Senate Committee of Reference Report
Committee on Transportation & Energy
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March 11, 2026
After consideration on the merits, the Committee recommends the following:
SB26-002 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, strike everything below the enacting clause and
Page 1, Line 2substitute:
Page 1, Line 3"SECTION 1. In Colorado Revised Statutes, add 40-3-122 as
Page 1, Line 4follows:
Page 1, Line 540-3-122. Energy affordability - percentage-of-income
Page 1, Line 6payment plan program - eligibility and participation - cost recovery
Page 1, Line 7- definitions - rules.
Page 1, Line 8(1) Definitions. As used in this section, unless the context
Page 1, Line 9otherwise requires:
Page 1, Line 10(a) (I) "Administrative costs" means a utility's direct costs
Page 1, Line 11for labor, including applicable benefit loadings, materials, and
Page 1, Line 12other verifiable expenditures directly related to the
Page 1, Line 13administration and operation of a PIPP program.
Page 1, Line 14(II) Administrative costs must not exceed ten percent of
Page 1, Line 15the total amount of the fixed credits applied to customer bills
Page 1, Line 16for current usage and pre-existing arrearages, or ten thousand
Page 1, Line 17dollars, whichever amount is greater.
Page 1, Line 18(b) "Affordable percentage of income" means the amount
Page 1, Line 19of a participant's annual bill that is deemed affordable based on
Page 1, Line 20a participant's annual household income, as determined
Page 1, Line 21pursuant to subsections (4)(b) and (4)(c) of this section.
Page 1, Line 22(c) "Arrearage" means the past-due balance owed by a
Page 1, Line 23participant in a percentage-of-income payment plan program for
Page 1, Line 24utility service, as shown on the most recent bill received by the
Page 1, Line 25participant before the participant enrolls in the PIPP program.
Page 1, Line 26(d) (I) "Fixed credit" means an annual bill credit that is
Page 1, Line 27calculated by a utility at the beginning of a participant's
Page 2, Line 1participation in the utility's PIPP program each year and is
Page 2, Line 2delivered as an equal monthly credit on the participant's
Page 2, Line 3monthly utility bill.
Page 2, Line 4(II) The fixed credit is equal to the participant's total
Page 2, Line 5projected full annual bill minus the participant's affordable
Page 2, Line 6percentage of income payment.
Page 2, Line 7(e) "Full annual bill" means the projected electricity
Page 2, Line 8consumption of a participant in one calendar year billed at
Page 2, Line 9standard residential rates before any fixed credit amount or
Page 2, Line 10other credits or discounts are applied to the bill.
Page 2, Line 11(f) "Income-qualified utility customer" has the meaning
Page 2, Line 12set forth in section 40-3-106 (1)(d)(II).
Page 2, Line 13(g) "Investor-owned utility" or "utility" means a retail
Page 2, Line 14electric utility or a combined retail electric and gas utility in
Page 2, Line 15the state that is regulated by the commission and is not a
Page 2, Line 16cooperative electric association or a municipally owned utility.
Page 2, Line 17(h) "Participant" means an income-qualified utility
Page 2, Line 18customer who is approved for participation in a utility's
Page 2, Line 19percentage-of-income payment plan program.
Page 2, Line 20(i) "Percentage-of-income payment plan program" or "PIPP
Page 2, Line 21program" means a payment plan program for residential
Page 2, Line 22participants in which a participant's utility bill does not exceed
Page 2, Line 23an affordable percentage of income.
Page 2, Line 24(j) "PIPP charge" means a fee charged to an
Page 2, Line 25investor-owned utility's customers in accordance with
Page 2, Line 26subsection (7) of this section to recover costs associated with
Page 2, Line 27the utility's PIPP program.
Page 2, Line 28(k) "Unaffordable portion" means the amount of a
Page 2, Line 29participant's estimated full annual bill that exceeds the
Page 2, Line 30affordable percentage of income paid by the participant.
Page 2, Line 31(2) Percentage-of-income payment plan program.
Page 2, Line 32(a) An investor-owned utility shall establish a
Page 2, Line 33percentage-of-income payment plan program for residential
Page 2, Line 34income-qualified utility customers.
Page 2, Line 35(b) An investor-owned utility shall use consistent naming
Page 2, Line 36for the PIPP program in tariffs, rates, customer communications,
Page 2, Line 37and bill statements, which name must include the words
Page 2, Line 38"percentage-of-income payment plan program".
Page 2, Line 39(c) An investor-owned utility shall publish the following
Page 2, Line 40information related to the PIPP program on the utility's public
Page 2, Line 41website:
Page 2, Line 42(I) The income eligibility criteria for the PIPP program;
Page 2, Line 43(II) An explanation of what the PIPP program does;
Page 3, Line 1(III) The application and enrollment processes;
Page 3, Line 2(IV) An estimated time frame for when an applicant will
Page 3, Line 3receive notice of their acceptance into or denial from the PIPP
Page 3, Line 4program;
Page 3, Line 5(V) Affordable percentage of income amounts for
Page 3, Line 6different types of customers, as described in subsection (4) of
Page 3, Line 7this section;
Page 3, Line 8(VI) PIPP charge amounts; and
Page 3, Line 9(VII) The terms and conditions for the utility's PIPP
Page 3, Line 10program.
Page 3, Line 11(3) Eligibility and participation.
Page 3, Line 12(a) An income-qualified utility customer is eligible to
Page 3, Line 13participate in the percentage-of-income payment plan program
Page 3, Line 14if the customer:
Page 3, Line 15(I) Meets the income eligibility criteria, as determined by
Page 3, Line 16the commission by order or by rule;
Page 3, Line 17(II) Either:
Page 3, Line 18(A) Submits an application to the investor-owned utility
Page 3, Line 19to participate in the PIPP program; or
Page 3, Line 20(B) Is referred by another income-eligible assistance
Page 3, Line 21program offered by the department of human services, created
Page 3, Line 22in section 26-1-105; the Colorado energy office, created in
Page 3, Line 23section 24-38.5-101; the organization defined in section 40-8.7-103
Page 3, Line 24(4); or other energy assistance program approved by the
Page 3, Line 25commission; and
Page 3, Line 26(III) Lives in the service area of an investor-owned utility
Page 3, Line 27that has established a PIPP program.
Page 3, Line 28(b) (I) An applicant that submits a PIPP program
Page 3, Line 29application to an investor-owned utility may submit
Page 3, Line 30documentation with the application verifying that the applicant
Page 3, Line 31meets the income eligibility criteria, including:
Page 3, Line 32(A) Documentation that the applicant is enrolled in
Page 3, Line 33another income-eligible assistance program offered by the
Page 3, Line 34department of human services, created in section 26-1-105; the
Page 3, Line 35Colorado energy office, created in section 24-38.5-101; the
Page 3, Line 36organization defined in section 40-8.7-103 (4); or other energy
Page 3, Line 37assistance program approved by the commission; or
Page 3, Line 38(B) A self-attestation, through a process established by
Page 3, Line 39the utility for the PIPP program, of the applicant's income
Page 3, Line 40eligibility.
Page 3, Line 41(II) If an applicant's household income is zero dollars, the
Page 3, Line 42utility may establish a process that verifies the applicant's
Page 3, Line 43household income on a more frequent than annual basis.
Page 4, Line 1(c) An applicant is not required to make a payment on the
Page 4, Line 2applicant's account as a condition of acceptance into a PIPP
Page 4, Line 3program.
Page 4, Line 4(d) An investor-owned utility shall establish application
Page 4, Line 5and participation procedures that are efficient, available to
Page 4, Line 6applicants in plain language, and intended to maximize
Page 4, Line 7participation in the utility's PIPP program.
Page 4, Line 8(e) (I) Within thirty days after receiving a PIPP program
Page 4, Line 9application from an income-qualified utility customer, an
Page 4, Line 10investor-owned utility shall approve or deny the
Page 4, Line 11income-qualified utility customer's application.
Page 4, Line 12(II) If the investor-owned utility approves an
Page 4, Line 13income-qualified utility customer's application for participation
Page 4, Line 14in the PIPP program, the utility shall provide an explanation of
Page 4, Line 15the PIPP program benefits, including:
Page 4, Line 16(A) The participant's estimated full annual bill amount;
Page 4, Line 17(B) The participant's fixed credit amount;
Page 4, Line 18(C) The affordable percentage of income for which the
Page 4, Line 19participant is responsible for paying, listed as both a percentage
Page 4, Line 20and an estimated monthly amount; and
Page 4, Line 21(D) A copy of the terms and conditions of participation in
Page 4, Line 22the PIPP program.
