Amendments for SB23-291
Senate Journal, April 21
After consideration on the merits, the Committee recommends that SB23-291 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.
Amend printed bill, page 20, before line 10 insert:
"SECTION 7. Appropriation. (1) For the 2023-24 state fiscal year,
$1,265,551 is appropriated to the department of regulatory agencies. This
appropriation is from the public utilities commission fixed utility fund created
in section 40-2-114 (1)(b)(II), C.R.S. To implement this act, the department
may use this appropriation as follows:
(a) $233,630 for use by the public utilities commission for personal
services, which amount is based on an assumption that the commission will
require an additional 2.5 FTE;
(b) $23,385 for use by the public utilities commission for operating
expenses;
(c) $271,406 for use by the office of the utility consumer advocate for
personal services, which amount is based on an assumption that the office will
require an additional 2.5 FTE;
(d) $23,385 for use by the office of the utility consumer advocate for
operating expenses; and
(e) $713,745 for the purchase of legal services.
(2) For the 2023-24 state fiscal year, $713,745 is appropriated to the
department of law. This appropriation is from reappropriated funds received
from the department of regulatory agencies under subsection (1)(e) of this
section and is based on an assumption that the department of law will require
an additional 3.8 FTE. To implement this act, the department of law may use
this appropriation to provide legal services for the department of regulatory
agencies.
(3) For the 2023-24 state fiscal year, $142,749 is appropriated to the
department of law. This appropriation is from the legal services cash fund
created in section 24-31-108 (4), C.R.S., from revenue received from the
Colorado energy office in the office of the governor that originates as custodial
federal funds that the Colorado energy office has authority to expend. The
appropriation to the department of law is based on an assumption that the
department of law will require an additional 0.8 FTE. To implement this act, the
department of law may use this appropriation to provide legal services for the
Colorado energy office in the office of the governor.".
Renumber succeeding section accordingly.
Page 1, line 102, strike "UTILITIES." and substitute "UTILITIES, AND, IN
CONNECTION THEREWITH, MAKING AN APPROPRIATION.".
Senate Journal, April 25
SB23-291 by Senator(s) Fenberg and Cutter; also Representative(s) deGruy Kennedy and Martinez--
Concerning the public utilities commission's regulation of energy utilities.
Amendment No. 1, Appropriations Committee Amendment.
(Printed in Senate Journal, April 21, page(s) 1000 and placed in members' bill files.)
Amendment No. 2(L.011), by Senator Fenberg.
Amend printed bill, page 19, line 24, strike "MAY" and substitute "SHALL".
Page 19, line 25, after "PECUNIARY" insert "OR TANGIBLE".
Amendment No. 3(L.013), by Senator Fenberg.
Amend printed bill, page 15, after line 23 insert:
"(c) THE INDEPENDENT THIRD PARTY SHALL CONDUCT AN ANALYSIS OF,
AND INCLUDE POLICY RECOMMENDATIONS RELATED TO, THE POTENTIAL
IMPACTS OF STRANDED OR UNDERUTILIZED NATURAL GAS INFRASTRUCTURE ON
UTILITY EMPLOYEES WHO WORK FOR, OR CONTRACT WORKERS WHO PERFORM
WORK FOR, INVESTOR-OWNED GAS UTILITIES. IN CONDUCTING THE STUDY, THE
INDEPENDENT THIRD PARTY SHALL CONSULT WITH APPROPRIATE LABOR
ORGANIZATIONS THAT REPRESENT UTILITY EMPLOYEES WHO WORK FOR, AND
CONTRACT WORKERS WHO PERFORM WORK FOR, INVESTOR-OWNED GAS
UTILITIES AND OTHER RELEVANT STAKEHOLDERS.".
Page 17, strike line 14 and substitute "REMOVE EXISTING GAS INFRASTRUCTURE;
(d) THE IMPACT ON STAFFING, INCLUDING ANY REQUIREMENTS AND
PROCEDURES FOR UTILITY EMPLOYEES AND CONTRACT WORKERS;
(e) THE IMPACT ON CRITICAL REPAIRS, SCHEDULED MAINTENANCE, LEAK
MITIGATION, AND OTHER RELATED ACTIVITIES; AND".
