CoPIRG applauds new policy tackling high utility bills

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DENVER – After three weeks of testimony from experts before the Colorado Joint Select Committee on Rising Utility Rates, legislators introduced a new policy that will tackle the high utility bills fueled by gas that Coloradans experienced this winter across the state. The bill is sponsored by Senate President Steve Fenberg, Senator Lisa Cutter, Speaker Pro Tempore Chris deGruy Kennedy, and Representative Matthew Martinez.

While there is no one solution to the gas-driven utility bill spikes, CoPIRG applauds the legislators for listening to our recommendations and focusing on efforts to reduce dependence on gas. According to expert testimony, the price of gas was 40% higher than last year. For a typical Xcel customer, between November 2022 and January 2023, 80% of the increase can be attributed to gas.

CoPIRG is still reviewing the bill but applauds a number of components including:

  • Not allowing regulated gas and electric utilities from recouping the costs from ratepayers of lobbying, tax penalties, political contributions, and marketing that focuses on promoting itself and its brand.
  • Eliminating the ratepayer subsidy for new gas line extensions, which incentivizes increasing customer dependence on gas.
  • Requiring a depreciation study to ensure ratepayers will not be on the hook for new gas investments that may become underutilized or stranded.
  • Eliminating the penalty for customers who choose to disconnect from the gas system and evaluating ways to better support ratepayers to switch to electric-heated homes and businesses.
  • Requiring the Public Utility Commission (PUC) to adopt new rules with possible financial incentives so investor-owned utilities are more aligned with ratepayers around fuel costs, helping to reduce the impact from volatile gas prices. These rules could also increase efficiencies and reduce waste across the system saving ratepayers money.
  • Increasing the transparency around the assumptions that investor-owned utilities use for their rate cases.
  • Requiring more evaluation around the impact on ratepayers of providing gas infrastructure in new developments. It will also require a map of anticipated gas infrastructure that will need replacing, which could lead to more cost effective, large-scale ways to reduce reliance on gas.

In a statement, CoPIRG executive director Danny Katz said:

“We all experienced a massive spike in our utility bills this winter because we’re too reliant on gas. Gas is volatile, expensive and dangerous for our health. Our utilities are not doing enough to reduce our reliance on gas. I applaud the legislators who introduced this bill, which increases the tools we will have to move away from gas and the high costs that come with it. Once implemented, this bill would eliminate wasteful subsidies that deepen gas reliance, increase efficiencies that can save all of us money and align utilities better with ratepayers to move away from our dependence on turbulent gas. We have the technology through increased efficiency and cleaner, safer, renewable fuels to avoid volatile utility bills and the health impacts that come from gas.”

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