Avoiding Reality
The PUC fantasy is headed for a collision with Physics and Finances
The thing is, the best way to understand Theresa May’s predicament is to imagine 52 percent of Britain had voted that the government should build a submarine out of cheese.1
— Hugo Rifkind
Ok, so I’m pretty liberal.2 And so my go to is the profit seeking utility (that’s Xcel) will strive for maximum CAPEX. And our state government (that’s the PUC), will thoughtfully moderate that advocacy, while insuring we get electricity that is inexpensive & reliable. And of course - Go Green!
Except… that’s not what I’m seeing. First off, Xcel in what I’ve heard from them to date, is trying to get guidance as to what the state wants. My only significant complaint with them is they need to paint a picture of where they want to go.3
Meanwhile Chairman Blank strikes me as similar to one of the smart members4 of Trump’s cabinet testifying in front of Congress. They know what they’re saying is utter bullshit. But they’re trying to spin that in the best way possible to stay in the good graces of their Dear Leader (that’s Governor Polis).
Eric Blank has got to know that what they’re presently asking of Xcel is impossible. He also knows the Governor Polis is determined to have Colorado at maximum renewables by the end of his term.
So here’s yesterday’s discussion of 24A-0442E. The interesting part starts at 4:38:57 (the PUC does not allow embedding of their videos - go figure).
Eric Blank:5 I understand but you're asking us to approve the whatever it is $30 billion now basically i mean that I think that's sort of the point that's right that it's a loose extrapolation exercise and but we're at the same time we're being asked to approve you know $25 billion of new generation and transmission with only a very limited opportunity to look at it in the future so that that that's a concern any comments on that?
I agree i don't have the data to show marginal costs or above average cost i don't have the data to show what transmission's doing but it's not on this record and you're asking for a massive increase in capital spending so any any comments on that?
Jack Ihle: We're asking for the generation to serve the load that we anticipate needing and in our opinion we have an obligation to serve and some of that load is driven by what I would call a scope increase that's been put to the utility industry. We're asked to step into the transportation sector, we're asked to electrify, and step into the gas sector. We are asked to completely transform the generation fleet from a carbon emitting one to a non-carbon emitting one at the same time.
If we were a contractor and we were under a contract I'd say I have a scope increase that's significant and then things have become expensive. I share your concern about the capital spending I do and and the and the customer potential impact on this. I think we've tried to demonstrate over and over that having increased sales is going to help with that impact and not the reverse.
It sounds like maybe that's harder for you to accept under the current record. Okay I'll think about that but I get the pain. What is it you don't want us to do? Not serve customers? Not reduce emissions? Not just transit like there's a million policy objectives? We're also being asked to change like we we got a scope change on our contract scope.
Eric Blank: All right we'll get there in a few minutes a couple more questions before we do.
I never heard them get back to Ihle’s key question6 - what do they want Xcel to do? They did dance around it some more.7 But no clear guidance.
The full list of the state’s requests8 will lead to brutally high increases in ratepayers bills. For no advantage other than a slight decrease on CO2.9 Ihle knows that and has given the PUC a direct question on it.
The PUC (i.e. Eric Blank10) can’t answer. Here’s the thing. Yes he’s appointed by the Governor. But his job is to serve the ratepayers. His goal, as a commissioner, is to get us ratepayers power that is inexpensive, reliable, and meets the statutory requirements for reduced carbon. It’s not to tell Governor Polis what he wants to hear.
The job in front of the PUC without the constraints of telling Governor Polis what he wants to hear is very difficult. If you add the constraint of not making the Governor unhappy, it’s impossible. You can make a submarine out of cheese. But it’s not going to work.
I even lived in Boulder for over 2 decades. That does things to a person 😊.
Granted, that may be difficult without basic decisions from the state.
Yes there are a few who are smart.
One thing I find annoying about Chairman Blank in these discussions is he’s obviously reading a script most of the time. Makes the whole thing appear very pro-forma.
Granted it was a looooong discussion and I might have missed it. If so, please email me the time in the hearing where they did get back to Xcel.
Including geothermal, which shows great promise. And nuclear, but only SMRs which will cost more than an AP-1000 and are 7 - 15 years out.
Your standard Democratic everything bagel.
The other two follow Blank. They should matter. They don’t.