Bill to Improve Accountability & Transparency for Utilities, Save People Money on Energy Bills Clears Senate

Legislation will implement savings for ratepayers, level playing field at the PUC

DENVER, CO – Legislation sponsored by Democratic members of the Joint Select Committee on Rising Utility Rates Senate President Steve Fenberg, D-Boulder, and Lisa Cutter, D-Jefferson County, that would improve transparency and accountability for utilities and save people money on their energy bills cleared the Senate today.

SB23-291 presents a package of reforms to lower utility bills now and in the future. It rebalances what kinds of expenses are paid by utility shareholders vs. ratepayers, aligns incentives on fuel cost control, and levels the playing field at Public Utilities Commission (PUC) proceedings, where infrastructure plans are proposed and approved.

The bill would limit utility expenses that can be paid by ratepayers, such as lobbying and advertising, which would be more appropriately paid by company shareholders. It would also create a mechanism to incentivize utilities to save money on fuel costs, and allow the PUC to set a maximum monthly fuel cost to smooth out monthly bills and avoid sudden price shocks.

“Colorado families were hit hard this winter by unexpected and severe price shocks, which is why we convened the Joint Select Committee on Rising Utility Rates to investigate the causes and find solutions,” Fenberg said. “This bill will improve transparency and hold utilities more accountable to the ratepayers they serve while better aligning utility companies’ and Coloradans’ interests and expectations about their energy service. I’m excited to see our legislation that will help save Coloradans money on their energy bills move forward.”

“Our committee has been hard at work the past few months searching for answers and working to save people money on their energy bills,” said Cutter. “One thing quickly became clear, Coloradans are bearing the brunt of volatile rate increases while utility companies are empowered to set their own rules. This important legislation will help level the playing field at the PUC and create fairer processes in utility rate setting that will impact Coloradans today and for generations to come.”

Further, the bill would require utilities to report more detailed justification for their plans when they request a rate increase, which will help regulators and watchdogs make sure proposed investments are truly in the public interest. In addition, the bill empowers the PUC to reduce utilities’ use of expensive consultants and lawyers that argue on behalf of rate increases. 

SB23-291 now heads to the House for further consideration. You can track the bill’s progress HERE.

Convened in response to recent spikes in energy prices by President Fenberg and House Speaker Julie McCluskie, D-Dillon, the Joint Select Committee on Rising Utility Rates worked to better understand issues such as the impact of volatility in natural gas markets, the frequency and justification for rate increases sought by utilities, and other relevant factors.