The Governor’s Energy Office is seeking someone for a new, stimulus-funded position pushing energy-rate changes at the Public Utilities Commission, but the help-wanted sign has some concerned about rate hikes and state spending.
The plan is to encourage conservation by getting the PUC’s approval on new ways for customers to pay for energy, such as charging higher prices when demand peaks and less during off hours, the Energy Office says.
It’s unclear how much the new post will cost, but the salary will be “a small part” of a three-year, $1.3 million pot of federal American Recovery and Reinvestment Act money set aside for PUC liaisons and other projects, an office spokesman said.
The position has such defenders of traditional energy industries as state Rep. Frank McNulty, R-Highlands Ranch, fuming.
“It seems a little ridiculous of the Ritter administration to spend money lobbying another part of the Ritter administration,” McNulty said. “It boggles my mind that the Energy Office could justify spending those dollars in an effort to raise rates on families and businesses.”
Each of the three PUC members was appointed by Gov. Bill Ritter, the commission’s spokesman said.
Energy Office Director Tom Plant points out that building new power plants to accommodate growing demand for energy costs ratepayers too. Reducing demand will ultimately save customers money, he said.
“The goal is to design rate structures that will be more effective at managing demand while remaining revenue-neutral,” Plant said.
He wants to put “more of a market force on the cost of electricity so that customers have an opportunity to use electricity when it’s cheapest.”
Plant says no one staff member currently monitors or advocates before the commission.
Xcel Energy spokesman Mark Stutz said the Energy Office’s new position could repeat or clash with efforts of the Office of Consumer Counsel, the arm of state government that represents ratepayers’ interests before the PUC.
“We’re not sure whether it’s very necessary,” Stutz said.
The $1.3 million will also pay for the creation of a public database containing information on Colorado’s 57 electric utilities; consulting on new rate structures and upcoming PUC dockets; and extending rebate programs for energy-efficient appliances.
Jessica Fender: 303-954-1244 or jfender@denverpost.com
