Regulation of Rates and Charges

C.R.S. tit. 40, art. 3
in effect

C.R.S. § 40-3-101 Reasonable charges - adequate service

40-3-101. Reasonable charges - adequate service. (1) All charges made, demanded, or received by any public utility for any rate, fare, product, or commodity furnished or to be furnished or any service rendered or to be rendered shall be just and reasonable. Every unjust or unreasonable charge made, demanded, or received for such rate, fare, product or commodity, or service is prohibited and declared unlawful. Rates and charges demanded or received by any public utility for gas transportation service furnished or to be furnished shall not be deemed to be unjust or unreasonable so long as said rate or charge is no greater than a maximum rate and no lower than a minimum rate determined by the commission (or, in the case of a municipal utility, by the governing body of the municipal utility in accordance with sections 40-3-102 and 40-3.5-102) to be just and reasonable, and the provision of such gas transportation service at such rates or charges shall not constitute per se unjust discrimination or the granting of a preference. Nothing in this subsection (1) shall limit or restrict the commission's authority to regulate rates and charges, correct abuses, or prevent unjust discrimination. (2) Every public utility shall furnish, provide, and maintain such service, instrumentalities, equipment, and facilities as shall promote the safety, health, comfort, and convenience of its patrons, employees, and the public, and as shall in all respects be adequate, efficient, just, and reasonable. (3) (a) If a retail cooperative electric association, in conjunction with the payment of an applicable charge, withdraws from membership in a wholesale electric cooperative, as defined in section 40-2-136 (3)(c), that withdrawal is deemed to be a matter of statewide concern, and, in relation to such withdrawal: (I) The wholesale electric cooperative will act in accordance with the obligation of good faith and fair dealing in implementing the withdrawal and shall not require or impose commercially unreasonable contractual terms on the retail cooperative electric association in relation to the withdrawal; and (II) The wholesale electric cooperative shall, upon request from the withdrawing retail cooperative electric association, facilitate the retail cooperative electric association's transition from native load to a firm service transmission customer without diminishing the withdrawing retail cooperative electric association's native electric load priority for accessing firm transmission capacity. (b) The commission has the authority to adjudicate complaints about the terms on which a wholesale electric cooperative implements withdrawal pursuant to this subsection (3).

C.R.S. § 40-3-102 Regulation of rates - correction of abuses

40-3-102. Regulation of rates - correction of abuses. The power and authority is hereby vested in the public utilities commission of the state of Colorado and it is hereby made its duty to adopt all necessary rates, charges, and regulations to govern and regulate all rates, charges, and tariffs of every public utility of this state to correct abuses; to prevent unjust discriminations and extortions in the rates, charges, and tariffs of such public utilities of this state; to generally supervise and regulate every public utility in this state; and to do all things, whether specifically designated in articles 1 to 7 of this title or in addition thereto, which are necessary or convenient in the exercise of such power, and to enforce the same by the penalties provided in said articles through proper courts having jurisdiction; except that nothing in this article shall apply to municipal natural gas or electric utilities for which an exemption is provided in the constitution of the state of Colorado, within the authorized service area of each such municipal utility except as specifically provided in section 40-3.5-102.

C.R.S. § 40-3-102.5 Limiting rate case expenses for investor-owned utilities - information included in rate case filings - gas cost or electric commodity adjustment filings - rules - definitions

40-3-102.5. Limiting rate case expenses for investor-owned utilities - information included in rate case filings - gas cost or electric commodity adjustment filings - rules - definitions. (1) Limiting recovery of rate case expenses. (a) The commission shall establish rules to limit the amount of rate case expenses that a utility may recover from ratepayers. In establishing the rules, the commission may consider: (I) Implementing a symmetrical incentive to motivate the utility to limit expenses; (II) Limiting the amount of expenses for outside experts, consultants, and legal resources that are recoverable; (III) Setting an overall percentage of the utility's expenses in a rate case that are not recoverable; (IV) Establishing discovery parameters and what information in a commission proceeding must be disclosed to interveners or to the commission to reduce time and costs associated with a lengthy discovery process, which information may include: (A) A source model showing all rate adjustments; (B) Executable spreadsheets, also referred to as work papers, with links and formulas intact; (C) A test year based on a recently completed twelve-month period and for which actual costs and investments are analyzed; and (D) Any other information or documentation, as determined by the commission; or (V) Requiring a technical conference with intervening parties to address intervening parties' questions and to provide the ability for interveners to analyze the utility's assumptions and calculations supporting a rate case filing. (b) Before the commission may determine that an investor-owned utility's application to modify base rates is complete, the commission shall certify that, for comparison of test years and other purposes, the filing includes sufficient information, including a comprehensive cost and revenue requirement analysis based on actual, auditable, historical data, which analysis must be accompanied by appropriate work papers and other supporting materials. (c) Nothing in this section prohibits a utility from including multiple test years for analysis or consideration in a rate case filing, including inclusion of a future test year. (d) As used in this subsection (1): (I) "Base rate" means charges used to recover costs of utility infrastructure and operations, including a return on capital investment, not otherwise recovered through a utility rate rider or rate adjustment mechanism. (II) "Test year" means a twelve-month period that is examined to determine a utility's costs of service in a rate case. (III) "Utility" means an investor-owned electric or gas utility. (2) Requirements for filings to increase a rate, charge, fee, fare, toll, rental, or classification. (a) At the time of filing a request to increase any rate, charge, fee, fare, toll, rental, or classification, the utility shall provide the commission a rate trend report for the previous ten years regarding any historical increases or decreases of the rate, charge, fee, fare, toll, rental, or classification, including: (I) The amount of each approved increase or decrease; (II) The incremental increase or decrease from the most recent approved change; (III) The dates that each approved increase or decrease went into effect; (IV) The proceeding number related to each approved increase or decrease; (V) A chart, graph, or other visualization demonstrating the ten-year historical trend regarding each rate, charge, fee, fare, toll, rental, or classification, including all utility bill line items such as rates and rate riders; and (VI) For each of the ten years, the annual total amount of the rate, charge, fee, fare, toll, rental, or classification. lated to each approved increase or decrease; (V) A chart, graph, or other visualization demonstrating the ten-year historical trend regarding each rate, charge, fee, fare, toll, rental, or classification, including all utility bill line items such as rates and rate riders; and (VI) For each of the ten years, the annual total amount of the rate, charge, fee, fare, toll, rental, or classification. (b) Each utility shall post and keep current on its website the rate trend report data, including the chart, graph, or other visualization demonstrating the ten-year historical trend submitted as part of the rate trend report. Any visualization must include all utility bill line items, including all rates and rate riders. (3) Gas cost or electric commodity adjustment filing requirements. A utility that files a gas cost adjustment filing or an electric commodity adjustment filing shall provide copies of all confidential materials and all executable materials related to the filing to the commission's staff and the office of the utility consumer advocate created in section 40-6.5-102 (1).

