Struck = removed from the bill ยท
added = the amendment's new text.
FirstHB1177_S_TRA.001 RegularNOT SessionAMENDED Seventy-fifthSENATE GeneralCOMMITTEE Assembly STATE OF COLORADOREFERENCE ENGROSSEDREPORT This_______________________________ VersionApril Includes23, All2025 AmendmentsChair Adoptedof onCommittee SecondDate ReadingCommittee inon theTransportation House& ofEnergy Introduction. LLS NO.
25-0707.01After Jenniferconsideration Bermanon x3286the HOUSEmerits, BILLthe 25-1177Committee HOUSErecommends SPONSORSHIPthe Maurofollowing: and Winter T., Bird, Martinez SENATE SPONSORSHIP Hinrichsen and Pelton B., Roberts House Committees Senate Committees Energy & Environment A BILL FOR AN ACT C ONCERNING ADJUSTMENTS TO THE ECONOMIC DEVELOPMENT RATE TARIFF .
BillHB25-1177 Summarybe (Note:referred to the Committee of the Whole with favorable recommendation and with a recommendation that it be placed on the consent calendar.
This** summary*** applies** to*** this** bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) 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 i orexpandstheiroperationsinColorado,thataddsatleast3megawattsof a 2 S R 2 O n l Shading denotes HOUSE amendment.
Double underlining denotes SENATE amendment.
H 2 p Capital letters or bold & italic numbers indicate new material to be added to existingdlaw.
Dashes through the words or numbers indicate deletions from existing law.
e m A 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.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.
In Colorado Revised Statutes, 40-3-104.3, amend (6)(b)(I),(6)(b)(II)(B),(6)(b)(III),(6)(c)(I),(6)(d)(I)introductoryportion, (6)(d)(II) introductory portion, (6)(d)(II)(A), (7), and (8);
and add (6)(c)(IV), (6)(c)(V), and (6)(c)(VI) as follows:
40-3-104.3.
Manner of regulation - competitive responses - economic development rate - definitions - repeal.
(6) (b) (I)A) An economicdevelopmentrateapprovedpursuanttothissection MUSTBEIN THE PUBLIC INTEREST AND must be lower than the rate or rates that the qualifying commercial or industrial customer would be or currently is subject to under theNVESTOR -OWNED ELECTRIC utility's tariffs in effect at the time the qualifying commercial or industrial customer seeks to qualify for the economic development rate;
except that an economic -2- 1177 development rate must not be lower than the utility's marginal cost of providingservicetothequalifyingcommercialorindustrialcustomer.
ECONOMICDEVELOPMENT RATE MUST NOT DIRECTLYINCREASE COSTSOF ELECTRIC SERVICE FOR OTHER CUSTOMERS.
(B) AN ECONOMIC DEVELOPMENT RATE APPROVED PURSUANT TO THISSECTIONDOESNOTRELIEVEANINVESTOR -OWNEDELECTRICUTILITY OF ITS OBLIGATION TO ACHIEVE COMPLIANCE WITH GREENHOUSE GAS EMISSION REDUCTION REQUIREMENTS.
(II) (B) Notwithstanding subsection (6)(b)(II)(A) of this section, the INVESTOR-OWNED ELECTRIC utility may negotiate and enter into agreements related to economic development rates with individual qualifying commercial or industrial customers without commission approvalsolongastheagreed-uponeconomicdevelopmentratecomplies with the commission-approved tariff and the addition or expansion of existing load at a single location is less than or equal to twenty megawatts.
I APPROVING A UTILIT'S APPLICATION FOR AN ECONOMIC DEVELOPMENT RATE ,FOR LOADS BETWEEN TWENTY -ONE AND FORTY MEGAWATTS ,THE COMMISSION MAY REQUIRE THE INVESTOR -OWNED ELECTRICUTILITYTOMAKEADDITIONALDEMONSTRATIONS INCLUDINGA MARGINALCOSTDETERMINATION ,ANADDITIONALPOWERFLOWANALYSIS TO DEMONSTRATE THAT THE ADDED LOAD WILL BE SUPPORTED BY ADEQUATE TRANSMISSION CAPABILITIES AND WILL NOT NEGATIVELY IMPACT RELIABILITY OR RESOURCE ADEQUACYA DEMONSTRATION THAT THE ADDITIONAL INFRASTRUCTURE COSTS WILL NOT BE BORNE BY OTHER CUSTOMERS ,ANDADEMONSTRATIONTHATPROJECTSABOVETWENTY -ONE MEGAWATTS WILL PROVIDE ADDITIONAL COMMUNITY BENEFITS .
