Consumer-Regulated Electric Utilities

Plain English: This amendment changes when the bill becomes law to allow time for citizens to collect signatures and potentially put it on a ballot vote.

• The bill will not take effect until August 12, 2026, which is ninety days after the legislative session ends.

• This amendment only changes the effective date and does not explain what rules or definitions are in the rest of the bill.
• The text assumes a specific end date for the legislative session (May 13, 2026) to calculate the start date.

Plain English: This amendment adds a new section to the bill that explains why creating separate electric systems for large customers is important and lists specific goals like protecting regular ratepayers.

• Adds a short title calling this law the 'Structurally Separate Consumer-Regulated Electric Utilities Act'.
• States that big nonresidential users need different power infrastructure than regular home or business customers.
• Declares that separate systems help prevent large costs from being passed on to regular electricity ratepayers.
• Notes that these new systems allow for faster development of power generation and encourage private investment.

• This amendment only adds a statement of purpose and does not include the specific rules or laws needed to actually create these separate electric utilities.

Plain English: This amendment replaces the original definition of a 'consumer-regulated electric utility' with new rules that define specific terms for large industrial customers who buy electricity through private contracts.

• Defines 'consumer-regulated electric service' as power sold via private contract to big users without affecting regular customer rates.
• Sets the size of a 'large-load customer' at any non-home business using fifty megawatts or more of electricity.
• Clarifies that a 'new large-load customer' is one starting fresh service or significantly expanding usage who was not previously served by a public utility.
• Describes a 'structurally separate electric system' as power facilities built for these big customers that do not connect to the main public grid, except where allowed.

• The amendment text only provides definitions and does not explain how this new service would be approved or enforced.
• It is unclear what specific exceptions are permitted under Section 40-3.7-103 for connecting to the public grid.

Plain English: This amendment allows large customers to build or buy their own separate power systems without being treated as a public utility subject to state rate rules.

• Large new electricity users can now develop, own, or contract for their own electric system that is physically separate from the main grid.
• These same users are allowed to get power from third-party providers who operate these separate systems.
• Companies providing this specific type of service will not be classified as public utilities just because they sell electricity.

• The text does not define exactly what qualifies a customer as 'new' or how large their load must be to use these rules.
• It is unclear from this amendment alone if there are safety standards or environmental limits for building these separate systems.

Plain English: This amendment creates strict rules to stop large private power systems from connecting to public electric grids in ways that make regular customers pay for the costs.

• Owners of separate, large-scale electric systems are generally banned from connecting their systems to a public utility's distribution grid or using its infrastructure if it shifts costs to regular ratepayers.
• Connections between these private systems and public utilities are only allowed for emergency backup power, reliability support, or specific high-level transmission authorized by law.
• Any connection that is permitted must be fully paid for by the large customer or system owner, with no recovery of those costs from other electricity customers.
• Public utility companies cannot be forced to provide service in a way that results in regular ratepayers paying for these separate systems.

• The amendment text does not define exactly what qualifies as 'reliability support' or the specific rates used for compensation.
• It is unclear how this rule applies to existing connections that were made before this law was passed.

Plain English: This amendment requires large industrial customers or their providers to pay for all power generation and system upgrade costs without passing those expenses on to regular home electricity users.

• Large-load customers must cover the full cost of generating, transmitting, and distributing electricity.
• These customers are responsible for paying any costs needed to connect their systems or keep them reliable.
• Any upgrades required specifically to serve these large loads cannot be charged to regular retail ratepayers.

• The amendment text does not define exactly what qualifies as a 'large-load customer' or the specific dollar amounts involved.
• It is unclear how this rule applies if costs are shared between multiple types of customers in complex situations.

Plain English: This amendment limits the state commission's power to audit new industrial electric systems only when there is a formal complaint or evidence of cost shifting, and prevents the commission from regulating rates unless a violation is found.

• The commission can only start an audit after receiving a formal complaint about cost shifting, finding proof of noncompliance, or getting a verified request from a public utility.
• Any audit must be limited strictly to checking for cost shifting and structural compliance with the new rules.
• The commission is forbidden from regulating electricity rates, reviewing contracts, or imposing standard public utility regulations unless it finds a violation first.
• If a violation is found, the commission can remove exemptions and require fixes, but this section does not create any new approval requirements.

