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December 2023
Public Utilities Commission Seeks Public Comments on Second Phase of Public Service’s Electric Resource Plan
The Public Utilities Commission is currently accepting public comments in the second phase of Public Service's Electric Resource Plan (ERP) proceeding that includes a Clean Energy Plan (CEP). The ERP is the process by which an electric utility selects energy resources, including wind, solar, storage, gas, and other resources, that it will acquire to serve its customers. Through the CEP, the utility must demonstrate its ability to achieve a minimum of an 80 percent reduction in greenhouse gas emissions by 2030. The deadline for initial comments is Dec. 18.
In Phase I, the Commission approved with modifications Public Service's plan to acquire new generating resources through a competitive acquisition process. In Phase II, the utility received bids for the construction of various generation resources. Based on the Commission's Phase I directives, Public Service organized the bids into groups or portfolios that are designed to meet the utility's resource needs. In the Phase II decision, the Commission will determine whether the utility should be authorized to pursue its preferred portfolio of bids. Specifically, that means that the utility is granted a presumption that it can recover from its customers the costs associated with actions it takes to build or contract for new resources.
As part of the Phase II process, Public Service filed its 120-Day Report on September 18, 2023. The 120-Day Report describes the company's bid evaluation and selection process and presents several portfolios of different generation resources.
From the various portfolios outlined in the 120-Day Report, Public Service recommends that the Commission approve the Company's Preferred Portfolio. This portfolio consists of approximately 7,200 megawatts (MW) of capacity from more than 20 individual facilities. These facilities include new gas-fired power plants, wind and solar facilities, biomass facilities, and battery storage units. Based on the Company's 120-Day Report, it appears that Public Service might ultimately site some of these new facilities in the counties of Adams, Alamosa, Baca, Cheyenne, Kiowa, Kit Carson, Morgan, Prowers, Pueblo, Routt, Saquache, Sedgwick, and Weld.
Individuals who wish to review Public Service's ERP/CEP, the 120-Day Report, and other materials that have been filed in this proceeding can access them through the PUC's E-Filings system, selecting to search for “Proceedings” and entering 21A-0141E as the proceeding number.
Members of the public are welcome to provide written or oral public comments at any time while the proceeding is open, but are encouraged to do so before December 18, 2023. The Commission anticipates issuing its Phase II Decision before the end of the year. Please include Proceeding No. 21A-0141E in public comments.
Public comments can be provided by:
• For those with E-Filings accounts, submitting written comments through the
Commission’s Electronic Filing System (E-Filings) at EFiling homepage.
• Submitting written comments using the Commission’s online form or through email at: dora_puc_website@state.co.us. These comments will be posted in EFilings for this Proceeding.
• Mailing comments to the Commission’s offices at: Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, CO 80202.
• Calling (303) 869-3490 to leave oral comments (English and Spanish options).
PUC Commissioner Megan Gilman Appointed to Second Term
Gov. Jared Polis has reappointed Megan Gilman to her second term as a PUC Commissioner, subject to senate confirmation. Commissioner Gilman's appointment hearing will occur during the 2024 legislative session. Gilman was first appointed in March 2020 for a four-year term. An Edwards resident, she holds a Bachelor's Degree in Mechanical Engineering and has extensive experience working on energy issues for ratepayers, as well as within the utility industry. She spent 14 years working as a small business owner, during which she was deeply involved in energy usage in the built environment, working on projects in multiple countries.
From 2011 to 2020, she served on the Board of Directors of Holy Cross Energy and as the Chair from 2015 to 2020. In this role, Gilman was involved in rate analysis and strategy, overseeing large power supply changes, and approving customer-facing programs and offerings. With Holy Cross Energy, she also served as a representative to the Colorado Rural Electric Association, collaborating with 22 different rural electric utilities across the state to comprehend the challenges and consequences for ratepayers in each area.
In her time at the Commission, Gilman has been an active member of the National Association of Regulatory Utility Commissioners (NARUC) Committee on Gas. She was also selected to serve on the NARUC Task Force on Natural Gas Resource Planning. In 2023, Gilman was elected as the President of the Western Conference of Public Service Commissioners, representing 14 states in the Western US.
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Gas Cost Adjustments (GCAs)
Consumers typically see a line item on their bills that may be listed as a GCA or gas cost adjustment, or natural gas with first, second, third or fourth quarter noted. GCA items are adjusted up or down to reflect charges that cover the cost of gas delivered to customers.
The GCA is the periodic price adjustment for purchasing gas and transporting it through a pipeline system. Transportation of natural gas is a pass through cost and utilities are not allowed to earn a profit on the adjustment. Because natural gas prices are set by the international commodity market, prices can vary widely with economic conditions and world events. This was the case last winter when the war in the Ukraine led to higher natural gas prices.
In response to last winter’s high utility bills, the Colorado legislature passed, and the Governor signed SB23-291, which required a series of measures addressing energy bill affordability. Under SB-291, all utilities regulated by the PUC are required to file Gas Price Risk Mitigation Plans. The purpose of these plans is to propose measures that would reduce, or smooth out large natural gas swings so that consumers have more stable and predictable bills.
