| Notice Filed with SOS |
06/30/2021 |
| Rule |
ProposedRuleAttach2021-00395.doc |
| Additional Information |
AddInfoAttach2021-00395.pdf |
| Statutory Authority |
The statutory authority for the rules proposed here is found at §§ 24-4-101 et seq. |
| Description of Subjects/Issues |
The purpose of this Notice of Proposed Rulemaking is to address, on a prospective basis, the recovery of gas costs incurred by Colorado natural gas utilities to address the potential for increased volatility in gas costs, especially in the wake of the extreme weather event that occurred in February 2021. As explained below, we seek to ensure that the incurrence and recovery of natural gas costs are accomplished in a way that is equitable to both the utilities and their customers. We aim to reexamine the policies around how utilities buy natural gas, manage their supply operations, and experience the associated cost impacts along with their customers. We will engage with the gas utilities and other interested stakeholders in realigning the financial incentives faced by the Colorado gas utilities. We specifically examine potential modifications to the Gas Cost Adjustment (GCA) rate mechanism framework with the goals of opening up opportunities for the utilities to secure profits when achieving savings in gas costs and of preventing utilities and their natural gas commodity suppliers from taking for granted dollar-for-dollar recovery of all incurred costs. |
| Purpose/Objective of Rule |
The purpose of this Notice of Proposed Rulemaking is to address, on a prospective basis, the recovery of gas costs incurred by Colorado natural gas utilities to address the potential for increased volatility in gas costs, especially in
the wake of the extreme weather event that occurred in February 2021. As explained below, we seek to ensure that the incurrence and recovery of natural gas costs are accomplished in a way that is equitable to both the utilities and their customers. We aim to reexamine the policies around how utilities buy natural gas, manage their supply operations, and experience the associated cost impacts along with their customers. We will engage with the gas utilities and other interested stakeholders in realigning the financial incentives faced by the Colorado gas utilities. We specifically examine potential modifications to the Gas Cost Adjustment (GCA) rate mechanism framework with the goals of opening up opportunities for the utilities to secure profits when achieving savings in gas costs and of preventing utilities and their natural gas commodity suppliers from taking for granted dollar-for-dollar recovery of all incurred costs. |
| Basis And Purpose |
BasisAndPurposeAttachment2021-00395.pdf
|
| Comments |
On January 17, 2023 the Commission issued a decision adopting rules revisions. Applications for rehearing, reargument or reconsideration were filed on February 6, 2023 and on February 16, 2023 the Commissioned denied the applications as moot. The rules became final on February 16, 2023 |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
08/26/2021 |
| Hearing Time |
09:00 AM |
| Hearing Location |
Hearing will take place, online, using the Zoom platform for video conferencing. |
| Contact Name |
Becky Quintana |
| Contact Title |
Deputy Director Commission Policy and Research Support |
| Contact Telephone |
303-894-2881 |
| Contact email |
rebecca.quintana@state.co.us |