The bill amends the economic development rate framework for investor-owned electric utilities in Colorado. Key changes include:
Extended Rate Duration: The bill increases the maximum duration of the economic development rate from 10 years to 25 years for qualifying commercial or industrial customers.
Higher Load Capacity: It expands the maximum load for qualifying customers from 20 megawatts to 40 megawatts at a single location for projects that do not require commission approval.
Updated Application Process: The bill modifies the application process for approval of the economic development rate:
The Public Utilities Commission (commission) must approve or deny applications within 120 days, following a 14-day business notice period after the application is filed.
The commission will consider broader economic benefits, such as impacts on other utility customer classes and the surrounding community, when reviewing applications.
These changes are aimed at further incentivizing economic development by offering longer-term rate reductions and accommodating larger projects, while ensuring that the community and other customers benefit from such expansions.
Summary
Under current law, an investor-owned electric utility (utility) may
apply to the public utilities commission (commission) for approval to charge certain commercial or industrial customers of the utility an economic development rate (economic development rate), which is a reduced rate offered to a commercial or industrial customer that locates or expands their operations in Colorado, that adds at least 3 megawatts of new load at a single location within the utility's service territory, and that demonstrates certain other requirements to the satisfaction of the utility (qualifying commercial or industrial customer).
The bill makes adjustments to the economic development rate
tariff by:
•
Authorizing the utility to apply to the commission for an expansion of the maximum duration of the economic development rate from 10 years to 25 years;
•
Expanding the maximum load at a single location of a qualifying commercial or industrial customer for an individual project that does not require commission approval from 20 megawatts to 40 megawatts; and
•
Updating the application process required for seeking approval of an economic development rate by requiring that the commission: •
Approve or deny an application within 120 days after a notice period of 14 business days after the application was filed; and
•
Consider the broader economic benefits associated with the application for other classes of utility customers and for the surrounding community.
