646CF11A74E5D66487258978007787B3 Hearing Summary CLICS/CLICS2023A/commsumm.nsf PUBLICBILL SUMMARY For PRESENTATION FROM PEARL STREET STATION FINANCE LABOTHER COMMITTEE COMMITTEE ON JOINT SELECT COMMITTEE ON RISING UTILITY RATESDate Mar 20, 2023 Location LSB A Presentation from Pearl Street Station Finance Lab - Committee Discussion Only Attachment Tag File Name Attachment http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/2483B9DEB9D5...$File/Attachment C.pdf?OpenElement Attachment C.pdf 03:45:37 PM Albert Lin, Executive Director of the Pearl Street Station Finance Lab, and Ron Lehr, Former Chairman of the Public Utilities Commission (PUC), introduced themselves and began their presentation. Mr. Lin and Mr. Lehr's presentation is included as Attachment C. Mr. Lin went over how the United States and Colorado got to the current state of utility provision, including the 1973 Oil Embargo and advancements to the ways we generate and manage electricity. Mr. Lin went over how the motivation to harm consumers is high under the current system. Mr. Lin went over how electricity is the number one customer to natural gas. Mr. Lin discussed what the General Assembly could do to to align policy and the real world. Mr. Lehr went over additional strategies to improve planning into the future. 04:04:20 PM Mr. Lehr continued to explain how to optimize planning for a better future. 04:09:44 PM Mr. Lin went over some examples of other states who are trying to get off the "zero bound" 0 percent exposure utilities have to these costs and share the risks between utilities and the consumers. Mr. Lin stated that the fuel cost adjustment has lost its applicability in the current world. 04:14:33 PM Mr. Lin answered questions from the committee about coal and natural gas. Mr. Lehr answered a question about the PUC's planning model. Mr. Lehr answered a question about multi-year rate plans. Mr. Lehr and Mr. Lin answered questions about sharing risk and how to apportion exposure. Mr. Lehr and Mr. Lin answered questions about managing the transition away from natural gas. Mr. Lin answered a question about the ability of utilities to attract capital and capital at favorable rates.