A Bill for an Act
Page 1, Line 101Concerning measures to optimize Colorado's electric
Page 1, Line 102transmission system.
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.)
Current law requires the Colorado electric transmission authority (authority) to conduct a study on the need for expanded transmission capacity in the state and prepare a final report of the study on or before January 31, 2025. Section 2 of the bill authorizes the authority to conduct the study on a recurring basis and requires the authority to present a statewide transmission plan, based on the results of the study, to the Colorado public utilities commission (commission) and the legislature every 3 years, beginning on or before September 1, 2027.
Section 2 requires the authority to consider advanced transmission technologies in the study and identify certain projects that use advanced transmission technologies. "Advanced transmission technologies" is defined in section 1 as hardware or software technologies that increase the capacity, efficiency, reliability, or resiliency of an existing or new transmission facility.
Section 3 designates the authority as a statewide transmission coordinator. Among other duties, the authority is required to facilitate coordinated statewide planning; engage with regional and interregional planning processes; and establish an expert advisory panel to review and provide feedback on model inputs, assumptions, and approaches.
Under current law, an electric utility must submit an electric resource plan to the commission for approval. Sections 4 and 5 require an electric utility to:
- Include in the electric resource plan a transmission plan that identifies certain transmission resources and projects;
- Incorporate in the electric resource plan an evaluation of advanced transmission technologies or submit to the commission an explanation of why advanced transmission technologies are not included in the electric resource plan; and
- Provide model inputs and assumptions and other system information or methodology consultation necessary to support the authority in acting as a statewide transmission coordinator.
Section 4 allows the commission to design incentives for a retail electric utility that utilizes advanced transmission technologies.
Section 6 requires an electric utility to consider advanced transmission technologies in the electric utility's 10-year transmission plan.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Short title. The short title of this act is the "Colorado Grid Optimization Act".
Page 2, Line 3SECTION 2. In Colorado Revised Statutes, 40-42-102, add (1.3), (1.5), and (12.5) as follows:
Page 2, Line 440-42-102. Definitions. As used in this article 42, unless the
Page 2, Line 5context otherwise requires:
Page 3, Line 1(1.3) "Advanced conductor" means a conductor that has
Page 3, Line 2a direct current electrical resistance that is at least ten
Page 3, Line 3percent lower than existing conductors of a similar diameter on the electric transmission system.
Page 3, Line 4(1.5) "Advanced transmission technologies" means
Page 3, Line 5hardware or software technologies that increase the capacity,
Page 3, Line 6efficiency, reliability, or resiliency of an existing or new transmission facility, including:
Page 3, Line 7(a) Advanced conductors;
(b) Grid-enhancing technologies; and
Page 3, Line 8(c) Other technology as determined by the commission.
Page 3, Line 9(12.5) "Grid-enhancing technology" means a hardware or
Page 3, Line 10a software technology that reduces congestion or enhances the
Page 3, Line 11flexibility of electric transmission and distribution systems by
Page 3, Line 12increasing the capacity of a transmission or distribution line or
Page 3, Line 13rerouting electricity from overloaded lines to uncongested
Page 3, Line 14lines, while maintaining industry safety standards. This includes:
Page 3, Line 15(a) Dynamic line ratings;
(b) Advanced power flow controllers;
Page 3, Line 16(c) Topology optimization; and
Page 3, Line 17(d) Other technologies that increase grid reliability, flexibility, and capacity.
