City offers Xcel Energy $94 M for assets necessary for local electric utility
US: The City of Boulder offered to purchase certain portions of Xcel Energy electric infrastructure for $93.96 million in a letter to the Minneapolis-based utility.
The city’s offer comes after Colorado Public Utilities Commission ruling that approved transfer of Xcel Energy assets outside substations to the city.
The appraised value of the assets outside substations is $62.3 M. The basis for the city’s offer is the value Xcel reports for financial filings; the offer is double the original cost of the assets, less depreciation.
The offer is the first step in the city’s acquisition process that will result in a key variable: the cost to purchase some of the electric system from Xcel Energy. The city anticipates that the acquisition process, which may involve a condemnation proceeding, will continue through next year.
If Xcel accepts the offer or makes a counter-offer, the city and Xcel will enter into negotiations setting the terms of agreement.
Source: Boulder Colorado