Utility On-Bill Repayment Program Financing
The bill requires large investor-owned gas and electric utilities serving over 500,000 customers to propose plans for establishing or expanding on-bill repayment programs. These plans will undergo review and approval by the Public Utilities Commission. Additionally, an interest-free loan of $100 million from the unclaimed property trust fund will support the state utility on-bill repayment program cash fund, which the Colorado Energy Office will be tasked with managing and repaying by 2045.
House Bill 1268 introduces a state utility on-bill repayment program through the Colorado Energy Office to finance energy-related improvements. The program allows utility customers to finance energy efficiency measures, electrification measures, and upgrades via loans that can be repaid through monthly utility bills. This initiative aims to provide over one billion dollars in financing solutions over a five-year span, enabling households and businesses to pursue necessary upgrades while facilitating a transition from fossil fuels.
While the bill supports energy-related improvements and aims to reduce greenhouse gas emissions, it may lead to concerns regarding the financial obligations for participants. Ownership of obligations does not transfer with the customer; instead, new owners of properties must continue repayments if prior installments remain unpaid. There may also be public interest questions regarding the loans’ compliance with consumer protection and equity requirements, as utilities will need to justify their financial engagements and ensure proper customer participation without exposing them to excessive financial risk.