Page 3, Line 18SECTION 3. In Colorado Revised Statutes, 40-42-109, amend (2); repeal (3); and add (1.5) as follows:
Page 3, Line 1940-42-109. Study on expanding transmission capacity -
Page 3, Line 20reporting. (1.5) Beginning on or after September 1, 2025, as part
Page 4, Line 1of a study conducted pursuant to subsection (1) of this section, the authority shall:
Page 4, Line 2(a) Conduct an analysis of how advanced transmission
Page 4, Line 3technologies can support the needs of the electric transmission
Page 4, Line 4system, including by optimizing the deliverability of electricity
Page 4, Line 5in the state, improving transmission system reliability and
Page 4, Line 6resiliency, reducing time and cost to deploy, and enhancing the capacity and safety of existing infrastructure;
Page 4, Line 7(b) Identify projects that can achieve the following through the use of advanced transmission technologies:
Page 4, Line 8(I) An increase in transmission system capacity, efficiency, reliability, or resiliency;
Page 4, Line 9(II) A reduction of transmission system congestion;
Page 4, Line 10(III) A reduction of curtailment of renewable and zero-carbon resources;
Page 4, Line 11(IV) A reduction of the risk of igniting wildfires; or
Page 4, Line 12(V) An increase in capacity to connect new renewable energy and zero-carbon resources; and
Page 4, Line 13(c) Develop modeling methodologies capable of
Page 4, Line 14comprehensively evaluating the benefits of advanced
Page 4, Line 15transmission technologies. The authority may contract with an
Page 4, Line 16independent consulting firm as necessary to conduct the modeling work.
Page 4, Line 17(2) The authority shall,
prepare:Page 4, Line 18
(a) An initial report of the study, including any recommendations,Page 4, Line 19
and present the initial report to the commission on or before SeptemberPage 4, Line 20
1, 2024; andPage 5, Line 1
(b) A final report of the study, including any recommendationsPage 5, Line 2every three years, beginning on or before September 1, 2027,
Page 5, Line 3prepare a statewide transmission plan based on the results of
Page 5, Line 4the most recent study conducted pursuant to subsection (1) of
Page 5, Line 5this section and present the
final reportPage 5, Line 6to the commission and the joint committee of the house of
Page 5, Line 7representatives energy and environment committee and the senate
Page 5, Line 8transportation and energy committee, or their successor committees.
on or before January 31, 2025.Page 5, Line 9(3)
This section is repealed, effective September 1, 2025.Page 5, Line 10SECTION 4. In Colorado Revised Statutes, 40-42-104, add (1.5) as follows:
Page 5, Line 1140-42-104. General and specific powers and duties of the
Page 5, Line 12authority. (1.5) The authority shall act as a statewide transmission coordinator by:
Page 5, Line 13(a) Coordinating the authority's statewide transmission
Page 5, Line 14plans, completed pursuant to section 40-42-109 (2), with electric
Page 5, Line 15utility transmission plans, prepared pursuant to sections
Page 5, Line 1640-2-125.5 (5.5)(a) and 40-2-134 and in accordance with commission
Page 5, Line 17rules, including by providing reports to electric utilities or the
Page 5, Line 18commission regarding the alignment of electric utility
Page 5, Line 19transmission plans with the authority's statewide transmission plans;
Page 5, Line 20(b) Maintaining a single-system statewide model of transmission, including by:
Page 5, Line 21(I) Coordinating modeling inputs, assumptions, and
Page 5, Line 22methodologies with electric utilities, subject to conditions set by the commission; and
Page 6, Line 1(II) Making model parameters and software available to
Page 6, Line 2stakeholders to the extent feasible, subject to cost, privacy, and security constraints;
Page 6, Line 3(c) Requiring electric utilities to consult or engage the authority in regional and interregional planning processes;
Page 6, Line 4(d) Convening and staffing an expert advisory panel,
Page 6, Line 5subject to appropriate confidential information protection,
Page 6, Line 6which panel shall review and provide feedback on model inputs and assumptions and the modeling approach; and
Page 6, Line 7(e) Ensuring adequate stakeholder engagement on the
Page 6, Line 8statewide transmission plans completed pursuant to section 40-42-109 (2).
