Amendments for SB25-127
Senate Journal, March 27
After consideration on the merits, the Committee recommends that SB25-127 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.
Amend printed bill, strike everything below the enacting clause and substitute:
"SECTION 1. Short title. The short title of this act is the "Colorado
Grid Optimization Act".
SECTION 2. In Colorado Revised Statutes, 40-2-125.5, add (5.5) and
(5.7) as follows:
40-2-125.5. Carbon dioxide emission reductions - goal to eliminate
by 2050 - legislative declaration - interim targets - submission and
approval of plans - definitions - cost recovery - reports - rules.
(5.5) (a) (I) EXCEPT AS PROVIDED IN SUBSECTION (5.5)(a)(II) OF THIS SECTION,
ON AND AFTER SEPTEMBER 1, 2025, A QUALIFYING RETAIL UTILITY'S ELECTRIC
RESOURCE PLAN MUST INCLUDE AN EVALUATION OF ADVANCED TRANSMISSION
TECHNOLOGIES. THE EVALUATION MUST INCLUDE:
(A) A TECHNICAL FEASIBILITY ASSESSMENT;
(B) A COST-EFFECTIVENESS ANALYSIS;
(C) A BASE MODELING SCENARIO AND A MODELING SCENARIO THAT
INCORPORATES ADVANCED TRANSMISSION TECHNOLOGIES THAT MAY INCREASE
SYSTEM CAPACITY, INCREASE CAPACITY TO CONNECT TO NEW RENEWABLE
ENERGY AND ZERO-CARBON RESOURCES, AND LOWER COSTS; AND
(D) AN INVENTORY OF THE UTILITY'S EXISTING AND PLANNED
ADVANCED TRANSMISSION TECHNOLOGIES.
(II) IF A QUALIFYING RETAIL UTILITY DOES NOT INCORPORATE AN
EVALUATION OF ADVANCED TRANSMISSION TECHNOLOGIES IN ITS ELECTRIC
RESOURCE PLAN, THE QUALIFYING RETAIL UTILITY SHALL SUBMIT A DETAILED
EXPLANATION OF WHY AN EVALUATION WAS NOT INCORPORATED, WHICH
EXPLANATION MUST INCLUDE RELEVANT ANALYSES DEMONSTRATING WHY
ADVANCED TRANSMISSION TECHNOLOGIES WERE NOT FOUND TO OFFER A MORE
COST-EFFECTIVE STRATEGY, WHETHER IN COMBINATION WITH OR INSTEAD OF
OTHER CAPITAL INVESTMENTS, TO ACHIEVE ONE OR MORE OF THE FOLLOWING:
(A) AN INCREASE IN TRANSMISSION SYSTEM CAPACITY, EFFICIENCY,
RELIABILITY, OR RESILIENCY;
(B) A REDUCTION OF TRANSMISSION SYSTEM CONGESTION;
(C) A REDUCTION OF CURTAILMENT OF RENEWABLE AND ZERO-CARBON
RESOURCES;
(D) A REDUCTION OF THE RISK OF IGNITING WILDFIRES; AND
(E) AN INCREASE IN CAPACITY TO CONNECT NEW RENEWABLE ENERGY
AND ZERO-CARBON RESOURCES.
(b) AS NEEDED, THE COMMISSION MAY CONSULT WITH THE COLORADO
ELECTRIC TRANSMISSION AUTHORITY, SUBJECT TO AN INTERGOVERNMENTAL
AGREEMENT, TO EVALUATE THE PLANS SUBMITTED PURSUANT TO THIS
SUBSECTION (5.5) AND TO DESIGN INCENTIVES PURSUANT TO SUBSECTION (5.7)
OF THIS SECTION.
(c) AS USED IN THIS SUBSECTION (5.5) AND SUBSECTION (5.7) OF THIS
SECTION:
(I) "ADVANCED CONDUCTOR" MEANS A CONDUCTOR THAT HAS A DIRECT
CURRENT ELECTRICAL RESISTANCE THAT IS AT LEAST TEN PERCENT LOWER THAN
EXISTING CONDUCTORS OF A SIMILAR DIAMETER ON THE ELECTRIC
TRANSMISSION SYSTEM AND THAT INCREASES CAPACITY BY AT LEAST
SEVENTY-FIVE PERCENT ON THE SYSTEM.
(II) "ADVANCED TRANSMISSION TECHNOLOGIES" MEANS HARDWARE OR
SOFTWARE TECHNOLOGIES THAT INCREASE THE CAPACITY, EFFICIENCY,
RELIABILITY, OR RESILIENCY OF AN EXISTING OR A NEW TRANSMISSION FACILITY,
INCLUDING:
(A) ADVANCED CONDUCTORS;
(B) GRID-ENHANCING TECHNOLOGIES; AND
(C) OTHER TECHNOLOGY AS DETERMINED BY THE COMMISSION.