Page 4, Line 23(III) If the investor-owned utility denies an applicant's
Page 4, Line 24application for participation in the PIPP program, the utility
Page 4, Line 25shall provide the applicant an explanation for the denial and,
Page 4, Line 26if the reason for the denial was based on the utility's
Page 4, Line 27verification of the applicant's household income in accordance
Page 4, Line 28with subsection (3)(b) of this section, the department, agency, or
Page 4, Line 29organization that the utility contacted to verify the
Page 4, Line 30applicant's household income.
Page 4, Line 31(IV) If an income-qualified utility customer is accepted
Page 4, Line 32into the PIPP program, the customer shall remain qualified for
Page 4, Line 33the PIPP program for two program years after the date on which
Page 4, Line 34the customer is accepted into the program.
Page 4, Line 35(f) (I) An investor-owned utility is responsible for
Page 4, Line 36establishing and administering the process for income-qualified
Page 4, Line 37utility customers to apply for participation and maintaining
Page 4, Line 38enrollment in the PIPP program.
Page 4, Line 39(II) A participant may remain enrolled in a utility's PIPP
Page 4, Line 40program if the participant moves within the same utility service
Page 4, Line 41territory without reapplying for participation in the PIPP
Page 4, Line 42program, and the participant shall notify the utility of the
Page 4, Line 43participant's change of address and new account number.
Page 5, Line 1(III) If a participant moves outside of a utility's service
Page 5, Line 2territory, the participant is no longer eligible for the utility's
Page 5, Line 3PIPP program and the utility shall send notice to the participant
Page 5, Line 4that the participant's eligibility for and enrollment in the PIPP
Page 5, Line 5program has ended.
Page 5, Line 6(g) If a participant makes partial or late payments on
Page 5, Line 7their utility bill, the investor-owned utility shall not
Page 5, Line 8terminate the participant's participation in the PIPP program
Page 5, Line 9solely for that reason. However, the utility may pursue
Page 5, Line 10collection efforts for the unpaid amounts.
Page 5, Line 11(4) Affordable percentage of income calculation.
Page 5, Line 12(a) (I) An investor-owned utility shall estimate a
Page 5, Line 13participant's full annual bill in order to determine a
Page 5, Line 14participant's affordable percentage of income payment in
Page 5, Line 15accordance with subsections (4)(b) and (4)(c) of this section.
Page 5, Line 16(II) An investor-owned utility shall include the
Page 5, Line 17difference between a participant's affordable percentage of
Page 5, Line 18income payment and the projected full annual bill on the
Page 5, Line 19participant's utility bill as a fixed credit.
Page 5, Line 20(III) An investor-owned utility may adjust the fixed credit
Page 5, Line 21amount if residential rates for electricity significantly change
Page 5, Line 22from the rate used to estimate the participant's full annual bill
Page 5, Line 23or if the participant's actual bill amount varies by twenty-five
Page 5, Line 24percent or more from the participant's estimated full annual
Page 5, Line 25bill.