Reletter succeeding paragraph accordingly.
Page 17, strike lines 17 through 21 and substitute:
"(3) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO MEAN THAT A
UTILITY CANNOT CHARGE AN INDIVIDUAL CUSTOMER FOR EXCAVATION OR
CONSTRUCTION ACTIVITIES TO REMOVE EXISTING GAS INFRASTRUCTURE IF THE
CUSTOMER HAS DECLINED THE MORE COST-EFFECTIVE METHODS TO DISCONNECT
SERVICE.".
Amendment No. 4(L.008), by Senator Fenberg.
Amend printed bill, page 6, line 17, after "prohibitions -" insert "reporting -".
Page 8, after line 8 insert:
"(3) SUBSECTIONS (2)(g) AND (2)(h) OF THIS SECTION SHALL NOT BE
CONSTRUED TO APPLY TO A UTILITY EMPLOYEE'S OR CONTRACT WORKER'S
ACTIVITIES RESULTING FROM ANY VOLUNTARY DUES DEDUCTIONS THAT ARE
PROCESSED THROUGH STANDARD PAYROLL PROCESSES.".
Renumber succeeding subsections accordingly.
Page 8, line 12, strike "SHALL" and substitute "MAY".
Page 8, strike lines 13 through 15 and substitute "AGAINST THE UTILITY.".
Page 8, after line 20 insert:
"(5) THE COMMISSION SHALL REQUIRE A UTILITY TO FILE AN ANNUAL
REPORT WITH THE COMMISSION TO ENSURE THE UTILITY'S COMPLIANCE WITH
THIS SECTION. THE REPORT MUST INCLUDE THE PURPOSE, PAYEE, AND AMOUNT
OF ANY EXPENSES ASSOCIATED WITH THE COSTS AND ACTIVITIES THAT ARE NOT
PERMITTED TO BE RECOVERED FROM CUSTOMERS PURSUANT TO THIS SECTION.".
Renumber succeeding subsection accordingly.
Amendment No. 5(L.012), by Senator Fenberg.
Amend printed bill, page 10, line 17, strike "AN ANNUAL GAS COST
ADJUSTMENT FILING." and substitute "THE UTILITY'S GAS COST ADJUSTMENT
FILINGS.".
Page 10, line 21, after the period add "THE PLAN MAY INCLUDE OTHER
ELEMENTS SUCH AS PHYSICAL HEDGING, FINANCIAL HEDGING, FUEL STORAGE,
OR LONG-TERM CONTRACTING.".
Page 10, line 22, strike "MAY ALLOW ANY" and substitute "SHALL ALLOW ANY
PRUDENTLY INCURRED".
Page 10, line 26, strike "TIMELINE," and substitute "TIMELINE OF NO MORE THAN
FIVE YEARS WITH FINANCING COSTS,".
Page 11, strike lines 3 through 27.
Page 12, strike lines 1 through 12 and substitute "DETERMINATION OF THE BEST
INTERESTS OF A UTILITY'S RATEPAYERS, INSOFAR AS THE COMMISSION FINDS
THAT THE PLAN IS IN THE PUBLIC INTEREST.
(2) (a) ON OR BEFORE JANUARY 1, 2025, THE COMMISSION SHALL ADOPT
RULES TO ESTABLISH MECHANISMS TO ALIGN THE FINANCIAL INCENTIVES OF AN
INVESTOR-OWNED ELECTRIC OR GAS UTILITY WITH THE INTERESTS OF THE
UTILITY'S CUSTOMERS REGARDING INCURRED FUEL COSTS.
(b) THE MECHANISMS ESTABLISHED BY RULE PURSUANT TO SUBSECTION
(2)(a) OF THIS SECTION MUST BE DESIGNED TO PROTECT CUSTOMERS AND TO
IMPROVE THE UTILITY'S MANAGEMENT OF FUEL COSTS. THE COMMISSION MAY
TAILOR THE MECHANISMS TO APPLY TO DIFFERENT UTILITIES BASED ON A
UTILITY'S SIZE OR ABILITY TO IMPLEMENT THE MECHANISMS.
(c) THE COMMISSION MAY ESTABLISH A SYMMETRICAL INCENTIVE FOR
THE UTILITY TO SUCCESSFULLY IMPLEMENT THE MECHANISMS.