(III) "GRID-ENHANCING TECHNOLOGY" MEANS A HARDWARE OR A
SOFTWARE TECHNOLOGY THAT REDUCES CONGESTION OR ENHANCES THE
FLEXIBILITY OF ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEMS BY
INCREASING THE CAPACITY OF A TRANSMISSION OR DISTRIBUTION LINE OR
REROUTING ELECTRICITY FROM OVERLOADED LINES TO UNCONGESTED LINES,
WHILE MAINTAINING INDUSTRY SAFETY STANDARDS. "GRID-ENHANCING
TECHNOLOGY" INCLUDES:
(A) DYNAMIC LINE RATINGS;
(B) ADVANCED POWER FLOW CONTROLLERS;
(C) TOPOLOGY OPTIMIZATION;
(D) ENERGY STORAGE AS A TRANSMISSION ASSET; AND
(E) OTHER TECHNOLOGIES THAT INCREASE GRID RELIABILITY,
FLEXIBILITY, AND CAPACITY.
(5.7) Performance-based incentives for advanced transmission
technologies. (a) THE COMMISSION MAY EVALUATE NEW INCENTIVES FOR THE
UTILIZATION OF ADVANCED TRANSMISSION TECHNOLOGIES THAT DEMONSTRATE
AN ABILITY TO:
(I) PROVIDE ELECTRIC TRANSMISSION SYSTEM CONGESTION RELIEF;
(II) INTERCONNECT NEW LOAD OR GENERATION THAT THE QUALIFYING
RETAIL UTILITY IS OTHERWISE UNABLE TO INTEGRATE ONTO THE GRID IN A
TIMELY AND PRACTICABLE MANNER THROUGH EXISTING TRANSMISSION OR
DISTRIBUTION INVESTMENTS;
(III) REDUCE WILDFIRE RISKS AND ENHANCE RESILIENCY TO WILDFIRE
IMPACTS AND OTHER EXTREME CONDITIONS, HAZARDS, OR RISKS; OR
(IV) AVOID, REDUCE, OR DEFER THE ACTIVATION OF PUBLIC SAFETY
POWER SHUT OFFS OR DE-ENERGIZATION EVENTS.
(b) IF A COMMISSION EVALUATION CONDUCTED PURSUANT TO
SUBSECTION (5.7)(a) OF THIS SECTION CONCLUDES THAT INCENTIVES FOR THE
UTILIZATION OF ADVANCED TRANSMISSION TECHNOLOGIES ARE IN THE PUBLIC
INTEREST, THE COMMISSION SHALL CONSIDER IMPLEMENTING SUCH INCENTIVES,
INCLUDING:
(I) SHARED SAVINGS APPROACHES;
(II) PERFORMANCE INCENTIVE MECHANISMS; AND
(III) APPROPRIATE CONSUMER PROTECTIONS TO ENSURE ANY
ADDITIONAL REVENUE OR COST RECOVERY AUTHORIZED AS A RESULT OF THE
INCENTIVE IS PRUDENT.
SECTION 3. In Colorado Revised Statutes, 40-2-134, amend (2); and
add (3) and (4) as follows:
40-2-134. Wholesale electric cooperatives - electric resource
planning - definitions - rules. (2) (a) As used in this section, "wholesale
electric cooperative" means any generation and transmission cooperative
electric association that provides wholesale electric service directly to
cooperative electric associations. EXCEPT AS PROVIDED IN SUBSECTION (2)(b)
OF THIS SECTION, ON AND AFTER SEPTEMBER 1, 2025, AN INTEGRATED OR
ELECTRIC RESOURCE PLAN THAT A WHOLESALE ELECTRIC COOPERATIVE
SUBMITS TO THE COMMISSION MUST INCLUDE AN EVALUATION OF ADVANCED
TRANSMISSION TECHNOLOGIES, INCLUDING:
(I) A TECHNICAL FEASIBILITY ASSESSMENT;
(II) A COST-EFFECTIVENESS ANALYSIS;
(III) A BASE MODELING SCENARIO AND A MODELING SCENARIO THAT
INCORPORATES ADVANCED TRANSMISSION TECHNOLOGIES THAT MAY INCREASE
SYSTEM CAPACITY, INCREASE CAPACITY TO CONNECT TO NEW RENEWABLE
ENERGY AND ZERO-CARBON RESOURCES, AND LOWER COSTS; AND
(IV) AN INVENTORY OF THE WHOLESALE ELECTRIC COOPERATIVE'S
EXISTING AND PLANNED ADVANCED TRANSMISSION TECHNOLOGIES.
