A Bill for an Act
Page 1, Line 101Concerning adjustments to the economic development rate
Page 1, Line 102tariff.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Under current law, an investor-owned electric utility (utility) may apply to the public utilities commission (commission) for approval to charge certain commercial or industrial customers of the utility an economic development rate (economic development rate), which is a reduced rate offered to a commercial or industrial customer that locates or expands their operations in Colorado, that adds at least 3 megawatts of new load at a single location within the utility's service territory, and that demonstrates certain other requirements to the satisfaction of the utility (qualifying commercial or industrial customer).
The bill makes adjustments to the economic development rate tariff by:
- Authorizing the utility to apply to the commission for an expansion of the maximum duration of the economic development rate from 10 years to 25 years;
- Expanding the maximum load at a single location of a qualifying commercial or industrial customer for an individual project that does not require commission approval from 20 megawatts to 40 megawatts; and
- Updating the application process required for seeking approval of an economic development rate by requiring that the commission:
- Approve or deny an application within 120 days after a notice period of 14 business days after the application was filed; and
- Consider the broader economic benefits associated with the application for other classes of utility customers and for the surrounding community.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 40-3-104.3, amend
Page 2, Line 3(6)(b)(I), (6)(b)(II)(B), (6)(b)(III), (6)(c)(I), (6)(d)(I) introductory portion,
Page 2, Line 4(6)(d)(II) introductory portion, (6)(d)(II)(A), (7), and (8); and add (6)(c)(IV) and (6)(c)(V) as follows:
Page 2, Line 540-3-104.3. Manner of regulation - competitive responses -
Page 2, Line 6economic development rate - definitions - repeal. (6) (b) (I) An
Page 2, Line 7economic development rate approved pursuant to this section must be in
Page 2, Line 8the public interest, may be filed with the commission without
Page 2, Line 9reference to any tariff on file, and must be lower than the rate or
Page 2, Line 10rates that the qualifying commercial or industrial customer would be or
Page 2, Line 11currently is subject to under the investor-owned electric utility's
Page 2, Line 12tariffs in effect at the time the qualifying commercial or industrial
Page 3, Line 1customer seeks to qualify for the economic development rate; except that
Page 3, Line 2an economic development rate must not be lower than the utility's
Page 3, Line 3marginal cost of providing service to the qualifying commercial or industrial customer.
Page 3, Line 4(II) (B) Notwithstanding subsection (6)(b)(II)(A) of this section,
Page 3, Line 5the investor-owned electric utility may negotiate and enter into
Page 3, Line 6agreements related to economic development rates with individual
Page 3, Line 7qualifying commercial or industrial customers without commission
Page 3, Line 8approval so long as the agreed-upon economic development rate complies
Page 3, Line 9with the commission-approved tariff and the addition or expansion of
Page 3, Line 10existing load at a single location is less than or equal to
twentyPage 3, Line 11megawatts. In approving a utility's application for an economic
Page 3, Line 12development rate, for loads between twenty-one and forty
Page 3, Line 13megawatts, the commission may require the investor-owned
Page 3, Line 14electric utility to make additional demonstrations, including a
Page 3, Line 15marginal cost determination, an additional power flow analysis
Page 3, Line 16to demonstrate that the added load will be supported by
Page 3, Line 17adequate transmission capabilities and will not negatively
Page 3, Line 18impact reliability or resource adequacy, a demonstration that
Page 3, Line 19the additional infrastructure costs will not be borne by other
Page 3, Line 20customers, and a demonstration that projects above twenty-one
Page 3, Line 21megawatts will provide additional community benefits. Any
Page 3, Line 22addition or expansion of existing load at a single location that is greater
Page 3, Line 23than
twentyPage 3, Line 24based upon a finding that the addition or expansion is consistent with this section and in the public interest.
Page 3, Line 25(III) (A) An investor-owned electric utility may offer an
Page 4, Line 1economic development rate to a qualifying commercial or industrial customer for up to ten years.
Page 4, Line 2(B) Notwithstanding subsection (6)(b)(III)(A) of this
Page 4, Line 3section, the investor-owned electric utility may propose, and
Page 4, Line 4the commission may consider approving, an economic
Page 4, Line 5development rate to a qualifying commercial or industrial
Page 4, Line 6customer for a period of greater than ten years, but no more than twenty-five years.
Page 4, Line 7(C) In evaluating whether it is in the public interest for an
Page 4, Line 8investor-owned electric utility's proposal to allow a qualifying
Page 4, Line 9commercial or industrial customer to remain on an economic
Page 4, Line 10development rate for longer than ten years, the commission
Page 4, Line 11shall evaluate the proposed duration of the qualifying
Page 4, Line 12commercial or industrial customer's proposed project,
Page 4, Line 13community impacts, and impacts to rates of other customers of the utility.
Page 4, Line 14(c) (I) An
authorizationPage 4, Line 15pursuant to this section must include such terms and conditions as the
Page 4, Line 16commission determines are necessary to ensure that the economic
Page 4, Line 17development rates or charges assessed to other customers do not subsidize
Page 4, Line 18the cost of providing service to qualifying commercial and industrial
Page 4, Line 19customers consistent with subsection (6)(b)(I) of this section and that
Page 4, Line 20there is no other subsidization of such service. In
developingPage 4, Line 21the terms and conditions of an economic development rate, the commission shall consider, among other things:
Page 4, Line 22(A) The rates and charges assessed to the investor-owned
Page 4, Line 23electric utility's wholesale customers;
andPage 5, Line 1(B) The effects on other transmission system owners and users
Page 5, Line 2resulting from new transmission facilities constructed in connection with
Page 5, Line 3the utility's expansion of an existing voluntary
renewablePage 5, Line 4(C) For all of the investor-owned electric utility's
Page 5, Line 5customer classes, the broader economic development benefits
Page 5, Line 6associated with the qualifying commercial or industrial
Page 5, Line 7customer based on a determination of the marginal cost and on
Page 5, Line 8a societal economic benefit test developed by the investor-owned electric utility.
