Energy Affordability

      The bill requires an investor-owned electric utility (utility) to submit a proposal to the public utilities commission (PUC) that establishes a first allotment of residential electricity service (FARE service) program.

      The FARE service program provides a minimum level of electricity at a marginal cost rate for income-qualified utility customers. A FARE service proposal that a utility submits to the PUC must include:

• The amount of electricity that qualifies as a minimum level of electricity for an average income-qualified utility customer based on monthly usage to support a customer's basic needs;

       

• A marginal cost rate on a per-kilowatt-hour basis for delivering electricity to a customer, which marginal cost rate must be lower than the residential customer rate that the income-qualified utility customer would normally be charged; and

       

• A description of the process by which an income-qualified utility customer may enroll in the FARE service program.

      The PUC shall approve a utility's FARE service proposal if the PUC determines that the proposed FARE service would be in the public interest.

      The bill requires an investor-owned utility (utility) to establish a percentage-of-income payment plan program (PIPP program) to assist income-qualified residential customers with utility costs. An income-qualified utility customer is eligible for the PIPP program if the customer meets the income eligibility criteria, lives in the service area of the utility, and either submits an application to the utility or is referred by another income-eligible assistance program offered by the department of human services, the Colorado energy office, or another energy assistance program approved by the public utilities commission (commission). A utility must approve or deny a customer's application for participation in the PIPP program within 30 days.

      The utility bill for a customer enrolled in a utility's PIPP program is capped at a specific percentage of the customer's household income, typically ranging from 2% to 6% of the customer's household income depending on the heating source provided and the size of the utility. The difference between a customer's actual utility bill and customer's PIPP program bill is covered by a fixed credit, which can be an up-front annual credit or an equal monthly credit to the customer's utility bill. The bill also establishes arrearage credits for participants in the PIPP program, which are applied to eliminate a customer's preexisting debt prior to the customer's enrollment in the PIPP program.

      A utility's PIPP program is funded through a 'PIPP charge' itemized on all customer bills. The amount of the PIPP charge is established by the commission by rule for the utility. A utility must submit an annual report related to the utility's PIPP program to the commission. The report must include the following information:

• The PIPP charge revenue collected by the utility;
• Any amount contributed to the PIPP program by the utility from shareholder profits;
• A calculation of administrative costs associated with implementing and administering the PIPP program;
• The amount of fixed monthly or annual credits provided to participants in the utility's PIPP program; and
• The amount of arrearage credits provided to participants in the PIPP program.

(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.)