Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0577.01 Duane Gall x4335 HOUSE BILL 12-1121 HOUSE SPONSORSHIP Scott, SENATE SPONSORSHIP (None), House Committees Senate Committees Transportation A BILL FOR AN ACT Concerning enactment of the utility ratepayers' bill of rights for customers of investor-owned utilities in Colorado. 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://www.leg.state.co.us/billsummaries.) In statutes governing the conduct of rate-making proceedings by the Colorado public utilities commission (commission), the bill lists basic principles to be followed by the commission and by investor-owned public utilities seeking approval of rate increases. The principles include: Keeping in mind that investor-owned utilities exist for the benefit of consumers as well as utility shareholders, and that the interests of consumers should always be among the utility's highest priorities; Requiring utilities to share rate increase information with the public in a transparent and understandable form, including illustrating the cost impact to specific customers in addition to the hypothetical average customer; A prohibition on charging ratepayers for research and development costs or for complying with environmental regulations that have not yet been imposed; and A prohibition on recovering, from ratepayers, the utility's legal fees and costs incurred in seeking rate increases. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 40-3-106.5 as follows: 40-3-106.5. Ratepayers' bill of rights - guidelines for commission - legislative declaration. (1) The general assembly finds, determines, and declares that the interests of working Colorado families, small businesses, and other consumers of the products and services of investor-owned public utilities are often not adequately recognized in the commission's proceedings. Therefore, the commission shall always keep the following basic principles in mind whenever determining the rates to be charged for public utility service by investor-owned utilities: (a) The interests of consumers, in addition to those of shareholders, should be the investor-owned public utility's highest priorities. The commission should require every investor-owned public utility to focus on the needs of the consumer, including providing reasonable rates, improved customer service, and fair treatment. (b) Investor-owned public utilities shall share transparent and understandable rate increase information with the public when making a rate increase request, including using advanced information-processing capabilities to estimate, upon request, the monthly cost to specific customers or identified groups of customers rather than only to a hypothetical average customer. (c) Investor-owned public utilities shall not charge ratepayers for research and development costs. (d) Investor-owned public utilities shall not pass on costs for complying with proposed federal environmental regulations until those regulations have been enacted by the federal government. (e) Investor-owned public utilities shall not charge ratepayers for attorney fees and related costs in pursuing rate increases. (f) The commission shall protect ratepayers first by requiring the provision of utility service at the least cost consistent with providing reliable service for residential, small business, commercial, and industrial consumers. SECTION 2. Applicability. The provisions of this act apply to all cases filed on or after the effective date of this act. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.