project, and the production credit, used primarily by wind projects, provides for a credit of 2.75 cents for each kilowatt-hour produced during the first 10 years of operation.

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