We’re going to be exposed to future fuel price volatility one way or another. If we stick with Xcel, it’ll be coal prices which seem low today, but are difficult to hedge against. If we strike out on our own, it’ll be gas prices, which are about the same cost as coal today, and are easier to hedge with renewables. Obviously $0.142/kWh is a lot more than our power costs today, but one has to imagine that if gas prices have doubled, coal prices are also likely to be changing. In that kind of uncertain energy future, having a grid with a very predictable long term cost of energy would become attractive to businesses, which will often pay a hedging premium to lock in a predictable price they can plan their operations around.
Read the entire article at AmateurEarthling.org: Boulder’s Energy Future Is Bright.
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