Saying the wind power bids it got by an April 30 bid deadline are too high, Public Service Co. of Colorado is re-contacting the bidders to see if they want to lower their offers.
Public Service, a unit of Xcel Energy (NYSE: XEL), told the Colorado Public Utilities Commission about this re-bid plan in a May 10 filing.
“This opportunity is being made available because the PTC Wind Bids we received on April 30, 2013 were considerably higher than bid pricing currently under consideration in Xcel Energy jurisdictions and is above our projections of avoided costs for the Public Service electric system in the early years of each proposal,” said the utility. “This opportunity to provide reduced PTC Wind Bid pricing and the process for doing so were developed in consultation with the Independent Evaluator (‘IE’).”
The PTC Wind Bidders are being notified via email concerning the procedures to be followed to submit any reduced bid prices. The re-bids are due no later than 4:00 PM MDT on May 17. After close of bidding, the IE will forward all emails received by the deadline to Public Service. This re-pricing opportunity and process will not delay the schedule for completing the evaluation of PTC Wind Bids and filing the results of that evaluation with the commission on May 30, the utility added.
The acronym “PTC” is used because the utility is trying to take advantage of a one-year extension by Congress of the production tax credit (PTC) for renewable energy projects. The need to start project construction by the end of this year under the extended PTC means the utility and commission reviews of the bid results must move quickly.