Current Direction of Energy Policy and the Energy Market in Colorado

While Colorado seems to have relatively high success in energy production and efficiency, this is not represented to ratepayers in Colorado. According to Michael Sandoval, an energy policy analysist in Denver, “Across all sectors of Colorado the cost of electricity has skyrocketed more than 67 percent between 2001 and 2014, easily exceeding median income growth and the expected rate of inflation for the same period”. The cost of electricity is going up in Colorado, which is not only being pushed onto residential ratepayers, but also industry ratepayers. Increasing electricity and energy costs means that the price of living goes up in that particular region without any particular rise in standard of living. According to Citizens Advice, a network of policy workers and charities in the United Kingdom, increasing prices in energy has grave impacts on “people’s ability to maintain a decent standard of living”.

Furthermore, according to the Colorado Energy Office (CEO), “Colorado is a leader in renewable energy, with investments in wind, solar, biomass, geothermal, small hydroelectric, and other renewable energy resources increasing over the last decade”. The Colorado Energy Office, which is the direct advisor to the governor and state policy makers on energy policy, has the vision to “help Coloradans live more prosperous and healthy lives by promoting innovative energy production and efficient energy consumption practices that are beneficial to the economic and environmental health of the state”.

However, the Colorado Energy Office lists nuclear energy as traditional energy, and not a renewable or clean energy, thus disqualifying it from various state and federal programs and subsidies. The Governor of Colorado, John Hickenlooper, makes many comments and actions in promoting different energy sources and energy policy within Colorado. In August of 2016, when introducing new orders for carbon emission reduction he said “the one thing that we have to accept as a state and a country is that we are going to continue to move toward cleaner energy”. In a Denver Post opinion piece, he says that Colorado, in the spirit of the Obama Administration’s energy agenda, needs to have a diverse and various energy production market, which would include oil, gas, wind, and solar, but makes absolutely no mention of nuclear energy.

Colorado’s current energy focus as of March 2017 has been largely to increase wind and solar farms. One of the largest projects focused on has been Xcel Energy’s Rush Creek Wind Farm. The project consists of a wind farm that has a top capacity of 600 megawatts and a 90 mile transmission line to move the generated electricity. The project will take up about 95,000 acres and cost around $1.1 billion. Xcel plans on being heavily subsidized through production tax credits from the federal government under the Obama Administration’s Omnibus Appropriations Act.

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History of Nuclear Energy in Colorado

Colorado’s history with nuclear energy is limited. Only one nuclear reactor has been built in the state, and it has since closed down. The plant was located east of I-25 near Plateville, and was named the Fort Saint Vrain Plant. It was built, owned, and operated, in a limited capacity, by the Public Service Company of Colorado, which now goes by the name Xcel Energy.

The Public Service Company acquired a license to build their high-temperature, gas-cooled reactor in 1973, and invested $240 million to build it. The plant began operating in 1979, and remained in operation for 10 years. Until it was transformed in 1989, it only operated, on average, at about 14.6% it capacity. In 1989, the Public Service Company transformed it into a natural gas electric generator for an additional $340 million, and spent $25 million to build a spent fuel storage. This fuel storage is still on site and is under the discretion of the United States Department of Energy.

Though there have been no other nuclear energy reactors in Colorado, the state has a significant history with uranium mining, which is a primary source of fuel for nuclear energy. The state’s history with uranium mining dates back to the early 1900s, when radium and vanadium experienced a huge production boom, which are accessory minerals to uranium.

During the 1940s due to the emergence of nuclear weapons, uranium was specifically targeted in Colorado in mass, which continued through the 90s due to a potential nuclear energy increase in the United States. One of the most significant producers of uranium in Colorado is the Uravan Mining District in Montrose County which contributed over 850 tons of Uranium to the Manhattan Project. From 1947 to 1970, the Uravan district mined and produced around 24 million pounds of uranium ore. Along with the Uravan Mining District, Colorado has hosted the Schwartzwalder Mine in Boulder, which produced 17 million pounds of uranium ore; the Thornburg mine, which produced 1.25 million pounds of uranium ore; the Cyprus Hill mine at Hansen Creek, which produced 25 million pounds of low grade uranium ore; and many other smaller operations.

According to the Colorado Energy Office, there has been no uranium mining in the state of Colorado since 2009. However, there are still 18 active uranium mining sites permitted, 12 on temporary cessation, and 1 pending approval in the state as of 2014. Though these active mines are permitted, none are actually operating.