Any addition or expansion of existing load at a single location that is greater -3- 1177 than twentyFORTY megawatts requires separate commission approval baseduponafindingthattheadditionorexpansionisconsistentwiththis sectionAND IN THE PUBLIC INTERE.T (III) (A) An investor-ownedELECTRIC utility may offer an economic development rate to a qualifying commercial or industrial customer for up to ten years.
(B) N OTWITHSTANDING SUBSECTION (6)(b)(III)(OF THIS SECTION,THE INVESTOR OWNED ELECTRIC UTILITY MAY PROPOSE, AND THE COMMISSION MAY CONSIDER APPROVING , AN ECONOMIC DEVELOPMENT RATE TO A QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER FOR A PERIOD OF GREATER THAN TEN YEARS, BUT NO MORE THAN TWENTY -FIVE YEARS.
(C) IEVALUATINGWHETHERITISINTHEPUBLICINTERESTFORAN INVESTOR-OWNEDELECTRICUTILITY SPROPOSALTOALLOWAQUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER TO REMAIN ON AN ECONOMIC DEVELOPMENT RATE FOR LONGER THAN TEN YEARS , THE COMMISSION SHALL EVALUATE THE PROPOSED DURATION OF THE QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER S PROPOSED PROJECT , COMMUNITY IMPACTS ,AND IMPACTS TO RATES OF OTHER CUSTOMERS OF THE UTILIT.
(c) (I) An authorizationPROVAL granted by the commission pursuant to this section must include such terms and conditions as the commission determines are necessary to ensure that the economic developmentratesorchargesassessedtoothercustomersdonotsubsidize the cost of providing service to qualifying commercial and industrial customers consistent with subsection (6)(b)(I) of this section and that there is no other subsidization of such service.
In developing -4- 1177 the terms and conditionOF AN ECONOMIC DEVELOPMENT RATE , the commission shall consider, among other things:
(A) The rates and charges assessed to theVESTOR-OWNED ELECTRIC utility's wholesale customers;
and (B) The effects on other transmission system owners and users resultingfromnewtransmissionfacilitiesconstructedinconnectionwith the utility's expansion of an existing voluntary renewablergy program or service offerAND;
(C) FOR ALL OF THE INVESTOR -OWNED ELECTRIC UTILITY S CUSTOMER CLASSES ,THE BROADER ECONOMIC DEVELOPMENT BENEFITS ASSOCIATED WITH THE QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER BASED ON A DETERMINATION OFTHEMARGINALCOSTAND ON A SOCIETAL ECONOMIC BENEFIT TEST DEVELOPED BY THE INVESTOR-OWNED ELECTRIC UTILITY.
(IV) FOLLOWING A NOTICE PERIOD OF FOURTEEN BUSINESS DAYS AFTERANINVESTOR OWNEDELECTRICUTILITYFILESANAPPLICATIONFOR APPROVAL OF ECONOMIC DEVELOPMENT RATES ,AND THE ADDITION OR EXPANSIONOFEXISTINGLOADATASINGLELOCATIONTHATISFORTY -ONE OR MORE MEGAWATTS ,THE COMMISSION SHALL APPROVE OR DENY THE APPLICATIONWITHINONEHUNDREDTWENTYDAYSAFTERTHEEXPIRATION OF THE NOTICE PERIO.
(V) FOLLOWING A NOTICE PERIOD OF FOURTEEN BUSINESS DAYS AFTERANINVESTOR OWNEDELECTRICUTILITYFILESANAPPLICATIONFOR APPROVAL OF ECONOMIC DEVELOPMENT RATES ,AND THE ADDITION OR EXPANSIONOFEXISTINGLOADATASINGLELOCATIONTHATISMORETHAN ONE HUNDRED FIFTY MEGAWATTS ,THE COMMISSION SHALL APPROVE OR DENY THE APPLICATION WITHIN TWO HUNDRED TEN DAYS AFTER THE -5- 1177 EXPIRATION OF THE NOTICE PERIOD.
(VI) (A) IF AN INVESTOR OWNED ELECTRIC UTILITY DOES NOT HAVE A COMMISSION -APPROVED TARIFF PURSUANT TO SUBSECTION (6)(b)(II)(A)F THIS SECTION,THE COMMISSION ,FOLLOWING A NOTICE PERIOD OF FOURTEEN BUSINESS DAYS AFTER THE INVESTOR OWNED ELECTRIC UTILITY FILES AN APPLICATION FOR APPROVAL OF ECONOMIC DEVELOPMENTRATES ,SHALLAPPROVEORDENYTHEAPPLICATIONWITHIN ONE HUNDRED TWENTY DAYS AFTER THE EXPIRATION OF THE NOTICE PERIOD .
