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HB26-1246 • 2026

Consumer-Regulated Electric Utilities

The bill defines a "consumer-regulated electric utility" as an electric generation and supply system constructed for the sole purpose of serving new industrial, commercial, data center, or other nonre

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. K. DeGraaf
Last action
2026-03-12
Official status
House Committee on Energy & Environment Lay Over Unamended - Amendment(s) Failed
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on how permits and safety requirements will be enforced for facilities built in public spaces.

Consumer-Regulated Electric Utilities

This bill defines a new type of electric utility that serves specific nonresidential customers and exempts it from public utility regulation unless it connects to the main power grid.

What This Bill Does

  • Defines 'consumer-regulated electric utility' as an electricity system built for new industrial, commercial, data center, or other nonresidential loads not previously served by a regular provider.
  • States that these utilities are not considered public utilities and do not need approval from the Public Utilities Commission unless they connect to the main power grid.
  • Requires consumer-regulated electric utilities to follow federal, state, and local laws regarding environmental protection, building codes, workplace health, and storm cleanup.

Who It Names or Affects

  • New industrial, commercial, data center, or other nonresidential customers who need electricity
  • Consumer-regulated electric utilities that serve new loads not previously served by regular providers

Terms To Know

consumer-regulated electric utility
An electricity system built for specific nonresidential customers and exempt from public utility regulation unless it connects to the main power grid.
public utilities commission (commission)
The state agency that regulates public utilities, but does not regulate consumer-regulated electric utilities unless they connect to the main power grid.

Limits and Unknowns

  • Does not specify what happens if a consumer-regulated utility decides to interconnect with the main power grid.
  • Does not provide details on how permits and safety requirements will be enforced for facilities built in public spaces.
  • The bill's effectiveness date is not provided.

