Bill Summary for Bill Number HB15-1319

Date: 04/15/2015

Final
BILL SUMMARY for HB15-1319

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Votes: View-->	Action Taken:
Adopt amendment L.001 (Attachment D). The motion p Refer House Bill 15-1319, as amended, to the Commi	Pass Without Objection PASS

01:37 PM

Representative Tyler, Chair, called the meeting to order. A quorum was present.

01:38 PM -- HB 15-1319

Representative Esgar, prime sponsor, came to the table to present House Bill 15-1319. She distributed a packet of materials to the committee (Attachment A). The bill increases the number of commissioners serving on the Public Utilities Commission (PUC) in the Department of Regulatory Agencies (DORA) from three to five. Two commissioners are to serve at-large while the remaining three commissioners must reside in and represent geographic regions specified in the bill. Representative Esgar discussed the rate hikes that the PUC has approved in the past five years, which have negatively affected Pueblo ratepayers. She responded to committee questions on the counties that PUC commissioners have traditionally come from, and if a lack of geographic representation of commissioners is responsible for utility rate hikes in some regions of the state.

150415 AttachA.pdf

01:47 PM -- Anne Stattelman, representing Posada, spoke in favor of the bill. She spoke to the cost of utilities in Pueblo and the consequences of public utility shutoffs in the region. She discussed the nonprofits that are active in Pueblo that help subsidize the cost of energy for low income ratepayers, how homelessness is related to the costs of energy in Pueblo, and how ratepayers in Pueblo need a voice within the PUC.

01:55 PM -- Doug Dean, representing the PUC, spoke neutrally on the bill. He said that the PUC does not rubberstamp rate increases that are filed with the PUC, which are heavily reviewed, litigated, and discussed by the PUC. He discussed the maximum rates that utilities are allowed to charge under Colorado law, recent rate increases that have been approved by the PUC, the authority of the PUC, and why, historically, most commissioners have been from Denver county. Mr. Dean discussed the fixed utility fund and how it funds the PUC, and the operating costs he has reduced as director of the PUC. He responded to questions on the expected increase in workload for the PUC if the bill passes.

02:07 PM -- Ross Vincent, representing himself, spoke in favor the bill. He said that he is an active member of a number of nonprofits in Pueblo, including the Sierra Club. He stated that Pueblo is producing a lot of energy for other Colorado counties and that ratepayers in Black Hills Energy's service territory are having to cover the cost of the additional infrastructure required for this production. He said that the system for protecting ratepayers is broken, and that HB15-1319 would help restore PUC representation for communities like Pueblo.

02:14 PM -- Kiera Hatton, representing herself, spoke in favor of the bill. Ms. Hatton said that the PUC is tasked with creating the opportunity for utility companies to achieve a good rate of return on their investments, that Black Hills Energy has a monopoly over energy in Pueblo, and that no one is protecting the public interest in Pueblo.

02:17 PM -- Vince Calvano, representing the Southeast Colorado Solar Coalition, spoke in favor of the bill. Mr. Calvano discussed the solar market within Black Hills Energy's service territory and said that having a more geographically diverse commission would be good for the region.

02:21 PM -- Terry Hart, representing Pueblo County, spoke in favor of the bill. Mr. Hart said that Pueblo county does not feel that the PUC represents them and Pueblo is producing a great deal of electricity that is distributed across the state. He added that the bill would be a good start for achieving representation for cities like Pueblo and a better regulatory system in Colorado. He responded to questions on why having five PUC commissioners would be better than three, the ways in which Pueblo could increase competition in its local energy market, when the franchise agreement between Black Hills Energy and Pueblo expires, if having five PUC commissioners would lead to more communication between Pueblo and the PUC, and how the business community of Pueblo has been impacted by local energy rates.

02:39 PM -- Chris Markuson, representing Pueblo County, spoke in favor of the bill. He discussed the PUC's regulation of energy markets and the need for increased geographic representation.

02:42 PM -- Doug Holland, representing the Sierra Club, spoke in favor of the bill. Mr. Holland distributed a copy of his written testimony (Attachment B).

150415 AttachB.pdf

02:45 PM -- Heidi Morgan, representing Black Hills Energy, spoke neutrally on the bill. Ms. Morgan said that she wanted to clear up some information about Black Hills Energy that had been provided in the testimony of a number of witnesses. She discussed the utility's disconnect policy, rate increases that had occurred in the past ten years, and its new natural gas powerplant. She submitted a document detailing Black Hills Energy's rate increases (Attachment C). She responded to questions on the PUC's jurisdiction over rate increases and if Black Hills Energy worked with the Federal Energy Regulatory Commission to maintain a contract that gave it access to Xcel Energy's power.

150415 AttachC.pdf

02:55 PM

Representative Esgar distributed Amendment L.001 (Attachment D), which she said incorporates some counties into the bill that were originally omitted.

150415 AttachD.pdf


BILL:	HB15-1319
TIME:	02:56:26 PM
MOVED:	Esgar
MOTION:	Adopt amendment L.001 (Attachment D). The motion passed without objection.
SECONDED:
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

02:57 PM

Representative Becker introduced Amendment L.002 (Attachment E), and explained that it would require commissioners to the PUC to be elected by a public vote. The committee discussed the merits of the amendment. The amendment was deemed to be a settled question.

150415 AttachE.pdf

03:04 PM

Representative Esgar made her closing comments on the bill, discussing how it would provide additional representation for communities throughout Colorado. The committee discussed the merits of the bill.


BILL:	HB15-1319
TIME:	03:09:25 PM
MOVED:	Esgar
MOTION:	Refer House Bill 15-1319, as amended, to the Committee on Finance. The motion passed on a vote of 7-6.
SECONDED:	Winter
		VOTE
	Becker J.	No
	Buck	No
	Carver	No
	Coram	No
	Esgar	Yes
	Kraft-Tharp	Yes
	Melton	Yes
	Moreno	Yes
	Neville P.	No
	Nordberg	No
	Winter	Yes
	Mitsch Bush	Yes
	Tyler	Yes

Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS