Budget and Policy Committee

Monday, June 8, 2026, 1:30 p.m. (Denver time), City & County Building, Council Committee Room, Room 391 1437 Bannock Street

Committee: Budget and Policy Committee

Video of the meeting

On the agenda

Documents

Summary

The Budget and Policy Committee held an informational session on the Xcel Energy franchise agreement and the companion Energy Partnership Agreement, presented by city climate office staff, the mayor's office, and Xcel Energy representatives. Staff described a working group and community engagement process launched after the agreement was not referred to the ballot the prior year, and said negotiations on the Energy Partnership Agreement continue, with a goal of finalizing it before returning to the Governance Committee on June 30 and referring the franchise agreement to the November 2026 ballot. Council members asked questions about substation siting and beautification, shareholder contributions, energy assistance, planned outage communications, accountability mechanisms, and the future removal of gas lines. No votes were taken; the item was information only.

Transcript

0:07 Welcome back to this biweekly

0:08 Committee of Denver City

0:08 meeting of Budget Impasse.

0:14 Council. As for the

0:18 discussion, Budget and Policy

0:21 Committee starts now.

0:27 And we are here at the Budget

0:28 Policy Committee. My name is

0:30 Diana Romero, Campbell, and

0:32 let's go ahead and get started

0:35 with start with council

0:35 members online. Becomes

0:40 members online. That good

0:41 afternoon, Amanda Sawyer

0:46 District 5. It would you like

0:48 us to start in the room now?

0:51 So she was our only window.

0:54 Yes, but please start to.

1:02 Takes like District 7 5, you

1:02 have watch and fine Monday for

1:06 most 6. Want as one of your

1:09 consumers at We resigns.

1:14 Denver's for everyone. Kevin

1:14 Flynn, Southwest numbers

1:20 District. Is a district

1:25 district pulling the was just

1:26 wonderful and again, my name

1:27 is Diana Romero. Campbell's

1:31 Denver District. 4. We have

1:33 Excel franchise agreement

1:36 presentation today we'll be

1:41 starting us off. I have city.

1:42 Starting we do need a moment

1:45 them. The moment there. Okay.

1:47 Hold, please. We're just going

1:48 to take a moment as everybody

1:51 get set

1:58 We will start just a minute.

2:09 We'll look sure. Florida. So

2:14 group and though.

2:45 It's it's going court when you

2:48 can

3:06 I saw It time get year. Have

3:08 you settle in and have you

3:09 introduce yourselves when you

3:14 are ready to go. Well, go

3:16 first. This time Jonathan

3:17 Rogers said call me Tony and

3:18 deputy executive director

3:19 Evers Office of Climate

3:23 Action. Sustainability and

3:25 Resiliency in Shannon,

3:25 different deputy project

3:26 scientist and send you them

3:29 chief operating dominant

3:38 combined. The present in

3:43 online with you introduce

3:47 yourself at he's just think

3:48 right. I think we're going to

3:48 go ahead and get started. He's

3:50 not online yet.

4:01 What we are here today to come

4:02 back for an update on the

4:05 Excel franchise agreement.

4:06 This is just an info item

4:07 today. You'll see us again on

4:10 the 30th. I governance

4:11 committee. So we wanted to

4:13 provide an update. We have our

4:16 partners from excel on their

4:19 way. They're also thanks.

4:20 We're coming right off of the

4:21 working group meeting. So that

4:22 all by. We came in a little

4:24 bit late and MAY even have

4:25 some members from our working

4:26 group. You're actually don't

4:28 see them. So apologies for the

4:32 delay. We are back to share

4:34 what we've been up to over the

4:35 last year. Last Aust formally

4:38 in AUGUST. A lot of what we

4:41 heard in those conversations

4:43 desire that we have far more

4:45 community outreach in council

4:46 outreach. And as we talk about

4:48 the franchise agreement its 20

4:49 year, agree with that. We

4:50 would like to have referred to

4:51 the ballot for the NOVEMBER

4:55 election. So what we want to

4:56 talk about is the work that

5:01 we've been doing sense we have

5:02 launched a working group and

5:03 have had 2 of your colleagues

5:06 as part of that working

5:08 counseling, parity and

5:13 counseling and we have varied

5:14 group of members that

5:17 represent different facets of

5:18 the community from

5:19 representatives the dog. He

5:21 advise Regroup desk has or

5:23 sustainability council as well

5:25 as representatives from the

5:26 Affordable Housing community

5:28 for double housing developers,

5:30 Labor, Environmental justice,

5:31 kind of across the board. We

5:36 tried to look and various

5:39 interests perspectives,

5:39 familiarity with that, the pc

5:40 process and otherwise. And we

5:45 have had a robust working your

5:46 conversations since JANUARY

5:48 late. I think FEBRUARY's when

5:50 we officially launched. So

5:51 it's been several meetings in

5:52 grand meeting 7 or 8 at this

5:54 point. We've been diving deep

5:56 into the Energy Partnership

5:58 agreement Accel as well. And

6:00 they'll be here just up at the

6:01 out the way and create some

6:01 table will probably maybe move

6:04 space for you all. They have

6:05 also initiated a city wide

6:07 community engagement process

6:09 across the city, including a

6:13 variety Reno presentations and

6:14 stakeholder group outreach,

6:16 phone calls, conversations

6:17 with this body as well. We

6:20 have also had breathing so

6:21 this body just had a listening

6:21 tour across the city and

6:22 they'll tell you a little bit

6:24 about what they heard and what

6:27 that has led at the company.