Page 6, Line 9SECTION 5. In Colorado Revised Statutes, 40-2-125.5, add (5.5) and (5.7) as follows:
Page 6, Line 1040-2-125.5. Carbon dioxide emission reductions - goal to
Page 6, Line 11eliminate by 2050 - legislative declaration - interim targets -
Page 6, Line 12submission and approval of plans - definitions - cost recovery -
Page 6, Line 13reports - rules. (5.5) Transmission plans and consideration of
Page 6, Line 14advanced transmission technologies. (a) An electric resource plan
Page 6, Line 15that a qualifying retail utility files with the commission on or
Page 6, Line 16after September 1, 2025, must include a transmission plan that
Page 6, Line 17aligns with the qualifying retail utility's ten-year transmission
Page 6, Line 18plan created pursuant to section 40-2-126 (6) and that, on or
Page 6, Line 19after September 1, 2027, aligns with the Colorado electric
Page 6, Line 20transmission authority's statewide transmission plan created
Page 6, Line 21pursuant to section 40-42-109 (2). The qualifying retail utility's transmission plan must identify:
Page 7, Line 1(I) Transmission resources that interconnect and
Page 7, Line 2transmit the generation resource mix identified in the
Page 7, Line 3qualifying retail utility's resource acquisition period contained in the electric resource plan;
Page 7, Line 4(II) Conceptual transmission resources that may be
Page 7, Line 5needed to interconnect and transmit the generation resource
Page 7, Line 6mix identified in the utility's clean energy plan to meet the 2045 and 2050 decarbonization goals;
Page 7, Line 7(III) Transmission projects that would increase
Page 7, Line 8interconnection capacity with neighboring electrical systems
Page 7, Line 9and support regional market activity, pursuant to section
Page 7, Line 1040-5-108 and in coordination with activities undertaken by the
Page 7, Line 11Colorado electric transmission authority created in section 40-42-103 (1) and regional planning groups;
Page 7, Line 12(IV) Strategies to optimize the use of the existing
Page 7, Line 13transmission system, including through the use of advanced transmission technologies; and
Page 7, Line 14(V) Strategies to maximize the following transmission benefits:
Page 7, Line 15(A) Avoided or deferred reliability transmission facilities and aging infrastructure replacement;
Page 7, Line 16(B) Reduced loss of load probability or reduced planning reserve margin;
Page 7, Line 17(C) Production cost savings;
(D) Reduced transmission energy losses;
Page 7, Line 18(E) Reduced congestion due to transmission outages;
Page 8, Line 1(F) Mitigation of extreme weather events and unexpected system conditions; and
Page 8, Line 2(G) Capacity cost benefits from reduced peak energy losses.
Page 8, Line 3(b) (I) On or after September 1, 2025, a qualifying retail
Page 8, Line 4utility shall incorporate an evaluation of advanced
Page 8, Line 5transmission technologies in the qualifying retail utility's electric resource plan. The evaluation must include:
Page 8, Line 6(A) A technical feasibility assessment;
(B) A cost-effectiveness analysis;
Page 8, Line 7(C) A base modeling scenario and a modeling scenario
Page 8, Line 8that incorporates advanced transmission technologies that may
Page 8, Line 9increase system capacity, increase capacity to connect to new
Page 8, Line 10renewable energy and zero-carbon resources, and lower costs; and
Page 8, Line 11(D) An inventory of the utility's existing and planned advanced transmission technologies.
Page 8, Line 12(II) If a qualifying retail utility does not incorporate an
Page 8, Line 13evaluation of advanced transmission technologies in the
Page 8, Line 14electric resource plan, the qualifying retail utility shall
Page 8, Line 15submit a detailed explanation of why an evaluation was not
Page 8, Line 16incorporated, which explanation must include relevant
Page 8, Line 17analyses demonstrating why advanced transmission
Page 8, Line 18technologies were not found to offer a more cost-effective
Page 8, Line 19strategy, whether in combination with or instead of other
Page 8, Line 20capital investments, to achieve the goals listed in section
Page 8, Line 2140-42-109 (1.5)(b).
Page 9, Line 1(c) A qualifying retail utility shall provide model inputs
Page 9, Line 2and assumptions, including loads and resources from approved
Page 9, Line 3electric resource plans, transmission contract commitments,
Page 9, Line 4and other operational constraints and other system
Page 9, Line 5information or methodology consultation necessary to support
Page 9, Line 6the Colorado electric transmission authority in constructing
Page 9, Line 7and maintaining a single-system statewide model of transmission.
