§ 40-41-103. Financing Orders – Application Requirements

1. An electric utility, in its sole discretion, may apply to the commission for a financing order as authorized by this section.
2. 1. An investor-owned or other regulated electric utility may file an application for approval to issue CO-EI bonds in one or more series, impose, charge, and collect CO-EI charges, and create CO-EI property related to:
      1. The retirement of an electric generating facility in Colorado that has previously been approved by the commission; or
      2. Other programs or projects as approved by the commission, including programs or projects to mitigate the effects of extreme weather, wildfires, climate change, or other hazards.
   2. An electric utility that is not regulated may file an application for approval to issue CO-EI bonds in one or more series, impose, charge, and collect CO-EI charges, and create CO-EI property related to:
      1. The retirement of an electric generating facility in Colorado; or
      2. Other programs or projects as approved by the commission, including programs or projects to mitigate the effects of extreme weather, wildfires, climate change, or other hazards.
   3. The commission shall take final action to approve, deny, or modify any application for a financing order as described in subsection (2)(a) or (2)(b) of this section in a final order issued in accordance with the commission’s rules for addressing applications.
   4. Notwithstanding any other provision of law, the commission shall not approve the issuance of, nor shall an electric utility issue, CO-EI bonds to finance the payment of damages for a wildfire or other liability of the electric utility.
3. 1. An application for a financing order must include the following information:
      1. A description of the CO-EI costs that the applicant proposes to recover with the proceeds of the CO-EI bonds;
      2. An estimate of the financing costs related to the CO-EI bonds;
      3. An estimate of the CO-EI charges necessary to pay the CO-EI costs and all financing costs, and the period over which such costs will be recovered, including the proposed scheduled and final maturity of the CO-EI bonds;
      4. A proposed methodology for allocating the revenue requirement for the CO-EI charge among customer classes, including special contract customers;
      5. A description of the nonbypassable CO-EI charge required to be paid by customers within the electric utility’s service area for recovery of CO-EI costs and a proposed adjustment mechanism reflecting the allocation methodology referred to in subsection (3)(a)(IV) of this section;
      6. An estimate of the timing of the issuance of the CO-EI bonds or series of bonds; and
      7. An estimate of the net projected cost savings or a demonstration of how the issuance of CO-EI bonds and the imposition of CO-EI charges would avoid or significantly mitigate rate impacts to customers as compared with traditional methods of financing and recovering CO-EI costs from customers.
   2. In addition to furnishing the information specified in subsection (3)(a) of this section, an applicant shall:
      1. Specify a future rate-making process to reconcile any difference between the CO-EI costs financed by CO-EI bonds and the final CO-EI costs incurred by the utility or the assignee. The reconciliation may affect the electric utility’s base rates or any rider adopted pursuant to section 40-41-104 (4), but shall not affect the amount of the bonds or the associated CO-EI charges paid by customers.
      2. Provide direct testimony supporting the application.

Source: L. 2019: Entire article added, (SB 19-236), ch. 359, p. 3320, § 26, effective May 30. L. 2021: (2)(a) and (2)(b) amended and (2)(d) added, (SB 21-272), ch. 220, p. 1162, § 10, effective June 10.

Editor’s note: Section 14 of chapter 220 (SB 21-272), Session Laws of Colorado 2021, provides that the act changing this section applies to conduct occurring on or after June 10, 2021.