Colorado Legislative Council Staff
NO FISCAL IMPACT
January 16, 1998
Senate Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING REGULATED PUBLIC UTILITIES SELLING ENERGY THAT ENGAGE IN BUSINESSES OTHER THAN THE PROVISION OF PUBLIC UTILITY SERVICE.
Summary of Assessment
The provisions of this bill would require that energy public utilities that are regulated by the Public Utilities Commission (PUC) engage in non-utility activities only through a subsidiary or affiliate. The bill would remove all references to goods and services defined as non-utility activity from utility tariffs and require energy utilities to report their non-utility activity to the PUC at least annually. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.
Public Utilities Commission. Under current statute, the PUC is required to ensure that there are no cross-subsidies of non-utility activities by energy utilities. As part of this responsibility, the PUC conducts performance audits of energy utilities. The provisions of this bill would place new requirements on energy utilities that would create a clearer separation of utility and non-utility services. The enforcement of the provisions of this bill could be met with the resources currently appropriated to the PUC to ensure compliance with current statutes.
Office of Consumer Counsel. The Office of Consumer Counsel (OCC) would participate in the rulemaking process to establish the standards of conduct governing the relationship between energy utilities and their affiliates. The OCC also would review relevant tariff filings and participate in any rate cases that might result from splitting out the non-utility activities. The provisions of this bill would have an insignificant impact on the OCC, and could be absorbed by their current staff.
The provisions of this bill would not affect any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.
Omissions and Technical or Mechanical Defects
Although the bill title specifically addresses “public utilities selling energy”, the bill itself makes frequent references to “public utilities” without limiting them to energy utilities, providing electric and gas services. This statement of no fiscal impact is written on the basis of such limitation.