Advisory staff told the Colorado Public Utilities Commission that Public Service Company of Colorado filed a motion to reopen a 2020 economic development rate (EDR) settlement to correct an error in how jurisdictional wholesale allocation was treated and to require future EDR customers to be subject to the Transmission Cost Adjustment (TCA) and the Purchased Capacity Cost Adjustment (PCCA).

Staff summarized that 2 customers have taken service under the EDR and that Public Service says it discovered the settlement language is incompatible with its FERC‑approved wholesale transmission and production tariffs. If the commission approves the change, the utility said, costs and revenues from EDR customers would be allocated to retail customers consistent with FERC precedent, and future EDR customers would contribute to TCA and PCCA riders.

Commissioner reaction and concerns
Commissioner Gilman raised procedural concerns about reopening a proceeding whose record has been closed for years and emphasized the reliance interests of the two customers who negotiated contracts based on prior approvals. He said, in part, that loss of the FERC jurisdictional revenue source may be a “material change” that requires further examination of prior approvals.

Commissioner Gilman also highlighted questions about marginal cost modeling in the company's Attachment C analysis and whether the assumptions (for example, combustion turbine capital costs or modeled transmission investment) reflect current realities. Several commissioners asked staff, counsel and the company for additional review and to bring the matter back for further consideration; some indicated they were prepared to approve limited relief for the two existing EDR customers based on reliance interests but wanted to avoid a broader rule change without fuller process.

Quote from staff: “The motion asks the Commission to reopen this proceeding, approve the modifications to the EDR settlement, and authorize the company in this proceeding to amend its nonstandard EDR contract with QTS by filing a notice in that other case.”

Next steps
Commissioners asked for more analysis from advisory staff and counsel and indicated they would revisit the matter after briefing. The commission did not adopt an immediate final disposition on the settlement amendment at the Nov. 5 meeting.

Speakers and sourcing
The summary is based on advisory staff remarks presented by Ron Davis and on commissioner remarks recorded during Nov. 5 deliberations.