Page 5, Line 26(b) Unless otherwise determined by the commission by
Page 5, Line 27order or by rule, if a participant's annual household income is
Page 5, Line 28above zero dollars, a participant's affordable percentage of
Page 5, Line 29income must not exceed the applicable percentage of household
Page 5, Line 30income as follows:
Page 5, Line 31(I) For utilities with five hundred thousand customers or
Page 5, Line 32fewer:
Page 5, Line 33(A) For electric accounts that have electricity as the
Page 5, Line 34primary heating fuel, a participant's affordable percentage of
Page 5, Line 35income payment must not be greater than six percent of the
Page 5, Line 36participant's household income;
Page 5, Line 37(B) For electric accounts that do not have electricity as
Page 5, Line 38the primary heating fuel, a participant's affordable percentage
Page 5, Line 39of income payment must not be greater than three percent of the
Page 5, Line 40participant's household income;
Page 5, Line 41(C) For accounts that have both natural gas service and
Page 5, Line 42electric service from a single utility, a participant's affordable
Page 5, Line 43percentage of income payment must not be greater than five
Page 6, Line 1percent of the participant's household income; or
Page 6, Line 2(D) For accounts that have neither electricity nor
Page 6, Line 3natural gas as a primary heating source, a participant's
Page 6, Line 4affordable percentage of income payment must not be greater
Page 6, Line 5than five percent of the participant's household income; and
Page 6, Line 6(II) For utilities with more than five hundred thousand
Page 6, Line 7customers:
Page 6, Line 8(A) For electric accounts that have electricity as the
Page 6, Line 9primary heating fuel, a participant's affordable percentage of
Page 6, Line 10income payment must not be greater than four percent of the
Page 6, Line 11participant's household income;
Page 6, Line 12(B) For electric accounts that do not have electricity as
Page 6, Line 13the primary heating fuel, a participant's affordable percentage
Page 6, Line 14of income payment must not be greater than two percent of the
Page 6, Line 15participant's household income;
Page 6, Line 16(C) For accounts that have both natural gas service and
Page 6, Line 17electric service from a single utility, a participant's affordable
Page 6, Line 18percentage of income payment must not be greater than five
Page 6, Line 19percent of the participant's household income; or
Page 6, Line 20(D) For accounts that have neither electricity nor
Page 6, Line 21natural gas as a primary heating source, a participant's
Page 6, Line 22affordable percentage of income payment must not be greater
Page 6, Line 23than five percent of the participant's household income.
Page 6, Line 24(c) If a participant's annual household income is zero
Page 6, Line 25dollars, a participant's affordable percentage of income must
Page 6, Line 26not exceed the applicable percentage of household income as
Page 6, Line 27follows:
Page 6, Line 28(I) For an electric heating account, the participant's
Page 6, Line 29affordable percentage of income payment must not be more than
Page 6, Line 30twenty dollars per month; or
Page 6, Line 31(II) For an electric nonheating account, the participant's
Page 6, Line 32affordable percentage of income payment must not be more than
Page 6, Line 33ten dollars per month.
Page 6, Line 34(5) Arrearage credits.
Page 6, Line 35(a) (I) An investor-owned utility shall apply arrearage
Page 6, Line 36credits to a participant's arrearages that existed before the
Page 6, Line 37participant applied for the PIPP program.
Page 6, Line 38(II) Arrearage credits must be established and applied to
Page 6, Line 39a participant's utility bill in an amount sufficient to reduce,
Page 6, Line 40when combined with any required payments from the participant,
Page 6, Line 41the participant's arrearages to zero dollars over a period of not
Page 6, Line 42less than one month and not more than twenty-four months.
Page 6, Line 43(b) An investor-owned utility may condition the
Page 7, Line 1application of arrearage credits on the following:
Page 7, Line 2(I) A participant's timely payment of bills for current
Page 7, Line 3usage; or
Page 7, Line 4(II) A participant's payment toward preexisting
Page 7, Line 5arrearages, except that the total dollar amount of the
Page 7, Line 6payment required by the utility must not exceed one percent of
Page 7, Line 7the participant's annual household income.
Page 7, Line 8(c) If a participant's enrollment in the PIPP program ends
Page 7, Line 9for any reason prior to the forgiveness of all arrearages, any
Page 7, Line 10remaining arrearages become due in accordance with the
Page 7, Line 11utility's current tariff filed with the commission at the time of
Page 7, Line 12the termination.
Page 7, Line 13(d) While a participant is enrolled in a utility's PIPP
Page 7, Line 14program, the utility shall not terminate the participant's
Page 7, Line 15service for nonpayment of the arrearages.
Page 7, Line 16(e) A participant may receive arrearage credits pursuant
Page 7, Line 17to this section regardless of whether the participant receives a
Page 7, Line 18credit toward a utility bill for current usage.
Page 7, Line 19(6) Participation in other assistance programs.
Page 7, Line 20(a) This section does not prohibit an income-qualified
Page 7, Line 21utility customer from participating in other energy assistance
Page 7, Line 22programs while enrolled in a percentage-of-income payment
Page 7, Line 23plan program.
Page 7, Line 24(b) An investor-owned utility may apply energy assistance
Page 7, Line 25grants provided to a participant to the dollar value of the fixed
Page 7, Line 26credits provided to the participant to cover the unaffordable
Page 7, Line 27portion of the participant's utility bill in a manner determined
Page 7, Line 28by the commission by rule.
Page 7, Line 29(7) Cost recovery.
