Amendments for HB17-1227

Senate Journal, May 4
After consideration on the merits, the Committee recommends that HB17-1227 be
amended as follows, and as so amended, be referred to the Committee of the Whole with
favorable recommendation.

Amend reengrossed bill, page 2, after line 1 insert:

"SECTION 1. In Colorado Revised Statutes, 40-3.2-103, amend
(2)(c)(I) and (5); and repeal (2)(d) as follows:
40-3.2-103. Gas distribution utility demand-side management
programs - rules - recovery of costs. (2) As part of the rule-making
proceeding required by subsection (1) of this section, the commission
shall:
(c) (I) Adopt procedures for allowing gas utilities to recover their
prudently incurred costs of DSM programs without having to file a rate
case. Such THE costs shall MAY include but are not limited to, facility
investments; rebates; interest rate buy-downs; incremental labor costs,
employee benefits, carrying costs, and employee-related administrative
costs; and other administrative costs. All such costs shall be recovered
through a cost adjustment mechanism that is set on an annual basis, or
more frequently if deemed appropriate.
(d) Adopt a bonus structure to reward gas utilities for investments
in cost-effective DSM programs. For each year of operation, the bonus
shall be capped at twenty-five percent of the expenditures or twenty
percent of the net economic benefits of the DSM programs, whichever
amount is lower. The amount of the bonus awarded each year shall be
determined based on the extent to which the gas utility has achieved the
targets established by the commission in accordance with paragraphs (a)
and (b) of this subsection (2). The bonus shall not count against a gas
utility's authorized rate of return or be considered in rate proceedings.
(5) The commission shall authorize each gas utility to recover
moneys MONEY spent for education programs, impact and process
evaluations, and program planning related to natural gas DSM programs
offered by the gas utility without having AND REQUIRE THE GAS UTILITY
to show that such expenditures, on an independent basis, are
cost-effective. The commission may limit the amount spent for these
activities.".

Renumber succeeding sections accordingly.

Page 2, strike line 3 and substitute "(2), (4), and (5) as follows:".

Page 2, line 20, after "(c)" insert "(I)".

Page 3, after line 6, insert:

"(II) IN IMPLEMENTING THE ENERGY SAVINGS AND PEAK DEMAND
GOALS SET FORTH IN SUBSECTION (2)(c)(I) OF THIS SECTION, A UTILITY
SHALL NOT RECOVER COSTS FOR ITS IMPLEMENTATION OF DEMAND-SIDE
MANAGEMENT PROGRAMS FROM RESIDENTIAL RATEPAYERS.
(4) The commission shall ensure that utilities develop and
implement DSM programs that give all classes of customers an
opportunity to participate and shall give due consideration to the impact
of BUT DO NOT INCLUDE A RECOVERY OF DSM programs on PROGRAM
COSTS FROM nonparticipants and on low-income customers.
(5) The commission shall allow an opportunity for a utility's
investments in cost-effective DSM programs to be more profitable to the
utility than any other utility investment that is not already subject to
special incentives. In complying with this subsection (5), the commission
shall MAY consider without limitation, the following incentive
mechanisms AN INCENTIVE TO ALLOW THE UTILITY TO COLLECT THE
COSTS OF DSM PROGRAMS THROUGH A COST ADJUSTMENT CLAUSE, which
shall INCENTIVE MUST take into consideration the performance AND
RATEPAYER COST of the DSM program.
(a) An incentive to allow a rate of return on DSM investments
that is higher than the utility's rate of return on other investments;
(b) An incentive to allow the utility to accelerate the depreciation
or amortization period for DSM investments;
(c) An incentive to allow the utility to retain a portion of the net
economic benefits associated with a DSM program for its shareholders;
(d) An incentive to allow the utility to collect the costs of DSM
programs through a cost adjustment clause;
(e) Other incentive mechanisms that the commission deems
appropriate.".


Finance