Task force debates using CPI for annual tow-rate adjustments as carriers cite steep insurance and equipment cost increases

The task force reviewed PUC practice of applying an annual inflation adjustment to maximum tow rates and heard industry feedback that the consumer price index (CPI) used may not reflect costs specific to towing companies.

Nathan Riley said the PUC used the Colorado Department of Local Affairs' CPI for Denver, Aurora and Lakewood and applied a 5.21% increase for the 2023 calendar year, effective March 15. "It was 5.21 percent. That was the 2023 CPI," he said. He added that the PUC posts the monthly fuel surcharge history and updates mileage/fuel surcharges monthly.

Industry members said insurance and equipment costs have risen far higher than the CPI. John Connolly said the CPI "doesn't capture everything the industry goes through," noting equipment and insurance jumps; another carrier reported renewal increases of 26% or higher for insurance. A larger carrier said some operators saw insurance increases of 30%–60% and that truck prices for light‑duty wreckers rose sharply in the past two years.

Members discussed possible alternatives: narrower industry-specific indexes, a Colorado statewide average instead of a Denver‑metro CPI to better reflect rural operators' costs, or conducting an industry survey to capture equipment and insurance trends. Staff said historic CPI numbers and the CDOLA dataset are easy to access and that no obvious superior dataset had been identified during prior research.

The group did not adopt a new metric at the meeting; members agreed to continue researching alternative indices and to report findings at a future meeting.