How Platte River is proactively managing the costs of a clean energy transition – BizWest

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Platte River Power Authority is the wholesale electricity supplier to Estes Park, Fort Collins, Longmont and Loveland. As a public utility, Platte River takes seriously its responsibility to maintain the core pillars of its organization of providing its owner communities with reliable, environmentally friendly and financially sustainable energy and services.

Since its inception, the organization has taken steps to maintain financial stability through the implementation of a strategic financial plan that continues to result in a strong creditworthiness, enabling access to low-cost capital. Additionally, Platte River’s strategy of owning and exploiting base resources and securing financially advantageous fuel supplies has led to a low-cost and reliable system over the past several decades.

In 2018, the Platte River Board of Directors adopted the Resource Diversification Policy, setting the goal of achieving a 100% carbon-free energy portfolio while maintaining core pillars. Platte River’s resource planning staff immediately went to work to help identify the resources and investments needed to implement the policy. At the time, prices for renewable energy projects were trending downward, and industry information supported the assumption that this trajectory would continue. Additionally, Platte River was one of the few utilities with accelerated decarbonization plans.

Much has changed since the adoption of the Resource Diversification Policy. The global pandemic has caused widespread supply chain problems and contributed to rising costs of labor, capital, equipment and new resources. State and federal clean energy policies have also created intense competition for renewable resource projects and related equipment and personnel.

“Nothing has gone our way financially over the last few years that would help us make this change,” says Jason Frisbie, CEO of Platte River. “The costs of wind, solar, capital and labor continue to rise, so in this volatile environment we must make timely resource commitments to stay on track to meet our 2030 goal.”

To achieve its Resource Diversification Policy, Platte River is replacing long-term, low-cost pre-normal retirement assets with more expensive renewable and low-carbon resources. As costs rise across the industry, average increases in wholesale rates will support this energy transition.

Because electricity is an essential service to public health and safety, it is critical that no one goes without power, and everyone deserves a clean energy future that is reliable, environmentally friendly and financially sustainable. A proactive strategy of gradually increasing wholesale rates helps minimize the financial impact and reduces the need for significant one-year wholesale rate increases during the transition period.

Platte River will continue to be informed by the work on its Integrated Resource Plan and will add renewable energy sources and dispatchable capacity to best achieve its 100% carbon neutral goal.

“We are decarbonizing our energy portfolio because our communities have asked us to,” says Dave Hornbacher, Longmont deputy city manager and Platte River board member. “We are implementing every means available to achieve this goal in the most cost-effective way to ensure no one is left behind.”

To learn more about Platte River’s commitment to a clean energy future, visit prpa.org/future.