Directors scrap rates but one coop manager says this issue will have to be addressed within a year or two
Directors of Holy Cross Energy this week voted to rescind the electric rate changes they had adopted earlier this year.
The board had adopted the rates, to take effect this fall, but then agreed to suspend them when the solar industry and others objected strenuously. This shelves those rates permanently.
In response to those objections, the Colorado Energy Office in May convened meetings. Those meetings continue.
Still unresolved are fundamental disagreements. Holy Cross — and many other utilities — see the current rate structure as unfairly rewarding owners of rooftop solar at the expense of other ratepayers, including those of lower incomes. For a full explanation, see this Big Pivots story from June 29.
The lingering disagreement was reflected in the quote from Bryan Hannegan, the chief executive at Holy Cross. The cooperative, he said, “remains committed to a responsible transition to a clean energy future that is equitable and inclusive for all our members.”
The solar industry has acknowledged that rates must change but argued that they were dramatically premature in the case of Holy Cross.
Other cooperative managers – including those deeply engaged in the energy transition – have said that incentives for rooftop solar must correspond with the benefits.
Mark Gabriel, at United Power, who has been involved in the state-convened discussion, said adjustments in rates will be necessary, but those discussions will be better conducted in the next year or two.
- Climate change lawsuit gets green light - May 13, 2025
- Going electric with Fred and Wilma - May 12, 2025
- Does no in Pueblo really mean no? - May 9, 2025
We need rate structures which reward use (i.e. that are cheap) during periods of peak renewable production, whether wind or solar or both. So that’s a problem for solar-only owners. They need storage.
I like the system devised by Octopus Energy, which started in the UK, but serves Texas too now. It particularly rewards folks who live near wind and solar farms, greatly increasing local support. Big variations in energy charges, but no demand charges. Incents onsite storage too.
https://octopusenergy.com/fanclub
https://octopusenergy.com/smart-features
https://octopus.energy/build/
Where do you see this principle being applied in the context of Colorado, Fred?