Gunnison City Council on Tuesday signed an agreement that will make the city one of only three municipalities in Colorado to receive 100% of its electricity from renewable sources — reaching a goal outlined in the sustainability plan council adopted in 2022.
The “Green Energy Program” is offered by the city’s power supplier, the Municipal Energy Agency of Nebraska (MEAN) — an electricity cooperative that provides energy to municipalities across four states including Colorado. By signing on to the program, the city calls for an increase in the amount of renewables — wind, landfill gas, solar and hydropower — sold to the city each year to meet Gunnison’s 100% carbon-free goal.
Following a public hearing during a regular meeting on March 28, city council also approved a 3% rate increase on electricity in the city. Of the total increase, approximately half will cover the cost to receive carbon-free energy from the city’s power supplier, The remaining 1.4% will offset significant material cost increases such as transformers, poles and wire, according to Public Works Department staff. The rate increase will go into effect on the May 10 billing cycle.
The city’s 2023 budget included a projected rate increase of 5%, but after some adjustments with MEAN, staff were able to reduce the percentage, said Finance Director and Interim City Manager Ben Cowan.
According to staff, the Public Works Department has been working with MEAN for almost five years to achieve the goal of 100% renewable energy. It is an opportunity that might not be readily available again, as the demand for renewable energy sources rises, said Electric Superintendent Will Dowis.
Roughly half of MEAN’s existing electricity portfolio is produced by renewables, while the rest is produced by coal and natural gas. The city’s entry into the new green program would allocate a portion of MEAN’s limited pool of carbon-free sources for Gunnison.
The city’s recently adopted sustainability plan states that by 2024, Gunnison hopes to purchase 100% carbon-free electricity from MEAN, supplying residents and businesses with energy that does not use fossil fuels and is non-carbon emitting. In 2021, 57% of Gunnison’s energy was sourced from renewables. The percentage had dropped from 78% the year prior when the city lost wind and some of its hydropower allocation due to low flows along the Colorado River.
Because signing on for green power accounts for approximately half the rate increase, Council member Mallory Logan said it feels like a disincentive to buy into green programming. She said she felt a little hesitation about signing onto the Green Energy Program, even though it’s something Gunnison has been working toward for a long time.
“How green is it?” Logan asked “How renewable is it? How much of an impact is it really [having] in the climate of sustainability? Are we just charging this extra 1% as a feather in our hats?”
The climate of the economy has changed drastically in the last couple of years, she continued.
“I'd be more gung ho about it if MEAN was saying nobody wants this power except Gunnison … But I don't think that's the case right now,” Logan said.
According to Public Works Director David Gardner, a large demand exists for renewables. As cities like Gunnison get in line for it, it gives MEAN the incentive to try and meet that demand, he said.
“There’s many towns behind us that will sweep this up if we don’t take it,” Gardner said.
Given the rate of building new solar and wind farms, declining the program would move Gunnison to the “bottom of the list,” said councilor Jim Gelwicks. Gunnison fell behind Glenwood Springs, which transitioned to 100% renewables in 2019.
“You're probably saying that you're not going to be 100% renewable for a decade,” Gelwicks said. “That's just the reality of the cost of building it and getting it done. It's limited.”
Despite the rate increase, Gunnison’s residential rate was the fourth lowest in Colorado among the 46 utilities that participated in a statewide survey in 2022. Cowan estimated that the rate increase will cost customers on average an extra $2 per month.
Buying into wind and solar are long-term investments, Cowan said. Although it wouldn’t have an immediate impact on MEAN if Gunnison weren’t to participate, municipalities’ push for more renewables puts pressure on the co-op to pursue green contracts, rather than coal.
“If everyone didn't participate, then over time those resources would not be invested in,” Cowan said.
A new cost for vacant property
After months of discussion, city council also unanimously passed an “availability of service” or vacant property fee — a new fee for properties that are tapped into, but not actively using, the city’s water, electric and sewer utilities.
The development of the ordinance stemmed from the council’s desire to find a way to manage abandoned properties within city limits while pressuring owners to renovate, occupy or sell the property.
The fee will apply to unoccupied homes or structures with existing service lines, as well as empty short-term rentals. The cost of having access to all city utilities would amount to approximately $113 per month, but would vary depending on the services available to the property. The fee will not go into effect until Sept. 1. Cowan estimated that the fee would only impact approximately 30 to 35 customers.
(Bella Biondini can be contacted at 970.641.1414 or bella@gunnisontimes.com.)
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