Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: January 22, 2026

Agenda Title Consideration of a motion authorizing staff to send a letter from the City Council to Xcel Energy.

Staff Contact • •

Jonathan Koehn, Director of Climate Initiatives Carolyn Elam, Sustainability Senior Manager, Climate Initiatives

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to authorize the City Manager to send the letter from the City Council to Xcel Energy as shown in Attachment A.

Executive Summary At its November 6, 2025, meeting, City Council discussed whether to commission a communication with Xcel Energy (Xcel) about the progress associated with the Boulder-Xcel Partnership and the 2025 opt-out point. Council directed staff to draft a letter to Xcel on council’s behalf that memorializes the decision not to exercise the opt-out provision and setting council members’ expectations to serve as a framework for evaluating future opt-out opportunities. The attached draft communication outlines areas of concern, including missed emissions milestones, slower-than-expected progress on partnership projects, energy affordability challenges, and significant reliability events, and sets forward explicit expectations for the next five years. It also acknowledges areas of success and progress in the partnership.

Council is asked to consider approval of the letter so that City Manager may deliver it to Xcel’s leadership.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, staff will transmit the communication to Xcel on behalf of Council.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft letter, including the content or expectations outlined.

Deny the motion or take no action

If this motion is denied, no communication will be sent to Xcel Energy.

Refer back to staff

If council refers this item back to staff, additional revisions would be made prior to further action.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area •

Safe

• • •

Responsibly Governed Environmentally Sustainable Economically Vital

Citywide Strategic Plan Strategy 2: Advance efforts to enhance regional disaster prevention, preparedness, and response that leverage existing partnerships and prioritize city investments. Strategy 10A: Expand efforts that eliminate carbon from (“decarbonize”) the built environment, vehicles, and operations and replace fossil fuel-based energy systems.

Staff Notes The communication advances the city’s climate, energy, and resilience goals by clearly articulating expectations for Xcel’s performance on emissions reductions, reliability, affordability, wildfire mitigation, and support for distributed energy resources.

Alignment with Additional City Plans The specific objectives identified in the communication to Xcel Energy align with: •

• •

Boulder Valley Comprehensive Plan: Section 1 (Utilities); Section 3.2 (Wildfire risk); Section 3.32 (Air Quality); Section 4 (Energy, Climate & Waste); and Section 8 (Community Well Being and Safety). Climate Action Plan Community Wildfire Protection Plan

City Council History At its March 13, 2025 Study Session, council was provided an update on the Xcel partnership activities. The overall discussion centered on the evolution of the partnership, where there has been progress and where there are opportunities for improvement. During the discussion with Xcel leadership, council members emphasized the need to ensure that the future state of the franchise and partnership are aligned with Boulder’s energy goals and community priorities. Key topics included system reliability, wildfire risk reduction, equitable energy access, affordability and Boulder’s long-term role in energy planning. Council members expressed a strong interest in seeing tangible results from the partnership strategies to continue the support for the franchise and energy partnership. At its November 6, 2025 regular meeting, council supported a motion to direct staff to draft a letter to Xcel on council’s behalf that will incorporate a summary of input from the March Study Session. The draft letter was deferred from the January 8, 2025 special meeting agenda so that staff could incorporate additional comments from council. The draft letter (Attachment A) memorializes the council’s areas of concern and opportunity.

Analysis 2025 marked the five-year point of the City of Boulder’s Franchise Agreement and Energy Partnership Agreement with Xcel. This milestone is a key opportunity to assess whether the expectations of the franchise are being met and whether the partnership is delivering the speed, scale, and outcomes needed to achieve Boulder’s climate, reliability, and affordability goals.

The communication to Xcel outlines five primary areas of concern: 1. Reliability issues, including the recent Public Safety Power Shutoff (PSPS), summer safety settings, customer service challenges, and recent outages unrelated to wildfire threat. 2. Failure to meet the 2022 and 2024 emissions milestones, foundational commitments to Boulder’s decision to enter the franchise. 3. Slower-than-expected progress on partnership initiatives such as fleet electrification and streetlight acquisition. 4. Affordability challenges for residents and businesses facing rising utility bills. 5. Public health risks associated with the legacy operations and clean-up of the Valmont coal plant. The letter also recognizes areas where Xcel has demonstrated progress, including completed undergrounding projects, work at the legislature and PUC, and steps underway to improve wildfire safety and reliability. The letter prioritizes future expectations and sets forward explicit criteria council will evaluate in future opt-out decision years, including: • • • • • •

Affordability and customer benefit Progress toward emissions goals and coal plant retirements Completion of wildfire mitigation commitments Responsible reconstruction of Transmission Line 9216 Support for gas-to-electric transition on Pearl Street and through the Gas Planning Pilot Improved reliability and modernization of the grid

•

Transparent and proactive collaboration on local distributed energy resources

•

Expedient and safe cleanup of Valmont coal ash with third-party air monitoring

These expectations represent essential components of an effective partnership and will be used to guide Council’s opt-out assessments in 2026 and beyond.

Equity Analysis Energy affordability, reliability, and access to clean energy solutions are central equity concerns. While a formal equity assessment was not conducted, the communication emphasizes protections for vulnerable residents and the need for equitable benefits from the clean energy transition. It also recognizes the disparate impact to vulnerable populations as a result of historical coal plant operations and potential exposures from remediation efforts.

Fiscal Note Estimated Fiscal Impact Narrative Transmitting the communication has no direct fiscal impact. Staff time required to support ongoing partnership monitoring and engagement is already included in existing budgets.

Climate, Resilience, and Sustainability Considerations While this item is primarily administrative in nature, the communication with Xcel seeks to accelerate progress on emissions reductions, clean energy deployment, grid modernization, wildfire mitigation, and distributed energy resources, all of which are central components of Boulder’s climate and resilience strategy.

Community Engagement Staff did not conduct community engagement explicit to the development of the draft letter to Xcel. However, extensive engagement informed the March 2025 study session and representatives from the Community Partnership Advisory Panel participated in that session. Additionally, council members and city staff have received extensive messages from community members expressing concerns about energy affordability, reliability, and coal ash remediation, many of which urged council to clearly articulate expectations for Xcel. During its November 2025 discussion, council cited community feedback received, including messages received via hotline, and conveyed their desire for this community feedback to be incorporated into the letter drafting. Staff has summarized these concerns and incorporated them into the expectations framework outlined in the letter.

Workplan Considerations This work aligns with the Climate Initiatives Department’s ongoing responsibilities for monitoring the franchise and energy partnership and supporting council’s periodic decision-making.

Next Steps for City Council If approved: • •

The City Manager will transmit the communication to Xcel’s leadership. Staff will continue to monitor partnership progress and prepare updates for council ahead of future opt-out years.

Accessibility Statement The City of Boulder is committed to digital accessibility. Some content may not be fully accessible due to technical limitations or issues. For alternate formats or accommodations, please visit Accessibility | City of Boulder or contact accessibility@bouldercolorado.gov.

Attachments Attachment A: Draft letter from Boulder City Council to Xcel Energy