Bill Summary for Bill Number HB14-1397

Date: 05/05/2014

Final
BILL SUMMARY for HB14-1397

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View-->	Action Taken:
Postpone consideration of House Bill 14-1397 until	PASS

01:35 PM -- HB14-1397

Representative Garcia, prime sponsor, presented House Bill 14-1397. The bill amends statutes governing the Office of Consumer Counsel (OCC) in the Department of Regulatory Agencies (DORA).

Under current law, the OCC represents the public interest in proceedings concerning public utilities before the Public Utilities Commission (PUC), including formal appearances in adjudications and rate cases, as well as appeals of such matters. The bill defines public interest for the purposes of OCC representation to generally include the health, safety, economic conditions, and social stability of public utilities consumers. In rate cases and resource acquisition plans submitted to the PUC, the bill specifically includes consideration of quality of service, the potential for undue economic or social harm, and the utility's policies and history regarding certain consumers, among other considerations.

Under current law, the OCC is prohibited from intervening in complaints between individuals and a utility. The bill authorizes the OCC to participate in an individual complaint if its successful resolution would vindicate the interests of a class of consumers. The bill also specifies that the OCC may intervene in rulemakings that involve a utility's costs, including costs passed through to consumers. When considering an appearance before the PUC, the OCC must consider how its appearance or failure to appear may perpetuate gross disparities in rates that are not attributable to characteristics of different service territories.

The bill also requires the OCC to conduct a study during the 2014 interim, to determine if certain rate disparities between utility customers in different areas of the state have adequate justification. The study must include at least three public hearings across the state. The OCC reports its findings to the General Assembly by January 15, 2015.

Representative Garcia responded to questions from the committee. He distributed a chart comparing rates across the state (Attachment A).

14HseState0505AttachA.pdf

01:46 PM

Members of the committee continued to question Representative Garcia.

01:55 PM -- Chris Burke, representing Black Hills Corporation, testified in opposition to the bill. Mr. Burke distributed information about Black Hills Corporation's community investment and low-income energy assistance programs (Attachments B and C). He expressed his opinion that the bill is overly broad. He responded to questions from the committee.

14HseState0505AttachB.pdf

14HseState0505AttachC.pdf

02:10 PM

Committee questioning of Mr. Burke continued.

02:27 PM -- Rich Terrian and Frank Romero, representing Black Hills Corporation, testified in opposition to the bill. Mr. Terrian read a prepared statement discussing his experience as a utilities maintenance worker. Mr. Romero spoke about his experience as well. Mr. Terrian and Mr. Romero responded to questions from the committee.

02:38 PM -- Heidi Morgan, representing Black Hills Corporation, testified in opposition to the bill. Ms. Morgan spoke about the coverage area of Black Hills. She discussed the purchase power agreements Black Hills has with other energy companies. She responded to questions from the committee.

02:48 PM

Mr. Burke returned to the table to respond to further questions from the committee.

02:52 PM -- Councilman Chris Nicoll, representing the Pueblo City Council, testified in support of the bill. Councilman Nicoll spoke about the burden of rate increases on Pueblo citizens and businesses. He discussed the current Pueblo economic situation and how high utility rates affect economic development efforts. He indicated that the city needs the help of the General Assembly because the PUC is not doing its job.

02:59 PM -- Ann Stattelman, representing Posada, testified in support of the bill. Ms. Stattelman distributed a disconnect notice and utility bill from Black Hills (Attachments D and E). She discussed the burden of rate increases on the homeless and veterans.

14HseState0505AttachD.pdf

14HseState0505AttachE.pdf

03:01 PM -- Bill Patterson, representing Parkview Medical Center, testified in support of the bill. Mr. Patterson discussed the burden of rate increases on his medical center. He responded to questions from the committee.

03:14 PM

Discussion with Councilman Nicoll, Ms. Stattelman, and Mr. Patterson continued.

03:20 PM -- Kiera Hatton, representing herself, testified in support of the bill. Ms. Hatton stressed that she is simply asking for a seat at the table to advocate for the citizens of her community. She discussed the burden of rate increases on the community.

03:25 PM -- Sister Nancy Crafton, representing herself, testified in support of the bill. Sister Nancy distributed three utility bills (Attachments F, G, and H) and discussed the burden of the bills on the Pueblo community. She talked about poverty in Pueblo.

14HseState0505AttachF.pdf

14HseState0505AttachG.pdf

14HseState0505AttachH.pdf

03:32 PM -- Terry Hart, representing himself, testified in support of the bill. Mr. Hart distributed information about the impact of Black Hills' rate changes (Attachment I). He reiterated Ms. Hatton's testimony about wanting a seat at the table.

14HseState0505AttachI.pdf

03:36 PM -- Chris Markuson, representing Pueblo County, testified in support of the bill. Mr. Markuson distributed a press release from Black Hills (Attachment J). He spoke about the burden of rate increases on the Pueblo community.

14HseState0505AttachJ.pdf

03:44 PM

Sister Nancy responded to questions from the committee.

03:49 PM -- Ray Vigil, representing Black Hills Corporation, testified in opposition to the bill. Mr. Vigil explained the process of budget billing and the low-income energy assistance program. He responded to questions from the committee.

03:56 PM

Ms. Morgan returned to the table to respond to questions from the committee. Members of the committee commented about the bill.


BILL:	HB14-1397
TIME:	04:02:29 PM
MOVED:	Moreno
MOTION:	Postpone consideration of House Bill 14-1397 until January 7, 2015. The motion passed on a vote of 9-2.
SECONDED:	Melton
		VOTE
	Conti	Yes
	Dore	Yes
	Foote	No
	Humphrey	Yes
	Labuda	Yes
	Melton	Yes
	Moreno	Yes
	Nordberg	Yes
	Williams	Yes
	Salazar	No
	Ryden	Yes

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:02 PM

The committee took a brief recess.