C.R.S. § 40-3-103 Utilities to file rate schedules - rules

40-3-103. Utilities to file rate schedules - rules. (1) Under the rules prescribed by the commission, each public utility shall file with the commission, within the time and in the form designated by the commission, and shall print and keep open to public inspection, schedules showing all rates, tolls, rentals, charges, and classifications collected or enforced, or to be collected and enforced, together with all rules, regulations, contracts, privileges, and facilities that in any manner affect or relate to rates, tolls, rentals, classifications, or service. (2) (a) On or after January 1, 2018, on a schedule determined by the commission, each investor-owned electric utility shall file for the commission's review a comprehensive billing format that the investor-owned electric utility has developed for its monthly billing of customers. The comprehensive billing format must include the following components of a customer's monthly bill: (I) A line-item representation of all monthly charges and credits applied to the customer and an indication of whether the charges have changed from the prior month as a result of changes in fuel costs; (II) For months in which tiered rates are applied, a breakdown of the tiered rates and the amount of usage to which each rate was applied for the month; (III) The daily average cost for the current month compared to the same month in the previous calendar year; (IV) A glossary of terms used by the utility in the monthly bill; (V) A description of each of the monthly fees that the utility may charge the customer; (VI) The usage for the current month and each of the previous twelve months, as shown in a bar graph or similar visual format; and (VII) For customers to which demand rates apply, a listing of the applicable demand charge, the peak demand during the billing period, and, provided the utility can reasonably ascertain such data, the date and time at which the peak demand occurred. (b) Each investor-owned electric utility shall provide its customers, on a biannual basis, with either an onsert or an insert that indicates, as a percentage, each fuel source used in power generation and purchased for that utility, including renewable energy sources, natural gas, and coal. (c) (I) The commission shall review a filing submitted pursuant to subsection (2)(a) of this section within thirty days after the filing. If the commission determines that the filing does not meet the comprehensive billing format requirements set forth in subsection (2)(a) of this section, the commission may require the investor-owned electric utility to resubmit a comprehensive billing format in compliance with the requirements. The commission shall notify the investor-owned electric utility in writing of the reasons for the deficiency, and the investor-owned electric utility shall resubmit a comprehensive billing format in compliance with the requirements of subsection (2)(a) of this section within sixty days after the date of the commission's notice of deficiency; except that the commission may, upon request, extend the deadline. (II) After the commission has approved a comprehensive billing format submitted by an investor-owned electric utility pursuant to subsection (2)(a) of this section, the investor-owned electric utility need not resubmit a comprehensive billing format unless the investor-owned electric utility makes changes to its comprehensive billing format.

C.R.S. § 40-3-103.5 Medical exemption - tiered electricity rates - rules

40-3-103.5. Medical exemption - tiered electricity rates - rules. (1) Notwithstanding any provision of articles 1 to 7 of this title 40 to the contrary, the commission shall adopt rules to create an exemption from any tiered electricity rate plan based on a customer's medical condition. The commission's rules must provide a mechanism for the recovery of costs associated with implementing and providing the medical exemption. (2) The commission may determine the definition of "medical condition"; except that the definition must include multiple sclerosis, epilepsy, quadriplegia, and paraplegia. The medical exemption is for individuals who have the verification of a physician licensed in Colorado of a heat-sensitive medical condition or the need for the use of an essential life support device. (3) If the commission determines that a means test is necessary for the medical exemption, the commission shall use no less than four hundred percent of the federal poverty level for the customer's household as the maximum income to be eligible for the medical exemption. (4) If the low-income energy assistance program is used to certify eligibility, the medical exemption under this section must be distinguishable from the heat assistance benefits offered under the low-income energy assistance program because these programs may have different eligibility requirements. (5) On and after September 1, 2020, the commission shall require utilities periodically to report, pursuant to section 40-3-110, the number of their customers who receive the medical exemption under this section and to describe the efforts the utilities have made during each reporting period to facilitate the enrollment of qualified persons in their medical exemption programs.

C.R.S. § 40-3-103.6 Disconnection due to nonpayment - connection and reconnection fees - deposits - standard practices - rules - definitions

40-3-103.6. Disconnection due to nonpayment - connection and reconnection fees - deposits - standard practices - rules - definitions. (1) The commission shall commence a rule-making proceeding to adopt standard practices for gas and electric utilities to use when disconnecting service due to nonpayment. The rules must address the following subjects: (a) Resources to support customers in multiple languages, as appropriate to the geographic areas served; (b) (I) Prohibiting shut-off times: (A) On Fridays, Saturdays, Sundays, or state or federal holidays; or (B) To the greatest extent practicable, after 11:59 a.m. on a Monday through Thursday that is not a holiday; or (C) During an emergency or safety event or circumstance; and (II) If, by making a payment or payment arrangement in accordance with the utility's policies, a customer makes a request for reconnection of service on a Monday through Friday that is not a holiday, requiring the utility to reconnect the customer's service on the same day as the customer requests reconnection of service if one of the circumstances set forth in subsection (1.5) of this section is met. (c) Prescribed terms and conditions for payment plans to cure delinquency; (d) Referral of delinquent customers to energy payment assistance resources such as Energy Outreach Colorado, charities, nonprofits, and state agencies that provide, or that administer federal funds for, low-income energy assistance; (e) For each utility, standardized methodology to be used in determining reconnection fees and deposit requirements for reconnection; (f) Protection policies for customers for whom electricity is medically necessary; (g) Prohibitions on the disconnection of service during periods of extreme heat or cold, as appropriate to the geographic area served; (h) A prohibition on the remote disconnection of service for nonpayment, through advanced metering infrastructure or otherwise, without a reasonable attempt to make contact with the customer of record by telephone or engaging in a personal, physical visit to the premises; and (i) Reporting requirements, no less frequently than annually, to provide the commission with standardized information from all utilities about disconnections and delinquencies. For the purpose of trend analysis, utilities may disaggregate data by month or by quarter, as the commission deems appropriate. Reporting requirements must take into consideration existing utility reporting and must allow the utilities a reasonable ability to ascertain data. (1.5) A utility shall reconnect a customer's service on the same day as the customer requests reconnection pursuant to subsection (1)(b)(II) of this section if: (a) The customer is an electric utility customer with advanced metering infrastructure and has requested reconnection of service at least one hour before the close of business for the electric utility's customer service division; except that the electric utility may reconnect service on the day following a disconnection of service if there are internet connectivity, technical, or mechanical problems or emergency conditions that reasonably prevent the utility from remotely reconnecting the customer's service; or n of service at least one hour before the close of business for the electric utility's customer service division; except that the electric utility may reconnect service on the day following a disconnection of service if there are internet connectivity, technical, or mechanical problems or emergency conditions that reasonably prevent the utility from remotely reconnecting the customer's service; or (b) The customer is either an electric utility customer without advanced metering infrastructure or a gas utility customer and has requested reconnection of service on or before 12:59 p.m.; except that an electric utility or gas utility may reconnect the customer's service on the day following a disconnection if: (I) Prior to disconnection of the customer's service, the utility has made a qualifying communication with the customer; or (II) An emergency or safety event or circumstance arises after disconnection of service that renders the utility's staff temporarily unavailable to safely reconnect service. If next-day reconnection of service is not possible due to the continuation of the emergency or safety event or circumstance, the utility shall reconnect the customer's service as soon as possible. (2) The commission shall publish on its website, or require utilities to publish on their websites: (a) Information regarding the standard practices and fees specified in rules adopted pursuant to subsection (1) of this section; and (b) The information periodically reported in accordance with subsection (1)(i) of this section. (3) As used in this section, unless the context otherwise requires: (a) "Advanced metering infrastructure" means an integrated system of smart electric utility meters and communication networks that enables two-way communication between an electric utility's data systems and the meter's internet protocol address and allows the electric utility to measure electricity usage or connect or disconnect service remotely. (b) (I) "Emergency or safety event or circumstance" means a manmade or natural emergency event or safety circumstance: (A) That prevents utility staff from being able to safely travel to or work at a customer's residence or place of business for purposes of reconnecting utility service; or (B) For which a utility has dispatched utility staff members to help respond to the emergency or safety event or circumstance and, due to the timing or number of utility staff dispatched, the utility lacks sufficient trained staff to reconnect utility service at a customer's residence or place of business. (II) "Emergency or safety event or circumstance" includes a severe weather event that one or more reputable weather forecasting sources forecasts to occur in the following twenty-four hours and that is more likely than not to result in dangerous travel or on-site outdoor or indoor work conditions for individuals in the path of the weather event. (c) "Qualifying communication" means one of the following methods of communicating with a utility customer about a possible upcoming disconnection of service: (I) A physical visit to the customer's premises during which a utility representative speaks with the customer and provides the customer utility assistance information or, if the customer is not available to speak, leaves utility assistance information for the customer's review; or (II) A telephone call, text, or e-mail to the customer in which: (A) The utility representative provides the customer with utility assistance information; and (B) The utility representative either speaks directly with the customer over the telephone or the customer receives the utility representative's text or e-mail. (d) "Utility assistance information" means information that a utility representative provides a customer informing the customer that the customer may contact 1-866-HEAT-HELP to determine if the customer qualifies for utility bill payment assistance.

