PRPA put out a call for energy from all resources. Some want more done to avoid gas plant.

An environmental group continues to push Platte River Power Authority to do more to avoid constructing a new gas facility, even as the power provider put out a call for proposals from "all resources," meaning they wouldn't be limited to fossil fuels.

Fort Collins Sustainability Group was pleased and surprised to see PRPA issue the all-resources request for proposals, said Kevin Cross, convener of the group, in an interview Monday.

But the devil is in the details, Cross said in a letter sent Monday to Fort Collins City Council members that called for PRPA to take further steps with the process, known as an RFP.

As part of its commitment to work toward 100% noncarbon electricity by 2030, PRPA has said it needs to firm up the renewable energy sources it has acquired since it set that goal in 2018. That will be key to keeping electricity reliable when wind and solar aren't accessible after the coal plants in its portfolio are retired, PRPA says.

To do this, PRPA is pursuing dispatchable resources, which can be turned on in the periods when the wind isn't cooperating and the sun isn't out, when supply isn't meeting demand.

PRPA received its board's approval last fall to pursue construction of aeroderivative gas turbines to provide some of the additional 200 megawatts of dispatchable capacity it estimates it will need. The estimated cost of that facility is around $240 million.

The plan for dispatchable resources also calls for using battery storage and developing what is known as a virtual power plant, which aggregates energy available through local sources like rooftop solar and battery storage.

But Fort Collins Sustainability Group and others pushed back on the plan for gas turbines, saying it's counter to the stated goal of the wholesale power provider, which is jointly owned by and provides electricity to Fort Collins, Loveland, Longmont and Estes Park.

PRPA says it continues to work toward being 100% carbon-free by 2030 and has done years of work to get ahead of the curve by acquiring renewable sources. But its current analysis shows those renewables still won't be enough to meet demands at all times because wind and solar are intermittent.

PRPA estimates the turbines would operate only 5% to 20% of the time. The turbines will be able to use hydrogen power once that becomes commercially viable, they said.

But on Feb. 22, PRPA issued its all-dispatchable resources RFP for up to 200 megawatts of dispatchable resources.

It calls for delivery at transmission voltage and says bids may consist of multiple resources but must not be split up into pieces less than 40 megawatts.

Javier Camacho, a spokesperson for PRPA, said this request for proposals has been planned for some time and wasn't in response to the concerns raised.

So, what is the environmental group asking PRPA to do?

There are three points of concern.

First, Fort Collins Sustainability Group says the deadlines are too tight. The amount of time contractors have to say they intend to bid is just 13 days. Cross' letter points out that an all-source request for proposals from Xcel Energy gave vendors 75 days to file a notice of intent and 90 days to file a proposal, while PRPA's deadline for proposals to be received is about 60 days.

Cross said the short time frame makes it seem like PRPA might be set on building new gas turbines.

"We think it’s important that they avoid any appearance of this being a settled deal for a technology that they originally expressed a preference for," Cross said. "They could avoid that by extending the time."

Second, the letter asks for PRPA to add another criterion when it evaluates bids: the social cost of carbon.

That is a calculation of the long-term damage of carbon emissions on things like human health and safety; damage to land, including agricultural impacts; and economic impacts, like labor productivity.

"PRPA states that it will evaluate bids received in terms of cost, location, flexibility, and probability of timely completion," Cross said in the letter, adding that while PRPA is not required to consider the social costs of carbon, doing so would be consistent with PRPA’s environmental responsibility pillar.

Finally, the group wants to make sure projects in the RFP can include "distributed energy resources," or DERs, which are those local networks like virtual power plants.

Cross said his group isn't sure whether PRPA's RFP would allow them, saying the language isn't clear but requires that power be delivered at the transmission system level, which seems to rule out DERs.

What does PRPA think about the asks?

Regarding the time frame, Camacho said PRPA stands by its timeline.

Submitting a notice of intent is optional for vendors, PRPA General Counsel Sarah Leonard said at the PRPA board meeting Thursday. Bids wouldn't be turned away without a notice of intent if they come in by the April 24 deadline.

More time isn't being offered because of the tight time frame PRPA is operating within and because it isn't asking a vendor to develop a new technology but to offer up what is already commercially viable, Camacho said.

PRPA is looking at a date of 2028 to have dispatchable resources in place, so it has two years to test its portfolio before its 2030 deadline, Camacho said.

"We firmly believe that there are bidders who are out there who are going to take a look at this RFP and say, 'We have proposals,' or 'We have concepts that we would like to put forward,' " and will send a notice of intent, Camacho said.

PRPA has said it can change the schedule if it is needed and would do so if there is a reason, he said.

As for the comparison with Xcel's timeline, Camacho said there are nuances that can affect the length of time given. For example, he said Xcel's RFP is on a grander scale for a larger utility.

The social cost of carbon is already a part of PRPA's overall integrated resource plan, which is why it's not part of this specific RFP, Camacho said.

"It is ultimately being considered as part of our IRP," Camacho said.

As for DERs, Camacho said a vendor needs to meet the requirements of the RFP, which does call for resources at the level of transmission, but "if bidders come back with a proposal that articulates how they're able to meet the requirements and parameters set forth in our RFP and there is some way for certain technology to come into play, then those are concepts we are definitely going to be taking a look at."

At the board meeting, Raj Singham Setti, chief operating officer of innovation and resource strategy integration, said the problem this particular RFP is trying to solve is at the wholesale level. The focus is on dispatchable capacity that can integrate with the renewable energy PRPA has acquired.

Camacho reiterated that the request is for what's viable now: "We really want to hear from bidders about what is commercially viable today in order for us to begin the process of integrating this technology into our portfolio."

Camacho also said the power provider is working with its four owner cities to develop its strategy for DERs and what a network might look like. There will be a future request for proposals related to DERs, he said.

Camacho said he knows the community's voice on the issue is coming from a good place: "Ultimately we all want the same thing, to complete a clean energy transition that allows us to still have access to reliable power that is sustainable and affordable and that's clean."

Similarly, Cross said his group is encouraged by PRPA's actions to issue its all-resources RFP and said the power provider should take steps to demonstrate that it was issued "in good faith."

Editor's note: This story has been updated to clarify PRPA's policies around the social cost of carbon and to add information from the PRPA board meeting Thursday.

This article originally appeared on Fort Collins Coloradoan: PRPA issues all-resources RFP for dispatchable capacity. Some want more