Consumer-Regulated Electric Utilities

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED HOUSE BILL 26-1246 LLS NO. 26-0779.01 Clare Haffner x6137 HOUSE SPONSORSHIP DeGraaf, SENATE SPONSORSHIP (None), House Committees Senate Committees Energy & Environment A BILL FOR AN ACT CONCERNING THE ESTABLISHMENT OF CONSUMER-REGULATED ELECTRIC UTILITIES TO SERVE NEW NONRESIDENTIAL ELECTRIC LOADS, CONSUMER-REGULATED ELECTRIC UTILITIES FROM CERTAIN PUBLIC UTILITY REGULATIONS WHILE MAINTAINING OVERSIGHT FOR PUBLIC SAFETY AND ENVIRONMENTAL PROTECTION.

AND, IN CONNECTION THEREWITH, EXEMPTING Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The bill defines a "consumer-regulated electric utility" as an Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law.

electric generation and supply system constructed for the sole purpose of serving new industrial, commercial, data center, or other nonresidential loads not previously served by a provider of retail electric service. The bill states that a consumer-regulated electric utility is not a public utility and is not subject to regulation by the public utilities commission (commission), unless the consumer-regulated electric utility elects to interconnect with the electric grid in a service territory of a public utility that is subject to regulation by the commission. A consumer-regulated electric utility may construct and operate a facility within an existing public right-of-way, subject to applicable permitting, restoration, and public safety requirements.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 3.7 to title 40 as follows:

ARTICLE 3.7 Consumer-Regulated Electric Utilities 40-3.7-101. Legislative declaration.

(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(a) RELIABLE, AFFORDABLE, AND SUFFICIENT ELECTRICITY SUPPLY IS VITAL TO ECONOMIC GROWTH AND PUBLIC WELFARE;

(b) NEW INDUSTRIAL, COMMERCIAL, AND DATA CENTER DEVELOPMENTS REQUIRE RAPID ACCESS TO ELECTRICITY SUPPLIES WITHOUT SHIFTING COSTS OR RISKS TO EXISTING RATEPAYERS;

(c) CONSUMER-REGULATED ELECTRIC UTILITIES ARE PRIVATELY GOVERNED ELECTRICITY PROVIDERS SERVING NEW, NONRESIDENTIAL LOADS;

(d) IT IS THE POLICY OF THE STATE TO PERMIT THE CREATION OF CONSUMER - REGULATED INDEPENDENTLY OF THE STATE-REGULATED PUBLIC UTILITY SYSTEM; AND

(e) CONSUMER-REGULATED ELECTRIC UTILITIES REMAIN SUBJECT ELECTRIC UTILITIES , WHICH OPERATE TO ENVIRONMENTAL, SAFETY, AND WORKPLACE LAWS AND REGULATIONS THAT PROTECT THE PUBLIC INTEREST, WHILE OTHERWISE OPERATING OUTSIDE OF PUBLIC UTILITY STATE REGULATION.

40-3.7-102. Consumer-regulated electric utilities - definition.

AS USED IN THIS ARTICLE 3.7, "CONSUMER-REGULATED ELECTRIC UTILITY" MEANS AN ELECTRIC GENERATION AND SUPPLY SYSTEM CONSTRUCTED ON OR AFTER THE EFFECTIVE DATE OF THIS ARTICLE 3.7 FOR THE SOLE PURPOSE OF SERVING NEW INDUSTRIAL, COMMERCIAL, DATA CENTER, OR OTHER NONRESIDENTIAL LOADS NOT PREVIOUSLY SERVED BY A PROVIDER OF RETAIL ELECTRIC SERVICE.

(2) A CONSUMER-REGULATED ELECTRIC UTILITY MAY OWN OR OPERATE A FACILITY NECESSARY FOR ELECTRIC GENERATION, ENERGY STORAGE, TRANSMISSION, DISTRIBUTION, OR THE SUPPLY OF ELECTRICITY.