(B) T HIS SUBSECTION(6)(c)(VIIS REPEALED,EFFECTIVEJUNE 1, 2026.
(d) (I) Aninvestor-ownedELECTRICutilitymayseek commission approval to expand any voluntary renewableEAN energy program or serviceoffering,exceptthosecoveredbyvalidagreementstothecontrary executedandapprovedbythecommissionasofJanuary1,2019,through the acquisition of additional renewableLEAN ENERGY generation capacity and energy to meet the current and projected demand of:
(II) The commission may approve, within one hundred twenty days, an expansion of an existing voluntary renewableAN energy program or service offering upon a showing by the utility that:
(A) There is not sufficient capacity and energy in the existing voluntaryrenewable CLEAN energyprogramorserviceofferingtosatisfy the needs of the customer and the customer meets the requirements of subsection (6)(d)(I) of this section;
and (7) As used in subsection (6) of this section and this subsection (7),UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "M ARGINAL COST " MEANS THE INCREMENTAL ADDITIONAL -6- 1177 COSTTHATANINVESTOR -OWNEDELECTRICUTILITYINCURSANDCHARGES TO SERVE AN ELECTRIC CUSTOMER OVER THE CONTRACT PERIOD ,WHICH ADDITIONAL COSTS WOULD NOT HAVE BEEN INCURRED IF THE CUSTOMER DID NOT TAKE SERVICE ON THE UTILITYS SYSTEM ,INCLUDING,BUT NOT LIMITED TO:
(I) FUEL;
(II) PURCHASED POWER ;
(III) OPERATING AND MAINTENANCE COSTS ;
(IV) C APITAL ADDITIONS;
(V) O VERHEAD ;
(VI) T AXES;AND (VII) FEES.
(a)(b) "Qualifying commercial or industrial customer":
(I) Means a utility customer that:
(A) Agrees to:
Locate commercial or industrial operations in Colorado and add at least three megawatts of new load at a single location, or expand existing commercial or industrial operations in Colorado and add at least three megawatts of new load at a single location;
and (B) Demonstrates, to the satisfaction of the investor-owned ELECTRIC utility, subject to review by the commission, that:
The cost of electricity is a critical consideration in deciding where to locate new or expandexistingoperations,andtheavailabilityofeconomicdevelopment rates, either on their own or in combination with other economic development incentives, is a substantial factor in the customer's decision to locate new or expand existing business operations in Colorado;
(II) Does not include a customer that agrees to relocate or -7- 1177 otherwise transfer its existing load of at least three megawatts from the service territoryof another public utility, as defined in section 40-1-103, into the service territory of the utility offering economic development rates.
(c) "S OCIETAL ECONOMIC BENEFIT TEST" MEANS A TEST THAT INCLUDES BUT IS NOT LIMITED T:
(I) THEECONOMICBENEFITSRECEIVEDBYALLCUSTOMERCLASSES SERVED BY THE UTILITY;AND (II) THE ECONOMIC DEVELOPMENT BENEFITS ,INCLUDING :
(A) T HE TOTAL NET LOCAL AND STATE TAXES TO BE PAID BY THE QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER ;
(B) T HE AMOUNT OF FULL-TIME JOBS CREATED;AND (C) O THER ECONOMIC GROWTH ,BENEFITSOR BOTH BROUGHT TO THE SURROUNDING COMMUNITY THAT RESULT FROM SERVING A QUALIFYINGCOMMERCIALORINDUSTRIALCUSTOMERWITHANECONOMIC DEVELOPMENT RATE .
(b)(d) "Voluntary renewableCLEAN energy program or service offering" means a program or other service offering approved by the commissionthatallowsa QUALIFYING commercialorindustrialcustomer access to eligible energy resources, as that term is defined in section 40-2-124 (1)(a), on a voluntary basis, on terms and conditions deemed necessary by the commission.
For a voluntary renewableN energy program or service offering to be expanded, it must have been approved by the commission prior to the expansion request of aUALIFYING commercialorindustrialcustomerpursuanttosubsection(6)(d)(I)ofthis section.
(8) Thissubsection(8)andSubsections(6)and (7) of this section -8- 1177 AND THIS SUBSECTION(8) are repealed, effective January 1, 2028 2035.
SECTION2.
Applicability.Thisactappliestoapplicationsfiled on or after the effective date of this act.
SECTION 3.
Safety clause.
The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsfor the support and maintenance of the departments of the state and state institutions.
-9- 1177