6:28 So for us, a lot of the focus

6:29 of our conversation has been

6:31 around the Energy Partnership

6:33 was I've known as the d to get

6:33 agreement and that last year

6:35 had a couple of different

6:39 iterations over time. But we

6:39 think that the Energy

6:42 Partnership agreement is a

6:45 great name to really signified

6:46 that working relationship

6:47 between the city and excel

6:49 over time and really

6:50 encapsulate the city's energy

6:50 goals and how we will work

6:52 together with the company to

6:54 achieve them over time. It's

6:57 really focused on 3 things.

6:58 Affordability, sustainability

6:58 and reliability, which we know

7:01 are important too. Our

7:02 citizens and the folks that

7:06 are within that that covered

7:09 touched by the franchise as

7:10 well. Largely what we've

7:11 talked about and heard from

7:13 the community our working

7:16 Sessions are these 5 things

7:17 listed that are really the

7:19 priorities that they want to

7:20 see in that franchise

7:21 agreement. Excuse me, in the

7:22 companion agreement, the

7:25 Energy Partnership Agreement

7:25 and we are currently still in

7:27 negotiations with excel. So

7:29 you'll see a couple of points

7:29 throughout the presentation

7:30 where there's a little thought

7:32 bubble. And that's because we

7:36 are deadly working at the

7:36 table exchange red lines and

7:37 going back and forth. Our goal

7:38 is to have that finalized for

7:41 you. By the time we come back

7:41 to committee in late JUNE. But

7:42 at this point will call those

7:45 items out as we get to them.

7:47 But it's really focused around

7:48 shareholder contributions.

7:52 Energy assistance support

7:54 pilots and the way that we

7:55 involve disagreement over time

7:56 writes a 20 year agreement.

7:58 It's incredibly long. And if

7:59 you think back to 2007 when

8:02 this agreement was signed and

8:03 approved last time around, we

8:03 were a very different city we

8:05 have very different

8:07 conversations and we expect

8:07 that's going to be the truth

8:10 between now and 2042 at the

8:13 end of this next iteration,

8:14 substation design. We know

8:17 that's deeply important to our

8:19 communities and how they co

8:20 exist with these spaces that

8:20 are so important to making

8:23 sure that we're moving forward

8:24 and that they are providing

8:25 that electrification that we

8:27 know we want to pursue. But it

8:28 also fits into the context in

8:30 character of those

8:30 communities. I'm how folks

8:34 interact with them every day.

8:35 And then finally reporting and

8:36 transparency, which is a lot

8:38 of why we're back. There

8:38 wasn't a lot of transparency

8:41 around this last iteration. We

8:42 came to in JULY and AUGUST of

8:45 last year. We feel like that

8:46 quite different. And we want

8:48 to continue that trend

8:49 throughout the life of the

8:50 agreement so that the next

8:52 time you hear about it is not

8:53 not. Hopefully none of us are

8:53 sitting around this table in

8:57 2042. Talking about it. Maybe

9:00 I will be I don't But along

9:01 the way for as long as we all

9:03 are and as long as this

9:04 agreements in place, we want

9:04 to make sure that it's clear

9:05 that we are achieving our

9:06 goals and how we're getting

9:10 there and have form for

9:12 conversation, but also

9:14 accountability. Both between

9:14 us and our goal is that the

9:17 that's I a change moving

9:17 city and the company. So

9:22 forward. So I'm going to kind

9:23 of toss around microphone to

9:24 different members of our team

9:26 and we're going to start with

9:27 really what most of the

9:28 conversation has been around

9:29 over the last few months. And

9:30 that's Energy Partnership

9:32 agreement. And John is going

9:33 Hurt. Thank you, City. Thank

9:34 you, councilmembers. Great to

9:37 see you all. So Cindy

9:39 mentioned, this was originally

9:41 energy and infrastructure

9:44 agreement to refer to a study

9:46 last We have rebranded as the

9:47 Energy Partnership Agreement

9:48 really reflecting what this

9:49 is, you partnership over the

9:52 next 20 years as we look

9:55 towards really providing that

9:56 affordable, reliable and

9:59 pollution-free energy future

10:00 for Denver writes beyond with

10:02 the system that were connected

10:05 to there's been substantial

10:07 movement across the board on

10:11 this agreement and we believe

10:12 goers during an what is gold

10:14 standard that community

10:15 utility partnership and the

10:15 Standard franchisee in

10:17 Colorado does not have an

10:20 agreement like this the city.