(3) IN ADOPTING THE RULES PURSUANT TO SUBSECTION (2)(a) OF THIS
SECTION, THE COMMISSION:
(a) SHALL CONSIDER:
(I) SYMMETRICALLY ALLOCATING AN AMOUNT OF FUEL PRICE RISK TO
THE INVESTOR-OWNED ELECTRIC OR GAS UTILITY, SUBJECT TO REASONABLE
PARAMETERS, INCLUDING:
(A) A RANGE OF OUTCOMES WITHIN WHICH NO RISK SHARING OCCURS;
AND
(B) A CAP ON ANY INCENTIVE OR COST SHARE THAT RESULTS FROM THE
RISK-MITIGATION MECHANISM; AND
(II) MECHANISMS TO IMPROVE ELECTRICITY PRODUCTION COST
EFFICIENCY WHILE MINIMIZING FUEL COSTS, SUCH AS SYMMETRICALLY
ALLOCATING A PORTION OF IMPROVEMENTS OR DEGRADATIONS IN ELECTRICITY
PRODUCTION PER DOLLAR OF FUEL OR PER DOLLAR OF ACQUISITION COSTS
INCURRED; AND
(b) MAY CONSIDER, TO THE EXTENT SUCH INFORMATION IS RELEVANT:
(I) THE FINANCIAL HEALTH OF THE UTILITY AND CORRESPONDING
IMPACTS ON CUSTOMER AFFORDABILITY; AND
(II) THE UTILITY'S ABILITY TO MAKE INVESTMENTS TO ACHIEVE THE
STATE'S ENERGY POLICY OBJECTIVES IN AN AFFORDABLE MANNER FOR
CUSTOMERS.
(4) NOTHING IN THIS SECTION:
(a) SHALL BE CONSTRUED TO AUTOMATICALLY SHIFT RISK TO THE
INVESTOR-OWNED ELECTRIC OR GAS UTILITY; OR
(b) WARRANTS AN AUTOMATIC ADJUSTMENT TO THE AMOUNT OF
ALLOWABLE RETURN ON EQUITY OR ANY OTHER RATE-MAKING METRIC.".
Page 13, strike lines 10 through 27.
Page 14, strike lines 1 through 5 and substitute:
"(2) AFTER COMPLETION OF THE INVESTIGATION, THE COMMISSION
SHALL HOLD A HEARING, AT WHICH THE COMMISSION SHALL CONSIDER THE
INFORMATION GATHERED IN THE INVESTIGATION AND PUBLIC COMMENTS, TO
DETERMINE WHETHER ALTERNATIVE COST-RECOVERY MECHANISMS OR ACTIONS
TAKEN BY A NATURAL GAS UTILITY THAT SERVES MORE THAN FIVE HUNDRED
THOUSAND CUSTOMERS IN THE STATE ARE NECESSARY AND APPROPRIATE OR
COULD MITIGATE IMPACTS ON NONPARTICIPATING INCOME-QUALIFIED
CUSTOMERS.".
Renumber succeeding subsection accordingly.
Amendment No. 6(L.014), by Senator Fenberg.
Amend printed bill, page 3, line 7, after "FUTURE" insert "CARBON-BASED".
Page 4, line 6, after "filings -" insert "rules -".
Page 4, line 8, strike "MECHANISMS, GUIDELINES, OR".
Page 4, line 10, strike "MECHANISMS, GUIDELINES, OR".
Page 4, strike lines 16 and 17 and substitute:
"(III) SETTING AN OVERALL PERCENTAGE OF THE UTILITY'S EXPENSES
IN A RATE CASE THAT ARE NOT RECOVERABLE;
(IV) ESTABLISHING DISCOVERY PARAMETERS AND WHAT INFORMATION
IN A COMMISSION PROCEEDING MUST BE DISCLOSED TO INTERVENERS OR".
Renumber succeeding subparagraph accordingly.
