December 2021 PUC Update
Clean Energy Action Board Member Marguerite Behringer works for E9 Insight and part of her work is to compile summaries of Colorado Public Utilities Commission activities. E9 Insight has given CEA permission to publish the items that we think our readers might find useful. If you have questions about the content, please contact hello@e9insight.com.
Note: Xcel Energy does business in Colorado as Public Service Company of Colorado (PSCo).
Note: PUC refers to the Colorado Public Utilities Commission.
Business Models: Moneymaking, Programs, and Regional Impacts
21AL-0317E Xcel 2022 Rate Case
In December, parties filed answer and rebuttal testimony in Xcel’s latest rate case proceeding (including this thoughtful paper submitted by AARP), and Xcel filed a motion to extend the settlement agreement deadline, which was granted. On January 5, Xcel filed its unopposed settlement agreement and testimony, though several parties (Cities of Boulder and Denver, COSSA/SEIA, SWEEP, and Vote Solar) took no position on the Settlement. The settling parties agreed on a variety of issues related to cost of capital, deferrals, and other issues, but disagreed on one issue: decommissioning and early retirement costs for Craig Station Unit 2 and Hayden Generation Station Units 1 and 2. These issues will be determined by litigation and commission decision. The settlement proposed a rate increase of $298 million, down from the initial request of $342 million. The total net change to the rate base, after deducting revenue-neutral changes to transmission and wind project recovery, was estimated to equal $182 million. The settlement removed “Distributed Intelligence” advanced metering expenses, $4.8 million, associated with the Advanced Grid Intelligence and Security CPCN proposal, which was also deferred to a future rate case. The proposed increase, if approved, will go into effect April 1, 2022.
The settlement also committed PSCo to conduct customer surveys and open a new proceeding to consider potential improvements and redesign customer bills with stakeholder input. The rate advisor tool was also slated for upgrades related to customer education designed to encourage behavioral changes.
***Additionally, please note that on Wednesday, January 19 the PUC will host a public comment session. Sign up to provide public comments HERE.***
19M-0495E - Energy Market Analysis - Colorado Transmission Act
The Colorado PUC released its study on organized market participation options and benefits, a report which was required by legislation. The study found that it is in the public interest to join some form of organized wholesale market (energy imbalance market, day-ahead market or Regional Transmission Organization, RTO). Savings were estimated to increase with higher levels of market participation, and an RTO would produce the most benefits. Potential issues with organized markets included reduced resource planning, greenhouse gas accounting, transmission interconnection issues, and others. The PUC directed staff to prepare a notice of proposed rulemaking by July 2022 to create a process for market participation.
Of note, utilities in both Colorado and Nevada are required to join an organized market by 2030, while regulators in Arizona and Oregon continue to consider similar options.
Resource Planning: Your Power, Your Community
21A-0141E Xcel 2021 Clean Energy Plan
On December 2, the Colorado PUC issued an interim decision in Xcel’s Clean Energy Plan proceeding, scheduling hearings and inviting testimony. The order permitted parties that did not sign the November settlement agreement (including Western Resource Advocates, Vote Solar, the Colorado Renewable Energy Society, and other notable parties) to file testimony regarding the settlement. Responses highlighted issues with the proposed Comanche 3 retirement dates, emissions reductions plans, plans for coal communities, equity, and a variety of other issues. Meanwhile, Xcel filed over 100 files containing workpapers on demand response expansion, shift peak expansion, project plans. Many of these files were marked confidential. Hearing reports from the December meetings may be reviewed HERE and HERE.
19A-0369E Xcel Renewable Energy Compliance Plan
The Colorado PUC granted Xcel’s request to extend its 2020-21 Renewable Energy Compliance Plan, a plan which describes the company’s renewable subscription programs and related initiatives. Xcel described the extension as a “bridge plan” pending resolution of several Commission rulemakings which could result in a dramatically different Renewable Energy Plan for the years 2022 through 2025. The implementation of SB 21-261 (increased DER system size limit and off-site net metering) and SB 21-272 (investments in disproportionately impacted communities) will particularly shape the next phase of the program.
According to Xcel’s motion, the extension proposal should only impact the Company’s Solar*Rewards Small program, Solar*Rewards Medium program, and Colorado Energy Office Income-Qualified Rooftop Solar Weatherization Assistance Program. In the unlikely event that the 2022-25 RE Plan is not implemented before October 31, 2022, Solar*Rewards Large and Solar*Rewards Community solicitations or standard offerings will also move forward according to the additional process.