(b) IF A WHOLESALE ELECTRIC COOPERATIVE DOES NOT INCORPORATE
AN EVALUATION OF ADVANCED TRANSMISSION TECHNOLOGIES IN ITS
INTEGRATED OR ELECTRIC RESOURCE PLAN, THE WHOLESALE ELECTRIC
COOPERATIVE SHALL SUBMIT A DETAILED EXPLANATION OF WHY AN
EVALUATION WAS NOT INCORPORATED, WHICH EXPLANATION MUST INCLUDE
RELEVANT ANALYSES DEMONSTRATING WHY ADVANCED TRANSMISSION
TECHNOLOGIES WERE NOT FOUND TO OFFER A MORE COST-EFFECTIVE STRATEGY,
WHETHER IN COMBINATION WITH OR INSTEAD OF OTHER CAPITAL INVESTMENTS,
TO ACHIEVE ONE OR MORE OF THE GOALS LISTED IN SECTION 40-2-125.5
(5.5)(a)(II).
(3) AS NEEDED, THE COMMISSION MAY CONSULT WITH THE COLORADO
ELECTRIC TRANSMISSION AUTHORITY, SUBJECT TO AN INTERGOVERNMENTAL
AGREEMENT, TO EVALUATE THE PLANS SUBMITTED PURSUANT TO THIS SECTION.
(4) AS USED IN THIS SECTION:
(a) "ADVANCED TRANSMISSION TECHNOLOGIES" HAS THE MEANING SET
FORTH IN SECTION 40-2-125.5 (5.5)(c)(II).
(b) "WHOLESALE ELECTRIC COOPERATIVE" MEANS A GENERATION AND
TRANSMISSION COOPERATIVE ELECTRIC ASSOCIATION THAT PROVIDES
WHOLESALE ELECTRIC SERVICE DIRECTLY TO COOPERATIVE ELECTRIC
ASSOCIATIONS.
SECTION 4. In Colorado Revised Statutes, 40-2-126, amend (6) as
follows:
40-2-126. Transmission facilities - biennial review - energy resource
zones - definitions - plans - approval - cost recovery - powerline trail
consideration. (6) The commission shall amend its rules requiring the filing
of ten-year transmission plans by utilities to also require utilities to:
(a) Consider and address plans for the construction of new powerline
trails in coordination with applicable local governments in each two-year update
to a ten-year transmission plan; and
(b) Demonstrate compliance with section 33-45-103 (2);
(c) CONSIDER ADVANCED TRANSMISSION TECHNOLOGIES, AS DEFINED
IN SECTION 40-2-125.5 (5.5)(c)(II), IN EACH TEN-YEAR TRANSMISSION PLAN;
(d) ALIGN EACH TEN-YEAR TRANSMISSION PLAN WITH THE UTILITY'S
ELECTRIC RESOURCE PLAN AND CLEAN ENERGY PLAN; AND
(e) IDENTIFY STRATEGIES TO REDUCE THE CAPITAL AND FINANCING
COSTS FOR PROJECTS THAT THE UTILITY IDENTIFIES IN A TEN-YEAR
TRANSMISSION PLAN, INCLUDING BY USING THE PUBLIC FINANCING AUTHORITY
OF THE COLORADO ELECTRIC TRANSMISSION AUTHORITY.
SECTION 5. In Colorado Revised Statutes, 40-1-102, amend (1.5);
and add (1.7) as follows:
40-1-102. Definitions. As used in articles 1 to 7 of this title 40, unless
the context otherwise requires:
(1.5) "Commission" means the public utilities commission of the state
of Colorado "COLORADO ELECTRIC TRANSMISSION AUTHORITY" MEANS THE
COLORADO ELECTRIC TRANSMISSION AUTHORITY CREATED IN SECTION
40-42-103 (1).
(1.7) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION OF THE
STATE OF COLORADO.
SECTION 6. In Colorado Revised Statutes, 40-42-103, amend (2)(a)
introductory portion, (2)(a)(III), and (2)(a)(IV); and add (2)(a)(V) as follows:
40-42-103. Authority - creation - board - open meetings and open
records. (2) (a) The powers of the authority are vested in a board of directors,
which consists of the following nine TEN members:
(III) Three members appointed by the speaker of the house of
representatives; and
(IV) Three members appointed by the president of the senate; AND
(V) THE DIRECTOR OF THE COMMISSION OR THE DIRECTOR'S DESIGNEE,
WHO SHALL SERVE IN A NONVOTING ROLE.
SECTION 7. Act subject to petition - effective date. This act takes
effect at 12:01 a.m. on the day following the expiration of the ninety-day period
after final adjournment of the general assembly; except that, if a referendum
petition is filed pursuant to section 1 (3) of article V of the state constitution
against this act or an item, section, or part of this act within such period, then
the act, item, section, or part will not take effect unless approved by the people
at the general election to be held in November 2026 and, in such case, will take
effect on the date of the official declaration of the vote thereon by the
governor.".
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