February 2021 PUC Update

Clean Energy Action’s Colorado Public Utility Commission updates are provided courtesy of E9 Insight. Please contact hello@e9insight.com with any additional questions.

Rate Cases: Impacts to Your Bill

20M-0251E Investigation of Electric Utility Retail Rates

On January 27, the Colorado PUC voted to send the Utility Retail Rate Report to the General Assembly, as was required by Senate Bill 19-236. The report was sent on February 1, containing a statewide electric retail rate survey; an average electric rate calculation; recommendations for rate relief; and a general description of ratemaking and utilities in Colorado. The report found that investor-owned utilities are responsible or 56% of retail electricity sold in Colorado (Xcel accounting for 53%). Average residential rates were determined to be 12.18 cents/kWh (for reference, the average EIA price in 2020 was 13.01 cents/kWh); when combined with the commercial and industrial rates, the overall statewide average was 9.95 center/kWh. Staff determined that rates more than 25% of this average should be considered “materially greater” than average, and found that Black Hills Energy has rates that are 34% above the statewide average. The PSC recommended that Black Hills open a new rate case, increase funding for its Energy Assistance Program, investigate time-of-use rates, reduce cost of debt, and/or to develop a special contract or economic development rate. In the longer term, the PUC recommended exploration of community choice energy (with appropriate guidance from the legislature), increased use of renewable resources, and taking local economies into consideration.”

Resource Planning: Your Power, Your Community

21M-0061E Clean Energy Plans

In accordance with the 2019 SB 19-236, Public Service Company of Colorado must file a Clean Energy Plan as its next Electric Resource Plan by the end of March 2021. In early February, the Colorado PUC opened a new proceeding outlining the legislative history and requirements of the Clean Energy Plan (CEP). The opening notice emphasized that the Air Quality Control Commission cannot mandate GHG emission reduction targets by 2030 more than what is required from the commission-approved CEP. Additionally, in January 2021, the state released Colorado's Greenhouse Gas Pollution Reduction Roadmap. The PUC therefore established this proceeding to enable further consultation with Colorado state agencies to engage in at least one workshop discussion regarding statutory obligations.

Business Models: Moneymaking, Programs, and Regional Impacts

19M-0495E Energy Market Analysis - Colorado Transmission Act

On January 28, the CO PUC held an informational meeting regarding western regional markets and potential benefits/costs to Colorado joining an energy imbalance market (EIM). The session reviewed three recent market studies which compared CAISO's WEIM, SPP's WEIS, business as usual, or Colorado's formation of a statewide joint dispatch agreement. Generally, the studies affirmed that the most benefits will be achieved if Colorado utilities make a singular choice, likely to join CAISO's WEIM due to the renewable energy penetration in this region.

Presentations from the conference included an Xcel powerpoint which confirmed that the utility will enter the WEIM in April 2022. According to their analysis, by 2022 the WEIM will include approximately 80% of load in the Western Interconnection, and WEIM parties are also exploring an additional day-ahead market. The presentation highlighted the benefits of RTO participation, and noted that "PSCo is interested in establishing [transmission] seams coordination agreements with SPP and the WEIS participants to ensure the efficient use of the facilities in Colorado."

20M-0267EG Implementation of SB 20-030 (Consumer Protections)

On January 28, the Colorado PUC directed Black Hills Energy to file additional information about their COVID-19-related disconnections. Black Hills reported a total oy 1,861 residential disconnections in the latter part of 2020, and the PUC stated, "We are concerned that this level of disconnections is approaching the level of disconnections BHCE undertakes in years when COVID-19 is not a factor; that it may represent a disproportionate percent of BHCE’s residential customers as compared to other utilities; and that it is unclear how long customers are disconnected before they are reconnected." 

Plus, a notable news release…
On January 4 2021, Xcel Energy-Colorado and partners PacifiCorp and the Salt River Project announced plans to close the Hayden Generating Station by 2028, over eight years earlier than initially planned. The first unit will be retired by 2027, and the closure is cited as part of Xcel Energy’s plan to reduce carbon emissions by 80% by 2030.