C.R.S. § 40-3-104 Changes in rates - notice

40-3-104. Changes in rates - notice. (1) (a) In the case of a public utility other than a rail carrier, subject to the provisions of paragraph (c) of this subsection (1), no change shall be made by any public utility in any rate, fare, toll, rental, charge, or classification or in any rule, regulation, or contract relating to or affecting any rate, fare, toll, rental, charge, classification, or service or in any privilege or facility, except after thirty days' notice to the commission and the public. Notwithstanding the provisions of this paragraph (a), changes in intrastate telecommunications services which have been determined by the commission to be competitive in nature, pursuant to the provisions of article 15 of this title, shall not be subject to any notice requirement, including, but not limited to, any requirement in this section whether or not denoted as a notice requirement. (b) Repealed. (c) (I) A public utility shall provide the notice required under subsection (1)(a) of this section by filing with the commission and keeping open for public inspection new schedules stating plainly the changes to be made in the schedules then in force and the time when the changes will go into effect. At the time of the public utility's filing with the commission, the public utility shall post the notice on its public website, including a reference to the docket numbers of relevant rules or adjudicatory matters, which posting must be conspicuously displayed on the website for at least thirty days. The commission may require transportation and water utilities to give additional notice in a manner set forth by order or rule. For public utilities other than transportation and water utilities, the commission shall require additional notice prior to an increase or other change in any rate, fare, toll, rental, charge, classification, or service, which additional notice may be made, at the option of the public utility, by any of the following methods: (A) Publication of a notice in each newspaper of general circulation in each county in which the public utility provides service, which notice shall be four columns wide and eleven inches high stating plainly the changes and shall be published once each week for two successive weeks during the first twenty days of the thirty-day period prior to the effective date of the increase or change. If notice is given by publication, public utilities other than those providing intrastate telecommunications services pursuant to section 40-15-104 (1) shall also be required to include, with each regular billing statement mailed to affected customers during the first regular billing cycle following the filing of the application for an increase or other change, a bill insert containing the same information contained in the notice by newspaper publication. (B) Mailing of a notice to each affected customer of the public utility during the first twenty days of the thirty-day period prior to the effective date of the increase or change; (C) Inclusion of an insert in, or a clear and conspicuous statement on, the bill mailed to each affected customer of the public utility during a regular billing cycle not later than the twentieth day of the thirty-day period prior to the effective date of the increase or change; (D) Subject to subsection (1)(c)(VII) of this section, not later than the twentieth day of the thirty-day period before the effective date of the increase or change, sending an e-mail or text message to each affected customer of the public utility for whom the utility has an e-mail address or a mobile telephone number; or (E) At the request of the public utility, such other manner as the commission may prescribe. bsection (1)(c)(VII) of this section, not later than the twentieth day of the thirty-day period before the effective date of the increase or change, sending an e-mail or text message to each affected customer of the public utility for whom the utility has an e-mail address or a mobile telephone number; or (E) At the request of the public utility, such other manner as the commission may prescribe. (II) Such additional notice shall be sufficient if it states the total dollar amount sought to be raised by such increased rates or other changes and, if determinable at the time of filing, the average monthly increase, by dollar amount or percentage, to customers served under residential and small business tariffs; states the effective date or dates thereof; contains a general description of the types of services to be affected thereby; informs affected customers, other than residential and small business customers, where they may call to obtain information during the thirty-day period prior to the effective date of the proposed increases or changes concerning how such increases or changes will affect them; and includes the telephone number and address of the commission with instructions regarding the registration of a protest to the proposed increases or changes. Proof of additional notice shall be filed by the public utility with the commission. (III) Increases in rates, fares, tolls, rentals, or charges associated with electric and gas utility adjustment clauses are subject only to the provisions of subsection (2) of this section. (IV) For public utilities other than transportation and water utilities, where increases or changes in any rate, fare, toll, rental, charge, classification, or service result from requested increases in revenue requirements and rate restructuring and are contained in a single advice letter or application, the additional notice required under subparagraphs (I) and (II) of this paragraph (c) shall be deemed sufficient if a single notice is given even if more than one proceeding is established by the commission with respect to the increases or changes. (V) In the case of a public utility that provides regulated intrastate telecommunications services: (A) Notice of a decrease in a rate or charge for any regulated telecommunications service shall be given by filing with the commission and keeping open for public inspection for a period of fourteen days the new schedule stating plainly the decrease to be made and the time that the decrease will become effective. Such decreases shall not be subject to any additional notice requirements. (B) Notice of changes in terms and conditions for any regulated telecommunications service shall be given by filing with the commission and keeping open for public inspection for a period of fourteen days the new schedule stating plainly the changes to be made in the terms and conditions and the time that the changes will become effective. Such changes in the terms and conditions shall not be subject to any additional notice requirements unless the commission determines that such additional notice is in the public interest. Any such additional notice shall be given in a manner specified by the commission. (VI) A public utility that provides additional notice pursuant to subsection (1)(c)(I) of this section must include in the additional notice: (A) The public utility's public website address; and (B) A toll-free telephone number associated with the public utility that a customer may call for additional information or assistance. If a public utility sends additional notice by e-mail or text message pursuant to subsection (1)(c)(I)(D) of this section, the e-mail or text message need not include all information required by this subsection (1)(c)(VI); however, the e-mail or text message must include a link to the portion of the public utility's public website where that information is posted. tional information or assistance. If a public utility sends additional notice by e-mail or text message pursuant to subsection (1)(c)(I)(D) of this section, the e-mail or text message need not include all information required by this subsection (1)(c)(VI); however, the e-mail or text message must include a link to the portion of the public utility's public website where that information is posted. (VII) A public utility may provide additional notice pursuant to subsection (1)(c)(I)(D) of this section only if the public utility provides its customers with a mechanism by which a customer may opt out of receiving e-mail or text message notifications. For any customer that opts out, the public utility shall provide an alternate method of additional notice authorized under subsection (1)(c)(I) of this section. (2) The commission, for good cause shown, may allow changes with less notice than is required by subsection (1) of this section by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and published. (3) When any change is proposed in any rate, fare, toll, rental, charge, or classification or in any form of contract or agreement or in any rule, regulation, or contract relating to or affecting any rate, fare, toll, rental, charge, classification, or service or in any privilege or facility, attention shall be directed to such change on the schedule filed with the commission immediately preceding or following the item. (4) and (5) Repealed.

