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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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, 40-2-125.5, add (5.5) and (5.7) as follows:
Page 2, Line 440-2-125.5. Carbon dioxide emission reductions - goal to
Page 2, Line 5eliminate by 2050 - legislative declaration - interim targets -
Page 3, Line 1submission and approval of plans - definitions - cost recovery -
Page 3, Line 2reports - rules. (5.5) (a) (I) Except as provided in subsection
Page 3, Line 3(5.5)(a)(II) of this section, on and after September 1, 2025, a
Page 3, Line 4qualifying retail utility's electric resource plan must include
Page 3, Line 5an evaluation of advanced transmission technologies. The evaluation must include:
Page 3, Line 6(A) A technical feasibility assessment;
(B) A cost-effectiveness analysis;
Page 3, Line 7(C) A base modeling scenario and a modeling scenario
Page 3, Line 8that incorporates advanced transmission technologies that may
Page 3, Line 9increase system capacity, increase capacity to connect to new
Page 3, Line 10renewable energy and zero-carbon resources, and lower costs; and
Page 3, Line 11(D) An inventory of the utility's existing and planned advanced transmission technologies.
Page 3, Line 12(II) If a qualifying retail utility does not incorporate an
Page 3, Line 13evaluation of advanced transmission technologies in its
Page 3, Line 14electric resource plan, the qualifying retail utility shall
Page 3, Line 15submit a detailed explanation of why an evaluation was not
Page 3, Line 16incorporated, which explanation must include relevant
Page 3, Line 17analyses demonstrating why advanced transmission
Page 3, Line 18technologies were not found to offer a more cost-effective
Page 3, Line 19strategy, whether in combination with or instead of other capital investments, to achieve one or more of the following:
Page 3, Line 20(A) An increase in transmission system capacity, efficiency, reliability, or resiliency;
Page 3, Line 21(B) A reduction of transmission system congestion;
Page 4, Line 1(C) A reduction of curtailment of renewable and zero-carbon resources;
Page 4, Line 2(D) A reduction of the risk of igniting wildfires; and
Page 4, Line 3(E) An increase in capacity to connect new renewable energy and zero-carbon resources.
Page 4, Line 4(b) As needed, the commission may consult with the
Page 4, Line 5Colorado electric transmission authority, subject to an
Page 4, Line 6intergovernmental agreement, to evaluate the plans submitted
Page 4, Line 7pursuant to this subsection (5.5) and to design incentives pursuant to subsection (5.7) of this section.
Page 4, Line 8(c) As used in this subsection (5.5) and subsection (5.7) of this section:
Page 4, Line 9(I) "Advanced conductor" means a conductor that has a
Page 4, Line 10direct current electrical resistance that is at least ten percent
Page 4, Line 11lower than existing conductors of a similar diameter on the
Page 4, Line 12electric transmission system and that increases capacity by at least seventy-five percent on the system.
Page 4, Line 13(II) "Advanced transmission technologies" means
Page 4, Line 14hardware or software technologies that increase the capacity,
Page 4, Line 15efficiency, reliability, or resiliency of an existing or a new transmission facility, including:
Page 4, Line 16(A) Advanced conductors;
(B) Grid-enhancing technologies; and
Page 4, Line 17(C) Other technology as determined by the commission.
Page 4, Line 18(III) "Grid-enhancing technology" means a hardware or a
Page 4, Line 19software technology that reduces congestion or enhances the
Page 4, Line 20flexibility of electric transmission and distribution systems by
Page 5, Line 1increasing the capacity of a transmission or distribution line or
Page 5, Line 2rerouting electricity from overloaded lines to uncongested
Page 5, Line 3lines, while maintaining industry safety standards. "Grid-enhancing technology" includes:
Page 5, Line 4(A) Dynamic line ratings;
(B) Advanced power flow controllers;
Page 5, Line 5(C) Topology optimization;
(D) Energy storage as a transmission asset; and
Page 5, Line 6(E) Other technologies that increase grid reliability, flexibility, and capacity.
Page 5, Line 7(5.7) Performance-based incentives for advanced transmission
Page 5, Line 8technologies. (a) The commission may evaluate new incentives for
Page 5, Line 9the utilization of advanced transmission technologies that demonstrate an ability to:
Page 5, Line 10(I) Provide electric transmission system congestion relief;
Page 5, Line 11(II) Interconnect new load or generation that the
Page 5, Line 12qualifying retail utility is otherwise unable to integrate onto
Page 5, Line 13the grid in a timely and practicable manner through existing transmission or distribution investments;
Page 5, Line 14(III) Reduce wildfire risks and enhance resiliency to
Page 5, Line 15wildfire impacts and other extreme conditions, hazards, or risks; or
Page 5, Line 16(IV) Avoid, reduce, or defer the activation of public safety power shut offs or de-energization events.
Page 5, Line 17(b) If a commission evaluation conducted pursuant to
Page 5, Line 18subsection (5.7)(a) of this section concludes that incentives for
Page 5, Line 19the utilization of advanced transmission technologies are in the
Page 6, Line 1public interest, the commission shall consider implementing such incentives, including:
Page 6, Line 2(I) Shared savings approaches;
(II) Performance incentive mechanisms; and
Page 6, Line 3(III) Appropriate consumer protections to ensure any
Page 6, Line 4additional revenue or cost recovery authorized as a result of the incentive is prudent.