The PUC approved Xcel’s (Public Service Company of Colorado’s) Gas Price Mitigation Plan at it’s Nov. 22 meeting, which allows the plan to be implemented this winter.
The other utility plans have been filed, but not yet been approved. For more information, please refer to Proceeding NO 23A-0533G.
Tri-State Generation & Transmission Association
Submits Application for Phase One of Electric Resource Plan
Electric Resource Plans occur in two phases. "Phase I" establishes the utility's resource needs, assumptions for modeling bids, and requirements for the competitive process, including criteria for evaluating bids and contract terms.
“Phase II" assesses the results of competitive bids and determines whether the utility can move forward with contracts or other actions.
Tri-State filed an application on Dec. 1, 2023 for its Phase I ERP, for a planning period covering 2024-2043. Resource acquisition would occur between 2026-2031. They have performed modeling on five scenarios, including:
- Business as usual.
- Inflation Reduction Act (IRA) funding opportunity.
- Early Springerville 3 coal-fired plant retirement.
- System-wide emissions reduction.
- Aggressive Colorado emissions reduction.
The company also proposes to model no more than eight portfolios in Phase II with others to be negotiated with stakeholders and to include two sensitivities related to extreme weather and high gas prices in the modeling processes. In addition, they are proposing to:
- Retire Craig Unit 3 coal-fired power plant (Moffat County) as of January 1, 2028, and announce a retirement date of 2031 for Springerville Unit 3 in Arizona (depending on federal funding).
- Obtain adoption of their preferred portfolio, (IRA Scenario), which includes 290 MW (megawatts) of dispatchable capacity (gas combined cycle in 2028 converted to carbon capture and storage in 2031), 940 MW of renewable resources, and 310 MW of battery storage. Tri-State included $970 million in United States Department of Agriculture (USDA) grant and loan funding in its financial modeling, which contributed to making this the cost-effective portfolio, although that funding has not yet been awarded.
On Dec. 6, The Commission directed that any person seeking to become a party should file a request for intervention by January 5, 2024. For more information, click here.
Towing Rule Amendments Under Final Review
In February 2023, the PUC issued a Notice of Proposed Rulemaking (NOPR) in response to Colorado House Bill 22-1314, which addresses nonconsensual tows performed by towing carriers.
Through Proceeding No. 23R-0085TO, the rulemaking process considered amendments to certain Commission Rules Regulating Towing Carriers, 4 Code of Colorado Regulations (CCR) 723-6. The proceeding has consisted of a series of public comment hearings, numerous written comments, a workshop, and a report from the Towing Task Force. On October 24, an Administrative Law Judge (ALJ) rendered Recommended Decision No. R23-0721, adopting amendments to the towing rules. An exception was filed and the Commissioners will be making a decision on the rule and a filed exception in the coming weeks. A red-lined final version of the amended rule is located here.
The amendments address the need for consistent language between the rules and the new statutes, as well as updated definitions of towing operators and the “authorized and interested persons” allowed to retrieve a vehicle.
Importantly, the revised rules align with a new requirement in HB 1314 that allows vehicles to be retrieved from a tow yard after paying $60 or 15 percent of the tow invoice (whichever is less). This provision is limited to nonconsensual tows from private property.
A three-part training series has been initiated by the PUC to assist the towing industry in understanding the new requirements and PUC's regulation of the industry generally. All three sessions are available on the PUC's YouTube Channel. The first session, which aired on October 30, provided an overview of the recent legislation and rules related to Colorado's towing laws. The second session, which aired on November 17, featured a discussion on administrative processes, such as permitting, proper documentation, and navigating the PUC’s website for various business purposes. The final live-stream seminar is scheduled for December 8, at
1 p.m., and will discuss towing complaints, investigations, and applicable enforcement.
PUC Equity Initiatives: Equity Work Plan Released
In 2021, the state legislature passed SB272 which requires the PUC to consider equity in all of its work. Implementing SB272 is a key focus of the Commission as is seeking stakeholder input on the Commission's approach."
On Oct. 16, staff published a work plan in Proceeding 22M-0171ALL explaining the comprehensive efforts to implement the legislation. The plan includes details that will be discussed in a series of six workshops scheduled to take place until June 30, 2024.
On Oct. 17, staff presented the work plan during a stakeholder workshop held at the Blair-Caldwell African American Research Library in Denver. The workshop primarily focused on categorizing Commission proceedings into tiers based on the types of equity-related actions the Commission should take in different proceedings. Actions may include new data analyses or enhanced outreach. Notes from the meeting are available here.
Staff encourages the public to participate by viewing the work plan and providing ongoing comments on the approach, and participating in staff workshops. Comments can be submitted via an online comment form, or email to PUC_SB272Equity@state.co.us.
The next workshop is scheduled for Thursday, Dec. 7, from 1-5 p.m. Titled "Defining Equity Impacts and Benefits," the workshop will look at potential definitions for impacts and benefits, drawing from statutory language and examples. In addition, participants will review the scope of impacts and benefits and how they vary by proceedings, as well as the opportunities or limitations associated with collecting certain types of data. For more information on the Equity Initiative, please visit the Commission's Equity webpage. To register for the workshop on December 7, please click here.
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