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ColoradoHB25-11772025 Regular SessionHouse

Utility Economic Development Rate Tariff Adjustments

Sponsored By: Byron Pelton (Republican), Nick Hinrichsen (Democratic), Tisha Mauro (Democratic), Ty Winter (Republican)

Signed by Governor

Energy

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Power discounts must protect other customers

Approved business power discounts must serve the public interest and stay below the customer’s otherwise applicable rate. They cannot fall below the utility’s added cost of service, directly raise other customers’ costs, or waive greenhouse-gas reduction duties. Contract terms must prevent other customers from subsidizing the discounted service. Reviews must consider wholesale charges, effects on other transmission owners and users, and added costs over the contract, including power, maintenance, equipment, overhead, taxes, and fees. A utility-developed economic benefit test, reviewed by the commission, must assess all customer groups and quantify net state and local taxes, full-time jobs, and community benefits.

Business power discounts can last longer

The usual maximum business power discount term is 10 years. Utilities can seek commission approval for longer terms, capped at 25 years. The commission must weigh project length, community effects, and impacts on other customers’ rates. The law also extends the economic development rate framework’s repeal date from January 1, 2028, to January 1, 2035.

Businesses gain more clean power options

Investor-owned utilities can seek approval to expand voluntary clean energy programs for qualifying customers when existing capacity is insufficient. They can add generation capacity and energy to meet current and expected demand. The program must have commission approval before the customer requests expansion, and the customer must meet program requirements. The commission must also approve the expansion. This authority ends January 1, 2035.

Large power projects get decision deadlines

For single-location additions of 41–150 megawatts, the commission must approve or deny discount applications within 120 days. For additions above 150 megawatts, it has 210 days. Both clocks start after a 14-business-day notice period, and these large-project deadline rules end January 1, 2035. A separate rule gives the commission 120 days after that notice period when the utility lacks an approved discount rate schedule. That separate rule is repealed June 1, 2026.

Business power discounts get new approval rules

Qualifying commercial or industrial customers must add at least 3 megawatts at one location and show electricity costs strongly affect their location decision. Customers moving or transferring power demand from another utility’s territory are excluded. Investor-owned utilities can negotiate discounts for additions up to 40 megawatts without separate approval, using an approved rate schedule. Larger additions need Public Utilities Commission approval and a public-interest finding. For 21–40 megawatts, the commission can require cost evidence, power-flow and reliability studies, protection against shifting infrastructure costs, and—above 21 megawatts—added community benefits.

Sponsors & Cosponsors

Sponsors

  • Byron Pelton

    Republican • Senate

  • Nick Hinrichsen

    Democratic • Senate

  • Tisha Mauro

    Democratic • House

  • Ty Winter

    Republican • House

Cosponsors

  • Chad Clifford

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 112 • No: 8

Senate vote • 4/28/2025

Third reading: Bill

Yes: 30 • No: 4

Senate vote • 4/23/2025

Refer House Bill 25-1177 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 9 • No: 0

House vote • 4/3/2025

Third reading: Bill

Yes: 62 • No: 3

House vote • 3/20/2025

Refer House Bill 25-1177, as amended, to the Committee of the Whole.

Yes: 11 • No: 1

Actions Timeline

  1. Governor Signed

    5/19/2025House

  2. Signed by the Speaker of the House

    5/6/2025House

  3. Signed by the President of the Senate

    5/6/2025Senate

  4. Sent to the Governor

    5/6/2025House

  5. Senate Third Reading Passed - No Amendments

    4/28/2025Senate

  6. Senate Second Reading Special Order - Passed - No Amendments

    4/25/2025Senate

  7. Senate Committee on Transportation & Energy Refer Unamended - Consent Calendar to Senate Committee of the Whole

    4/23/2025Senate

  8. Introduced In Senate - Assigned to Transportation & Energy

    4/7/2025Senate

  9. House Third Reading Passed - No Amendments

    4/3/2025House

  10. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/2/2025House

  11. House Second Reading Laid Over Daily - No Amendments

    3/25/2025House

  12. House Committee on Energy & Environment Refer Amended to House Committee of the Whole

    3/20/2025House

  13. Introduced In House - Assigned to Energy & Environment

    2/10/2025House

Bill Text

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