Public Utilities - Digest of Bills

Digest of Bills - 2007

PUBLIC UTILITIES

S.B. 07-6 Unmarked redundant railroad crossings - abolition. Allows the affected railroad corporation (corporation), the public utilities commission (commission), the department of transportation (department), or the local government responsible for supervising and maintaining the highway or road at any crossing at grade of any public highway or road over the tracks of a corporation to abolish the crossing without a hearing before the commission as required under existing law if:

● The crossing is without gates, signals, alarm bells, or warning personnel and is located within one-quarter mile of a crossing with gates, signals, alarm bells, or warning personnel or a separated grade crossing;

● The crossing is not the only crossing that provides access to property; and

● No less than 60 days prior to the proposed abolition date, the corporation, commission, department, or local government posts conspicuous notice of the proposed abolition at the crossing and gives written notice of the proposed abolition to the other interested entities.

Allows an objection to the abolition to be filed that includes a written statement by a professional engineer licensed to practice in Colorado indicating that the engineer is familiar with the new expedited abolition provisions and all relevant aspects of the crossing and has examined the crossing and believes that it is safe as designed. If a timely proper objection is filed, allows abolition of a crossing only after a hearing before the commission as authorized by existing law.

APPROVED by Governor April 2, 2007
EFFECTIVE August 3, 2007
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

S.B. 07-22 Regulation of rates and charges - discounts for low-income customers - authority of PUC. Grants statutory authority to the Colorado public utilities commission (PUC) to determine rates and practices for gas and electric service that take into account the needs of low-income utility customers. Defines a "low-income utility customer" as a customer who has a household income at or below 185% of the federal poverty level and who is otherwise eligible to receive assistance under the existing low-income energy assistance program administered by the state department of human services. Requires the PUC, when approving such rates, to take into account the potential impact on, and cost-shifting to, other customers.

APPROVED by Governor April 2, 2007
EFFECTIVE April 2, 2007

S.B. 07-91 Renewable resource generation development areas - task force - map - appropriation. Creates a 16-member task force (task force) on renewable resource generation development areas. Directs the task force to meet at least 4 times before December 31, 2007, to identify renewable resource generation development areas within Colorado that have potential to support competition among renewable energy developers for development of renewable resource generation projects and to develop a map of such areas. Directs the task force to adopt and deliver a map of renewable resource generation development areas to the governor and the general assembly no later than December 31, 2007.

Authorizes, but does not require, the governor's energy office to solicit and accept gifts, grants, and donations from private sources to fund the activities of the task force. If the total amount of gifts, grants, and donations received by July 1, 2007, is not sufficient to meet the expenses of the task force, directs the task force not to meet and the governor's energy office to return any amounts received, and provides for any interest earned on such amounts to revert to the general fund of the state.

Appropriates $45,411 to the governor's energy office for implementation of the act.

APPROVED by Governor May 29, 2007
EFFECTIVE May 29, 2007

S.B. 07-100 Electric utilities - transmission facilities - energy resource zones - cost recovery for ongoing construction. Requires electric utilities to undertake biennial reviews to designate energy resource zones, which are defined as areas of the state in which transmission constraints hinder the delivery of electricity to Colorado consumers, the development of new electric generation facilities to serve Colorado consumers, or both. For such areas, requires the utilities to submit proposed plans for the development of additional transmission facilities and directs the public utilities commission (PUC) to grant or deny any necessary certificates for such development within 180 days.

Allows the utilities to recover costs during construction of new or expanded transmission facilities through a rate adjustment clause so long as the costs are prudently incurred and not already included in the utility's base rates.

APPROVED by Governor March 27, 2007
EFFECTIVE March 27, 2007

H.B. 07-1019 Motor carriers - luxury limousines - rules. Makes changes to the definition of "luxury limousine" and repeals provisions establishing operational requirements for luxury limousines. Requires the public utilities commission to promulgate rules governing the standards used to define a luxury limousine and the operational requirements of motor vehicle carriers exempt from regulation as public utilities.

APPROVED by Governor May 10, 2007
EFFECTIVE July 1, 2007

H.B. 07-1037 Energy efficiency - natural gas - electricity - demand-side management programs. Directs the public utilities commission (PUC) to adopt rules establishing funding and cost-recovery mechanisms for distributors of natural gas to engage in demand-side management (DSM) programs. Directs distributors of natural gas to develop and implement cost-effective DSM programs once such rules are adopted. Requires periodic reports from the natural gas utilities and PUC review and approval of such programs. Specifies that this act does not extend PUC authority to nonregulated utility businesses or affiliates.