Page 9, Line 8(d) As used in this subsection (5.5) and subsection (5.7) of
Page 9, Line 9this section, "advanced transmission technologies" has the meaning set forth in section 40-42-102 (1.5).
Page 9, Line 10(5.7) Performance-based incentives for advanced transmission
Page 9, Line 11technologies. (a) The commission may investigate new incentives
Page 9, Line 12for the utilization of advanced transmission technologies that demonstrate an ability to:
Page 9, Line 13(I) Provide electric transmission system congestion relief;
Page 9, Line 14(II) Interconnect new load or generation that the
Page 9, Line 15qualifying retail utility is otherwise unable to integrate onto
Page 9, Line 16the grid in a timely and practicable manner through existing transmission or distribution investments;
Page 9, Line 17(III) Reduce wildfire risk and enhance resiliency to
Page 9, Line 18wildfire impacts and other extreme conditions, hazards, or risks; or
Page 9, Line 19(IV) Avoid, reduce, or defer the activation of public safety power shut offs or de-energization events.
Page 9, Line 20(b) In designing incentives for the utilization of advanced
Page 9, Line 21transmission technologies that demonstrate the benefits
Page 10, Line 1outlined in subsection (5.7)(a) of this section, the commission shall consider:
Page 10, Line 2(I) Shared savings approaches;
(II) Performance incentive mechanisms; and
Page 10, Line 3(III) Appropriate consumer protections to ensure any
Page 10, Line 4additional revenue or cost recovery authorized as a result of the incentive is prudent.
Page 10, Line 5SECTION 6. In Colorado Revised Statutes, 40-2-134, amend (2); and add (3) and (4) as follows:
Page 10, Line 640-2-134. Wholesale electric cooperatives - electric resource
Page 10, Line 7planning - definitions - rules. (2)
As used in this section, "wholesalePage 10, Line 8
electric cooperative" means any generation and transmission cooperativePage 10, Line 9
electric association that provides wholesale electric service directly toPage 10, Line 10
cooperative electric associations.Page 10, Line 11integrated or electric resource plan that a wholesale electric cooperative submits to the commission must include:
Page 10, Line 12(a) A transmission plan that aligns with the wholesale
Page 10, Line 13electric cooperative's ten-year transmission plan created
Page 10, Line 14pursuant to section 40-2-126 (6) and the Colorado electric
Page 10, Line 15transmission authority's statewide transmission plan, identifying:
Page 10, Line 16(I) Transmission resources that interconnect and
Page 10, Line 17transmit the generation resource mix identified in the resource
Page 10, Line 18acquisition period contained, pursuant to commission rules, in the wholesale electric cooperative's electric resource plan;
Page 10, Line 19(II) Conceptual transmission resources that may be
Page 10, Line 20needed to interconnect and transmit the generation resource
Page 11, Line 1mix that may be required to meet 2045 and 2050 decarbonization goals;
Page 11, Line 2(III) Transmission projects that would increase
Page 11, Line 3interconnection capacity with neighboring electrical systems
Page 11, Line 4and support regional market activity, pursuant to section
Page 11, Line 540-5-108 and in coordination with activities undertaken by the
Page 11, Line 6Colorado electric transmission authority created in section 40-42-103 (1) and regional planning groups;
Page 11, Line 7(IV) Strategies to optimize the use of the existing
Page 11, Line 8transmission system, including through the use of advanced transmission technologies; and
Page 11, Line 9(V) Strategies to maximize the following transmission benefits:
Page 11, Line 10(A) Avoided or deferred reliability transmission facilities and aging infrastructure replacement;
Page 11, Line 11(B) Reduced loss of load probability or reduced planning reserve margin;
Page 11, Line 12(C) Production cost savings;
(D) Reduced transmission energy losses;
Page 11, Line 13(E) Reduced congestion due to transmission outages;
Page 11, Line 14(F) Mitigation of extreme weather events and unexpected system conditions; and
Page 11, Line 15(G) Capacity cost benefits from reduced peak energy losses; and
Page 11, Line 16(b) (I) An evaluation of advanced transmission technologies, including:
Page 11, Line 17(A) A technical feasibility assessment;
(B) A cost-effectiveness analysis;
Page 12, Line 1(C) A base modeling scenario and a modeling scenario
Page 12, Line 2that incorporates advanced transmission technologies that may
Page 12, Line 3increase system capacity, increase capacity to connect to new
Page 12, Line 4renewable energy and zero-carbon resources, and lower costs; and
Page 12, Line 5(D) An inventory of the utility's existing and planned advanced transmission technologies.