Page 5, Line 9(IV) Following a notice period of fourteen business days
Page 5, Line 10after an investor-owned electric utility files an application for
Page 5, Line 11approval of economic development rates, and the addition or
Page 5, Line 12expansion of existing load at a single location that is forty-one
Page 5, Line 13or more megawatts, the commission shall approve or deny the
Page 5, Line 14application within one hundred twenty days after the expiration of the notice period.
Page 5, Line 15(V) (A) If an investor-owned electric utility does not have
Page 5, Line 16a commission-approved tariff pursuant to subsection (6)(b)(II)(A)
Page 5, Line 17of this section, the commission, following a notice period of
Page 5, Line 18fourteen business days after the investor-owned electric utility
Page 5, Line 19files an application for approval of economic development rates,
Page 5, Line 20shall approve or deny the application within one hundred twenty days after the expiration of the notice period.
Page 5, Line 21(B) This subsection (6)(c)(V) is repealed, effective June 1, 2026.
Page 5, Line 22(d) (I) An investor-owned electric utility may seek commission
Page 6, Line 1approval to expand any voluntary
renewablePage 6, Line 2service offering, except those covered by valid agreements to the contrary
Page 6, Line 3executed and approved by the commission as of January 1, 2019, through
Page 6, Line 4the acquisition of additional
renewablePage 6, Line 5(II) The commission may approve, within one hundred twenty
Page 6, Line 6days, an expansion of an existing voluntary
renewablePage 6, Line 7(A) There is not sufficient capacity and energy in the existing
Page 6, Line 8voluntary
renewablePage 6, Line 9the needs of the customer and the customer meets the requirements of subsection (6)(d)(I) of this section; and
Page 6, Line 10(7) As used in subsection (6) of this section and this subsection (7), unless the context otherwise requires:
Page 6, Line 11(a) "Marginal cost" means the incremental additional
Page 6, Line 12cost that an investor-owned electric utility incurs and charges
Page 6, Line 13to serve an electric customer over the contract period, which
Page 6, Line 14additional costs would not have been incurred if the customer
Page 6, Line 15did not take service on the utility's system, including, but not limited to:
Page 6, Line 16(I) Fuel;
(II) Purchased power;
Page 6, Line 17(III) Operating and maintenance costs;
(IV) Capital additions;
Page 6, Line 18(V) Overhead;
(VI) Taxes; and
Page 6, Line 19(VII) Fees.
(a)Page 7, Line 1(I) Means a utility customer that:
Page 7, Line 2(A) Agrees to: Locate commercial or industrial operations in
Page 7, Line 3Colorado and add at least three megawatts of new load at a single
Page 7, Line 4location, or expand existing commercial or industrial operations in
Page 7, Line 5Colorado and add at least three megawatts of new load at a single location; and
Page 7, Line 6(B) Demonstrates, to the satisfaction of the investor-owned
Page 7, Line 7electric utility, subject to review by the commission, that: The cost of
Page 7, Line 8electricity is a critical consideration in deciding where to locate new or
Page 7, Line 9expand existing operations, and the availability of economic development
Page 7, Line 10rates, either on their own or in combination with other economic
Page 7, Line 11development incentives, is a substantial factor in the customer's decision to locate new or expand existing business operations in Colorado; and
Page 7, Line 12(II) Does not include a customer that agrees to relocate or
Page 7, Line 13otherwise transfer its existing load of at least three megawatts from the
Page 7, Line 14service territory of another public utility, as defined in section 40-1-103,
Page 7, Line 15into the service territory of the utility offering economic development rates.
Page 7, Line 16(c) "Societal economic benefit test" means a test that
Page 7, Line 17takes into account the economic benefits received by all
Page 7, Line 18customer classes served by the utility and the economic
Page 7, Line 19development benefits to the surrounding community that result
Page 7, Line 20from serving a qualifying commercial or industrial customer with an economic development rate.
Page 7, Line 21
(b)renewablePage 7, Line 22offering" means a program or other service offering approved by the
Page 8, Line 1commission that allows a qualifying commercial or industrial customer
Page 8, Line 2access to eligible energy resources, as that term is defined in section
Page 8, Line 340-2-124 (1)(a), on a voluntary basis, on terms and conditions deemed
Page 8, Line 4necessary by the commission. For a voluntary
renewablePage 8, Line 5program or service offering to be expanded, it must have been approved
Page 8, Line 6by the commission prior to the expansion request of a qualifying
Page 8, Line 7commercial or industrial customer pursuant to subsection (6)(d)(I) of this section.
Page 8, Line 8(8)
This subsection (8) and2028Page 8, Line 9SECTION 2. Applicability. This act applies to applications filed on or after the effective date of this act.
Page 8, Line 10SECTION 3. Safety clause. The general assembly finds,
Page 8, Line 11determines, and declares that this act is necessary for the immediate
Page 8, Line 12preservation of the public peace, health, or safety or for appropriations for
Page 8, Line 13the support and maintenance of the departments of the state and state institutions.