TWW's Greg Brophy testified in support of HB-1324 which was heard this month at the Colorado Capitol. The bipartisan bill focuses on creating a framework within the Colorado Public Utilities Commission to drive innovative energy projects from research and development into commercialization. Specifically it would allow Xcel Energy to propose innovative energy technology projects that can deliver the next generation of clean energy while being located in rural communities impacted by energy transition in order to provide tax revenues and jobs.
The bill aims to achieve several goals:
Spur innovative energy technology projects which attract and retain new business, workforce development, and economic growth in areas impacted by the clean energy transition.
Create industry and public-private partnerships critical to achieving zero-carbon electricity.
Develop a regulatory framework to attract federal and other public funding/grant opportunities to support innovative technology and robust investment in rural areas impacted by the rapid transition to clean energy.
Several guardrails have been included in the legislation to ensure proper ratepayer protection and follow the current system of PUC approvals and reviews:
Location: Projects must be located in communities impacted by energy transition to facilitate an active role in the clean energy transition, replace tax revenue displaced by the early retirement of fossil generation and utility workforce transition opportunities.
Timing: Projects can only be proposed as part of Xcel Energy’s current Electric Resource Plan (ERP). Legislation sunsets in 2024.
Cost: Projects are be competitively bid within the ERP and under an existing retail rate impact established within SB19-236; prioritizes a portion of that overall investment to areas impacted by the plan.
Size: Projects cannot exceed a negotiated amount of 300MW in size.
Approvals: Projects must gain approval by the Public Utilities Commission (PUC) with consideration to both clean energy goals and the advancement of community and workforce transition.