C.R.S. § 40-3-104.3 Manner of regulation - competitive responses - definitions - repeal

40-3-104.3. Manner of regulation - competitive responses - definitions - repeal. (1) (a) Upon application by any public utility providing electric, natural gas, or steam service, the commission shall authorize such public utility to provide utility services to a specific customer or potential customer by contract without reference to its tariffs on file with the commission if the commission finds that: (I) For contracts with a specific customer or potential customer involving electric and steam service: (A) The price of any such service is not below that service's variable cost; (B) The customer, or potential customer, has expressed its intention to decline or discontinue, or partially discontinue, service, to provide its own service, or to pursue the purchase of alternate services from another provider; (C) The approval of the application will not adversely affect the remaining customers of the public utility; and (D) The approval of the application is in the public interest; (II) For contracts with existing customers involving natural gas service: (A) The customer has the ability to provide its own service or has competitive alternatives available from other providers of the same or substitutable service, except from another public utility providing or proposing to provide the same type of service; (B) The customer will discontinue using the services of the public utility if the authorization is not granted; (C) Approval of the application will not as adversely affect the remaining customers of the public utility as would the alternative; (D) The price of any such service provided pursuant to this subparagraph (II) shall be justified and shall not be less than the marginal cost of the service to the public utility. If the price is less than marginal cost, this shall be deemed to be an illegal restraint of trade subject to the provisions of article 4 of title 6, C.R.S.; and (E) The approval of the application is in the public interest. (b) (I) Following a notice period of five days after the filing of an application under this section, the commission shall approve or deny the application within thirty days. All applications filed with the commission pursuant to this section shall be placed at the head of the commission's docket and shall be disposed of promptly within the time periods set forth in this subsection (1)(b)(I); except that, for good cause shown, the commission may extend the period in which it must act for an additional fifteen days, or, in extraordinary circumstances, including the existence of numerous pending applications under this section, the commission may extend the period in which it must act for an additional thirty days beyond the fifteen days provided for in this subsection (1)(b)(I). (II) Whenever the application is continued as provided in subsection (1)(b)(I) of this section, the commission shall enter an order making the continuance and stating fully the facts necessitating the continuance. If the commission has not approved or denied an application within the time periods set forth in subsection (1)(b)(I) of this section, the application shall be deemed approved. If the commission denies an application for approval within the permitted period, the subject contract does not become effective. (III) Any contract submitted pursuant to this section shall be filed under seal and treated as confidential by the commission; except that, at the time the applicant files an application or contract with the commission, the applicant shall also furnish a copy of the application to any public utility then providing electric, gas, or steam service in the state of Colorado to the customer, and also furnish a copy to the office of the utility consumer advocate, which office shall also treat the contract as confidential. sion; except that, at the time the applicant files an application or contract with the commission, the applicant shall also furnish a copy of the application to any public utility then providing electric, gas, or steam service in the state of Colorado to the customer, and also furnish a copy to the office of the utility consumer advocate, which office shall also treat the contract as confidential. (c) An application filed by a public utility pursuant to this section shall contain the name of the customer, a description of the services proposed to be provided under contract, evidence that the requirements of paragraph (a) of this subsection (1) have been met, and any additional information required by the commission. The commission may dismiss an application if the applicant fails to provide information necessary to enable the commission to make the findings required by paragraph (a) of this subsection (1). (d) (Deleted by amendment, L. 92, p. 2138, § 1, effective April 23, 1992.) (e) Within ten days after the execution of the contract, the public utility shall file with the commission under seal and as a confidential document the final contract or other description of the price and terms of service, together with any additional information required by the commission. The applicant shall also furnish a copy of the information to the office of the utility consumer advocate, which office shall treat the information as confidential. The commission has no authority to disapprove the contract if the contract complies with the conditions contained in subsection (1)(a) of this section, but the commission may consider the contract for general regulatory purposes and to ensure compliance with the requirements of this section. (2) (a) For contracts involving electric and steam service, at the time of any proceeding in which a utility's overall rate levels are determined, the commission shall specify a fully distributed cost methodology to be used to segregate rate base, expenses, and revenues associated with utility service provided by contract pursuant to this section from other regulated utility operations. For contracts involving electric and steam service, if revenues from a service provided pursuant to this section are less than the cost of service as determined by the fully distributed cost methodology specified by the commission, the rates of other regulated utility operations may not be increased to recover such difference between costs and revenues. (b) For contracts involving natural gas service, the commission may require a public utility to segregate investments, expenses, and revenues associated with utility service provided pursuant to subparagraph (II) of paragraph (a) of subsection (1) of this section to ensure that such services are not subsidized by revenues from other utility operations. If the commission requires such segregation of such investment and expenses, it shall specify a fully distributed cost allocation methodology. (3) (a) This section shall neither enlarge nor diminish the rights and obligations of a public utility operating under a certificate issued by the commission to serve customers within a territory pursuant to the provisions of article 3.5, 5, or 9.5 of this title. commission requires such segregation of such investment and expenses, it shall specify a fully distributed cost allocation methodology. (3) (a) This section shall neither enlarge nor diminish the rights and obligations of a public utility operating under a certificate issued by the commission to serve customers within a territory pursuant to the provisions of article 3.5, 5, or 9.5 of this title. (b) Nothing in this section shall be construed to permit any public utility to provide electric, natural gas, or steam service to a customer of another public utility located in or for use in the service territory of such other public utility providing or proposing to provide the same type of service. (4) (a) The commission has the right to inspect the books and records of any affiliate of a public utility to the extent that the affiliate uses any plant, or incurs any cost, or provides any service or product which is joint and common to the provision of public utility services and products subject to the jurisdiction of the commission. Upon application and for good cause shown, the commission may enter an appropriate protective order which directs the manner in which proprietary information shall be treated. (b) For purposes of this subsection (4), unless the context otherwise requires, "affiliate of a public utility" means a subsidiary of a public utility, a parent corporation of a public utility, a joint venture organized as a separate corporation or partnership to the extent of the individual public utility's involvement with the joint venture, or a subsidiary of a parent corporation of a public utility. (5) Nothing in this section limits or restricts the commission's authority to regulate rates and charges, correct abuses, or prevent unjust discrimination except as specifically provided in this section. (6) (a) Notwithstanding any other provision of this section, an investor-owned electric utility subject to rate regulation by the commission may offer economic development rates to a qualifying commercial or industrial customer. (b) (I) An economic development rate approved pursuant to this section must be lower than the rate or rates that the qualifying commercial or industrial customer would be or currently is subject to under the 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 development rate must not be lower than the utility's marginal cost of providing service to the qualifying commercial or industrial customer. (II) (A) The commission may approve investor-owned utility tariffs that provide for implementation of an economic development rate and set a minimum and maximum amount for the rate consistent with subsection (6)(b)(I) of this section. (B) Notwithstanding subsection (6)(b)(II)(A) of this section, the utility may negotiate and enter into agreements related to economic development rates with individual qualifying commercial or industrial customers without commission approval so long as the agreed-upon economic development rate complies 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. Any addition or expansion of existing load at a single location that is greater than twenty megawatts requires separate commission approval based upon a finding that the addition or expansion is consistent with this section. (III) An investor-owned utility may offer an economic development rate to a qualifying commercial or industrial customer for up to ten years. an or equal to twenty megawatts. Any addition or expansion of existing load at a single location that is greater than twenty megawatts requires separate commission approval based upon a finding that the addition or expansion is consistent with this section. (III) An investor-owned utility may offer an economic development rate to a qualifying commercial or industrial customer for up to ten years. (c) (I) An authorization 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 development rates or charges assessed to other customers do not subsidize 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 the terms and conditions, the commission shall consider, among other things, the rates and charges assessed to the utility's wholesale customers and the effects on other transmission system owners and users resulting from new transmission facilities constructed in connection with the utility's expansion of an existing voluntary renewable energy program or service offering. (II) In a commission proceeding related to economic development rates authorized pursuant to subsection (6)(b) of this section, the utility bears the burden of proof to establish that: (A) The rates or charges assessed to other customers do not subsidize the cost of providing economic development rates to qualifying commercial or industrial customers; (B) The rates of other regulated utility operations do not increase; and (C) Other customers on the utility's system do not experience a rate increase due to a rate or rates offered to a qualifying commercial or industrial customer pursuant to this section. (III) The commission shall not impute to the utility revenues that would have been received from the qualifying commercial or industrial customer if the customer were being provided service under the corresponding rate for which it would have otherwise qualified under the utility's tariffs. (d) (I) An investor-owned utility may seek commission approval to expand any voluntary renewable energy program or service offering, except those covered by valid agreements to the contrary executed and approved by the commission as of January 1, 2019, through the acquisition of additional renewable generation capacity and energy to meet the current and projected demand of: (A) Any commercial or industrial customer making a capital investment of two hundred fifty million dollars or more; (B) Any commercial or industrial customer that requires such expansion to remain as a customer of that utility; or (C) Any qualifying commercial or industrial customer entering the service territory of the utility. (II) The commission may approve, within one hundred twenty days, an expansion of an existing voluntary renewable energy program or service offering upon a showing by the utility that: (A) There is not sufficient capacity and energy in the existing voluntary renewable energy program or service offering to satisfy the needs of the customer and the customer meets the requirements of subsection (6)(d)(I) of this section; and (B) The availability of the program or service, either on its own or in combination with other incentives, is a substantial factor in the customer's decision to locate new or expand or retain existing business operations in Colorado. (7) As used in subsection (6) of this section and this subsection (7): customer and the customer meets the requirements of subsection (6)(d)(I) of this section; and (B) The availability of the program or service, either on its own or in combination with other incentives, is a substantial factor in the customer's decision to locate new or expand or retain existing business operations in Colorado. (7) As used in subsection (6) of this section and this subsection (7): (a) "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 utility, subject to review by the commission, that: The cost of electricity is a critical consideration in deciding where to locate new or expand existing operations; and the availability of economic development 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 otherwise transfer its existing load of at least three megawatts from the service territory of another public utility, as defined in section 40-1-103, into the service territory of the utility offering economic development rates. (b) "Voluntary renewable energy program or service offering" means a program or other service offering approved by the commission that allows a commercial or industrial customer 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 renewable energy program or service offering to be expanded, it must have been approved by the commission prior to the expansion request of a commercial or industrial customer pursuant to subsection (6)(d)(I) of this section. (8) This subsection (8) and subsections (6) and (7) of this section are repealed, effective January 1, 2028.

