489DFFBAB687895C87258978006E4852 Hearing Summary CLICS/CLICS2023A/commsumm.nsf PUBLICBILL SUMMARY For PRESENTATION FROM WESTERN RESOURCE ADVOCATESOTHER COMMITTEE COMMITTEE ON JOINT SELECT COMMITTEE ON RISING UTILITY RATESDate Mar 20, 2023 Location LSB A Presentation from Western Resource Advocates - Committee Discussion Only Attachment Tag File Name Attachment http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/13C1B8596529...$File/Attachment A.pdf?OpenElement Attachment A.pdf 02:04:37 PM Meera Fickling, Senior Climate Policy Analyst, Western Resource Advocates (WRA), introduced herself and explained the mission of WRA. Ms. Fickling's presentation is included as Attachment A. Ms. Fickling gave an overview of Xcel's base rate increase history, capital investments in gas pipeline infrastructure, and the amount needed to collect from ratepayers to break even. 02:05:37 PM Ms. Fickling went over what decarbonizing buildings looks like for reducing gas usage by 2050. Ms. Fickling explained how the potential of using renewable natural gas (RNG) and hydrogen in buildings is limited by hard physical and safety constraints. She continued by explaining how RNG and hydrogen are expected to cost several times the wholesale price of natural gas now and in the future. Ms. Fickling explained that the gas utilities investment model relies on continued growth of customers into the future. Ms. Fickling posited that this represents a risk if the customer base does not grow or does not grow at the rate expected, which could happen with the movement away from using natural gas. Ms. Fickling discussed the issue of gas lines being built at the same pace without the customer base growing in tandem. 02:23:14 PM Ms. Fickling went over line extension allowances (LEAs). Ms. Fickling gave an overview of who pays for utility infrastructure and who benefits. Ms. Fickling went over how the PUC treats gas LEAs. She then went over steps the General Assembly could take to eliminate gas LEAs and minimize stranded asset risk. Ms. Fickling went over other complimentary policy suggestions. 02:32:57 PM Ms. Fickling responded to questions from the committee about subsidies from utilities for customers to connect to the gas system. She also responded to questions about the costs of decommissioning gas pipeline infrastructure. Ms. Fickling answered questions about whether the average home can handle installation of heat pumps or transition away from gas without significant upgrades. Ms. Fickling answered additional questions about the modeling of reduction of use of gas infrastructure. Ms. Fickling answered questions about the electric grid load impact from transitioning from gas to electric. Ms. Fickling responded to questions about back up power if the electricity goes out. Ms. Fickling answered questions about start-up costs for electric hook-ups similar to gas hook-ups and how she views those differently in terms of stranded assets.