• The amendment text provided only shows changes to specific pages of the bill, so it cannot explain how other parts of the law define 'consumer-regulated electric utilities' or what rules apply if no violation is found.
• Some terms like 'cost shifting' and 'structural compliance' are used without detailed definitions in this excerpt.

Plain English: This amendment adds new rules requiring large customers and providers with separate electric systems to prove they have enough power, plan for emergencies, and take full responsibility if their system causes outages.

• Large customers or providers running a structurally separate electric system must annually certify they have enough capacity.
• These operators must keep emergency plans ready and run their systems in ways that do not hurt the main power grid's reliability.
• The provider and large customer are fully responsible for any reliability issues and money lost if service is interrupted on their separate system.
• Public utilities and regular customers will not be held liable for outages caused by these separate systems unless they have a specific paid agreement to handle them.

• The amendment does not define exactly what counts as a 'structurally separate electric system' or the specific details required for contingency planning.
• It is unclear how regulators will check if operators are meeting these new annual certification requirements.

Plain English: This amendment clarifies that the new rules for consumer-regulated electric utilities do not allow anyone to skip existing environmental, land use, or transmission laws.

• The bill cannot be used to avoid following current environmental protection rules.
• Facilities must still follow all required siting and land use permits.
• Existing contracts between parties remain valid and are not changed by this law.
• Anyone using public infrastructure must pay full compensation at the time of use.

• The amendment does not explain what specific penalties exist if these rules are broken.
• It is unclear how 'full and contemporaneous compensation' will be calculated in practice.

Plain English: This amendment changes the bill's title to focus on allowing separate electric systems for large customers without raising costs for regular ratepayers.

• The official name of the bill is updated to describe its main purpose more clearly.

• This amendment only changes the title text and does not explain how the new electric systems will work or what rules they must follow.
• Because this change affects only the heading, it does not provide details on specific costs, customer types, or safety requirements.

Plain English: This amendment encourages companies building new electric systems for large customers to hire local workers and pay competitive wages, but it does not make these actions mandatory.

• It suggests that providers of consumer-regulated electricity or new large-load customers try their best to use qualified state labor when possible.
• It encourages participation in registered apprenticeship programs to help develop the workforce.
• It recommends paying construction workers wages and benefits that are competitive with similar local jobs, including prevailing wage rates where practical.

• The amendment explicitly states it does not require companies to pay the prevailing wage or use project labor agreements.
• There are no minimum numbers of workers required (quotas) and these practices do not affect whether a company is approved for service.
• No one can sue based on this section, and there is no independent way to enforce it.

Plain English: This amendment creates a new tax credit for companies building separate electric systems to serve large customers, offering extra money if they hire apprentices, Colorado residents, or pay high wages.

• Companies can get a base tax credit equal to 3% of the cost spent on building generation and transmission facilities starting in tax years after January 1, 2027.
• Taxpayers can earn an extra credit worth up to 2% more if they meet specific workforce goals during construction.
• To get part of the bonus, at least 10% of construction workers must be registered apprentices and at least 20% must live in Colorado.
• Another part of the bonus is available if construction workers are paid wages that match or exceed local prevailing wage standards.

• The text does not explain how a company actually transfers this credit to another person or business, only stating that it can be done.
• It is unclear exactly what the Department of Revenue considers an 'equivalent standard' for wages if they do not use the specific prevailing wage law mentioned.

Plain English: This amendment adds rules to make it easier for companies to prove they hired enough workers, allows partial tax credits if hiring goals are not fully met, and sets a maximum amount of money available for these credits.

• Companies can use their regular payroll records or similar business documents to show they followed the worker hiring rules instead of needing special paperwork.
• The Department of Revenue must create simple ways to check if companies are following the rules that match how taxes are usually handled.
• If a company does not meet every specific hiring goal, it can still get part of the tax credit as long as they show their workforce participation is very similar to what was required.
• The total amount of money given out for these credits cannot be more than $20 million per project or $50 million across the whole state in one year.

• Any extra credit amounts that are not used because of the yearly limit can only be saved and claimed again within five years.
• The amendment states clearly that these rules do not require paying a specific 'prevailing wage' or using special labor agreements.