Xcel Energy announced last week that it will pursue additional legal measures if Boulder, Colorado attempts to provide electric service to customers outside existing city limits.  Xcel Energy formally notified Tom Carr, the City Attorney by letter that Boulder does not have the legal right to serve Xcel Energy customers outside the city limits.   Xcel has also made it clear previously that it does not favor annexation and will work to continue to serve its customers within the city.

This legal notice came in response to Boulder city leaders who have announced that they are studying a take-over of the Xcel Energy electric system.  In February, the city revealed a plan to acquire 5,700 customers that live outside the city limits to "minimize" the cost of separation.

"Boulder needs to understand that we will not give up our legal rights to serve our customers outside the city who have had no say in the original municipalization study vote.  In the last year Boulder has discussed annexation as the means to reduce these costs and that process cannot be circumvented by attempting to serve our customers outside of the city limits," said David Eves, President and CEO Public Service Company of Colorado (an Xcel Energy Company).  "We continue to believe it will be in everyone's best interest to work together to help Boulder achieve its energy goals while remaining a customer of our company.   But if we can't find a way to make that happen, we will take all actions necessary to protect our rights to serve them."

In an update of the dispute this week, the Northern Colorado Business Report reported that the Boulder City Council Tuesday night had voted 8-1 to move forward with plans to create a municipal electric utility. City staffers will start preparing for condemnation proceedings against Xcel Energy Inc., the current electricity provider, to acquire the utility's infrastructure that delivers energy to Boulder's residents and businesses, the newspaper said.