C.R.S. § 40-3-104.4 Simplified regulatory treatment for small or nonprofit water companies

40-3-104.4. Simplified regulatory treatment for small or nonprofit water companies. (1) The commission, with due consideration to public interest, quality of service, financial condition, and just and reasonable rates, shall grant regulatory treatment that is less comprehensive than otherwise provided for under this article 3 to small, privately owned water companies that serve fewer than one thousand five hundred customers. The commission, when considering policy statements and rules, shall balance reasonable regulatory oversight with the cost of regulation in relation to the benefit derived from the regulation. (2) (a) Except as otherwise provided in subsection (2)(b) of this section, a water company registered as a nonprofit organization under section 501 (c) of the federal "Internal Revenue Code of 1986", as amended, 26 U.S.C. sec. 501 (c), is exempt from regulation under the "Public Utilities Law", articles 1 to 7 of this title 40. (b) Notwithstanding subsection (2)(a) of this section, all rates, charges, and terms and conditions of service between a water company described in subsection (2)(a) of this section and its customers must be just and reasonable. The commission shall resolve any complaint alleging a violation of this subsection (2)(b) in accordance with articles 6 and 7 of this title 40 if the complaint is signed by: (I) The mayor, the president of the board of trustees, or a majority of the council, commission, or other governing body of an affected city, county, city and county, or town; (II) The chief executive officer of an affected public utility; or (III) The lesser of: (A) At least twenty-five customers or prospective customers of the water company complained of; or (B) At least twenty-five percent of the current customers of the water company complained of.

C.R.S. § 40-3-104.5 Special provisions for rail carrier rate increases

40-3-104.5. Special provisions for rail carrier rate increases. Notwithstanding section 40-3-105 and any other provision of this title to the contrary, the commission shall not exercise any jurisdiction over rates with respect to intrastate rail carriers.

C.R.S. § 40-3-105 Free and reduced service or transportation prohibited - exceptions

40-3-105. Free and reduced service or transportation prohibited - exceptions. (1) No public utility shall, directly or indirectly, issue, give, or tender any free service, ticket, frank, free pass, or other gratuity of services or any free or reduced rate transportation for passengers or property between points within this state unless a tariff so providing is first filed with and approved by the commission. (2) Except as otherwise provided in this section, no public utility shall charge, demand, collect, or receive a greater or lesser or different compensation for any product or commodity furnished or to be furnished, or for any service rendered or to be rendered, than the rates, tolls, rentals, and charges applicable to such product or commodity or service as specified in its schedules on file and in effect at the time, nor shall any such public utility refund or remit, directly or indirectly, in any manner or by any device, any portion of the rates, tolls, rentals, and charges so specified, nor extend to any corporation or person any form of contract or agreement or rule or regulation or any facility or privilege except those which are regularly and uniformly extended to all corporations and persons; but the commission may by rule or order establish such exceptions from the operation of this prohibition as it may consider just and reasonable as to each public utility. (3) (a) Nothing in this article shall prohibit or restrict any public utility from furnishing its service, product, or commodity to, or the receiving of its service, product, or commodity by, its employees, pensioners, officers, directors, or board members at no charge or at charges less than those prescribed in the utility's published schedules or tariffs. (b) No revenue shall accrue or be credited in the accounts of such utility with respect to such service, product, or commodity furnished at no charge nor with respect to any amounts by which charges for such service, product, or commodity are less than those prescribed in the utility's published schedules or tariffs.