Page 5, after line 4 insert:
"(b) BEFORE THE COMMISSION MAY DETERMINE THAT AN
INVESTOR-OWNED UTILITY'S APPLICATION TO MODIFY BASE RATES IS COMPLETE,
THE COMMISSION SHALL CERTIFY THAT, FOR COMPARISON OF TEST YEARS AND
OTHER PURPOSES, THE FILING INCLUDES SUFFICIENT INFORMATION, INCLUDING
A COMPREHENSIVE COST AND REVENUE REQUIREMENT ANALYSIS BASED ON
ACTUAL, AUDITABLE, HISTORICAL DATA, WHICH ANALYSIS MUST BE
ACCOMPANIED BY APPROPRIATE WORKPAPERS AND OTHER SUPPORTING
MATERIALS.
(c) NOTHING IN THIS SECTION PROHIBITS A UTILITY FROM INCLUDING
MULTIPLE TEST YEARS FOR ANALYSIS OR CONSIDERATION IN A RATE CASE
FILING, INCLUDING INCLUSION OF A FUTURE TEST YEAR.".
Reletter succeeding paragraph accordingly.
Page 5, after line 5 insert:
"(I) "BASE RATE" MEANS CHARGES USED TO RECOVER COSTS OF UTILITY
INFRASTRUCTURE AND OPERATIONS, INCLUDING A RETURN ON CAPITAL
INVESTMENT, NOT OTHERWISE RECOVERED THROUGH A UTILITY RATE RIDER OR
RATE ADJUSTMENT MECHANISM.".
Renumber succeeding subparagraphs accordingly.
Page 9, line 18, strike "(1)(a)." and substitute "(1)(d)(I).".
As amended, ordered engrossed and placed on the calendar for third reading and final
passage.
House Journal, May 2
9 SB23-291 be amended as follows, and as so amended, be referred to
10 the Committee on Appropriations with favorable
11 recommendation:
