Correction: This story has been updated to include a more accurate number of homes served by Tri-State Generation and Transmission. It is 1.3 million.
The Poudre Valley Rural Electric Association, which supplies power to more than 44,000 homes and businesses in Northern Colorado, is setting its first-ever goal to reduce its carbon footprint.
The electric cooperative announced Thursday its “80 by 30” goal, which calls for it to increase its carbon-free energy sources from about 33% today to 80% by 2030.
The initiative was approved by the co-op’s board of directors in May, according to a news release.
The co-op serves mostly unincorporated areas of Larimer, Weld and Boulder counties, as well as the towns of Berthoud and Johnstown.
Poudre Valley REA will use technologies such as battery storage and grid management systems, look for carbon-free generation opportunities and promote the development of a regional transmission organization to meet its “80 by 30” goals. The co-op is just beginning to identify specific actions within these categories, the release states.
The co-op’s current power mix is 67 percent carbon-based generation with particular emphasis on coal, though its portfolio also includes two hydroelectric generators, four large solar arrays and three community-owned solar farms. PVREA plans to add two large new solar arrays in 2019, its website states.
Though PVREA is formalizing its desire for a low-carbon future, the co-op does not have much flexibility to generate renewable energy on its own.
As a member of Tri-State Generation and Transmission, a Westminster-based wholesale electricity cooperative that provides power to about 1.3 million homes and businesses in four states, PVREA must purchase all but 5% of its wholesale energy from Tri-State. Tri-State itself generates 70% of its power from carbon sources and 30% from renewable resources.
In January, the chairman of the board for Brighton-based United Power, the largest of Tri-State’s roughly 40 member co-ops, wrote to fellow members to urge them to start talks that would allow cooperatives more flexibility in buying energy.
In his letter, board chairman James Vigesaa wrote that for United Power, it was a “serious problem” that competitor Xcel Energy could offer its environmentally conscious customers more energy from renewable sources. It was not just about environmental impact — Xcel Energy’s wholesale combined demand charge and energy charge was 28.5% lower than Tri-State’s annually.
Though nothing has changed about Tri-State’s requirements, Jeff Wadsworth, president and CEO of Poudre Valley REA, is hopeful that progress can be made with Tri-State to help PVREA accomplish its goals. For starters, Tri-State has a new CEO, Duane Highley, who replaced Mike McInnes on April 5.
“He has positioned them to really start looking at 21st century (generation and transmission),” Wadsworth said.
At the same time, Tri-State announced a new 100-megawatt wind project in eastern Colorado, saying that the farm would boost its total power from wind in Colorado to 471 megawatts.
In addition to Tri-State, Wadsworth is looking to the Colorado Legislature for help in creating an energy market where a regional transmission organization (a power transmission system operator that coordinates, controls and monitors a multi-state electric grid) is not only possible, but perhaps required, he said. The reason would be to create a broader market for the sale of carbon-free energy from one provider to the next.
Such would be necessary because it would be difficult, if not impossible, for entities like PVREA to generate all their renewable power locally — there’s just not enough space, Wadsworth said.
A group of electricity providers including Tri-State, Xcel and Platte River Power Authority tried to create the Mountain West Transmission Group, a regional transmission organization, among themselves in 2017. However, the deal fell apart after Xcel pulled out at the 11th hour, Wadsworth said.
If legislators were to require regional transmission organizations, it would be much easier to share renewable power. And, providers would not be tasked with creating them out of nothing, he said.
“We really want to have a greater discussion about why it’s important for this region,” Wadsworth said.
