State regulators are investigating how power utilities profit from the energy they sell to determine whether changes are needed.
The Colorado Public Utilities Commission is studying whether there are alternatives to the current fixed-rate-of-return model and if there are proper incentives for utilities to operate more efficiently. Regulators are also looking at alternatives to so-called adjustment clauses, which are fees utilities add to consumer bills, such as the renewable-energy surcharge.
The changing regulatory and industry environment, where utilities are being encouraged to boost renewables and efficiencies, spurred the investigation, PUC spokesman Terry Bote said.
“The regulatory landscape has changed quite a bit in recent years, and the commission just wanted to take a look at the current regulatory scheme and incentives and see if they are still valid,” Bote said.
Bote stressed that the review of surcharges is just one aspect of the probe. The commission is soliciting public input on the scope of the investigation, which launched April 29 and is set to be completed by the end of the year.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