A CONSUMER-REGULATED ELECTRIC UTILITY MAY SELL ELECTRICITY AT RETAIL TO ELIGIBLE CUSTOMERS IF THE CONSUMER-REGULATED ELECTRIC UTILITY IS FULLY CONTAINED WITHIN THE STATE AND IS PHYSICALLY ISLANDED FROM THE ELECTRIC GRID AND FROM A PUBLIC UTILITY THAT IS REGULATED BY THE COMMISSION.

40-3.7-103. Exemption from public utility regulation.

(1) A CONSUMER-REGULATED ELECTRIC UTILITY IS NOT A PUBLIC UTILITY AND IS NOT SUBJECT TO REGULATION AS A PUBLIC UTILITY.

NOTHING IN THIS TITLE 40 APPLIES TO A CONSUMER-REGULATED ELECTRIC UTILITY EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 3.7. THE COMMISSION CONSUMER-REGULATED ELECTRIC UTILITY EXCEPT FOR THE AUTHORITY EXPRESSLY GRANTED IN THIS ARTICLE 3.7.

HAS NO JURISDICTION TO REGULATE A

(2) A CONSUMER-REGULATED ELECTRIC UTILITY IS SUBJECT TO APPLICABLE FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS, INCLUDING:

(a) ENVIRONMENTAL PROTECTION AND PERMITTING LAWS;

(b) BUILDING AND FIRE CODES;

(c) WORKPLACE HEALTH AND SAFETY STANDARDS; AND

(d) STORM-DEBRIS REMOVAL AND RIGHT-OF-WAY MAINTENANCE REQUIREMENTS FOR A CONSUMER-REGULATED ELECTRIC UTILITY LOCATED WITHIN A PUBLIC RIGHT-OF-WAY.

(3) A CONSUMER-REGULATED ELECTRIC UTILITY THAT ELECTS TO INTERCONNECT WITH THE ELECTRIC GRID IN A SERVICE TERRITORY OF A PUBLIC UTILITY THAT IS SUBJECT TO REGULATION BY THE COMMISSION:

(a) SHALL COMPLY WITH APPLICABLE INTERCONNECTION REQUIREMENTS PURSUANT TO SECTION 40-2-124; AND (b) W HEN INTERCONNECTED , CEASES TO BE A CONSUMER-REGULATED ELECTRIC UTILITY AND BECOMES A PUBLIC UTILITY SUBJECT TO REGULATION UNDER ARTICLES 1 TO 7 OF THIS TITLE 40-3.7-104. Facilities located within public rights-of-way.

A CONSUMER-REGULATED ELECTRIC UTILITY MAY CONSTRUCT AND OPERATE A FACILITY WITHIN AN EXISTING PUBLIC RIGHT-OF-WAY, SUBJECT TO APPLICABLE PERMITTING, RESTORATION, AND PUBLIC SAFETY REQUIREMENTS.

CONSUMER-REGULATED ELECTRIC UTILITY'S APPLICATION FOR USE OF A PUBLIC RIGHT-OF-WAY SHALL FOCUS THE REVIEW ON PUBLIC SAFETY, ENVIRONMENTAL RESTORATION, AND STORM-RESPONSE PLANS.

A PUBLIC PROTECTION , ENTITY THAT ADEQUACY OF REVIEWS A RIGHT - OF - WAY 40-3.7-105. Construction and severability.

(1) THIS ARTICLE 3.7 SHALL BE LIBERALLY CONSTRUED FOR THE PURPOSE CONSUMER-REGULATED ELECTRIC UTILITIES TO SERVE NEW LOADS AND PROMOTE ECONOMIC DEVELOPMENT.

OF ENCOURAGING THE ESTABLISHMENT OF

(2) IF ANY PROVISION OF THIS ARTICLE 3.7 IS HELD INVALID, SUCH INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OF THIS ARTICLE 3.7, WHICH CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION.

SECTION 2.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.