C07-0386Decision No. C07-0386
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO
07R-166EDOCKET NO. 07R-166E
IN THE MATTER OF THE PROPOSED RULES IMPLEMENTING RENEWABLE ENERGY STANDARDS 4 CCR 723-3.
NOTICE OF PROPOSED RULEMAKING
Mailed Date:  May 11, 2007
Adopted Date:  May 9, 2007
I.	BY THE COMMISSION
A.	Statement
1.	The Colorado Public Utilities Commission (Commission) gives notice of a proposed rulemaking regarding its rules pertaining to the implementation and regulation of the renewable energy standard as required pursuant to § 40-2-124, C.R.S.  The intent of the limited rulemaking is to revise and clarify the existing renewable energy standard rules contained in 4 Code of Colorado Regulations (CCR) 723-3-3650, et seq. as a result of the passage and signing of House Bill 07-1281.  The bill became law on March 27, 2007.
2.	House Bill 07-1281, among other things, expands the compliance percentages of the renewable energy standard for investor owned Qualifying Retail Utilities (QRUs) in order to reach a goal of 20 percent of their electric energy portfolio to be generated by specific technologies by the year 2020.  It also requires both municipally owned QRUs, with greater than 40,000 customers, and all cooperative electric associations to meet a compliance percentage of 10 percent by the year 2020.  The bill further adds “recycled energy” as an eligible energy resource, provides incentives for the development of certain types of energy resources within Colorado, provides additional incentives to QRUs to develop and own eligible energy resources, and clarifies certain provisions surrounding the maximum retail rate impacts to achieve the new renewable energy standards.
3.	In Docket No. 05R-112E, the Commission adopted the initial renewable energy standard rules.  The Commission stated that it would re-examine these rules following the completion of one compliance cycle.  Because a complete compliance cycle for the current QRUs has not been completed, we are limiting this rulemaking to address only the necessary changes from House Bill 07-1281.  Based on our experience in the original rulemaking, it is highly unlikely that if we opened this rulemaking to address any aspect of the renewable energy standard rules, we could complete our work by the October 1, 2007 deadline contained in HB 07-1281.
4.	In Docket No. 06R-492E, the Commission adopted additional changes to the electric rules as part of its repeal and reenactment process originally commenced in Docket No. 03R-519E.  We adopted the changes for the renewable energy standard (rules 3650 through 3665) recommended by the Administrative Law Judge at our weekly meeting of April 25, 2007.  However, these changes are not scheduled to take effect until August 31, 2007.  Therefore, for ease of reference, the attached, proposed redline rules begin with the renewable energy standard rules with the most recent changes already included.  The proposed redline version of the renewable energy standard rules, with the exception of Rule 3665 – Interconnection, is attached to this order.
5.	The statutory authority for the rules proposed here is found at §§ 24-4-101, C.R.S. et seq., 40-1-101, et seq., 40-2-108, 40-3-102, 40-3-103, 40-4-101, and 40-4-108.
6.	The Commission en banc will conduct a hearing on the proposed rules and related issues at the below stated time and place.  Interested persons may submit written comments on the rules and present these orally at hearing, unless the Commission deems oral presentations unnecessary.  The Commission also encourages interested persons to submit written comments before the hearing scheduled in this matter.  In the event interested persons wish to file comments before the hearing, the Commission requests that such comments be filed no later than June 11, 2007.  Reply comments should be submitted by June 21, 2007.  The Commission requests that interested persons submitting comments do so both in paper and electronic format.  The Commission may post electronically submitted comments to its web site.  The Commission will consider all submissions.
7.	Finally, the Commission reiterates its intention to keep this rulemaking focused on rule changes that are required to comport our rules with the new law.  Parties should constrain their comments to these rule changes and not venture into other areas at this time.  Following the completion of one full cycle of practice under the renewable energy rules, the Commission will consider other rule modifications that parties may wish to advocate.
8.	A hearing in this matter is scheduled as follows:
	DATE:	July 2, 2007 if necessary July 3, 2007
	TIME:	9:00 a.m.
PLACE:	Commission Hearing Room
1560 Broadway, Suite 250
Denver, Colorado
II.	ORDER
A.	The Commission Orders That:
1.	This Notice of Proposed Rulemaking shall be filed with the Colorado Secretary of State for publication in the June 11, 2007 edition of The Colorado Register.
2.	A hearing on the proposed rules and related matters shall be held before the Commission en banc as follows:
	DATE	July 2, 2007 if necessary July 3, 2007
	TIME:	9:00 a.m.
	PLACE:	Commission Hearing Room
	1560 Broadway, Suite 250
	Denver, Colorado
At the time set for hearing in this matter, interested persons may submit written comments and may present these orally unless the Commission deems oral comments unnecessary.
3.	Interested persons may file written comments in this matter before hearing.  The Commission requests that such pre-filed comments be submitted in both paper and electronic format no later than June 11, 2007.  Reply comments should be submitted by June 21, 2007.  All submissions, whether oral or written, will be considered by the Commission.
4.	This Order is effective upon its Mailed Date.
B.	ADOPTED IN COMMISSIONERS’ WEEKLY MEETING 
May 9, 2007.

	THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF COLORADO

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Commissioners

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