NEWS RELEASE
COLORADO DEPARTMENT OF REGULATORY AGENCIES
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The Colorado Public Utilities Commission (PUC) released its initial work plan for the Commission’s Affordability Initiative today, following discussions at its April 5 weekly meeting. The Commission’s Affordability Initiative is a unique collaboration across the agency that responds to recent high energy bills this winter and addresses concerns identified in public comments, by the Governor’s Office, and by the General Assembly.
In a letter addressed to Governor Jared Polis, Executive Director Patty Salazar of the Department of Regulatory Agencies, State Legislators, and Colorado customers concerned with the recent increases in energy bills, the Commissioners and Interim PUC Director Harris Adams announced the new initiative and shared a work plan and background information. The initial work plan is intended to be dynamic and be updated over time as more information becomes available.
Chair Eric Blank said, “We understand many customers in Colorado are experiencing enormous hardship due to high and volatile natural gas prices, resulting in higher utility energy bills. We hope this letter and the attached documents begin to provide some answers to, and context for, the questions raised in the public comments, by Governor Polis, and the bipartisan legislative committee.”
The PUC’s initial work plan includes near-term, mid-term and long-term activities that cover activities like the following:
- Income-qualified programs and bill assistance: This includes activities related to Percentage of Income Payment Plan (PIPP) programs offered by utilities, Low-income Energy Assistance Program (LEAP) through the Colorado Department of Human Services (CDHS), and other income-qualified programs and protections.
- Clean Heat Plans and gas infrastructure planning: The PUC will be implementing new rules for oversight of gas utility heat plans that reduce carbon and methane emissions as well as new requirements for gas utility planning to proactively evaluate proposed new infrastructure. The Commission’s rules enable considerations as to how to keep gas rates affordable while mitigating volatile gas commodity prices and accounting for reduced usage over time for greenhouse gas emissions.
- Gas Cost Adjustment (GCA) reform: After the impacts of Winter Storm Uri in February 2021, the Commission explored options to modify how gas utilities bill their customers for gas commodity costs through the GCA. Gas commodity markets are not regulated in the U.S., and costs are passed onto customers on a dollar-for-dollar basis. Proceeding 21R-0314G set requirements for gas utilities to file Gas Performance Incentive Mechanisms. These proceedings set the stage for addressing volatile gas commodity prices.
- Implementation of Senate Bill 21-272: Senate Bill 21-272 directs the Commission to create rules in which it considers how best to provide equity in all its work. The Commission has been seeking comments on the legislation during the last year, and stakeholders have proposed changes on how the Commission communicates, educates, and engages members of the public and disproportionately impacted communities.
For more information, visit the webpage for the Commission’s Affordability Initiative at puc.colorado.gov/affordability.
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