Senate Committee of Reference Report
Committee on Transportation & Energy
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March 26, 2025
After consideration on the merits, the Committee recommends the following:
SB25-127 be amended as follows, and as so amended, be referred to the Committee of the Whole 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. Short title. The short title of this act is the
Page 1, Line 4"Colorado Grid Optimization Act".
Page 1, Line 5SECTION 2. In Colorado Revised Statutes, 40-2-125.5, add (5.5)
Page 1, Line 6and (5.7) as follows:
Page 1, Line 740-2-125.5. Carbon dioxide emission reductions - goal to
Page 1, Line 8eliminate by 2050 - legislative declaration - interim targets -
Page 1, Line 9submission and approval of plans - definitions - cost recovery -
Page 1, Line 10reports - rules. (5.5) (a) (I) Except as provided in subsection
Page 1, Line 11(5.5)(a)(II) of this section, on and after September 1, 2025, a
Page 1, Line 12qualifying retail utility's electric resource plan must include
Page 1, Line 13an evaluation of advanced transmission technologies. The
Page 1, Line 14evaluation must include:
Page 1, Line 15(A) A technical feasibility assessment;
Page 1, Line 16(B) A cost-effectiveness analysis;
Page 1, Line 17(C) A base modeling scenario and a modeling scenario
Page 1, Line 18that incorporates advanced transmission technologies that may
Page 1, Line 19increase system capacity, increase capacity to connect to new
Page 1, Line 20renewable energy and zero-carbon resources, and lower costs;
Page 1, Line 21and
Page 1, Line 22(D) An inventory of the utility's existing and planned
Page 1, Line 23advanced transmission technologies.
Page 1, Line 24(II) If a qualifying retail utility does not incorporate an
Page 1, Line 25evaluation of advanced transmission technologies in its
Page 1, Line 26electric resource plan, the qualifying retail utility shall
Page 1, Line 27submit a detailed explanation of why an evaluation was not
Page 2, Line 1incorporated, which explanation must include relevant
Page 2, Line 2analyses demonstrating why advanced transmission
Page 2, Line 3technologies were not found to offer a more cost-effective
Page 2, Line 4strategy, whether in combination with or instead of other
Page 2, Line 5capital investments, to achieve one or more of the following:
Page 2, Line 6(A) An increase in transmission system capacity,
Page 2, Line 7efficiency, reliability, or resiliency;
Page 2, Line 8(B) A reduction of transmission system congestion;
Page 2, Line 9(C) A reduction of curtailment of renewable and
Page 2, Line 10zero-carbon resources;
Page 2, Line 11(D) A reduction of the risk of igniting wildfires; and
Page 2, Line 12(E) An increase in capacity to connect new renewable
Page 2, Line 13energy and zero-carbon resources.
Page 2, Line 14(b) As needed, the commission may consult with the
Page 2, Line 15Colorado electric transmission authority, subject to an
Page 2, Line 16intergovernmental agreement, to evaluate the plans submitted
Page 2, Line 17pursuant to this subsection (5.5) and to design incentives
Page 2, Line 18pursuant to subsection (5.7) of this section.
Page 2, Line 19(c) As used in this subsection (5.5) and subsection (5.7) of
Page 2, Line 20this section:
Page 2, Line 21(I) "Advanced conductor" means a conductor that has a
Page 2, Line 22direct current electrical resistance that is at least ten percent
Page 2, Line 23lower than existing conductors of a similar diameter on the
Page 2, Line 24electric transmission system and that increases capacity by at
Page 2, Line 25least seventy-five percent on the system.
Page 2, Line 26(II) "Advanced transmission technologies" means
Page 2, Line 27hardware or software technologies that increase the capacity,
Page 2, Line 28efficiency, reliability, or resiliency of an existing or a new
Page 2, Line 29transmission facility, including:
Page 2, Line 30(A) Advanced conductors;
Page 2, Line 31(B) Grid-enhancing technologies; and
Page 2, Line 32(C) Other technology as determined by the commission.
Page 2, Line 33(III) "Grid-enhancing technology" means a hardware or a
Page 2, Line 34software technology that reduces congestion or enhances the
Page 2, Line 35flexibility of electric transmission and distribution systems by
Page 2, Line 36increasing the capacity of a transmission or distribution line or
Page 2, Line 37rerouting electricity from overloaded lines to uncongested
Page 2, Line 38lines, while maintaining industry safety standards.
