Boulder businesses concerned that municipalization would increase rates

April 27--Boulder business leaders believe that renewable sources of energy are likely to cost their companies more and that their electricity rates will increase if the city forms a municipal utility, according to a survey by Leadership Boulder County.

Members of Leadership Boulder County, a program run by the Boulder Chamber, presented the results of their survey to the City Council on Tuesday afternoon at an energy roundtable discussion.

"We did an online survey that we distributed through chamber members," said Garett Brownlee, director of college and career programs for the I Have a Dream Foundation and one of six young community members participating in the current session of Leadership Boulder County.

The survey asked business leaders about issues surrounding the future of where Boulder gets its electricity. The city's franchise agreement with Xcel Energy expired at the end of last year, and the City Council is considering whether to stick with Xcel or start a municipal utility.

Council members have said they'd like Boulder to get a larger percentage of renewable energy in its electricity supply in either case.

Nearly a quarter of the respondents questioned the city's ability to run an electric utility, and few had heard of other successful municipal utilities, even though they exist in towns such as Longmont and Fort Collins.

About 70 percent of respondents said renewable energy "is of critical importance to any long-term plan" and that their "core business strategies support a sustainable energy strategy in Boulder."

But while Boulder businesses seemed supportive of renewable energy, that support wavers if the renewable energy increases rates. About 65 percent of respondents said their companies cannot afford an increase to their energy bills.

Brownlee told council members that the survey results "shout" for more outreach and education to the business community as the city moves forward.

A team of consultants is working to provide some of the numbers that are now being guessed at, including whether starting a municipal utility would increase rates and how renewable energy would affect rates.

After the presentation, Councilman George Karakehian -- owner of Art Source International on the Pearl Street Mall -- said the results did not surprise him.

"I would expect the business community would be skeptical," he said. "When they turn on a switch, it needs to go on and it can't be too expensive."

Karakehian also said education would help. For example, he said, concerns over the city's ability to run an electric utility may be unfounded because the city has long run the local water utility.

"We do have experience running a utility," he said. "This is not new stuff."

Contact Camera Staff Writer at 303-473-1327 or sniderl@dailycamera.com.

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