Commission discusses risks of proposed $100M on-bill financing program

In a recent government meeting held on July 11, 2025, discussions centered around the proposed On-Bill Financing Program by the Public Service Company, which aims to provide financial support for energy efficiency improvements. The program is projected to have a significant budget of $100 million, raising concerns about its potential impact on residents and the community.

Key discussions highlighted the expectation that the Colorado Clean Energy Fund (CCEF) would fully fund the program. However, there were uncertainties regarding the availability of additional funding beyond the initial commitment. Participants noted that while customer interest in similar financing products has been observed in other jurisdictions, there was a lack of concrete evidence about the funding sources for this ambitious program.

Concerns were also raised about the financial risks associated with the program. Some participants warned that the On-Bill Financing Program could lead to financial hardships for participants if they take on excessive debt. This is particularly concerning given that this type of program has never been approved in Colorado before, and any new initiative carries the risk of unintended consequences.

The discussions underscored the delicate balance between providing necessary funding for energy efficiency and ensuring that residents do not face increased financial burdens. A larger program budget could potentially lead to greater risks, such as higher monthly bills or even disconnections for non-payment. Conversely, an underfunded program might not meet the state's energy efficiency goals, creating a different set of challenges.

As the commission considers the recommendations and potential guidelines for the program, the outcomes of this meeting will play a crucial role in shaping the future of energy financing in Colorado. The community will be watching closely to see how these decisions will impact their financial well-being and the state's commitment to energy efficiency.