Babcock, E., N. El Mallakh, and T. Smith. (2019). The Denver-Xcel Energy Memorandum of Understanding: A New Model for City-Utility Cooperation. Solutions 10(1): 10–13. https://www.thesolutionsjournal.com/article/the-denver-xcel-energy-memorandum-of-understanding-a-new-model-for-city-utility-cooperation
Idea Lab Noteworthy The Denver-Xcel Energy Memorandum of Understanding: A New Model for City-Utility Cooperation by Elizabeth Babcock, Nadia El Mallakh, and Tyler Smith
X
cel Energy—Colorado and the City and County of Denver have entered into an innovative partnership model to achieve their ambitious goals for carbon-emission reduction and clean energy generation. The Energy Future Collaboration seeks to align the efforts of the City and the energy company to create a clean energy future that will benefit the city of Denver, its residents and businesses. Denver has a long history of leadership on climate change. The City conducted its first greenhouse-gas inventory in 2005, has reported to the Carbon Disclosure Project (CDP) since 2012, released its first Climate Action Plan in 2007 (meeting its goals ahead of schedule) and published its first Climate Adaptation Plan in 2014. Denver was also one of the first cities to sign on to the Mayors’ Climate Protection Agreement of the U.S. Conference of Mayors, the ambitious Mayors’ National Climate Action Agenda and the Global Covenant of Mayors. Denver Mayor Michael B. Hancock reinforced that Denver remains committed to the target of the Paris Climate Agreement by signing the We Are Still In pledge. One day after Denver Mayor Hancock’s State of the City message in July 2018, he introduced Denver’s 80 x 50 Climate Action Plan. The plan is a detailed roadmap to reduce carbon emissions 80 percent by 2050 from a 2005 baseline. Denver’s goal is to move city facilities to 100 percent renewable electricity by 2025. Its aspirational goal would reach the same target community-wide by 2030, while looking for ways to
cut operating costs and bring climate programs to low-income families and other vulnerable communities. “I know those are bold, aspirational goals, and I know cost and technology will determine how we get there,” Hancock said in his 2018 State of the City speech. “But we must act, and I’m grateful for our partnership with Xcel Energy, the nation’s leading utility when it comes to reducing emissions and building a path toward a clean energy future.” In December 2018, the company announced the most ambitious cleanenergy goals in the industry: to reduce carbon emissions 80 percent by 2030 from 2005 levels. Longer term, Xcel
As the largest electric provider in Colorado, Xcel Energy demonstrated the same vision in its “Colorado Energy Plan.” Approved by state regulators in 2018, the Colorado Energy Plan will boost renewables’ share of electric generation to 55 percent by 2026, and cut emissions 60 percent statewide. Sixteen stakeholder groups, including the City and County of Denver, signed onto the plan. It was endorsed by scores of others, including economic development groups, other municipalities, large customers, independent power producers, environmental and conservation agencies, consumer advocates and industry associations.
We must act, and I’m grateful for our partnership with Xcel Energy, the nation’s leading utility when it comes to reducing emissions and building a path toward a clean energy future. —Mayor Michael B. Hancock Energy’s vision is to serve all of its customers with zero-carbon electricity by 2050—while keeping reliability, affordability and local economic benefits top of mind. While 2050 is decades away, Xcel Energy has put the stake in the ground now to allow the necessary lead time to develop the innovative technology, partnerships and supportive policy to help drive this vision forward.
10 | Solutions | January 2019 | www.thesolutionsjournal.com
As the first step, Xcel Energy and the City and County of Denver signed a joint Memorandum of Understanding (MOU) in February 2018 to create a new “Energy Future Collaboration.” Along the way, Xcel Energy executives and City staff came to realize what a powerful tool they were creating, with benefits that extend far beyond city or even state borders and the potential to become