Page 2, Line 39"Grid-enhancing technology" includes:
Page 2, Line 40(A) Dynamic line ratings;
Page 2, Line 41(B) Advanced power flow controllers;
Page 2, Line 42(C) Topology optimization;
Page 2, Line 43(D) Energy storage as a transmission asset; and
Page 3, Line 1(E) Other technologies that increase grid reliability,
Page 3, Line 2flexibility, and capacity.
Page 3, Line 3(5.7) Performance-based incentives for advanced transmission
Page 3, Line 4technologies. (a) The commission may evaluate new incentives for
Page 3, Line 5the utilization of advanced transmission technologies that
Page 3, Line 6demonstrate an ability to:
Page 3, Line 7(I) Provide electric transmission system congestion relief;
Page 3, Line 8(II) Interconnect new load or generation that the
Page 3, Line 9qualifying retail utility is otherwise unable to integrate onto
Page 3, Line 10the grid in a timely and practicable manner through existing
Page 3, Line 11transmission or distribution investments;
Page 3, Line 12(III) Reduce wildfire risks and enhance resiliency to
Page 3, Line 13wildfire impacts and other extreme conditions, hazards, or risks;
Page 3, Line 14or
Page 3, Line 15(IV) Avoid, reduce, or defer the activation of public
Page 3, Line 16safety power shut offs or de-energization events.
Page 3, Line 17(b) If a commission evaluation conducted pursuant to
Page 3, Line 18subsection (5.7)(a) of this section concludes that incentives for
Page 3, Line 19the utilization of advanced transmission technologies are in the
Page 3, Line 20public interest, the commission shall consider implementing such
Page 3, Line 21incentives, including:
Page 3, Line 22(I) Shared savings approaches;
Page 3, Line 23(II) Performance incentive mechanisms; and
Page 3, Line 24(III) Appropriate consumer protections to ensure any
Page 3, Line 25additional revenue or cost recovery authorized as a result of
Page 3, Line 26the incentive is prudent.
Page 3, Line 27SECTION 3. In Colorado Revised Statutes, 40-2-134, amend (2);
Page 3, Line 28and add (3) and (4) as follows:
Page 3, Line 2940-2-134. Wholesale electric cooperatives - electric resource
Page 3, Line 30planning - definitions - rules. (2) (a) As used in this section, "wholesale
Page 3, Line 31electric cooperative" means any generation and transmission cooperative
Page 3, Line 32electric association that provides wholesale electric service directly to
Page 3, Line 33cooperative electric associations. Except as provided in subsection
Page 3, Line 34(2)(b) of this section, on and after September 1, 2025, an
Page 3, Line 35integrated or electric resource plan that a wholesale electric
Page 3, Line 36cooperative submits to the commission must include an
Page 3, Line 37evaluation of advanced transmission technologies, including:
Page 3, Line 38(I) A technical feasibility assessment;
Page 3, Line 39(II) A cost-effectiveness analysis;
Page 3, Line 40(III) A base modeling scenario and a modeling scenario
Page 3, Line 41that incorporates advanced transmission technologies that may
Page 3, Line 42increase system capacity, increase capacity to connect to new
Page 3, Line 43renewable energy and zero-carbon resources, and lower costs;
Page 4, Line 1and
Page 4, Line 2(IV) An inventory of the wholesale electric cooperative's
Page 4, Line 3existing and planned advanced transmission technologies.
Page 4, Line 4(b) If a wholesale electric cooperative does not
Page 4, Line 5incorporate an evaluation of advanced transmission
Page 4, Line 6technologies in its integrated or electric resource plan, the
Page 4, Line 7wholesale electric cooperative shall submit a detailed
Page 4, Line 8explanation of why an evaluation was not incorporated, which
Page 4, Line 9explanation must include relevant analyses demonstrating why
Page 4, Line 10advanced transmission technologies were not found to offer a
Page 4, Line 11more cost-effective strategy, whether in combination with or
Page 4, Line 12instead of other capital investments, to achieve one or more of
Page 4, Line 13the goals listed in section 40-2-125.5 (5.5)(a)(II).
