Colorado lawmakers form joint select committee to look into rising utility rates

DENVER — After months of rising utility charges, Colorado lawmakers have fashioned a joint choose committee to know what’s behind the sharp improve and whether or not any regulatory modifications are wanted.

“We’ve got not known as the choose committee within the years that I’ve now served, so we’ve positively stated it is a precedence,” stated Rep. Julie McCluskie, D-Dillon.

The joint choose committee options 4 Democrats and two Republicans. Its formation comes on the heels of Gov. Jared Polis asserting final month new measures his workplace will likely be taking to assist decrease the price of vitality for Coloradans.

The most important new program introduced is the Complete-Dwelling Vitality Retrofit program, which can assist householders set up upgrades reminiscent of warmth pumps, insulation, and LED lighting to assist cut back vitality prices.

In the meantime, state lawmakers are hoping to higher perceive the function the Public Utilities Fee (PUC) performs in protecting charges low for customers and the way utilities themselves are setting costs.

The committee met for the primary time Tuesday and listened to shows from the PUC, the Workplace of the Utility Shopper Advocate, Vitality Outreach Colorado and the Colorado Vitality Workplace.

Sen. Steve Fenberg, D-Boulder, says he first desires to know how the monopoly regulated utility system works.

“That is type of a compact that was agreed to greater than 100 years in the past, actually, the place you’ve a non-public firm that may present service to customers, and also you’re the one one who can present that service. And in return we, as a authorities, will regulate you and approve your charges,” he stated.

Fenberg insists that lawmakers on the committee aren’t taken with setting utility charges, however somewhat setting coverage priorities for regulatory our bodies just like the PUC.

He desires to ask the utilities and PUC what’s being completed to insulate customers from risky vitality costs, understanding that main utility firms can not management sure elements, just like the conflict in Ukraine, contributing to cost spikes however insisting that prospects should be protected as a lot as attainable.

Together with the risky pure fuel costs, Storm Uri and the clear vitality transition have been blamed for rising utility charges. Fenberg considers the clear vitality transition justification a pink herring, saying it has saved customers tens of millions over time and utilities are profiting off of it.

“Clearly, they’re okay with what’s occurring as a result of they’re profiting, benefiting from it. The query is are they unfairly benefiting? Are customers getting a good shake? And one query I’ve is, why is the danger all on customers, however the reward is fully on the shareholders of those firms?” Fenberg stated.

On the subsequent committee listening to subsequent week, lawmakers are anticipated to listen to instantly from the utilities about their worth will increase and may have an opportunity to ask a few of these questions.

Fenberg isn’t certain if the hearings will lead to any laws this yr. He says he’s additionally not taken with making an attempt to fully dismantle the regulated monopoly system. Slightly, he says he desires to be considerate and deliberate about potential coverage modifications that would have an effect on each customers and utility firms for many years to return.