SB 25-127
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-127: OPTIMIZING COLORADO ELECTRIC TRANSMISSION SYSTEM
Prime Sponsors:
Sen. Simpson; Roberts
Published for: Senate Transportation & Energy
Drafting number: LLS 25-0591
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: Initial Fiscal Note
Date: March 7, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill requires the Colorado Electric Transmission Authority to create a statewide electric
transmission plan.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Workload Statutory Public Entity
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
March 7, 2025 SB 25-127
Summary of Legislation
The bill directs the Colorado Electric Transmission Authority (CETA) to study advanced
transmission technology and maintain a statewide transmission model. It must create a
statewide transmission plan by September 1, 2027, and update the plan every three years.
Electric utilities and wholesale electric cooperatives, in their filings with the Public Utilities
Commission (PUC) in the Department of Regulatory Agencies, must include transmission plans
that align with the statewide transmission plan, with coordination from CETA. They must also
evaluate the use of advanced transmission technologies.
The PUC may also investigate incentives for advanced transmission technologies that provide
transmission congestion relief, interconnect new generation, reduce wildfire risk, mitigate public
safety power shutoffs. Any incentives may consider shared savings approaches, performance
incentive mechanisms, and consumer protections.
Background
CETA receives an annual appropriation of $500,000 from the Fixed Utility Fund in the PUC, which
collects an annual assessment from the state's regulated utilities. Additionally, CETA can
generate revenue by issuing electric transmission bonds. Under current law, CETA's funding from
the PUC is capped at this amount, and any surplus beyond its actual expenses plus a 50 percent
reserve margin must be returned. As a result, any extra costs CETA incurs must be covered
within this annual allocation, its reserved funds, or through bond issuance.
State Expenditures
The bill minimally increases workload in the Department of Regulatory Agencies beginning in
FY 2025-26. Although it requires utilities to file additional information with the PUC, this is
materially similar to the transmission information that utilities are already required to submit,
and any additional review by PUC can be accomplished within existing appropriations.
Statutory Public Entity
The bill increases expenditures in CETA to conduct studies on transmission capacity expansion
and grid enhancing technology studies. Beginning in FY 2025-26, this requires about $171,000
and 1.0 FTE to oversee the design and implementation of the required studies. The studies are
expected to cost an estimated $850,000 over three years, with repeating costs every three-year
period for the studies to be updated. Costs are paid from the Electric Transmission Operational
Fund. Page 3
March 7, 2025 SB 25-127
Local Government
The bill increases workload for municipal utilities that file additional transmission information
with the PUC. This is expected to be minimal.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Colorado Electric Transmission Authority
Colorado Energy Office
Law
Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.