12
13 Amend reengrossed bill, page 4, line 1, after the period add "IN
14 DETERMINING THE LONG-TERM RATE OF INFLATION, THE COMMISSION
15 SHALL DETERMINE AN APPROPRIATE RATE OF INFLATION SPECIFICALLY FOR
16 FUEL COSTS.".
17
18 Page 12, line 17, strike "MAY" and substitute "SHALL".
19
20 Page 13, line 10, strike "MAY" and substitute "SHALL".
21
22 Page 14, strike lines 23 through 27 and substitute "TO:
23 (a) DETERMINE WHETHER ALTERNATIVE INFRASTRUCTURE,
24 SERVICE INVESTMENTS, OR OTHER UTILITY ACTIONS COULD MITIGATE
25 IMPACTS ON NONPARTICIPATING OR INCOME-QUALIFIED CUSTOMERS IN A
26 MANNER THAT IS NECESSARY, APPROPRIATE, AND COULD HELP REDUCE
27 GREENHOUSE GAS EMISSIONS IN ALIGNMENT WITH THE "COLORADO
28 GREENHOUSE GAS POLLUTION REDUCTION ROADMAP", PUBLISHED BY THE
29 COLORADO ENERGY OFFICE; AND
30 (b) IDENTIFY THE UP-FRONT AND SERVICE LIFE ANNUALIZED COSTS
31 AND BENEFITS OF THE ALTERNATIVES IDENTIFIED IN SUBSECTION (2)(a) OF
32 THIS SECTION.".
33
34 Page 15, after line 20 insert:
35
36 "(b) THE COMMISSION MAY REQUIRE A GAS UTILITY TO PROVIDE ITS
37 CUSTOMERS WITH RELEVANT INFORMATION REGARDING OPTIONS FOR
38 SWITCHING TO HIGH-EFFICIENCY ELECTRIC SPACE HEATING OR WATER
39 HEATING, INCLUDING:
40 (I) A LIST OF APPLIANCES, FOR WHICH THE UTILITY PROVIDES
41 INCENTIVES OR REBATES; AND
42 (II) FOR EXISTING OR PROSPECTIVE CUSTOMERS WITH FACILITIES
43 LARGER THAN FIFTY THOUSAND SQUARE FEET, A COST-BENEFIT ANALYSIS
44 OF ELECTRIFICATION OPTIONS THAT INCLUDES UP-FRONT AND LIFETIME
45 COSTS, WHICH ANALYSIS MUST TAKE INTO ACCOUNT AVAILABLE
46 INCENTIVES AND REBATES AND USE A REASONABLE COST THAT REFLECTS
47 GAS PRICE VOLATILITY.".
48
49 Reletter succeeding paragraphs accordingly.
50
51 Page 15, line 25, strike "(2)(b)" and substitute "(2)(c)".
52
53 Page 19, strike lines 4 through 27.
54
55 Page 20, strike lines 1 and 2 and substitute:
1 "40-3.2-104.6. Commission investigation on beneficial
2 electrification - repeal. (1) ON OR BEFORE JANUARY 1, 2024, THE
3 COMMISSION SHALL INITIATE AN INVESTIGATIVE PROCEEDING TO BE
4 COMPLETED NO LATER THAN JULY 1, 2024, EXAMINING EXISTING
5 INVESTOR-OWNED ELECTRIC UTILITY TARIFFS AND INTERCONNECTION
6 POLICIES AND PRACTICES TO DETERMINE:
7 (a) IF THE TARIFFS, POLICIES, AND PRACTICES POSE A BARRIER TO
8 THE BENEFICIAL ELECTRIFICATION OF TRANSPORTATION AND BUILDINGS
9 AND THE OFFSETTING OF THAT ENERGY USE WITH DISTRIBUTED ENERGY
10 RESOURCES;
11 (b) IF THE APPLICATION OF TRADITIONAL COST-CAUSATION AND
12 COST RECOVERY PRINCIPLES POSE A BARRIER TO SUCH BENEFICIAL
13 ELECTRIFICATION AND THE OFFSETTING OF THAT ENERGY USE WITH
14 DISTRIBUTED ENERGY RESOURCES; AND
15 (c) WHETHER REQUIRING A CUSTOMER THAT SEEKS TO
16 INTERCONNECT DISTRIBUTED ENERGY RESOURCES TO THE
17 INVESTOR-OWNED ELECTRIC UTILITY'S ELECTRIC GRID TO BEAR THE FULL
18 INCREMENTAL COST OF TRANSFORMER OR SERVICE UPGRADES NEEDED AT
19 THE TIME OF INTERCONNECTION IMPOSES AN UNDUE BURDEN ON THE
20 CUSTOMER, WITH CONSIDERATION GIVEN TO METHODS FOR SHARING THE
21 COST RECOVERY AMONG CUSTOMERS.
22 (2) THE COMMISSION SHALL CONSIDER WHETHER TO DIRECT AN
23 INVESTOR-OWNED ELECTRIC UTILITY TO MAKE CHANGES:
24 (a) TO ITS TARIFFS, POLICIES, PRACTICES, OR COST ALLOCATION;
25 (b) IN THE ALLOCATION OF DISTRIBUTION SYSTEM COSTS,
26 INCLUDING THE COSTS OF TRANSFORMER, SUBSTATION, OR SERVICE
27 UPGRADES AS PART OF THE UTILITY'S INVESTMENT IN ITS DISTRIBUTION
28 SYSTEM; AND
29 (c) TO ITS DISTRIBUTION SYSTEM PLANNING PROCESS TO BETTER
30 PLAN FOR AND ACCOMMODATE FUTURE BENEFICIAL ELECTRIFICATION AND
31 DISTRIBUTED ENERGY RESOURCE INVESTMENTS THAT ARE NECESSARY TO
32 ALIGN WITH THE STATE'S GREENHOUSE GAS EMISSION REDUCTION GOALS
33 SET FORTH IN SECTION 25-7-102 (2)(g).
34 (3) UPON COMPLETION OF THE INVESTIGATION, THE COMMISSION
35 SHALL POST WRITTEN FINDINGS AND CONCLUSIONS FROM THE
36 INVESTIGATION ON THE".
House Journal, May 3
5 SB23-291 be amended as follows, and as so amended, be referred to
6 the Committee of the Whole with favorable
7 recommendation:
8
9 Amend reengrossed bill, page 21, line 20, strike "$1,265,551" and
10 substitute "$1,347,554".
11
12 Page 21, line 24, strike "$233,630" and substitute "$307,883".
13
14 Page 21, line 26, strike "2.5 FTE;" and substitute "3.3 FTE;".
15
16 Page 21, line 27, strike "$23,385" and substitute "$31,135".
17
18