Legislators Pass Bill to Look Out for Rural Electric Consumers and Fossil Fuel Workers

Denver, CO -- Today, Colorado lawmakers approved legislation that would reauthorize and modernize the way the Colorado Public Utilities Commission (PUC) oversees our utilities.

Senate Bill 236, or the Sunset Bill:

• Requires social cost of carbon accounting in utility energy plans

• Requires PUC to start a process to evaluate and approve Tri-State Generation and Transmission's long-term energy plans

• Authorizes utilities to use securitized bonds to help pay off costly coal debt and invest the savings in lower cost clean energy infrastructure and community transition

• Requires utilities to submit a workforce transition plan when proposing retirement of an electric generating unit

The social cost of carbon requires utilities to account for the monetary damages wrought by the greenhouse gas pollution that causes climate change. Currently, utilities are not required by rule to account for these “social costs” of carbon, and SB 236 sets a price on each short ton of carbon emitted starting at $46 in 2020.  

“Coloradans already pay the cost of carbon when wildfires devastate our communities, rising temperatures hurt our winter sports and recreation industry, and hail storms damage our property. The social cost of carbon tool requires utilities to weigh how much fossil fuels truly cost our communities and seek economically sustainable alternatives.” said Anna McDevitt, Beyond Coal Senior Campaign Representative at Sierra Club.

SB 236 also requires the PUC to set rules for evaluating and approving Tri-State Generation & Transmission’s long-term energy plans.

“Tri-State’s mismanagement and coal-heavy energy portfolio has hurt its customers, blocking rural Colorado from building low-cost renewable energy that creates jobs and generates new revenue,” says McDevitt. “It’s a relief to have state leaders looking out for electricity consumers all across the state.”

Tri-State is a member-owned electric cooperative serving roughly 30 percent of Coloradans with a coal-heavy energy portfolio and some of the highest rates in the state. One member co-op, United Power, found heir customers pay almost 30 percent more than neighboring Xcel customers. Ensuring the PUC exercises its existing authority to review and approve Tri-State’s long-term energy plans would ensure that the company adopts cost-effective plans to protect co-op members and rural communities from unjust, high rates.

“The Sunset Bill gives the PUC the capacity to ensure utilities are treating their customers fairly and providing the cleanest and most affordable energy,” said Emily Gedeon, Conservation Program Director at the Colorado Sierra Club. “We applaud Colorado legislators for modernizing the PUC so that we have the tools and oversight we need to support Colorado’s growing clean energy economy. Renewable energy is rapidly pushing out fossil fuels as a lower cost, healthier, and safer source of energy.”