Colorado SB 07-100: Transmission for Energy
Resource Zones
Transmission for Economic
Development…Rate Certainty for Consumers
In SB 100:
• Utilities
locate and map energy resource development areas
• Utilities
plan and file for approvals to build transmission to
serve those resource areas
¶ Generators can then
compete to develop projects
• Utilities
allowed current cost recovery for their transmission
investments.
This
means:
• Consumers
benefit by getting cost-effective energy resources
online faster
•
Colorado’s competitiveness is enhanced through new
transmission development
• Costly
delays in transmission approval processes are reduced
•
Transmission investments better match the timing of
new generation investments
• Consumers
are protected by diversity of generation sources and
stable long-term rates
How is
Colorado’s economic competitiveness enhanced through
this bill?
Lack of transmission
investment has begun to hinder economic development in
Colorado’s generation resource areas. Colorado’s
neighboring states are addressing their transmission
deficiencies aggressively by planning and investing in
new transmission, so Colorado must keep pace.
How do consumers benefit from this bill?
Renewable energy projects
in generation resource zones (mainly large-scale wind
projects) save consumers money because they replace
generation from costlier fossil fuels. Transmission
investments to make the wind generation available to
save fossil fuels is paid back by generation cost
savings.
How are delays in the transmission approval
process reduced?
Biennial reports by electric utilities to the
Public Utilities Commission will highlight constrained
transmission areas. Utilities then file plans and
applications at the PUC for proposed new transmission
to solve the constraints. The PUC reviews these plans,
and if it deems new transmission facilities necessary,
issues required certificates of public convenience and
necessity within six months. Interested parties can
still comment on the plans and proposed facilities,
but the plans, proposals, and time limits for
decisions will eliminate delays.
How are consumers protected through longer-term
rate certainty?
Currently, utilities recover costs of new
transmission when it starts being used. Interest costs
that accumulate during construction increase total
costs to consumers. This bill enables quicker delivery
of cost-effective new power sources and eliminates
interest accumulation, analogous to consumers’ paying
off credit cards at the end of each billing cycle,
rather than letting interest accumulate over months or
years.
- View SB 07-100
(PDF format) as signed into law by Governor Ritter on
27 March 2007
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