Erie council approves joint funding deal to extend Xcel power line to Town Center

Erie Town Council voted to approve a joint funding agreement to extend off-site Xcel Energy distribution infrastructure to the Town Center area, a step town staff said is necessary for pending commercial and residential development there.

Town Manager Malcolm Fleming told council the need emerged in 2023 when Xcel reported insufficient electrical capacity for planned projects including 4 Corners, Toll Brothers’ development and Ranchwood. Fleming said Xcel’s initial estimate was “a little more than $1,800,000,” and under Public Utilities Commission rules Xcel will cover roughly one-third of that cost, leaving about $1.2 million to be split among the development partners based on square footage and dwelling units.

“Developers in that area, town staff provided information to Xcel on all of the developments that would be coming forward,” Fleming said, explaining the apportionment method. He said Toll Brothers is the first applicant who needs service and would make the payment to Xcel; the town will reimburse its share to Toll Brothers and recoup other partners’ shares as developments proceed.

Tim Westbrook of Toll Brothers said the Xcel agreements allow the utility to request additional funds if overruns occur but that in his experience Xcel’s bids have been close to final: “I’ve never seen a reimbursement from Xcel,” Westbrook said, adding the company had extended the quote twice and was willing to pay early to prevent expiration.

Council members pressed staff on budget timing and risk. Council Member Morcarillero asked whether the town’s contribution was in the 2025 budget; Fleming said it was not and that a supplemental appropriation from the general fund reserve would be required if council approved the agreement. Fleming added the payment to Xcel would need to be made either later that week or by month’s end to proceed.

Council discussed negotiation leverage with developers who had delayed participation (one developer declined because they are not developing for five years) and whether the town would be exposed to cost overruns. Fleming said the town would have recourse through future development agreements and negotiations.

Council approved the resolution (Resolution 25 048) after discussion and a motion to approve. Mayor Andrew J. Moore called the vote and said, “Motion carries.”

What happens next: Fleming said town staff would pursue the supplemental budget appropriation and staff will work to formalize reimbursement terms with development partners. The construction schedule will follow Xcel’s procurement and permitting steps once payment is secured.