Page 7, Line 30(a) An investor-owned utility may recover
Page 7, Line 31percentage-of-income payment plan program costs through a
Page 7, Line 32PIPP charge on the utility's customers, as approved by the
Page 7, Line 33commission.
Page 7, Line 34(b) If an investor-owned utility imposes a PIPP charge, the
Page 7, Line 35investor-owned utility shall:
Page 7, Line 36(I) Assess the PIPP charge as a separate line item on every
Page 7, Line 37customer's monthly bill and identify the charge as a "PIPP
Page 7, Line 38charge";
Page 7, Line 39(II) Collect the monthly PIPP charge in the same manner
Page 7, Line 40as all other charges and fees are collected from a customer;
Page 7, Line 41(III) State the amount of the PIPP charge, which must be
Page 7, Line 42approved by the commission; and
Page 7, Line 43(IV) Include the amount of PIPP charges collected from
Page 8, Line 1a utility's customers on the utility's tariff sheet filed with the
Page 8, Line 2commission.
Page 8, Line 3(c) If an investor-owned utility imposes a PIPP charge, the
Page 8, Line 4utility is encouraged to annually contribute shareholder
Page 8, Line 5profits to the PIPP program. Any amount contributed by the
Page 8, Line 6utility is not to be directly or indirectly recovered from
Page 8, Line 7customers.
Page 8, Line 8(d) An investor-owned utility must use the revenue
Page 8, Line 9generated from the PIPP charge plus any amount contributed by
Page 8, Line 10the utility pursuant to subsection (7)(c) of this section only for
Page 8, Line 11the following purposes:
Page 8, Line 12(I) To provide credits or discounts to participants applied
Page 8, Line 13against the participants' bill for current usage;
Page 8, Line 14(II) To provide credits to participants for the participants'
Page 8, Line 15arrearages;
Page 8, Line 16(III) To cover administrative costs of implementing and
Page 8, Line 17administering the PIPP program; and
Page 8, Line 18(IV) To cover PIPP program evaluation costs required by
Page 8, Line 19the commission.
Page 8, Line 20(e) The commission shall determine by rule the amount of
Page 8, Line 21the PIPP charge and procedures by which a utility may apply to
Page 8, Line 22increase or decrease the monthly PIPP charge.
Page 8, Line 23(f) (I) An investor-owned utility shall track and
Page 8, Line 24annually report the following information to the commission:
Page 8, Line 25(A) The PIPP charge revenue collected by the utility;
Page 8, Line 26(B) The PIPP charge utility contribution amount
Page 8, Line 27described in subsection (7)(c) of this section;
Page 8, Line 28(C) Administrative costs associated with implementing
Page 8, Line 29and administering the PIPP program;
Page 8, Line 30(D) The amount of fixed credits provided to participants
Page 8, Line 31in the PIPP program; and
Page 8, Line 32(E) The amount of arrearage credits provided to
Page 8, Line 33participants in the PIPP program.
Page 8, Line 34(II) The commission shall report the information reported
Page 8, Line 35by an investor-owned utility pursuant to subsection (7)(f)(I) of
Page 8, Line 36this section in the commission's annual reporting requirements
Page 8, Line 37established by the commission by rule.
Page 8, Line 38(8) Rules. The commission shall adopt any rules necessary
Page 8, Line 39to implement and enforce this section.
Page 8, Line 40SECTION 2. Act subject to petition - effective date. This act
Page 8, Line 41takes effect at 12:01 a.m. on the day following the expiration of the
Page 8, Line 42ninety-day period after final adjournment of the general assembly (August
Page 8, Line 4312, 2026, if adjournment sine die is on May 13, 2026); except that, if a
Page 9, Line 1referendum petition is filed pursuant to section 1 (3) of article V of the
Page 9, Line 2state constitution against this act or an item, section, or part of this act
Page 9, Line 3within such period, then the act, item, section, or part will not take effect
Page 9, Line 4unless approved by the people at the general election to be held in
Page 9, Line 5November 2026 and, in such case, will take effect on the date of the
Page 9, Line 6official declaration of the vote thereon by the governor.".
Page 9, Line 7Page 1, strike lines 102 through 105 and substitute "therewith,
Page 9, Line 8establishing a percentage-of-income payment plan program
Page 9, Line 9for income-qualified utility customers.".