HomeMy WebLinkAboutResponse to Constituent Letter - Mail Packet - 09/16/2025 - Letter from Mayor Jeni Arndt to Energy Board re Extension of Platte River’s Organic Contract & Power Supply Agreement
Mayor
City Hall
Fort Collins, CO 80522
970.416.2154
970.224.6107 - fax
fcgov.com
September 11, 2025
Energy Board
c/o Christie Fredrickson, Staff Liaison
PO Box 580
Fort Collins, CO 80522
Dear Chair Smith and Board Members:
On behalf of City Council, thank you for providing us with the September 8, 2025 memorandum
regarding the extension of Platte River Power Authority’s Organic Contract and Power Supply
Agreement.
We understand that the Board recommends City Council approve the extension due to the
benefits of extending the end dates and in consideration of the well-established partnership
between the City of Fort Collins, PRPA, and the other owner communities.
City Council will be considering the PRPA Organic Contract agenda item on Tuesday,
September 16 starting at 6:00 p.m. We encourage you to watch the session via fcgov.com/fctv or
in person at City Hall, 300 Laporte Ave., Building A as schedules permit.
Thank you for the expertise and perspectives that you bring to the Board and share with City
Council.
Best Regards,
Jeni Arndt
Mayor
/sek
cc: City Council Members
Kelly DiMartino, City Manager
Utilities – Energy Board
700 Wood St.
Fort Collins, CO 80522
970.221.6702
970.416.2208 - fax
fcgov.com
M E M O R A N D U M
DATE: September 8, 2025
TO: Mayor Arndt and City Councilmembers
FROM: Brian Smith, Energy Board Chairperson
RE: Extension of Platte River’s Organic Contract & Power Supply Agreement
BACKGROUND
During our regular meeting on July 10, 2025, the Fort Collins Energy Board received an update from
Fort Collins Light & Power Director Travis Walker regarding the proposed extension of the Organic
Contract and Power Supply Agreement, which would move the current end dates from 2060 to
2075.
ENERGY BOARD DUTIES AND FUNCTIONS
The Energy Board has considered the proposed extension of the Organic Contract and Power
Supply Agreement as presented by staff in accordance with our chartered duties and functions,
specifically:
(2) To advise the City Council and staff in developing City policies that encourage the
incorporation of energy conservation and efficiency, carbon emissions reduction and renewable
energy into the development and provision of City utility services, the design and construction of
City transportation projects, and the way in which the City impacts the overall built environment
within the community;
(3) To advise the City Council and staff regarding the alignment of energy programs and policies
with City, ratepayer and community values and service delivery expectations.
OBSERVATIONS
• Enhanced Flexibility for Renewable Integration: The proposed extension provides PRPA with
the long-term stability necessary to invest in renewable energy infrastructure, including so-
lar and battery storage systems, which are essential for meeting the city's renewable energy
targets.
• Governance and Operational Modernization: Updates to the Organic Contract and Power
Supply Agreement include modernizing governance structures and incorporating language
that accommodates emerging technologies such as distributed energy resources and vir-
tual power plants, ensuring the agreements remain relevant in a rapidly evolving energy
landscape.
• Financial Planning and Bonding Capacity: Extending the agreements supports PRPA's fi-
nancial planning, including the ability to issue bonds for infrastructure investments, there-
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by facilitating the necessary capital expenditures to modernize the energy grid and integrate
renewable energy sources.
• Regional Collaboration and Policy Alignment: The extension reflects ongoing collaboration
among owner communities, ensuring consistency in energy policy and joint efforts to
achieve shared sustainability and renewable energy goals.
• Limits on Fort Collins Utilities and Residential Generation: The Power Supply Agreement
places limits on Fort Collins Utilities electricity generation to 1% of peak load and purchase
from retail customers of off-premises generation limited to “the customer’s annual average
electricity consumption,” except by PRPA consent. These provisions invite examination and
have brought some stakeholder concerns, especially in view of the nearly 50-year term of
the agreement. We note that while the energy landscape will certainly change over the term
of the agreement, we do not envision circumstances where it would benefit the community
to directly compete with PRPA by generating a significant proportion of consumed electrici-
ty from new City-owned infrastructure. Likewise, the explicit support in the agreement of
on-premises electricity generation and storage by retail customers, as well as VPP partici-
pation, help address these concerns. Finally, we note the following language committing
PRPA to engage in good faith discussions regarding unforeseen increases in Fort Collins’
electricity generation: “Platte River commits that it will meet with Fort Collins to discuss in
good faith an increase in the total rated capacity limit.
RECOMMENDATIONS
Given the benefits and advantages of extending the end dates and considering the mutually
beneficial and well-established partnership between the City of Fort Collins, the Platte River Power
Authority, and our fellow owner communities, the Energy Board recommends supporting the
proposed extension. In doing so, the Board emphasizes the importance of ensuring that PRPA
continues to prioritize system reliability, accelerate the transition to renewable energy resources,
and maintain its commitment to reducing carbon emissions in line with Fort Collins’ Our Climate
Future goals. The Board believes that advancing the contract extension in tandem with these
priorities will reaffirm the community’s values and long-term energy and climate goals.
As always, the Energy Board is grateful for the opportunity to provide comment and appreciates
City Council’s consideration.
Respectfully submitted on behalf of the Energy Board,
__________________________
Brian Preston Smith, Energy Board Chairperson
Energy Board
cc: Brian Tholl, Energy Services Director
Travis Walker, Light & Power Director
Christie Fredrickson, Energy Board Support
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