Climax Molybdenum Company and Evraz Seek to Intervene in City of Boulder's Application

The City of Boulder, Colorado, has filed an application with the Public Utilities Commission for approval of the proposed transfer of assets from Public Service Company of Colorado to the City. This move aims to establish a municipal electric utility, which the City claims could benefit both Public Service Company and its ratepayers outside of Boulder financially and environmentally. However, Climax Molybdenum Company and CF&I Steel, LP (doing business as Evraz Rocky Mountain Steel), which are Public Service Company's second- and largest retail electric customers, respectively, have expressed concerns regarding the potential impact on their electricity costs and service reliability. They have filed a petition to intervene in the proceeding to protect their interests and ensure fair treatment to Public Service Company's customers.

Key Takeaways:

• Climax Molybdenum Company and Evraz Rocky Mountain Steel, both major customers of Public Service Company of Colorado, have filed a petition to intervene in the City of Boulder's application for the transfer of assets from Public Service Company to the City.
• The companies are concerned that the relief requested in the application could affect their electricity costs and service reliability, which are critical for their operations – molybdenum mining and milling, and steel manufacturing, respectively.
• Climax and Evraz argue that their unique interests will not be adequately represented unless they are allowed to intervene in the proceeding, ensuring fair treatment to Public Service Company's customers.
• The companies have reserved the right to participate as their interests may appear, with no specific plan for evidence presentation yet.
• Intervention by Climax and Evraz is deemed timely, and they request notice of all proceedings and pleadings related to the matter.
• The City of Boulder has indicated in its application that its plan for acquiring power as a municipal electric utility would not harm, but could benefit Public Service Company and its ratepayers financially and environmentally. However, Climax and Evraz argue that this claim lacks essential details.

Statistics:

• Climax Molybdenum Company operates two molybdenum mines and related facilities in Leadville and Empire, Colorado, with the address P.O. Box 68, Empire, Colorado 80438.
• Climax is Public Service Company's second-largest retail electric customer, and its annual electricity costs from Public Service are significant.
• Evraz has one steel manufacturing and fabrication plant and related facilities in Pueblo, Colorado, with an address of P.O. Box 316, Pueblo, Colorado 81002.
• Evraz is Public Service Company's largest retail electric customer, and its reliance on Public Service Company's electric supply is vital for producing and fabricating steel products.
• The proposed transfer of assets from Public Service Company to the City of Boulder could have substantial effects on Public Service Company's retail rates and, consequently, on Climax and Evraz's electricity costs.

Sources:

• Public Utilities Commission of the State of Colorado. (2015, July 7). In the Matter of the Application of the City of Boulder, Colorado for Approval of the Proposed Transfer of Assets from Public Service Company of Colorado to the City and Associated Authorizations and Relief. Docket No. 15A-0589E.
• Public Utilities Commission of the State of Colorado. (2015, August 7). Petition to Intervene of Climax Molybdenum Company and CF&I Steel, L.P., d/b/a Evraz Rocky Mountain Steel. Docket No. 15A-0589E.