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Public Utilities Commission Modernize Gas Utility Demand-side Management Standards

Concerning the modernization of gas energy efficiency programs.
2021 Regular Session
Natural Resources & Environment
Bill Summary

The bill updates the methods used to determine the cost-effectiveness of demand-side management (DSM) programs of public utilities selling natural gas at retail, including requiring that the calculation of future benefits reflects the avoided costs to ratepayers resulting from reduced consumption of natural gas. The bill specifies that the calculation must be based on reliable estimates and published scientific data and must include methane emissions. In addition, the bill adds savings targets and budget control mechanisms to the approval process for gas DSM programs, paralleling the existing process that applies to electric DSM programs.

Section 5 of the bill specifies labor standards that apply to all necessary plumbing, mechanical, and electrical work performed in connection with DSM projects for which a utility customer is eligible for a rebate from the utility. Under these standards, the utility may assign its own employees to do the work, but if a contractor is to be hired for a project in a commercial or industrial building or multifamily residential structure, the contractor must be chosen from a list of qualified contractors maintained by the Colorado department of labor and employment. To be eligible for inclusion on the list, a contractor must participate in specified apprenticeship programs. In addition, for smaller residential projects, the utility must condition customer rebates on the customer's use of licensed plumbing and electrical contractors.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)


Under Consideration


Bill Text