First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 25-0707.01 Jennifer Berman x3286
HOUSE BILL 25-1177
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
C
ONCERNING ADJUSTMENTS TO THE ECONOMIC DEVELOPMENT RATE101
TARIFF.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Under current law, an investor-owned electric utility (utility) may
apply to the public utilities commission (commission) for approval to
charge certain commercial or industrial customers of the utility an
economic development rate (economic development rate), which is a
reduced rate offered to a commercial or industrial customer that locates
or expands their operations in Colorado, that adds at least 3 megawatts of
HOUSE
Amended 2nd Reading
April 2, 2025
HOUSE SPONSORSHIP
Mauro and Winter T., Bird, Martinez
SENATE SPONSORSHIP
Hinrichsen and Pelton B., Roberts
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. new load at a single location within the utility's service territory, and that
demonstrates certain other requirements to the satisfaction of the utility
(qualifying commercial or industrial customer).
The bill makes adjustments to the economic development rate
tariff by:
! Authorizing the utility to apply to the commission for an
expansion of the maximum duration of the economic
development rate from 10 years to 25 years;
! Expanding the maximum load at a single location of a
qualifying commercial or industrial customer for an
individual project that does not require commission
approval from 20 megawatts to 40 megawatts; and
! Updating the application process required for seeking
approval of an economic development rate by requiring
that the commission:
! Approve or deny an application within 120 days
after a notice period of 14 business days after the
application was filed; and
! Consider the broader economic benefits associated
with the application for other classes of utility
customers and for the surrounding community.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 40-3-104.3, amend2
(6)(b)(I), (6)(b)(II)(B), (6)(b)(III), (6)(c)(I), (6)(d)(I) introductory portion,3
(6)(d)(II) introductory portion, (6)(d)(II)(A), (7), and (8); and add4
(6)(c)(IV), (6)(c)(V), and (6)(c)(VI) as follows:5
40-3-104.3. Manner of regulation - competitive responses -6
economic development rate - definitions - repeal. (6) (b) (I) (A) An7
economic development rate approved pursuant to this section
MUST BE IN8 THE PUBLIC INTEREST AND must be lower than the rate or rates that the9
qualifying commercial or industrial customer would be or currently is10
subject to under the
INVESTOR-OWNED ELECTRIC utility's tariffs in effect11
at the time the qualifying commercial or industrial customer seeks to12
qualify for the economic development rate; except that an economic13
1177-2- development rate must not be lower than the utility's marginal cost of1
providing service to the qualifying commercial or industrial customer. AN2
ECONOMIC DEVELOPMENT RATE MUST NOT DIRECTLY INCREASE COSTS OF3
ELECTRIC SERVICE FOR OTHER CUSTOMERS .4
(B) AN ECONOMIC DEVELOPMENT RATE APPROVED PURSUANT TO5
THIS SECTION DOES NOT RELIEVE AN INVESTOR-OWNED ELECTRIC UTILITY6
OF ITS OBLIGATION TO ACHIEVE COMPLIANCE WITH GREENHOUSE GAS7
EMISSION REDUCTION REQUIREMENTS .8
(II) (B) Notwithstanding subsection (6)(b)(II)(A) of this section,9
the
INVESTOR-OWNED ELECTRIC utility may negotiate and enter into10
agreements related to economic development rates with individual11
qualifying commercial or industrial customers without commission12
approval so long as the agreed-upon economic development rate complies13
with the commission-approved tariff and the addition or expansion of14
existing load at a single location is less than or equal to twenty
FORTY15
megawatts. I
N APPROVING A UTILITY'S APPLICATION FOR AN ECONOMIC16
DEVELOPMENT RATE, FOR LOADS BETWEEN TWENTY -ONE AND FORTY17
MEGAWATTS, THE COMMISSION MAY REQUIRE THE INVESTOR -OWNED18
ELECTRIC UTILITY TO MAKE ADDITIONAL DEMONSTRATIONS , INCLUDING A19
MARGINAL COST DETERMINATION , AN ADDITIONAL POWER FLOW ANALYSIS20
TO DEMONSTRATE THAT THE ADDED LOAD WILL BE SUPPORTED BY21
ADEQUATE TRANSMISSION CAPABILITIES AND WILL NOT NEGATIVELY22
IMPACT RELIABILITY OR RESOURCE ADEQUACY , A DEMONSTRATION THAT23
