PUC to deny exceptions on Public Service Company renewable plan but flags community solar costs

The Public Utilities Commission on March 18 signaled it will deny exceptions to the Administrative Law Judge’s recommended decision approving a settlement in Public Service Company of Colorado’s 2026–27 renewable energy compliance plan but recorded commissioners’ concerns about the scale and cost of expanded standalone community solar.

Advisory staff member Erin Hardick summarized the case history and settlement: Public Service filed a 2026–27 renewable plan proposing roughly 230 megawatts of distributed energy resources for the two-year plan and an initial $730,000,000 budget. The settlement seeks approval of required dispatchable distributed generation (DDG) components under Senate Bill 24207, an inclusive community solar (ICS) program, and a simplified cost recovery approach allocating distributed energy resource costs to the Renewable Energy Standard Adjustment (RESA) and other costs to the Electric Commodity Adjustment (ECA). Hardick said the settlement added a supplemental DDG component capped at $110,000,000 and rolled 206 MW of standalone community solar capacity estimated at about $485,000,000 from an earlier program, producing a total plan budget of approximately $1,260,000,000. She also noted ALJ Recommended Decision R260064 approved the settlement and denied contested requests; Energy Outreach Colorado (EOC) filed exceptions seeking $25,000,000 of accumulated RESA surplus funds for income-qualified bill assistance.

"The total plan budget is approximately $1,260,000,000," Hardick said, and described the settlement's components and contested issues.

Chair Eric Blank said he supports the statute's goals and the DDG and ICS components but voiced worry that the standalone Solar Rewards Community (SRC) expansion — the 206 MW and roughly $484 million figure he cited — may not deliver commensurate system benefits. Blank proposed adopting the recommended decision while documenting his concerns and encouraging EOC to pursue the $25,000,000 bill-assistance request in a separate proceeding such as a Public Service rate case to build a stronger record on cost-recovery and legal authority.

"I'm struggling with spending $484,000,000 on a CSG resource that doesn't meaningfully address these core concerns," Blank said.

Commissioner Guttman agreed with denial of the exceptions as recommended but urged continued work to optimize how distributed resources, storage and load interact on the system. Commissioner Plant emphasized technical caution over relying on single ELCC (effective load-carrying capability) numbers, noting that storage duration and pairing with solar materially change ELCC values and that system-level integration is needed.

Hardick confirmed staff understood the direction and that she had what was needed to draft an initial order for a TBC review reflecting the commissioners' concerns. The commission did not adopt a final order at the meeting; it directed staff to prepare decision language denying EOC's exceptions while documenting sympathy for the bill-assistance goal and suggesting alternative procedural paths.

Why it matters: The settlement advances DDG and ICS programs intended by statute, but commissioners' reservations highlight tension between statutory delivery of community solar capacity and scrutiny over large program costs and whether the approach best serves income-qualified customers.

Next steps: Staff will draft an initial order for TBC review reflecting the denial of exceptions and commissioners' guidance; a final decision will follow the commission's internal review and any required follow-up proceedings.