Platte River Power Authority’s Board of Directors on Dec. 11 approved the wholesale power provider’s 2026 Strategic Budget during their board meeting, enabling the utility to move forward with over $530 million for core operations and strategic investments in the owner communities’ directive to decarbonize the electric energy portfolio.
“I am pleased that the board approved the most consequential budget since we built our original energy resources and electric infrastructure,” says Jason Frisbie, general manager and CEO of Platte River. “This approval reaffirms their support for our energy transition and allows our team to continue making progress on our decarbonization goal.”
Platte River’s 2026 Strategic Budget details the utility’s planned investments and the resulting 6.3% average wholesale rate increase. Wholesale rates support Platte River’s progress toward the Resource Diversification Policy and represent about two thirds of the retail utility electric rates paid by customers in Estes Park, Fort Collins, Longmont and Loveland.
In 2026, Platte River will continue pursuing a new noncarbon energy project to replace their coal-fired resources, begin construction of the aeroderivative natural gas turbines and collaborate with their owner communities to deploy customer programs that support the development of a virtual power plant.
“The Platte River team has done a phenomenal job compiling a budget that will help further our communities’ progress toward a clean and reliable energy future,” says Jeni Arndt, mayor of Fort Collins and Platte River Board Chair. “I appreciate their efforts to minimize the cost pressures we’re facing as we pursue one of the most accelerated decarbonization goals in the country.”
Earlier this year, Platte River’s leadership team reported a 40% increase in the cost of the utility’s next wind resource. In addition, the installation cost of the aeroderivative turbines -– technology that is designed to help manage the intermittency of renewables and maintain reliability –- increased significantly.
These cost pressures prompted updates to Platte River’s wholesale rate projections through 2030, with 7.5% wholesale rate increases recommended in both 2027 and 2028, it noted.
“We had numerous discussions with the board on how to mitigate rising cost pressures and explored alternatives to our current path,” continues Frisbie. “Staying the course is still the best option to accelerate carbon reduction while maintaining reliability and affordability.”
Platte River pursued several cost-reduction initiatives this year, including exploring ways to lower expenses and continuing efforts to participate in a regional energy market.
The utility continued applying its board-approved policy that allows certain revenues and expenses to be deferred. This approach helps reduce rate pressure and achieve rate smoothing, promoting more stable and predictable rates in the long term, it said.
“As we move forward, we will continue pursuing opportunities for cost reductions and additional revenue streams to maintain a financially sustainable energy transition,” adds Frisbie.