THE ADDITIONAL INFRASTRUCTURE COSTS WILL NOT BE BORNE BY OTHER24
CUSTOMERS, AND A DEMONSTRATION THAT PROJECTS ABOVE TWENTY -ONE25
MEGAWATTS WILL PROVIDE ADDITIONAL COMMUNITY BENEFITS . Any26
addition or expansion of existing load at a single location that is greater27
1177
-3- than twenty FORTY megawatts requires separate commission approval1
based upon a finding that the addition or expansion is consistent with this2
section
AND IN THE PUBLIC INTEREST.3
(III) (A) An investor-owned
ELECTRIC utility may offer an4
economic development rate to a qualifying commercial or industrial5
customer for up to ten years.6
(B) N
OTWITHSTANDING SUBSECTION (6)(b)(III)(A) OF THIS7
SECTION, THE INVESTOR-OWNED ELECTRIC UTILITY MAY PROPOSE , AND8
THE COMMISSION MAY CONSIDER APPROVING , AN ECONOMIC9
DEVELOPMENT RATE TO A QUALIFYING COMMERCIAL OR INDUSTRIAL10
CUSTOMER FOR A PERIOD OF GREATER THAN TEN YEARS , BUT NO MORE11
THAN TWENTY-FIVE YEARS.12
(C) I
N EVALUATING WHETHER IT IS IN THE PUBLIC INTEREST FOR AN13
INVESTOR-OWNED ELECTRIC UTILITY'S PROPOSAL TO ALLOW A QUALIFYING14
COMMERCIAL OR INDUSTRIAL CUSTOMER TO REMAIN ON AN ECONOMIC15
DEVELOPMENT RATE FOR LONGER T HAN TEN YEARS , THE COMMISSION16
SHALL EVALUATE THE PROPOSED DURATION OF THE QUALIFYING17
COMMERCIAL OR INDUSTRIAL CUSTOMER 'S PROPOSED PROJECT ,18
COMMUNITY IMPACTS, AND IMPACTS TO RATES OF OTHER CUSTOMERS OF19
THE UTILITY.20
(c) (I) An authorization
APPROVAL granted by the commission21
pursuant to this section must include such terms and conditions as the22
commission determines are necessary to ensure that the economic23
development rates or charges assessed to other customers do not subsidize24
the cost of providing service to qualifying commercial and industrial25
customers consistent with subsection (6)(b)(I) of this section and that26
there is no other subsidization of such service. In developing APPROVING27
1177
-4- the terms and conditions OF AN ECONOMIC DEVELOPMENT RATE , the1
commission shall consider, among other things:2
(A) The rates and charges assessed to the
INVESTOR-OWNED3
ELECTRIC utility's wholesale customers; and
4
(B) The effects on other transmission system owners and users5
resulting from new transmission facilities constructed in connection with6
the utility's expansion of an existing voluntary renewable CLEAN energy7
program or service offering;
AND8
(C) F
OR ALL OF THE INVESTOR -OWNED ELECTRIC UTILITY 'S9
CUSTOMER CLASSES, THE BROADER ECONOMIC DEVELOPMENT BENEFITS10
ASSOCIATED WITH THE QUALIFYING COMMERCIAL OR INDUSTRIAL11
CUSTOMER BASED ON A DETERMINATION OF THE MARGINAL COST AND ON12
A SOCIETAL ECONOMIC BENEFIT TEST DEVELOPED BY THE13
INVESTOR-OWNED ELECTRIC UTILITY.14
(IV) F
OLLOWING A NOTICE PERIOD OF FOURTEEN BUSINESS DAYS15
AFTER AN INVESTOR-OWNED ELECTRIC UTILITY FILES AN APPLICATION FOR16
APPROVAL OF ECONOMIC DEVELOPMENT RATES , AND THE ADDITION OR17
EXPANSION OF EXISTING LOAD AT A SINGLE LOCATION THAT IS FORTY -ONE18
OR MORE MEGAWATTS , THE COMMISSION SHALL APPROVE OR DENY THE19
APPLICATION WITHIN ONE HUNDRED TWENTY DAYS AFTER THE EXPIRATION20
OF THE NOTICE PERIOD.21
(V) FOLLOWING A NOTICE PERIOD OF FOURTEEN BUSINESS DAYS22
AFTER AN INVESTOR-OWNED ELECTRIC UTILITY FILES AN APPLICATION FOR23
APPROVAL OF ECONOMIC DEVELOPMENT RATES , AND THE ADDITION OR24
EXPANSION OF EXISTING LOAD AT A SINGLE LOCATION THAT IS MORE THAN25
ONE HUNDRED FIFTY MEGAWATTS , THE COMMISSION SHALL APPROVE OR26
DENY THE APPLICATION WITHIN TWO HUNDRED TEN DAYS AFTER THE27
1177
-5- EXPIRATION OF THE NOTICE PERIOD.1
(VI) (A) IF AN INVESTOR-OWNED ELECTRIC UTILITY DOES NOT2
HAVE A COMMISSION -APPROVED TARIFF PURSUANT TO SUBSECTION3
(6)(b)(II)(A)
OF THIS SECTION, THE COMMISSION, FOLLOWING A NOTICE4
PERIOD OF FOURTEEN BUSINESS DAYS AFTER THE INVESTOR -OWNED5
ELECTRIC UTILITY FILES AN APPLICATION FOR APPROVAL OF ECONOMIC6
DEVELOPMENT RATES, SHALL APPROVE OR DENY THE APPLICATION WITHIN7
ONE HUNDRED TWENTY DAYS AFTER THE EXPIRATION OF THE NOTICE8
PERIOD.9
(B) T
HIS SUBSECTION
(6)(c)(VI) IS REPEALED, EFFECTIVE JUNE 1,10
2026.11
(d) (I) An investor-owned
ELECTRIC utility may seek commission12
approval to expand any voluntary renewable
CLEAN energy program or13
service offering, except those covered by valid agreements to the contrary14
