Utility Economic Development Rate Tariff Adjustments

Under current law, an investor-owned electric utility (utility) may apply to the public utilities commission (commission) for approval to charge certain commercial or industrial customers of the utility an economic development rate (economic development rate), which is a reduced rate offered to a commercial or industrial customer that locates or expands their operations in Colorado, that adds at least 3 megawatts of new load at a single location within the utility's service territory, and that demonstrates certain other requirements to the satisfaction of the utility (qualifying commercial or industrial customer).

The act makes adjustments to the requirements for an economic development rate by:

• Requiring that an approved economic development rate not increase costs of electric service for other customers;
• Clarifying that an approved economic development rate does not relieve a utility of its obligation to achieve compliance with greenhouse gas emission reduction requirements;
• Authorizing a 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; except that, if the load is more than 150 megawatts, the commission shall approve or deny the application within 210 days after the notice period; and
• Consider the broader economic benefits associated with the application for other classes of utility customers and for the surrounding community.
  (Note: This summary applies to this bill as enacted.)