Oversight

The actions of the Public Utilities Commission (PUC) affect the lives of nearly every Colorado citizen in one way or another. Each year the PUC oversees utilities generating billions of dollars in annual jurisdictional utility revenues in Colorado.

Article XXV of the Colorado Constitution declares that the regulation of public utilities is the province of the General Assembly and that unless that body should otherwise designate, the PUC is mandated with the authority to provide this regulation. Title 40, Colorado Revised Statutes, provides legislative policy direction to the PUC as to how utility regulation is to be conducted in Colorado. The PUC derives its authority wholly from constitutional and statutory provisions.

The statutes also mandate that the PUC must first give paramount consideration to the public interest. This requires constant attention to achieve the appropriate balance between the needs of Colorado customers for safe and reliable utility services at reasonable rates and the needs of utility service providers to earn a reasonable profit and to sustain a reliable utility infrastructure throughout Colorado.

The General Assembly requires that the PUC conduct its business in two ways:

• Quasi-Legislative: Generally, the Quasi-Legislative proceedings involve rulemaking and do not require stakeholders to be represented by an attorney in order to participate and have input into the process.
• Quasi-Judicial: The Quasi-Judicial proceedings are litigated proceedings, where the formal administrative law process is used to provide appropriate "due process" protections to affected parties. These proceedings must be conducted "on the record" where representation by an attorney is often necessary. The proceedings may be adversarial and contentious, and often involve multiple parties. The scope and complexity of issues involved in the proceeding typically determine how long the proceeding will last and the cost. Some proceedings, such as routine transportation issues, may be resolved in less than a month. Others, such as complex rate proceedings to determine base rates for gas and electric service, may take months to resolve.

In both cases, the Colorado Sunshine Law requires that all of the business of the PUC be conducted in public, with appropriate notice to allow interested individuals to observe and participate in the proceedings. The PUC is required to comply with statutory guidelines for timely completion of proceedings.

The following Colorado Revised Statutes (C.R.S.) relate to the Public Utilities Commission and its authority to regulate utilities in the State.

40-2-101. Creation - appointment - term - subject to termination - repeal of article.

(1) A public utilities commission is hereby created, which shall be known as the public utilities commission of the State of Colorado, to consist of three members who shall be appointed by the governor with the consent of the senate. Persons holding office on July 1, 1993, shall continue to serve in such office, but the term of one of these persons shall expire on the Monday preceding the second Tuesday of January, 1995, of another, the Monday preceding the second Tuesday of January, 1996, and of the third, the Monday preceding the second Tuesday of January, 1997, all as the governor shall designate, except that such designation shall not result in the extension of the term of any member to more than four years\' duration. Thereafter, appointments shall be made for terms of four years.

(2) No more than two members of the public utilities commission shall be affiliated with the same political party, and any appointment to fill a vacancy shall be for the unexpired term. Each commissioner shall be a qualified elector of this state. The governor shall designate one member of the commission as chairman of the commission. The commissioners shall devote their entire time to the duties of their office to the exclusion of any other employment and shall receive such compensation as is designated by law. A majority of the commission shall constitute a quorum for the transaction of its business.

(3) (a) The provisions of section 24-34-104, C.R.S., concerning the termination schedule for regulatory bodies of the state unless extended as provided in that section, are applicable to the public utilities commission created by this section. (b) (I) This article is repealed, effective July 1, 2008. (II) Prior to its repeal, the public utilities commission shall be reviewed as provided for in section 24-34-104, C.R.S.

40-2-102. Oath - qualifications

Each commissioner, before entering upon the duties of his office, shall take the constitutional oath of office. No person in the employ of or holding any official relation to any corporation or person, which said corporation or person is subject in whole or in part to regulation by the commission, and no person owning stocks or bonds of any such corporation or who is in any manner pecuniarily interested therein shall be appointed to or hold the office of commissioner or be appointed or employed by the commission, but if any such person becomes the owner of such stocks or bonds or becomes pecuniarily interested in such corporation otherwise than voluntarily, he shall divest himself of such ownership or interest within six months, failing to do so, his office or employment shall become vacant.