Colorado Supreme Court Rejects Xcel Energy’s Wind Farm Easement Appeal

Xcel Energy's eminent domain case for a wind farm right of way was rejected by the Colorado Supreme Court.
Xcel’s move for quick decision in dispute over power line path rebuffed by state Supreme Court

Xcel Energy Faces Setback in Legal Battle Over Wind Farm Connection

In a recent development, Xcel Energy’s efforts to expedite a legal resolution involving a 550-foot right of way for wind farm connections have been thwarted. The Colorado Supreme Court declined to hear the case, leaving the utility company to continue its appeal process in a lower court.

The dispute centers on a Cheyenne County landowner and a right of way crucial for connecting two wind farms to the Goose Creek substation. Previously, a district judge ruled against Xcel’s claim of eminent domain, a decision the company hoped the Supreme Court would overturn. The Supreme Court, however, issued a brief decision rejecting Xcel’s appeal.

Xcel Energy, emphasizing the need for a swift resolution due to statewide clean energy implications, argued that the case warranted immediate attention from the Supreme Court. The company was supported in this stance by the Colorado Energy Office and the Sierra Club, both of which filed amicus briefs backing Xcel.

The Sierra Club highlighted the potential delays in integrating two key wind projects—the 603 megawatt Singing Grass initiative and the 450 MW Cheyenne Ridge II farm—into the grid. The organization stressed the public importance of timely grid connections, citing potential setbacks for Xcel and other utilities if eminent domain powers are restricted.

Despite these arguments, the Supreme Court’s concise ruling didn’t explore the legal nuances, leaving Xcel Energy to continue its appeal with the Court of Appeals. Xcel expressed disappointment, noting that the unresolved right of way is stalling benefits for customers, landowners, and local economies alike.

The case involves Xcel’s subsidiary, Public Service Company of Colorado (PSCo), and Dryland Partners (DLP), a family-run agricultural operation led by Darin Dickey. Xcel’s proposed right of way for its $1.7 billion Power Pathway project, intended to connect Eastern Plains wind and solar resources to the Front Range, traverses an intersection of two rural roads.

To complete this project, Xcel plans to construct transmission lines spanning 27 miles from Singing Grass and 5 miles from Cheyenne Ridge II to the Goose Creek substation. However, the proposed path has met resistance from DLP due to safety concerns and potential interference with a gas pipeline right of way.

In 2022, the Dickey family sold 90 acres to Xcel for the substation, but the utility’s proposed right of way was not included among the agreed corridors. DLP has successfully negotiated a right of way for another wind project, NextEra Energy Resource’s Dusty Rose facility, yet remains at odds with Xcel over the terms.

Xcel Energy offered $19,000 for the easement, a sum Darin Dickey claims falls short of what NextEra paid. Dickey has proposed alternative routes for the wind farm connections, which Xcel has dismissed as too costly.

Judge Mike Davidson, in his June ruling, determined that Xcel lacked authority to acquire the land through condemnation, as the line in question serves as a tie line, not a primary transmission line. The judge also criticized Xcel for alleged bad faith negotiations.

Dryland Partners’ attorney, Bradley Haight, reiterated the group’s willingness to resolve the issue under previously agreed conditions similar to those of the Dusty Rose project.

Original Story at coloradosun.com