Page 4, Line 14(3) As needed, the commission May consult with the
Page 4, Line 15Colorado electric transmission authority, subject to an
Page 4, Line 16intergovernmental agreement, to evaluate the plans submitted
Page 4, Line 17pursuant to this section.
Page 4, Line 18(4) As used in this section:
Page 4, Line 19(a) "Advanced transmission technologies" has the meaning
Page 4, Line 20set forth in section 40-2-125.5 (5.5)(c)(II).
Page 4, Line 21(b) "Wholesale electric cooperative" means a generation
Page 4, Line 22and transmission cooperative electric association that provides
Page 4, Line 23wholesale electric service directly to cooperative electric
Page 4, Line 24associations.
Page 4, Line 25SECTION 4. In Colorado Revised Statutes, 40-2-126, amend (6)
Page 4, Line 26as follows:
Page 4, Line 2740-2-126. Transmission facilities - biennial review - energy
Page 4, Line 28resource zones - definitions - plans - approval - cost recovery -
Page 4, Line 29powerline trail consideration. (6) The commission shall amend its rules
Page 4, Line 30requiring the filing of ten-year transmission plans by utilities to also
Page 4, Line 31require utilities to:
Page 4, Line 32(a) Consider and address plans for the construction of new
Page 4, Line 33powerline trails in coordination with applicable local governments in each
Page 4, Line 34two-year update to a ten-year transmission plan; and
Page 4, Line 35(b) Demonstrate compliance with section 33-45-103 (2);
Page 4, Line 36(c) Consider advanced transmission technologies, as
Page 4, Line 37defined in section 40-2-125.5 (5.5)(c)(II), in each ten-year
Page 4, Line 38transmission plan;
Page 4, Line 39(d) Align each ten-year transmission plan with the
Page 4, Line 40utility's electric resource plan and clean energy plan; and
Page 4, Line 41(e) Identify strategies to reduce the capital and financing
Page 4, Line 42costs for projects that the utility identifies in a ten-year
Page 4, Line 43transmission plan, including by using the public financing
Page 5, Line 1authority of the Colorado electric transmission authority.
Page 5, Line 2SECTION 5. In Colorado Revised Statutes, 40-1-102, amend
Page 5, Line 3(1.5); and add (1.7) as follows:
Page 5, Line 440-1-102. Definitions. As used in articles 1 to 7 of this title 40,
Page 5, Line 5unless the context otherwise requires:
Page 5, Line 6(1.5) "Commission" means the public utilities commission of the
Page 5, Line 7state of Colorado "Colorado electric transmission authority"
Page 5, Line 8means the Colorado electric transmission authority created in
Page 5, Line 9section 40-42-103 (1).
Page 5, Line 10(1.7) "Commission" means the public utilities commission of
Page 5, Line 11the state of Colorado.
Page 5, Line 12SECTION 6. In Colorado Revised Statutes, 40-42-103, amend
Page 5, Line 13(2)(a) introductory portion, (2)(a)(III), and (2)(a)(IV); and add (2)(a)(V)
Page 5, Line 14as follows:
Page 5, Line 1540-42-103. Authority - creation - board - open meetings and
Page 5, Line 16open records. (2) (a) The powers of the authority are vested in a board
Page 5, Line 17of directors, which consists of the following nine ten members:
Page 5, Line 18(III) Three members appointed by the speaker of the house of
Page 5, Line 19representatives; and
Page 5, Line 20(IV) Three members appointed by the president of the senate; and
Page 5, Line 21(V) The director of the commission or the director's
Page 5, Line 22designee, who shall serve in a nonvoting role.
Page 5, Line 23SECTION 7. Act subject to petition - effective date. This act
Page 5, Line 24takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 25ninety-day period after final adjournment of the general assembly; except
Page 5, Line 26that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 5, Line 27of the state constitution against this act or an item, section, or part of this
Page 5, Line 28act within such period, then the act, item, section, or part will not take
Page 5, Line 29effect unless approved by the people at the general election to be held in
Page 5, Line 30November 2026 and, in such case, will take effect on the date of the
Page 5, Line 31official declaration of the vote thereon by the governor.".