Xcel’s proposed on-bill financing draws scrutiny on contract, disconnections and interest terms

An evidentiary hearing before the Colorado Public Utilities Commission on July 10 focused on Public Service Company of Colorado’s proposal to offer a tariffed on-bill financing (TOBF) program using capital from the Colorado Clean Energy Fund (CCEF).

The company’s witness, Patrick Murphy (manager of program policy and strategy, Xcel Energy Services), told the commission that CCEF has committed $10,000,000 to launch the program and CCEF and the company expect the program could grow to support up to $25,000,000 of principal during the initial three‑year term. Murphy said negotiations with CCEF are ongoing and the company does not plan to file a fully executed third‑party contract with the commission.

Why it matters: parties say the contract, the financing terms and how nonpayment would be handled determine the program’s risk profile for customers, the utility and the third‑party lender. Several intervenors urged either narrower pilot limits or that the commission require more detail before approving a broad program.

Key program elements and outstanding items

- Capital and limits: Murphy said CCEF committed $10 million initially; company testimony and rebuttal describe an initial capital target “up to $25 million” for the three‑year launch. The company proposed a per‑premises financing cap of $50,000 (the company had previously proposed $75,000); several parties urged much lower caps (staff recommended $15,000). Murphy said the company also proposed limiting the three‑year program’s total financing budget to $25,000,000.

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