Page 12, Line 6(II) If a wholesale electric cooperative does not evaluate
Page 12, Line 7advanced transmission technologies in the integrated or
Page 12, Line 8electric resource plan, the wholesale electric cooperative
Page 12, Line 9shall submit a detailed explanation of why an evaluation was
Page 12, Line 10not incorporated, which explanation must include relevant
Page 12, Line 11analyses demonstrating why advanced transmission
Page 12, Line 12technologies were not found to offer a more cost-effective
Page 12, Line 13strategy, whether in combination with or instead of other
Page 12, Line 14capital investments, to achieve the goals listed in section 40-42-109 (1.5)(b).
Page 12, Line 15(3) A wholesale electric cooperative shall provide model
Page 12, Line 16inputs and assumptions, including loads and resources from
Page 12, Line 17approved electric resource plans, transmission contract
Page 12, Line 18commitments, and other operational constraints and other
Page 12, Line 19system information or methodology consultation necessary to
Page 12, Line 20support the Colorado electric transmission authority in
Page 12, Line 21constructing and maintaining a single-system statewide model of transmission.
Page 12, Line 22(4) As used in this section:
Page 13, Line 1(a) "Advanced transmission technologies" has the meaning set forth in section 40-42-102 (1.5).
Page 13, Line 2(b) "Wholesale electric cooperative" means a generation
Page 13, Line 3and transmission cooperative electric association that provides
Page 13, Line 4wholesale electric service directly to cooperative electric associations.
Page 13, Line 5SECTION 7. In Colorado Revised Statutes, 40-2-126, amend (6) as follows:
Page 13, Line 640-2-126. Transmission facilities - biennial review - energy
Page 13, Line 7resource zones - definitions - plans - approval - cost recovery -
Page 13, Line 8powerline trail consideration. (6) The commission shall amend its rules
Page 13, Line 9requiring the filing of ten-year transmission plans by utilities to also require utilities to:
Page 13, Line 10(a) Consider and address plans for the construction of new
Page 13, Line 11powerline trails in coordination with applicable local governments in each two-year update to a ten-year transmission plan;
andPage 13, Line 12(b) Demonstrate compliance with section 33-45-103 (2);
Page 13, Line 13(c) Consider advanced transmission technologies, as
Page 13, Line 14defined in section 40-42-102 (1.5), in each ten-year transmission plan;
Page 13, Line 15(d) Align each ten-year transmission plan with the
Page 13, Line 16utility's electric resource plan and clean energy plan and the
Page 13, Line 17Colorado electric transmission authority's statewide
Page 13, Line 18transmission plan completed in accordance with section 40-42-109; and
Page 13, Line 19(e) Identify strategies to reduce the costs of
Page 13, Line 20construction and finance for identified projects in the utility's
Page 14, Line 1ten-year transmission plans, including by using the public
Page 14, Line 2financing authority of the Colorado electric transmission authority.
Page 14, Line 3SECTION 8. Act subject to petition - effective date. This act
Page 14, Line 4takes effect at 12:01 a.m. on the day following the expiration of the
Page 14, Line 5ninety-day period after final adjournment of the general assembly; except
Page 14, Line 6that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 14, Line 7of the state constitution against this act or an item, section, or part of this
Page 14, Line 8act within such period, then the act, item, section, or part will not take
Page 14, Line 9effect unless approved by the people at the general election to be held in
Page 14, Line 10November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.