C.R.S. § 40-3-106 Advantages prohibited - graduated schedules - consideration of household income and other factors - definitions

40-3-106. Advantages prohibited - graduated schedules - consideration of household income and other factors - definitions. (1) (a) Except when operating under paragraph (c) or (d) of this subsection (1), a public utility, as to rates, charges, service, or facilities, or in any other respect, shall not make or grant any preference or advantage to a corporation or person or subject a corporation or person to any prejudice or disadvantage. A public utility shall not establish or maintain any unreasonable difference as to rates, charges, service, facilities, or between localities or class of service. The commission may determine any question of fact arising under this section. (b) Repealed. (c) A local exchange provider, as defined in section 40-15-102 (18), may enter into a contract, when necessary, specifying non-cost-based rates and conditions particular to that contract with one or more purchasers of services for applications of interactive video technology for purposes of distance learning, video arraignment of defendants in criminal cases, or examination, diagnosis, or treatment of patients in the course of medical practice. When an application is subject to a bidding process by the end user of the service, the local exchange providers offering component elements of interactive video technology pursuant to this paragraph (c) shall offer the component elements relating to a specific application to a specific end user to all bidders, including themselves, if bidding, at the same rates, terms, and conditions. This exception shall not apply to any other regulated service. A provider other than a local exchange provider may offer such interactive video services if such services are provided under the same terms and conditions as specified in this paragraph (c). Each contract entered into under this paragraph (c) shall be filed with the commission for information only. (d) (I) Notwithstanding any provision of articles 1 to 7 of this title 40 to the contrary, the commission may approve any rate, charge, service, classification, or facility of a gas or electric utility that makes or grants a reasonable preference or advantage to income-qualified utility customers, even if the reasonable preference or advantage applies on a year-round basis, and the implementation of such commission-approved rate, charge, service, classification, or facility by a public utility shall not be deemed to subject any individual or corporation to any prejudice, disadvantage, or undue discrimination. (II) As used in this subsection (1)(d), an "income-qualified utility customer" means a utility customer who the department of human services, created in section 26-1-105; the organization defined in section 40-8.7-103 (4); or the Colorado energy office, created in section 24-38.5-101, has determined: (A) Has a household income at or below two hundred percent of the current federal poverty line; (B) Has a household income at or below eighty percent of the area median income, as published annually by the United States department of housing and urban development; or (C) Otherwise meets the income eligibility criteria set forth in rules of the department of human services adopted pursuant to section 40-8.5-105. (III) When considering whether to approve a rate that makes or grants a reasonable preference or advantage to income-qualified utility customers, the commission shall take into account the potential impact on, and cost-shifting to, utility customers other than income-qualified utility customers. (IV) A commission-approved gas or electric utility rate, charge, service, classification, or facility that makes or grants a reasonable preference or advantage to income-qualified utility customers may apply to income-qualified utility customers on a year-round basis. take into account the potential impact on, and cost-shifting to, utility customers other than income-qualified utility customers. (IV) A commission-approved gas or electric utility rate, charge, service, classification, or facility that makes or grants a reasonable preference or advantage to income-qualified utility customers may apply to income-qualified utility customers on a year-round basis. (2) Nothing in articles 1 to 7 of this title 40 prohibits a public utility engaged in the production, generation, transmission, or furnishing of heat, light, gas, water, power, or telephone service from establishing a graduated scale of charges subject to this title 40; except that, for rates resulting from a rate design change approved by the commission on or after September 1, 2020, the commission shall require utility revenue or billing adjustment mechanisms to ensure that a utility's change in rate design results in a revenue-neutral outcome. In adopting new rate designs for residential customers, the commission shall evaluate the potential for higher bills due to changes in rate design. Rate designs that disproportionately negatively impact low-income residential customers compared to other residential customers of the utility are presumed to be contrary to the public interest. (3) Nothing in this section shall prevent the commission from revoking its approval at any time and fixing other rates and charges for the product or commodity or service as authorized by articles 1 to 7 of this title. (4) The commission shall order a fixed public utility, except a municipally owned utility, to increase its rates only to its customers in a municipality by adding a surcharge to recover the amount such fixed public utility pays to that municipality as a cost of doing business within that municipality under a franchise or pursuant to a license or occupation tax levied by the municipality, so long as the increase in rates by such fixed public utility is pursuant to a method of surcharge approved by the commission. Occupation tax as used in this subsection (4) does not include the employer and employee tax imposed by a municipality for the privilege of employment within that municipality. (5) Repealed.

C.R.S. § 40-3-107 Transmission of business of other companies

40-3-107. Transmission of business of other companies. Every telephone public utility operating in this state shall receive, transmit, and deliver, without discrimination or delay, the conversations and messages of every other telephone public utility with whose line a physical connection may have been made.

C.R.S. § 40-3-107.5 Interconnection with renewable energy cooperatives

40-3-107.5. Interconnection with renewable energy cooperatives. Electric utilities shall interconnect with renewable energy cooperatives organized pursuant to section 7-56-210, C.R.S. Every renewable energy cooperative that desires to interconnect its system with any facilities owned or operated by a public utility shall comply with applicable interconnection rules and with reasonable standards and policies related to the reliability of the public utility system. All such standards and policies, as well as all costs for the interconnection, shall be fair, reasonable, and nondiscriminatory to each renewable energy cooperative.

C.R.S. § 40-3-108 Rates for long and short distances

40-3-108. Rates for long and short distances. No telephone public utility subject to articles 1 to 7 of this title shall charge or receive any greater compensation in the aggregate for the transmission of any long distance message or conversation for a shorter than for a longer distance over the same line or route in the same direction within this state, the shorter being included within the longer distance, or charge any greater compensation for a through service than the aggregate of the intermediate rates or tolls subject to articles 1 to 7 of this title. Upon application to the commission, a telephone public utility may be authorized by the commission to charge less for a longer than a shorter distance service for the transmission of messages or conversations in special cases, after investigation; and the commission may from time to time prescribe the extent to which such telephone public utility may be relieved from the operation and requirements of this section.

C.R.S. § 40-3-109 Street transportation public utility - transfers

40-3-109. Street transportation public utility - transfers. Every street transportation public utility shall, upon such terms as the commission finds to be just and reasonable, furnish to its passengers transfers entitling them to one continuous trip in the same general direction over and upon the portions of its lines within the same city and county, city, or town not reached by the originating vehicle.

C.R.S. § 40-3-110 Information furnished commission - reports

40-3-110. Information furnished commission - reports. (1) Every public utility shall furnish to the commission, at such time and in such form as the commission may require, one or more reports in which the utility shall specifically answer all questions propounded by the commission upon or concerning which the commission may desire information. All reports must be made under oath or affirmation. (2) The commission may require a public utility to file monthly reports of earnings and expenses and to file periodic or special reports, or both periodic and special reports, concerning any matter about which the commission is authorized by articles 1 to 7 of this title 40 or in any other law to inquire or to keep itself informed or which it is required to enforce. (3) The commission shall require every public utility that reports information on disconnections and delinquencies pursuant to section 40-3-103.6 (1)(i) to also file an annual narrative containing the utility's analysis of any trends or inconsistencies revealed by the data.

