ALJ recommends suspending Colorado Natural Gas tariff language after company challenges statute
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Summary
An administrative law judge recommended suspending contested tariff sheets from Colorado Natural Gas after the company filed them under protest and raised a constitutional challenge to Colorado statute 40‑3.2‑104.3, which bars certain construction and line‑extension allowances, UCA staff told the Utility Consumers Board.
Leslie Sermos, supervisory rate financial analyst for Utility Consumers Advocate (UCA) staff, briefed the board on proceeding 238‑03‑0635G, a Colorado Natural Gas (CNG) tariff compliance matter. "This case involves Colorado Natural Gas and the resistance to implementing straightforward statutory requirements that protect ratepayers," Sermos said.
Sermos said Colorado statute 40‑3.2‑104.3 prohibits utilities from offering construction allowances and line‑extension allowances as incentives for establishing new gas service. CNG filed updated tariff sheets by the statutory deadline but submitted them "under protest," challenging the statutory requirement and asking the commission to interpret the statute in a way that would avoid alleged constitutional problems.
UCA’s position, as described by Sermos, was procedural and textual: the commission lacks authority to make final constitutional rulings and the appropriate forum for a constitutional challenge is a district court declaratory judgment action. UCA filed testimony and recommended tariff language to assist CNG in complying with statute. "We provided CNG with commission decisions and commission‑approved tariffs from other utilities to serve as templates," Sermos said.
On Oct. 14 the administrative law judge (ALJ) issued a recommended decision reaffirming the General Assembly’s directive and suspended the contested tariff sheets, directing CNG to file a revised tariff that eliminates the incentives the statute prohibits. Sermos framed the outcome as part of a broader pattern: utilities seeking procedural workarounds rather than complying with legislative directives on decarbonization and ratepayer protections.
The board discussed the matter briefly and UCA staff said it would circulate the ALJ decision link and continue to monitor filings; staff asked members who have questions about the decision to consult the posted document and contact staff for details. No board action was required at the meeting.