10:22 But boulder who exerting the

10:23 maximum leverage that one can

10:24 by walking away and funding

10:25 for municipal as Asian for 10

10:27 years and spending 10's of

10:28 millions of taxpayer dollars

10:32 in the process it up with, you

10:32 know, a handful of items. But

10:35 we really see items that go

10:36 over the course of the next 20

10:37 years going to be looking at

10:39 how do we achieve Denver

10:41 schools where we are a

10:43 national leader, one of only 8

10:44 leed Platinum cities in the

10:47 entire How do we achieve the

10:48 nation leading state targets

10:50 that we have to get to 0

10:51 greenhouse gas emissions as

10:52 quickly and equitably as

10:54 possible. And we are fortunate

10:56 to have a utility partner.

10:59 That is a national leader with

11:00 electric rates that are 37%

11:03 below the national average and

11:04 approved plans at the Public

11:05 Utilities Commission to get us

11:07 to an 88% reduction in carbon

11:11 emissions by 2030. So right

11:12 around the corner and because

11:14 there is work to be done, we

11:15 need our staff to be together.

11:16 That's what the original

11:17 conception of this agreement

11:18 was really focusing on that

11:21 staff to staff relationship on

11:22 system planning. What

11:23 infrastructure do we need? The

11:26 energy and infrastructure

11:27 agreement. But we've since

11:30 expanded to make sure that we

11:30 are cognizant of additional

11:31 that community concerns. And,

11:32 you know, the holistic

11:36 objectives that we do that's

11:37 where the that the increased

11:39 touch points for reporting

11:40 back to elected leadership

11:44 meeting with our various

11:46 advisory committees. Well, one

11:47 specifically that developed as

11:50 part of this group as well as

11:51 leaning on existing groups

11:54 such as casters Sustainability

11:55 Advisory Council and those of

11:56 other city agencies. We can

11:58 make sure that we're bringing

12:00 diverse perspectives all of

12:01 the work that will be

12:01 shepherding on behalf of

12:04 taxpayers and ratepayers.

12:06 We'll also be the only

12:07 community in the state who

12:08 sets up a public dashboard

12:11 hosted on the city's website.

12:12 Really be able to point out,

12:13 hey, what are the priority

12:14 initiatives? What's the goal

12:15 that we're trying are the

12:16 problem that we're trying to

12:18 solve is their funding

12:19 associated with this? Is there

12:20 a timeline or their additional

12:21 touch points? How do we know

12:24 if worked and what we do next?

12:25 So making sure that we really

12:26 lean into that spirit of

12:29 transparency. We've worked

12:31 with our working group members

12:33 to really look through this

12:34 new community advisory

12:35 committee that will be

12:36 created. But in this agreement

12:38 to ensure that it has

12:39 representation from the

12:42 diversity of stakeholder

12:45 groups, as you know, labor,

12:46 nonprofit groups,

12:47 environmental or advocates,

12:51 business districts and other

12:53 constituencies that we think

12:54 have an important voice

12:55 related to this particular

12:59 agreement and relationship. No

13:01 scene of the middle of the

13:03 chart, the data sharing and

13:05 access to utility system

13:07 information. This was a

13:07 frequent point of the

13:11 conversation last fall. The

13:13 reason why there's an asterisk

13:14 on Boulder's because they have

13:16 a lot of things written into

13:19 agreement and the very

13:19 their energy partnership

13:20 reasonable question get asked

13:21 is why doesn't Denver also get

13:22 those things reason why we

13:24 have a dash of theirs? But as

13:26 we do have access to those

13:28 things, we get access through

13:28 our participation that the

13:30 Public Utilities Commission

13:32 right now, we know the exact

13:34 location diameter and material

13:37 of every gas lines serving in

13:39 Denver, customer. We know how

13:41 much electricity flows on

13:42 through our wires, through our

13:43 transformers, through our

13:45 substations, how close they

13:46 are to reading that reaching

13:46 some capacity threshold where

13:48 they might require an upgrade

13:49 and then we're able to show up

13:51 in the appropriate proceedings

13:53 can help advocate for the

13:54 decision makers at the Public

13:56 Utilities Commission to make

13:59 sure that can. We avoid

13:59 replacing that 60 or 80

14:03 year-old gas line and one of

14:04 our communities or expand our

14:06 dependence on fossil fuels and

14:08 support electrifying that

14:12 customers across Denver and

14:12 making sure that when someone

14:14 submits request for energy or

14:17 a new capacity that they don't

14:18 get denied are told they're

14:20 going to have to you know,

14:23 multiple years for that and

14:25 that's where our relationship

14:27 is going to be. Go really

14:28 strong and continue to We've

14:29 got a great starting point on

14:31 data access. We think there

14:31 are some opportunities for

14:33 improvement and we've been

14:36 over the past legislative

14:36 session speaking with not only

14:41 the company, but Colorado

14:42 communities for climate

14:43 action, other specific

14:46 communities such as Boulder

14:47 and the elected officials at

14:48 the state House MAY look at

14:50 how do we ensure that

14:51 information that they need so

14:51 communities get access to the

14:53 that they can be a true

14:55 partner and these processees

14:58 and help terms of the system

15:01 how it grows and changes over

15:03 time. Now we get into the

15:05 comment Bubbles where

15:06 conceptually we've identified

15:09 the issues. We haven't exactly