C.R.S. § 40-3-111 Rates determined after hearing

40-3-111. Rates determined after hearing. (1) Whenever the commission, after a hearing upon its own motion or upon complaint, finds that the rates, tolls, fares, rentals, charges, or classifications demanded, observed, charged, or collected by any public utility for any service, product, or commodity, or in connection therewith, including the rates or fares for excursion or commutation tickets, or that the rules, regulations, practices, or contracts affecting such rates, fares, tolls, rentals, charges, or classifications are unjust, unreasonable, discriminatory, or preferential, or in any way violate any provision of law, or that such rates, fares, tolls, rentals, charges, or classifications are insufficient, the commission shall determine the just, reasonable, or sufficient rates, fares, tolls, rentals, charges, rules, regulations, practices, or contracts to be thereafter observed and in force and shall fix the same by order. In making such determination, the commission may consider current, future, or past test periods or any reasonable combination thereof and any other factors which may affect the sufficiency or insufficiency of such rates, fares, tolls, rentals, charges, or classifications during the period the same may be in effect, and may consider any factors which influence an adequate supply of energy, encourage energy conservation, or encourage renewable energy development. (1.5) (a) If the commission considers environmental effects when comparing the costs and benefits of potential utility resources, it shall also make findings and give due consideration to the effect that acquiring such resources will have on the state's economy and employment, including, but not limited to, the effect on the mining, electric, natural gas, energy efficiency, and renewable resource industries. (b) If the commission considers factors which encourage renewable energy development, it shall also make findings and give due consideration to the effect of such factors on the utility's ability to recover its capital and operating costs. (2) (a) The commission has the power, after a hearing upon its own motion or upon complaint, to investigate a single rate, fare, toll, rental, charge, classification, rule, contract, or practice, or the entire schedule of rates, fares, tolls, rentals, charges, classifications, rules, contracts, and practices of any public utility; and to establish new rates, fares, tolls, rentals, charges, classifications, rules, contracts, practices, or schedules, in lieu thereof. (b) As part of any inquiry or investigation into rate structures of regulated electric utilities undertaken on or before July 1, 2009, the commission shall consider whether to adopt retail rate structures that enable the use of solar or other renewable energy resources in agricultural applications, including, but not limited to, irrigation pumping.

C.R.S. § 40-3-112 Commission to provide local government with avoided cost information

40-3-112. Commission to provide local government with avoided cost information. (1) The general assembly hereby finds that it is in the interest of the people of this state to promote the production of energy and the disposal of solid waste in a manner designed to protect the environment; therefore, the general assembly hereby declares that it is the policy of this state to promote the development of systems which generate energy through the burning of solid waste in a manner designed to insure the maintenance of clean air standards. (2) Prior to the construction of a solid waste-to-energy incineration facility, any unit of local government contemplating construction of such a facility may, by written request, require the commission to calculate the avoided cost to a specified electric utility for the purchase of energy and capacity by said utility from said contemplated facility. Pursuant to such request the utility shall provide the commission with all data necessary to calculate said cost. (3) As used in this section, "solid waste-to-energy incineration facility" means a facility where flammable waste material is used as a primary fuel for the production of electrical power the total output of which exceeds one hundred kilowatts.

C.R.S. § 40-3-113 Rail rates for transportation of recyclable or recycled materials

40-3-113. Rail rates for transportation of recyclable or recycled materials. (Repealed)

C.R.S. § 40-3-114 Cost recovery - prohibitions - reporting - penalties - definitions

40-3-114. Cost recovery - prohibitions - reporting - penalties - definitions. (1) The commission shall ensure that regulated electric and gas utilities do not use ratepayer funds to subsidize nonregulated activities. (2) A utility shall not recover the following costs from its customers, whether as part of proposed base rate costs, a rider, or other charges: (a) More than fifty percent of annual total compensation or of expense reimbursement for members of the board of directors of the utility; (b) Tax penalties or fines issued against the utility; (c) Investor-relation expenses; (d) Advertising and public relations expenses that do not directly relate to a purpose or program that is required or authorized under statute or commission rule or order. Advertising and public relations expenses for which cost recovery is prohibited include: (I) Communications to promote or improve the utility's brand; (II) Expenses for the purpose of influencing public opinion about the utility; and (III) Expenses intended to create good will toward the utility from the general public. (e) Expenses for lobbying or other activities meant to influence the outcome of any local, state, or federal legislation, ordinance, resolution, or ballot measure; (f) Charitable giving expenses, including contributions to organizations qualified under section 501 (c)(3) or 501 (c)(4) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501, as amended; (g) Organizational or membership dues, or other contributions, to any organization, association, institution, corporation, or other entity that engages in lobbying or other similar activities intended to influence the outcome of any local, state, or federal legislation, ordinance, resolution, rule, ballot measure, or other regulatory decision; (h) Contributions to political candidates, campaign committees, issue committees, or independent expenditure committees or similar political expenses; (i) Travel, lodging, food, and beverage expenses for the utility's board of directors and officers; (j) Entertainment or gift expenses; (k) Expenses related to any owned, leased, or chartered aircraft for the utility's board of directors and officers; or (l) Expenses related to marketing and administration or customer service for unregulated products or services provided or sold by the utility or the utility's affiliates. (3) Subsections (2)(g) and (2)(h) of this section shall not be construed to apply to a utility employee's or contract worker's activities resulting from any voluntary dues deductions that are processed through standard payroll processes. (4) (a) Notwithstanding penalties set forth in article 7 of this title 40, if the commission determines that a utility improperly recovered costs pursuant to subsection (2) of this section, the commission may assess a nonrecoverable penalty against the utility. (b) In addition to assessing a nonrecoverable penalty against a utility pursuant to subsection (3)(a) of this section, the commission shall order the utility to refund the amount improperly recovered pursuant to subsection (2) of this section, plus interest, to customers. (5) The commission shall require a utility to file an annual report with the commission to ensure the utility's compliance with this section. The report must include the purpose, payee, and amount of any expenses associated with the costs and activities that are not permitted to be recovered from customers pursuant to this section. (6) As used in this section, unless the context otherwise requires: ) The commission shall require a utility to file an annual report with the commission to ensure the utility's compliance with this section. The report must include the purpose, payee, and amount of any expenses associated with the costs and activities that are not permitted to be recovered from customers pursuant to this section. (6) As used in this section, unless the context otherwise requires: (a) (I) "Advertising" means the act of publishing, disseminating, soliciting, or circulating written, online, video, or audio communication intended to induce a person to patronize a product, service, business, or industry; promote a business's brand; otherwise emphasize desirable qualities about a product, service, business, or industry; or influence public opinion with respect to legislative, administrative, or electoral matters. (II) "Advertising" does not include: (A) Advertising required or authorized by law, regulation, or order; (B) Advertising directly related to a purpose or program regarding income-based service, special rates, pilot programs, energy conservation, energy efficiency, beneficial electrification, renewable energy, transportation electrification, or other consumer education information; (C) Advertising regarding service interruptions, safety measures, or emergency conditions; or (D) Advertising concerning employment opportunities with the utility. (b) "Aircraft" has the meaning set forth in section 41-2-101 (1). (c) "Base rate" has the meaning set forth in section 40-3-102.5 (1)(d)(I). (d) "Electric utility" means an investor-owned electric utility in the state. (e) "Expenses" means any payment made in the form of compensation that a utility pays to an external firm, a corporate affiliate, or an employee of the utility. (f) "Gas utility" means an investor-owned gas utility in the state. (g) "Lobbying" means directly, or through the solicitation of others, communicating with a person that is in a position to make a policy decision in order to influence the outcome of local, state, or federal legislation. (h) "Rate case" means a formal hearing of the commission to determine if the base rates of an electric utility or gas utility are just and reasonable pursuant to section 40-3-101. (i) "Rider" means a charge added to a utility bill to recover a specific cost that is not part of the base rate. (j) "Utility" means an investor-owned electric utility or gas utility in the state.

