Associated Governments of Northwest Colorado leading on plan for Colorado energy transition

By Lindy Browning | Contributing Writer, Rocky Mountain Voice

As local governments on the Western Slope face the reality of the Craig Power Station closure and in preparation of Gov. Jared Polis’ mandated clean energy plan, Associated Governments of Northwest Colorado are announcing that Northwest Colorado Energy Initiative (NCEI), a program under AGNC and managed by Matt Solomon, have received a $75,000 Energy Communities Alliance Grant.

The grant will enable NCEI to launch its next phase of work, focusing on creating a regional coalition and fostering collaboration across multiple states. This phase includes the development of a multi-state stakeholder map, guided by the Department of Energy’s Energy Transition Playbook.

The stakeholder map will connect local governments, private industries, educational institutions and community organizations, ensuring coordinated efforts to strengthen the workforce and stabilize the tax base.

Economic Development Districts (EDDs) from rural, energy-burdened communities are serving as the golden thread in building the framework for a regional hub. By leveraging the expertise and networks of these districts, NCEI is ensuring that local needs and perspectives remain at the forefront of the planning process.

“This award builds on the foundation we’ve established, positioning Colorado as a leader in energy transition strategies,” said Matt Solomon, project manager for NCEI.

The progress achieved through earlier initiatives of NCEI efforts has prepared the region for this new phase. As Northwest Colorado transitions away from coal, with three mines and two coal-fired power plants set to close by 2028, the region faces substantial economic challenges.

This grant will help address these impacts by advancing plans for a regional energy hub that integrates renewable energy, fossil fuels and nuclear power. By focusing on economic resilience, knowledge-sharing and stakeholder engagement, NCEI seeks to empower communities and create long-term stability for the region.

In order to help facilitate the mission of the next phase, Wade Haerle has been hired as the field coordinator, working to engage the identified stakeholders in the region.

In this role, Haerle will lead the development of the stakeholder mapping and facilitate engagement across economic development districts in Utah and Arizona, with upcoming meetings scheduled with groups from New Mexico, Wyoming and the Navajo Nation. This regional approach underscores the interconnected nature of energy transitions and highlights the importance of collective problem-solving.

“Together, these grants form a cohesive strategy for establishing a regional energy hub that will guide Northwest Colorado from a coal-dependent economy to a diversified, sustainable and resilient future,” Solomon said.

He continued, “The ultimate goal is to move away from an ‘either/or’ mindset, where communities must choose between different energy sources, to an “and” mindset, where a diversified energy portfolio including fossil fuels, renewables and nuclear can coexist and support a sustainable future. This inclusive approach is critical to building a resilient regional economy that can withstand the challenges posed by political, technological and demographic changes.”

With the imminent closing of Craig Power Station, because of what some blame as the never-ending war on fossil fuels from state and federal administrations, the members of AGNC have been working on a plan to replace the jobs lost, the lost revenue and meet the energy needs that are soon to drop offline as a result of the power stations closing.

To that end, AGNC through NCEI conducted a grant-funded survey beginning in 2023.

“The focus of NCEI has been to facilitate fact-based discussions around the energy transition… This is not possible without the support of the communities, local media and elected officials,” Solomon said.

As Northwest Colorado considers options for replacing coal-fired, electricity-generating power plants, this survey was launched to hear the views of stakeholders on one of the options, nuclear energy, as it compares to the other options being considered. The focus on nuclear energy in this survey came as a result of questions and comments from 2023 outreach efforts.

AGNC is comprised of elected officials from Rio Blanco, Moffat, Garfield and Mesa Counties, as well as elected officials from municipalities from Craig, Colbran, Battlement Mesa, Debeque, Dinosaur, Rangely, Fruita, Hayden, Meeker, New Castle, Palisade, Rifle, Silt, Parachute and Yampa.

According to an analysis and report put out by the Independence Institute, in conjunction with the Center of the American Experiment, the complete electrification of residential heating, combined with Polis’ goal of a 100% renewable electricity grid by 2040, would cost Coloradans up to $620.7 billion through 2050.

As noted in the executive summary of the analysis, under the Polis plan, residential, commercial and industrial Colorado electricity customers would see their average monthly bills increase to $797 through 2050. They would peak at an average of $1,143 in 2040.

“The typical Colorado household would see their average monthly electricity bills increase to an average of $566 through 2050, and they would reach as high as an average of $856 in 2040,” the document reads. 

The report indicates that a typical Colorado household would see their average electric bill increase to about $550 dollars a month through 2050.

“To meet Colorado’s present-day electricity demand, as well as the additional demand created by electrifying home heating with only wind, solar, existing hydropower and batteries, the state would need to install 12 times the generation capacity currently on the grid,” the summary reads.

The report says there is an alternative plan that allows Colorado to meet the Polis electric-sector and residential home heating decarbonization goals on the same timeline, without reliability issues and at less than a third of the cost, by transitioning the state’s generating assets to nuclear energy.

Although AGNC and the Independence Institute / American Experiment are two separate entities, and are in no way collaborating on solving the conundrum of the Polis plan, there seems to be some agreement concerning the imminent challenges to the future needs for Colorado Energy.

Both entities agree that it is going to take collaboration, innovation and a best of the above approach, driven by local communities to meet the goals of affordable and reliable energy in Colorado’s future.