HB 11 – 1228                                                   

Economic Development through Distributed Generation

A large body of domestic and international research suggests that the most economically efficient, democratic, market-based approach for proliferation of clean renewable energy  is a policy based on a feed-in tariff mechanism at the local “distributed generation” level. This bill represents legislative endorsement of an independent study to discover the essential elements of a successful distributed generation energy policy for Colorado, and quantify the effects  that such a comprehensive policy would have on Colorado’s economy, jobs, and public health.  

Benefits of an ED/DG policy

• Spurs economic development and creates jobs

• Gives homeowners, businesses, farmers and ranchers their choice of power source

• Creates wealth and participation opportunities across the entire economic spectrum

• Attracts development capital and entices local ownership

• Increases tax revenue for cities, communities and the state of Colorado; the multiplier effect

• Implements local renewable energy faster than via utility-scale power plants

• Creates a much more efficient marketplace than we currently have, resulting in lower risk and lower project costs

• Minimizes parasitic costs & delays, through price certainty and transparency

• Drives open market competition among renewable energy equipment manufacturers,  offering the best value proposition

• Protects property rights through less transmission buildout

• Improves the security of our electrical grid and reduces our reliance on energy from outside Colorado

• Reduces public health impacts of coal-fired generation

• Creates our own energy destiny.

Technical aspects of a policy for  Economic Development through Distributed Generation

• Eligibility is open to all existing and proven renewable energy generation options (both electrical and heat generation)

• Utilities give a standard fixed-price offer  to new local renewable energy generators

• The offer includes a long term contract, commonly 20 years

• Rates are set by an independent commission

• Timely access / interconnection to the grid  is guaranteed

• Projects connect to local distribution lines, not regional transmission infrastructure

• A fair energy price is offered to renewable energy generators

• A reasonable return on investment is built in   to drive demand

• The contract between the utility and the power generators is “seller friendly,” assignable to a third party, and compatible with various business models and multiple technologies

• Dynamic rate adjustments following pre-established guidelines  control the amount of renewable energy implementation  and protect ratepayer exposure.