Allows the PUC to adopt rules necessary to implement the state policy that a primary goal of electric utility least-cost resource planning is to minimize the net present value of revenue requirements. Requires the PUC to establish energy savings and peak demand reduction goals for investor-owned electric utilities that are at least 5% of the utility's retail system peak demand, measured in megawatts in the base year 2006, and at least 5% of the utility's retail energy sales, measured in megawatt-hours in the base year 2006. Allows an electric utility until 2018 to meet the goals, and allows the PUC to establish and revise interim goals as appropriate.

Authorizes the PUC to allow electric utilities to implement cost-effective electricity DSM programs to reduce the need for additional resources that would otherwise be met through competitive acquisition. Establishes the parameters of electric utility DSM programs. Requires periodic reports from the electric utilities to the PUC.

Directs the PUC to submit annual reports to the senate business, labor, and technology committee, or its successor committee, and the house of representatives business affairs and labor committee, or its successor committee, regarding the progress of utilities in meeting their DSM goals and any statutory changes deemed necessary by the PUC to further the general assembly's intent in enacting utility demand-side management provisions.

APPROVED by Governor May 22, 2007
EFFECTIVE May 22, 2007

H.B. 07-1065 Motor vehicle carriers - passenger transport - employees and contractors - appropriations. Requires an individual who applies to become or is already employed or contracted with certain motor vehicle carriers that transport passengers to submit his or her fingerprints to the public utilities commission ("PUC"). Requires the PUC to forward the fingerprints to the Colorado bureau of investigation ("CBI") to obtain a fingerprint-based criminal history record check. Requires the CBI to conduct a state and federal criminal history record check using the fingerprints. Specifies that the PUC is the authorized agency to receive information regarding the results of the record check.

Permits an individual whose fingerprints are checked to drive a motor vehicle in connection with his or her employment or contract with the motor vehicle carrier for up to 60 days after the PUC forwards the fingerprints to the CBI for checking or until the PUC receives the results of the check, whichever comes first. Permits an individual to resume driving a motor vehicle after the PUC receives the check results so long as the driving does not violate applicable law and does not occur while the individual has a disqualifying criminal conviction. Identifies disqualifying criminal convictions. Specifies that an individual who drives a motor vehicle in violation of the criminal history record check requirements commits a class 2 misdemeanor.

Makes the following appropriations for the 2007--08 fiscal year:

● $4,337 from the public utilities commission motor carrier fund to the department of regulatory agencies;

● $48,193 and 1.3 FTE from the public utilities commission motor carrier fund to the PUC for implementation of the act;

● $197,500 from application processing fees collected by the PUC to the PUC for passthrough to the CBI for the costs of performing criminal history record checks.

APPROVED by Governor May 30, 2007
EFFECTIVE May 30, 2007

H.B. 07-1114 Motor vehicle carriers - common or contract carriers - leases - appropriation. Allows the public utilities commission to regulate the lease rate charged to drivers for common contract carriers.

Appropriates $4,878 to the department of regulatory agencies for allocation to the public utilities commission for the regulation of taxicab owners and drivers and for the implementation of the act.

APPROVED by Governor May 24, 2007
EFFECTIVE May 24, 2007

H.B. 07-1150 Clean energy development authority - creation - powers and duties. Creates the clean energy development authority (authority) as an independent public body and political subdivision of the state. Establishes a 9-member board of directors (board) to govern the authority and specifies the composition and manner of appointment of the board and the terms of board members. Specifies that it is not a conflict of interest for a board member or employee to also serve as a trustee, director, officer or employee of a public utility, financial or investment banking firm, or other business entity, but requires such a board member to disclose his or her business affiliation to the board and abstain from voting or otherwise taking action in any instance that directly involves the affiliation.

Specifies that the authority is subject to state open meetings and open records laws. Requires the board to promulgate and adhere to policies and procedures that govern its conduct and provide opportunities for public input.

Specifies the powers and duties of the authority, including but not limited to:

● The duty to convene qualified task forces to solicit public input and help the authority develop recommendations for the general assembly regarding the types of clean energy projects (projects) that the authority should finance, refinance, or otherwise support;

● The duty to develop, adopt and publish 3-year activity plans and annual reports and to submit the plans and reports to specified standing committees of the general assembly;

● The power to finance and refinance projects within or outside Colorado and to issue bonds and refunding bonds, subject to the approval of the voters of the state in specified circumstances, in order to accomplish such financing or refinancing; and

● The power to enter into intergovernmental agreements in order to jointly finance projects and to exchange services, personnel, and information with federal, state, or local governments or departments or other agencies thereof.

Creates the Colorado clean energy development authority fund (fund). Requires gifts, grants, or donations accepted by the authority and revenues paid to the authority by public utilities and other persons using projects financed or refinanced by the authority to be credited to the fund. Requires the authority to administer the fund and provides guidance to the authority regarding the manner in which it may use moneys in the fund.

