Bill Summary for Bill Number SB09-039

Date: 01/29/2009

Final
BILL SUMMARY for SB09-039

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Votes: View-->	Action Taken:
Adopt Amendment L.002 (Attachment D). The motion Adopt Amendment L.004 (Attachment C). The motion Refer Senate Bill 09-039, as amended, to the Commi	FAIL Pass Without Objection PASS

10:20 AM -- Senate Bill 09-039

The committee took a brief recess.

10:23 AM

Senator Schwartz, prime sponsor, presented Senate Bill 09-039, which concerns the discretionary authority of cooperative electric associations to establish reasonable graduated rates for increased energy consumption by residential customers. Senator Schwartz explained that the bill will allow for tiered rates. Senator Schwartz addressed questions from the committee and offered clarification about the intent of the bill. The following people testified on the bill:

10:30 AM -- Mr. Del Worley, representing Holy Cross Electric Association, spoke in favor of the bill. Mr. Worley reviewed the areas serviced by his electric cooperative and talked about the purpose of tiered rates. Mr. Worley said the bill will help to achieve energy sustainability and address climate change concerns, and addressed questions about how the bill may change the service rates. Discussion ensued.

10:42 AM -- Mr. Ray Gifford, representing himself, spoke in favor of the bill. He said he supports the bill because it gives electric cooperatives the freedom to experiment with rate structures in order to better match rates to the fluctuations in consumer usage. Mr. Gifford addressed questions about rate setting procedures, seasonal fluctuations in service rates, and different levels of consumer usage. Discussion ensued. Mr. Gifford discussed the move towards innovative rate design in the industry.

10:57 AM -- Ms. Pam Kiely, representing Environment Colorado, spoke in favor of the bill. Ms. Kiely said the bill is a good opportunity for rural cooperatives to use energy more effectively, and explained that reduced consumption makes a profound positive impact on the environment.

11:00 AM -- Mr. Ray Clifton, representing the Colorado Rural Electric Association, spoke in favor of the bill. Mr. Clifton addressed an earlier question about rate-setting procedures in home rule cities versus municipalities, and expressed his support of the bill.

11:04 AM -- Mr. Dan McClendon, representing Delta Montrose Electric Association, spoke in favor of the bill. Mr. McClendon spoke about the importance of energy efficiency in order to offset costs for consumers.

11:07 AM -- Mr. Kent Singer, representing Holy Cross Electric Association and the Colorado Rural Electric Association, spoke in support of the bill. He addressed an earlier question about the requirement to report pending rate changes to consumers. Mr. Singer spoke to Amendment L.004 (Attachment C) and other possible amendments to the bill and addressed questions about the language of the bill.

11:15 AM -- Mr. Tom Easley, representing the Rocky Mountain Climate Organization, spoke in support of the bill and outlined recommendations made by the Colorado Climate Project. Mr. Easley addressed questions about how calculations are made in order to develop new rate structures. Discussion ensued.

11:27 AM -- Mr. Bill Schroeder, representing Intermountain Rural Electric Association, spoke in opposition to the bill and said the bill takes away cooperative member rights to make decisions about rate setting.

11:31 AM -- Mr. Landon Gates, representing the Colorado Farm Bureau, spoke in support of Amendment L.004.

11:32 AM -- Mr. Bill Midcap, representing the Rocky Mountain Farmer's Union, spoke in support of the bill.

11:33 AM

Senator Schwartz made concluding remarks about the bill.


BILL:	SB09-039
TIME:	11:35:40 AM
MOVED:	Schwartz
MOTION:	Refer Senate Bill 09-039, as amended, to the Committee of the Whole with a favorable recommendation. The motion passed on a vote of 4-2-1.
SECONDED:
		VOTE
	Cadman	Absent
	Hodge	Yes
	Kester	No
	Lundberg	No
	Newell	Yes
	Foster	Yes
	Schwartz	Yes

Final YES: 4 NO: 2 EXC: 0 ABS: 1 FINAL ACTION: PASS


BILL:	SB09-039
TIME:	11:38:31 AM
MOVED:	Lundberg
MOTION:	Adopt Amendment L.002 (Attachment D). The motion failed on a vote of 2-4-1.
SECONDED:
		VOTE
	Cadman	Absent
	Hodge	No
	Kester	Yes
	Lundberg	Yes
	Newell	No
	Foster	No
	Schwartz	No

Not Final YES: 2 NO: 4 EXC: 0 ABS: 1 FINAL ACTION: FAIL

Prior to the vote, Senator Lundberg distributed and briefly explained L.002 (Attachment D). Senator Schwartz expressed her concerns with L.002. Discussion ensued.


BILL:	SB09-039
TIME:	11:35:48 AM
MOVED:	Schwartz
MOTION:	Adopt Amendment L.004 (Attachment C). The motion passed without objection.
SECONDED:
		VOTE
	Cadman	Absent
	Hodge
	Kester
	Lundberg
	Newell
	Foster
	Schwartz

Not Final YES: 0 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: Pass Without Objection