Page 6, Line 5SECTION 3. In Colorado Revised Statutes, 40-2-134, amend (2); and add (3) and (4) as follows:
Page 6, Line 640-2-134. Wholesale electric cooperatives - electric resource
Page 6, Line 7planning - definitions - rules. (2) (a)
As used in this section, "wholesalePage 6, Line 8
electric cooperative" means any generation and transmission cooperativePage 6, Line 9
electric association that provides wholesale electric service directly toPage 6, Line 10
cooperative electric associations.Page 6, Line 11(2)(b) of this section, on and after September 1, 2025, an
Page 6, Line 12integrated or electric resource plan that a wholesale electric
Page 6, Line 13cooperative submits to the commission must include an evaluation of advanced transmission technologies, including:
Page 6, Line 14(I) A technical feasibility assessment;
(II) A cost-effectiveness analysis;
Page 6, Line 15(III) A base modeling scenario and a modeling scenario
Page 6, Line 16that incorporates advanced transmission technologies that may
Page 6, Line 17increase system capacity, increase capacity to connect to new
Page 6, Line 18renewable energy and zero-carbon resources, and lower costs; and
Page 6, Line 19(IV) An inventory of the wholesale electric cooperative's
Page 6, Line 20existing and planned advanced transmission technologies.
Page 7, Line 1(b) If a wholesale electric cooperative does not
Page 7, Line 2incorporate an evaluation of advanced transmission
Page 7, Line 3technologies in its integrated or electric resource plan, the
Page 7, Line 4wholesale electric cooperative shall submit a detailed
Page 7, Line 5explanation of why an evaluation was not incorporated, which
Page 7, Line 6explanation must include relevant analyses demonstrating why
Page 7, Line 7advanced transmission technologies were not found to offer a
Page 7, Line 8more cost-effective strategy, whether in combination with or
Page 7, Line 9instead of other capital investments, to achieve one or more of the goals listed in section 40-2-125.5 (5.5)(a)(II).
Page 7, Line 10(3) As needed, the commission May consult with the
Page 7, Line 11Colorado electric transmission authority, subject to an
Page 7, Line 12intergovernmental agreement, to evaluate the plans submitted pursuant to this section.
Page 7, Line 13(4) As used in this section:
Page 7, Line 14(a) "Advanced transmission technologies" has the meaning set forth in section 40-2-125.5 (5.5)(c)(II).
Page 7, Line 15(b) "Wholesale electric cooperative" means a generation
Page 7, Line 16and transmission cooperative electric association that provides
Page 7, Line 17wholesale electric service directly to cooperative electric associations.
Page 7, Line 18SECTION 4. In Colorado Revised Statutes, 40-2-126, amend (6) as follows:
Page 7, Line 1940-2-126. Transmission facilities - biennial review - energy
Page 7, Line 20resource zones - definitions - plans - approval - cost recovery -
Page 7, Line 21powerline trail consideration. (6) The commission shall amend its rules
Page 7, Line 22requiring the filing of ten-year transmission plans by utilities to also require utilities to:
Page 8, Line 1(a) Consider and address plans for the construction of new
Page 8, Line 2powerline trails in coordination with applicable local governments in each two-year update to a ten-year transmission plan;
andPage 8, Line 3(b) Demonstrate compliance with section 33-45-103 (2);
Page 8, Line 4(c) Consider advanced transmission technologies, as
Page 8, Line 5defined in section 40-2-125.5 (5.5)(c)(II), in each ten-year transmission plan;
Page 8, Line 6(d) Align each ten-year transmission plan with the utility's electric resource plan and clean energy plan; and
Page 8, Line 7(e) Identify strategies to reduce the capital and financing
Page 8, Line 8costs for projects that the utility identifies in a ten-year
Page 8, Line 9transmission plan, including by using the public financing authority of the Colorado electric transmission authority.
Page 8, Line 10SECTION 5. In Colorado Revised Statutes, 40-1-102, amend (1.5); and add (1.7) as follows:
Page 8, Line 1140-1-102. Definitions. As used in articles 1 to 7 of this title 40, unless the context otherwise requires:
Page 8, Line 12(1.5)
"Commission" means the public utilities commission of thePage 8, Line 13
state of ColoradoPage 8, Line 14means the Colorado electric transmission authority created in section 40-42-103 (1).
Page 8, Line 15(1.7) "Commission" means the public utilities commission of the state of Colorado.
Page 8, Line 16SECTION 6. In Colorado Revised Statutes, 40-42-103, amend
Page 8, Line 17(2)(a) introductory portion, (2)(a)(III), and (2)(a)(IV); and add (2)(a)(V)
Page 8, Line 18as follows:
Page 9, Line 140-42-103. Authority - creation - board - open meetings and
Page 9, Line 2open records. (2) (a) The powers of the authority are vested in a board of directors, which consists of the following
ninePage 9, Line 3(III) Three members appointed by the speaker of the house of representatives;
andPage 9, Line 4(IV) Three members appointed by the president of the senate; and
Page 9, Line 5(V) The director of the commission or the director's designee, who shall serve in a nonvoting role.
Page 9, Line 6SECTION 7. Act subject to petition - effective date. This act
Page 9, Line 7takes effect at 12:01 a.m. on the day following the expiration of the
Page 9, Line 8ninety-day period after final adjournment of the general assembly; except
Page 9, Line 9that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 9, Line 10of the state constitution against this act or an item, section, or part of this
Page 9, Line 11act within such period, then the act, item, section, or part will not take
Page 9, Line 12effect unless approved by the people at the general election to be held in
Page 9, Line 13November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.