Subject to specified limitations, including but not limited to project-specific approval by bill of the general assembly and an $8 million limitation on the aggregate amount of scheduled bond payments to which a moral obligation applies in any one fiscal year, authorizes the authority to create a moral obligation of the state to pay bonds issued by the authority to finance or refinance a project. Specifically authorizes the authority to create such a moral obligation without further authorization for a wind energy transmission facilities project to be financed or refinanced by up to $40 million of bonds and a solar energy project to be financed or refinanced by up to $25 million of bonds. Requires the authority to obtain either a performance bond or similar assurance that guarantees the completion of the project to be financed by the bonds or a guaranty of the bonds provided by a third-party that has an investment-grade rating before creating a moral obligation.

Specifies that authority bonds do not create a legal debt or liability of the state. Specifies that the state will not limit, alter, restrict, or impair the ability of the authority to fulfills the terms of its agreements with holders of authority bonds and other contracts or impair the rights of holders of authority bonds. Specifies that the legislation does not affect the jurisdiction or power of the public utilities commission (PUC), and requires PUC approval before that authority can finance or refinance any project that is subject to PUC regulation.

APPROVED by Governor May 23, 2007
EFFECTIVE May 23, 2007

H.B. 07-1169 Cooperative electric associations - net metering - interconnection - insurance. Repeals and reenacts the statute that governs interconnection requirements for net metering for customer-generators of cooperative electric associations. Requires compliance with the public utility commission's rules on interconnection and insurance, but allows associations to reduce or waive the insurance requirements.

Specified that a cooperative electric association shall not prevent or otherwise unreasonably burden the installation of a customer-generator system if the system has safeguards preventing the export of customer-generated electricity from the customer's side of the meter.

APPROVED by Governor May 23, 2007
EFFECTIVE August 3, 2007
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 07-1249 Motor vehicle carriers - household goods movers - registration - criminal history record checks - contract terms - consumer advisement - resolution of disputes - appropriations. Requires a fingerprint-based criminal history record check for every director, officer, owner, and general partner of a mover upon application for a mover registration and by January 1, 2008, for those already registered.

Allows the public utilities commission (PUC) to deny, revoke, or refuse to renew the registration of a mover that is not of good moral character, fails to abide by the terms of an arbitrator's award, or has not satisfied a civil or criminal judgment against it, unless the judgment is subject to a pending appeal.

Requires a mover to provide the shipper with a standard consumer advisement notifying the shipper of the availability of the arbitration process, the requirement that movers be registered with the PUC, the fact that the contract price for a move may change based on a number of factors, and other information.

Prohibits an unregistered mover from acquiring or enforcing a carrier's lien.

Creates a binding arbitration process for the resolution of disputes between a customer (shipper) and a mover. Makes the use of binding arbitration optional for the shipper. If the shipper chooses binding arbitration, requires the mover to participate in the process in good faith and to abide by the terms of the arbitrator's award.

Appropriates $7,878 from cash funds to the PUC, for pass-through to the department of public safety, for processing of fingerprint-based criminal history record checks.

Applies to moving and accessorial services provided on or after July 1, 2007.

APPROVED by Governor June 1, 2007
EFFECTIVE July 1, 2007

H.B. 07-1281 Electricity - renewable resource standards. Expands the definition of "qualifying retail utility" to include all providers of retail electric services other than municipally owned utilities that serve 40,000 customers or less. Raises the renewable energy standard for electrical generation by qualifying retail utilities to 5% by 2008, 10% by 2011, 15% by 2015, and 20% by 2020. Establishes a renewable energy standard for cooperative electric associations and municipally owned utilities that serve more than 40,000 customers of 1% by 2008, 3% by 2011, 6% by 2015, and 10% by 2020. Defines "eligible energy resources" to include recycled energy and renewable energy resources.

For the purposes of compliance with the renewable energy standard, counts each kilowatt-hour of renewable electricity generated from:

● A community-based project as 1.5 kilowatt-hours; and

● Solar electric generation technologies as 3 kilowatt-hours.

Allows each kilowatt-hour to take advantage of only one of the multipliers.

Adjusts the cost-recovery standards. Raises the maximum retail rate impact of complying with the standard to 2% for qualifying retail utilities other than cooperative electric associations. Prevents qualifying retail utilities from opting out of compliance with the renewable energy standard. Requires cooperative electric associations to submit annual reports to the public utilities commission concerning their compliance with the renewable energy standard.

Encourages electric utilities to establish community energy funds for the development of projects for the further development of renewable energy, energy efficiency, conservation, and environmental improvement.

APPROVED by Governor March 27, 2007
EFFECTIVE March 27, 2007