C.R.S. § 40-3-115 Recovery of utility relocation costs

40-3-115. Recovery of utility relocation costs. (1) As used in this section, unless the context otherwise requires: (a) "Political subdivision" means a county, city and county, city, town, home rule city, home rule town, service authority, school district, local improvement district, law enforcement authority, water, sanitation, fire protection, metropolitan, irrigation, drainage, or other special district, or any other kind of municipal, quasi-municipal, or public organization organized pursuant to law. (b) "State" means the state government, any state agency, state department, state institution, or state-level authority. (2) (a) Notwithstanding the provisions of section 40-15-502 (3)(b)(I) to (3)(b)(V), local exchange providers of basic local exchange service subject to regulation pursuant to part 2, part 3, or part 5 of article 15 of this title may request authorization from the commission to recover the actual costs incurred for the relocation of infrastructure or facilities requested by the state or a political subdivision. Actual costs are the nonfacility costs incurred in the relocation plus the undepreciated amount of the facilities being replaced. Recovery of actual costs incurred for relocation is intended for those state and political subdivision requests that are determined by the commission to be beyond the normal course of business. (b) The commission shall verify the actual costs that may be recovered, determine the allocation of costs to various customers and services, and prescribe the method of such recovery. In no event shall the period of recovery of the relocation costs exceed three years. (c) In determining the allocation of the costs to be recovered, the commission shall consider the jurisdiction requiring the relocation and the geographic area that most directly benefits from the required relocation to determine the customers or services that will bear the costs.

C.R.S. § 40-3-116 Electric vehicle programs - rates

40-3-116. Electric vehicle programs - rates. (1) The rates and charges schedule for services provided by a program created under section 40-5-107 may allow: (a) A return on any investment made under section 40-5-107 by an electric public utility at the electric public utility's weighted average cost of capital, including the most recent rate of return on equity, approved by the commission, including by allowing a utility to earn a rate of return on rebates provided to customers through a transportation electrification program; (b) Rate recovery mechanisms that allow earlier, as determined by the commission, recovery of costs, including the use of rate adjustment clauses; and (c) Performance-based incentive returns or similar investment incentives. (2) By May 15, 2020, an electric public utility shall submit to the commission a proposal for a specific rate or rates for electricity supplied to commercial and industrial facilities used to charge electric vehicles that encourage vehicle charging and that support the operation of the electric grid.

C.R.S. § 40-3-117 Performance-based rate-making - investigation - report - repeal

40-3-117. Performance-based rate-making - investigation - report - repeal. (Repealed)

C.R.S. § 40-3-118 Electric utility retail rates survey - nonadjudicatory proceeding - definition - report - repeal

40-3-118. Electric utility retail rates survey - nonadjudicatory proceeding - definition - report - repeal. (Repealed)

C.R.S. § 40-3-119 Measurement of use for billing - rules

40-3-119. Measurement of use for billing - rules. After January 1, 2023, an investor-owned gas utility, at its discretion, may apply to the commission for approval to measure the amount of use for billing purposes in either fuel commodity units or for energy services provided. Upon receipt of the utility's application, the commission shall approve, deny, or modify the utility's application for measurement of use for billing purposes pursuant to this section.

C.R.S. § 40-3-120 Fuel cost sharing - gas utilities - electric utilities - rules

40-3-120. Fuel cost sharing - gas utilities - electric utilities - rules. (1) (a) On or before November 1, 2023, an investor-owned gas utility shall file with the commission a gas price risk management plan that includes proposals for leveling or reducing the volatility of fuel costs that are recovered pursuant to the utility's gas cost adjustment filings. Such plan must include a maximum per-month fuel cost that accounts for price fluctuations based on seasonality and can be automatically recovered through the gas cost adjustment mechanism. The plan may include other elements such as physical hedging, financial hedging, fuel storage, or long-term contracting. (b) The commission shall allow any prudently incurred costs above the maximum monthly fuel cost included in an investor-owned gas utility's plan pursuant to subsection (1)(a) of this section to be recorded in a deferred balance that is recoverable and amortized over an appropriate timeline of no more than five years with financing costs, as determined by the commission. (c) The commission shall approve, amend, or deny a plan submitted pursuant to this subsection (1) based on a determination of the best interests of a utility's ratepayers, insofar as the commission finds that the plan is in the public interest. (2) (a) On or before January 1, 2025, the commission shall adopt rules to establish mechanisms to align the financial incentives of an investor-owned electric or gas utility with the interests of the utility's customers regarding incurred fuel costs. (b) The mechanisms established by rule pursuant to subsection (2)(a) of this section must be designed to protect customers and to improve the utility's management of fuel costs. The commission shall tailor the mechanisms to apply to different utilities based on a utility's size or ability to implement the mechanisms. (c) The commission may establish a symmetrical incentive for the utility to successfully implement the mechanisms. (3) In adopting the rules pursuant to subsection (2)(a) of this section, the commission: (a) Shall consider: (I) Symmetrically allocating an amount of fuel price risk to the investor-owned electric or gas utility, subject to reasonable parameters, including: (A) A range of outcomes within which no risk sharing occurs; and (B) A cap on any incentive or cost share that results from the risk-mitigation mechanism; and (II) Mechanisms to improve electricity production cost efficiency while minimizing fuel costs, such as symmetrically allocating a portion of improvements or degradations in electricity production per dollar of fuel or per dollar of acquisition costs incurred; and (b) Shall consider, to the extent such information is relevant: (I) The financial health of the utility and corresponding impacts on customer affordability; and (II) The utility's ability to make investments to achieve the state's energy policy objectives in an affordable manner for customers. (4) Nothing in this section: (a) Shall be construed to automatically shift risk to the investor-owned electric or gas utility; or (b) Warrants an automatic adjustment to the amount of allowable return on equity or any other rate-making metric.

C.R.S. § 40-3-121 Natural gas cost causation study - commission proceeding - reporting - repeal

40-3-121. Natural gas cost causation study - commission proceeding - reporting - repeal. (1) (a) Within sixty days after the commission issues a final, nonappealable decision regarding the first clean heat plan filed pursuant to section 40-3.2-108 by a natural gas utility that serves more than five hundred thousand customers, the commission shall open a proceeding to investigate whether and how residential development and other development in certain geographic areas drive natural gas infrastructure costs for any natural gas utility that serves more than five hundred thousand customers in the state, particularly with regard to the impact that the development has on nonparticipating income-qualified customers. (b) The proceeding must identify specific, new large natural gas infrastructure investments and, for each investment identified, determine the extent to which new residential development or other development by a geographic area is disproportionately necessitating that investment. (c) The proceeding must include a calculation of the benefits and costs of the growth in new residential development and other development to both the natural gas utility customers for whom the infrastructure investment is being made and nonparticipating retail and wholesale natural gas utility customers, particularly those nonparticipating customers who are income-qualified customers. (2) After completion of the investigation, the commission shall hold a hearing in the investigatory proceeding, at which the commission shall consider the information gathered in the investigation and public comments with respect to a natural gas utility that serves more than five hundred thousand customers in the state, to: (a) Determine whether alternative infrastructure, service investments, or other utility actions could mitigate impacts on nonparticipating or income-qualified customers in a manner that is necessary, is appropriate, and could help reduce greenhouse gas emissions in alignment with the "Colorado Greenhouse Gas Pollution Reduction Roadmap", published by the Colorado energy office; and (b) Identify the up-front and service life annualized costs and benefits of the alternatives identified in subsection (2)(a) of this section. (3) This section is repealed, effective September 1, 2025.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-40.docxFetched: 10/6/2026