Highlights of PUC Deliberations on Amendment 37
by Ken Regelson
October 2005
The Colorado Public
Utility Commission (PUC) met in a deliberative meeting Friday,
October 7 as PUC staff presented their recommendations on the rules
to implement Amendment 37. As is the case in all PUC deliberative
sessions, the audience could watch but not speak. The commissioners
responded, questioned, discussed, and voted on the recommendations
and modifications. The meeting lasted 3.5 hours.
Ken’s notes from the Oct. 7 PUC
meeting.
Next steps for Amendment 37.
The commissioners and PUC staff were working from a 60-page document
that contained suggested wording from staff, and comments from other
parties, including Core-37, Xcel, Aquila, Tri-State, etc. As is
normal practice in deliberations, members of the audience are not
allowed to have a copy.
Notes from the
Meeting
These are not final rules but only deliberation, and things can
still change. Here are the highlights from the meeting:
- The rules will include the legislative intent of voters
embodied in the language on the ballot itself.
- Rebates should be fully retroactive to 1/1/2004 (not 12/1/2004
as proposed in compromise rules).
- Where Xcel has a contract with a generator that does not
mention RECs (e.g., many of the hydro facilities in Boulder), RECs
for compliance are created and belong to Xcel.
- The third party administrator was nixed as too expensive. They
did however adopt some specific rules to help insure transparency.
They generally acknowledged the concept of Amendment 37 being the
people’s rule and the people have rights to know that the standard
is being met.
- $19 million was mentioned several times as the starting annual
amount of the solar rebate pool.
- The concept of the solar rebate pool of money possibly being
larger than 1% seemed to be generally accepted. This means that we
can expect the savings from wind to be used as a credit to apply
against the 1% rate cap. They adopted a compromise on what to count.
Consider wind farms in three categories:
1. Lamar wind farm (and any other existing, already built
eligible renewable resource).
2. The remaining 60 MW wind farm in the 500 MW wind RFP (and any
renewables in the all-source RFP. i.e., wind farms not yet built,
but in progress in some fashion with Xcel and approved through the
PUC as part of the LCP process).
3. Future wind farms after the all-source. Core-37 would count
the savings from all three categories to be added to the pool for
solar rebates, which would likely reduce the rate impact below the
1% cap. Xcel would count only category three (3.). The PUC chose a
compromise of (2.) and (3.) for counting savings to be placed in the
solar rebate pool; all three categories would count for meeting the
standard.
- The increased costs for Amendment 37 will be included in a
separate line item on a customer’s bill. The question of whether
this would turn to a negative number when savings are achieved was
not addressed.
- A 10% cap of Xcel’s administration costs. This cap may be
waived, of course, as most anything can be at the PUC.
- Written initial rules to be issued by late November.
The above are my notes and recap of the meeting. In addition to
any errors in understanding that I may have, please note, again,
that any or all of the above is still subject to change by the PUC.
To be safe, one needs to wait until the rules are released (in
November, touch wood).
The following is my opinion.
While I disagree strongly with some of the positions the PUC
took, I was struck by the change in the tone and quality of the
discussion. I believe the commissioners and staffs are trying very
hard to figure out and implement the will of the people.
Next Steps
Up to 20 days after the rules are mailed, parties (probably anybody
that is interested in this case) may apply for Triple-R (re-hearing,
re-argument, or reconsideration). Triple-R allows a party to apply
to the Commission to clarify or include language in the rules, but
not to rehash old arguments. For example, it would be reasonable to
bring up the issue of the separate line item on a bill going
negative if this were not covered by the rules when they come out.
It would not be OK to ask the commissioners to revisit their
decision on the third party administrator. The commissioners are
required to respond to applications for Triple-R within 30 days
after the end of the 20 days.
Utilities write implementation plans after the rules are
finalized. Rebates start about 30 days after the implementation
plans are approved. |