executed and approved by the commission as of January 1, 2019, through15
the acquisition of additional renewable CLEAN ENERGY generation16
capacity and energy to meet the current and projected demand of:17
(II) The commission may approve, within one hundred twenty18
days, an expansion of an existing voluntary renewable CLEAN energy19
program or service offering upon a showing by the utility that:20
(A) There is not sufficient capacity and energy in the existing21
voluntary renewable CLEAN energy program or service offering to satisfy22
the needs of the customer and the customer meets the requirements of23
subsection (6)(d)(I) of this section; and24
(7) As used in subsection (6) of this section and this subsection25
(7),
UNLESS THE CONTEXT OTHERWISE REQUIRES :26
(a) "M
ARGINAL COST" MEANS THE INCREMENTAL ADDITIONAL27
1177
-6- COST THAT AN INVESTOR-OWNED ELECTRIC UTILITY INCURS AND CHARGES1
TO SERVE AN ELECTRIC CUSTOMER OVER THE CONTRACT PERIOD , WHICH2
ADDITIONAL COSTS WOULD NOT HAVE BEEN INCURRED IF THE CUSTOMER3
DID NOT TAKE SERVICE ON THE UTILITY'S SYSTEM, INCLUDING, BUT NOT4
LIMITED TO:5
(I) F
UEL;6
(II) P
URCHASED POWER;7
(III) O
PERATING AND MAINTENANCE COSTS ;8
(IV) C
APITAL ADDITIONS;9
(V) O
VERHEAD;10
(VI) T
AXES; AND11
(VII) F
EES.12
(a)
(b) "Qualifying commercial or industrial customer":13
(I) Means a utility customer that:14
(A) Agrees to: Locate commercial or industrial operations in15
Colorado and add at least three megawatts of new load at a single16
location, or expand existing commercial or industrial operations in17
Colorado and add at least three megawatts of new load at a single18
location; and19
(B) Demonstrates, to the satisfaction of the investor-owned20
ELECTRIC utility, subject to review by the commission, that: The cost of21
electricity is a critical consideration in deciding where to locate new or22
expand existing operations, and the availability of economic development23
rates, either on their own or in combination with other economic24
development incentives, is a substantial factor in the customer's decision25
to locate new or expand existing business operations in Colorado;
AND26
(II) Does not include a customer that agrees to relocate or27
1177
-7- otherwise transfer its existing load of at least three megawatts from the1
service territory of another public utility, as defined in section 40-1-103,2
into the service territory of the utility offering economic development3
rates.4
(c) "SOCIETAL ECONOMIC BENEFIT TEST" MEANS A TEST THAT5
INCLUDES BUT IS NOT LIMITED TO:6
(I) THE ECONOMIC BENEFITS RECEIVED BY ALL CUSTOMER CLASSES7
SERVED BY THE UTILITY; AND8
(II) THE ECONOMIC DEVELOPMENT BENEFITS , INCLUDING:9
(A) THE TOTAL NET LOCAL AND STATE TAXES TO BE PAID BY THE10
QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER ;11
(B) THE AMOUNT OF FULL-TIME JOBS CREATED; AND12
(C) OTHER ECONOMIC GROWTH, BENEFITS, OR BOTH BROUGHT TO13
THE SURROUNDING COMMUNITY THAT RESULT FROM SERVING A14
QUALIFYING COMMERCIAL OR INDUSTRIAL CUSTOMER WITH AN ECONOMIC15
DEVELOPMENT RATE.16
(b) (d) "Voluntary renewable CLEAN energy program or service17
offering" means a program or other service offering approved by the18
commission that allows a
QUALIFYING commercial or industrial customer19
access to eligible energy resources, as that term is defined in section20
40-2-124 (1)(a), on a voluntary basis, on terms and conditions deemed21
necessary by the commission. For a voluntary renewable
CLEAN energy22
program or service offering to be expanded, it must have been approved23
by the commission prior to the expansion request of a
QUALIFYING24
commercial or industrial customer pursuant to subsection (6)(d)(I) of this25
section.26
(8) This subsection (8) and
Subsections (6) and (7) of this section27
1177
-8- AND THIS SUBSECTION (8) are repealed, effective January 1, 2028 2035.1
SECTION 2. Applicability. This act applies to applications filed2
on or after the effective date of this act.3
SECTION 3. Safety clause. The general assembly finds,4
determines, and declares that this act is necessary for the immediate5
preservation of the public peace, health, or safety or for appropriations for6
the support and maintenance of the departments of the state and state7
institutions.8
1177
-9-