Dive Brief:

• Xcel Energy is taking the city of Boulder to court after the city council approved the creation of a municipal electric utility in May, a plan the utility called "premature" in its filing at the Boulder District Court. Boulder's municipalization has not yet been approved by state regulators. 
• Xcel argues the council acted before any decision over the feasibility of municipalization was made, and before Boulder met requirements to prove it could offer electricity service with similar or improved reliability and pricing to Xcel, while also using cleaner energy resources. 

Dive Insight:

Boulder wants to take control of Xcel substations in the city, as well as two substations outside the city limits and a transmission line circling the area. The city needs the state Public Utilities Commission's permission to condemn any assets that lie outside the city limits, a decision the city is currently appealing. 

In the filing, Xcel said there was a "real risk" that the facilities would be appropriated by Boulder "without Council ever demonstrating that it actually can satisfy the voter-mandated limitations set forth in the City's Charter based on the utility Council actually proposes to operate, which currently is unknown."

The city council said they reached out to Xcel prior to the filing to reach a mutually beneficial deal, which Xcel rejected.