Bill History

  1. 2026-03-12 House

    House Committee on Energy & Environment Lay Over Unamended - Amendment(s) Failed

  2. 2026-02-18 House

    Introduced In House - Assigned to Energy & Environment

Official Summary Text

The bill defines a "consumer-regulated electric utility" as an electric generation and supply system constructed for the sole purpose of serving new industrial, commercial, data center, or other nonresidential loads not previously served by a provider of retail electric service.
The bill states that a consumer-regulated electric utility is not a public utility and is not subject to regulation by the public utilities commission (commission), unless the consumer-regulated electric utility elects to interconnect with the electric grid in a service territory of a public utility that is subject to regulation by the commission.
A consumer-regulated electric utility may construct and operate a facility within an existing public right-of-way, subject to applicable permitting, restoration, and public safety requirements.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text 
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0779.01 Clare Haffner x6137 HOUSE BILL 26-1246
House Committees Senate Committees
Energy & Environment
A BILL FOR AN ACT
CONCERNING THE ESTABLI SHMENT OF CONSUMER -REGULATED101
ELECTRIC UTILITIES TO SERVE NEW NONRESIDENTIAL ELECTRIC102
LOADS, AND , IN CONNECTION THEREWITH , EXEMPTING103
CONSUMER-REGULATED ELECTRIC UTILITIES FROM CERTAIN104
PUBLIC UTILITY REGULATIONS WHILE MAINTAINING OVERSIGHT105
FOR PUBLIC SAFETY AND ENVIRONMENTAL PROTECTION.106
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill defines a "consumer-regulated electric utility" as an
HOUSE SPONSORSHIP
DeGraaf,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
electric generation and supply system constructed for the sole purpose of
serving new industrial, commercial, data center, or other nonresidential
loads not previously served by a provider of retail electric service.
The bill states that a consumer-regulated electric utility is not a
public utility and is not subject to regulation by the public utilities
commission (commission), unless the consumer-regulated electric utility
elects to interconnect with the electric grid in a service territory of a
public utility that is subject to regulation by the commission.
A consumer-regulated electric utility may construct and operate a
facility within an existing public right-of-way, subject to applicable
permitting, restoration, and public safety requirements.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 3.7 to title2
40 as follows:3
ARTICLE 3.74
Consumer-Regulated Electric Utilities5
40-3.7-101. Legislative declaration.6
(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:7
(a) RELIABLE, AFFORDABLE, AND SUFFICIENT ELECTRICITY SUPPLY8
IS VITAL TO ECONOMIC GROWTH AND PUBLIC WELFARE;9
(b) N EW INDUSTRIAL , COMMERCIAL , AND DATA CENTER10
DEVELOPMENTS REQUIRE RAPID ACCESS TO ELECTRICITY SUPPLIES11
WITHOUT SHIFTING COSTS OR RISKS TO EXISTING RATEPAYERS;12
(c) CONSUMER-REGULATED ELECTRIC UTILITIES ARE PRIVATELY13
GOVERNED ELECTRICITY PROVIDERS SERVING NEW , NONRESIDENTIAL14
LOADS;15
(d) IT IS THE POLICY OF THE STATE TO PERMIT THE CREATION OF16
CONSUMER -REGULATED ELECTRIC UTILITIES , WHICH OPERATE17
INDEPENDENTLY OF THE STATE-REGULATED PUBLIC UTILITY SYSTEM; AND18
(e) CONSUMER-REGULATED ELECTRIC UTILITIES REMAIN SUBJECT19
HB26-1246-2-
TO ENVIRONMENTAL, SAFETY, AND WORKPLACE LAWS AND REGULATIONS1
THAT PROTECT THE PUBLIC INTEREST , WHILE OTHERWISE OPERATING2
OUTSIDE OF PUBLIC UTILITY STATE REGULATION.3
40-3.7-102. Consumer-regulated electric utilities - definition.4
(1) A S USED IN THIS ARTICLE 3.7, "CONSUMER-REGULATED5
ELECTRIC UTILITY" MEANS AN ELECTRIC GENERATION AND SUPPLY SYSTEM6
CONSTRUCTED ON OR AFTER THE EFFECTIVE DATE OF THIS ARTICLE 3.7 FOR7
THE SOLE PURPOSE OF SERVING NEW INDUSTRIAL , COMMERCIAL, DATA8
CENTER, OR OTHER NONRESIDENTIAL LOADS NOT PREVIOUSLY SERVED BY9
A PROVIDER OF RETAIL ELECTRIC SERVICE.10
(2) A CONSUMER -REGULATED ELECTRIC UTILITY MAY OWN OR11
OPERATE A FACILITY NECESSARY FOR ELECTRIC GENERATION , ENERGY12
STORAGE, TRANSMISSION, DISTRIBUTION, OR THE SUPPLY OF ELECTRICITY.13
A CONSUMER-REGULATED ELECTRIC UTILITY MAY SELL ELECTRICITY AT14
RETAIL TO ELIGIBLE CUSTOMERS IF THE CONSUMER-REGULATED ELECTRIC15
UTILITY IS FULLY CONTAINED WITHIN THE STATE AND IS PHYSICALLY16
ISLANDED FROM THE ELECTRIC GRID AND FROM A PUBLIC UTILITY THAT IS17
REGULATED BY THE COMMISSION.18
40-3.7-103. Exemption from public utility regulation.19
(1) A CONSUMER-REGULATED ELECTRIC UTILITY IS NOT A PUBLIC20
UTILITY AND IS NOT SUBJECT TO REGULATION AS A PUBLIC UTILITY .21
NOTHING IN THIS TITLE 40 APPLIES TO A CONSUMER-REGULATED ELECTRIC22
UTILITY EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 3.7. THE23
COMMISSION HAS NO JURISDICTION TO REGULATE A24
CONSUMER-REGULATED ELECTRIC UTILITY EXCEPT FOR THE AUTHORITY25
EXPRESSLY GRANTED IN THIS ARTICLE 3.7.26
(2) A CONSUMER-REGULATED ELECTRIC UTILITY IS SUBJECT TO27
HB26-1246-3-
APPLICABLE FEDERAL , STATE , AND LOCAL LAWS AND REGULATIONS ,1
INCLUDING:2
(a) ENVIRONMENTAL PROTECTION AND PERMITTING LAWS;3
(b) BUILDING AND FIRE CODES;4
(c) WORKPLACE HEALTH AND SAFETY STANDARDS; AND5
(d) STORM-DEBRIS REMOVAL AND RIGHT-OF-WAY MAINTENANCE6
REQUIREMENTS FOR A CONSUMER-REGULATED ELECTRIC UTILITY LOCATED7
WITHIN A PUBLIC RIGHT-OF-WAY.8
(3) A CONSUMER-REGULATED ELECTRIC UTILITY THAT ELECTS TO9
INTERCONNECT WITH THE ELECTRIC GRID IN A SERVICE TERRITORY OF A10
PUBLIC UTILITY THAT IS SUBJECT TO REGULATION BY THE COMMISSION:11
(a) S HALL COMPLY WITH APPLICABLE INTERCONNECTION12
REQUIREMENTS PURSUANT TO SECTION 40-2-124; AND13
(b) W HEN INTERCONNECTED , CEASES TO BE A14
CONSUMER-REGULATED ELECTRIC UTILITY AND BECOMES A PUBLIC15
UTILITY SUBJECT TO REGULATION UNDER ARTICLES 1 TO 7 OF THIS TITLE16
40.17
40-3.7-104. Facilities located within public rights-of-way.18
A CONSUMER-REGULATED ELECTRIC UTILITY MAY CONSTRUCT AND19
OPERATE A FACILITY WITHIN AN EXISTING PUBLIC RIGHT-OF-WAY, SUBJECT20
TO APPLICABLE PERMITTING , RESTORATION , AND PUBLIC SAFETY21
REQUIREMENTS . A PUBLIC ENTITY THAT REVIEWS A22
CONSUMER-REGULATED ELECTRIC UTILITY'S APPLICATION FOR USE OF A23
PUBLIC RIGHT -OF-WAY SHALL FOCUS THE REVIEW ON PUBLIC SAFETY ,24
ENVIRONMENTAL PROTECTION , ADEQUACY OF RIGHT -OF-WAY25
RESTORATION, AND STORM-RESPONSE PLANS.26
40-3.7-105. Construction and severability.27
HB26-1246-4-
(1) THIS ARTICLE 3.7 SHALL BE LIBERALLY CONSTRUED FOR THE1
PURPOSE OF ENCOURAGING THE ESTABLISHMENT OF2
CONSUMER-REGULATED ELECTRIC UTILITIES TO SERVE NEW LOADS AND3
PROMOTE ECONOMIC DEVELOPMENT.4
(2) IF ANY PROVISION OF THIS ARTICLE 3.7 IS HELD INVALID, SUCH5
INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OF THIS ARTICLE 3.7,6
WHICH CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION.7
SECTION 2. Safety clause. The general assembly finds,8
determines, and declares that this act is necessary for the immediate9
preservation of the public peace, health, or safety or for appropriations for10
the support and maintenance of the departments of the state and state11
institutions.12
HB26-1246-5-