The State of Colorado along with many other states in the central United States experienced extremely cold weather in February 2021. Natural gas providers responded to this extreme cold weather event by raising prices across the country due to increased and unplanned for demand. The extraordinarily high market costs caused Colorado utilities to incur much higher expenses to continue providing consumers with electricity and natural gas services.

In response to this cold weather event, the Colorado Public Utilities Commission (PUC) opened a proceeding to review costs incurred during the event (21M-0130EG). Additionally, the PUC is considering proposed cost recovery requests by individual utilities on a case-by-case basis, known as Proceedings.

Proceedings are quasi-judicial cases that include various consumer advocacy groups, energy and environmental Non-Governmental Organizations, PUC staff, the general public, and representatives from utilities providers. During a proceeding, the PUC decision makers will hear testimony and review evidence, which ultimately results in a final decision being made by the Commissioners who are appointed by the Governor. In the case of Winter Storm Uri, six proceedings have been opened to review costs incurred during the winter event and decide on how those costs should be recovered.

The six proceedings associated with Winter Storm Uri have been referred to Administrative Law Judges (ALJs) for hearing and determining how each company will be allowed to recover costs and what costs will be allowed to be recovered. Included in each description of the proceedings below are links to background information and written testimony from each company, which can be found through the PUC’s E-Filing system. Additionally, all the hearings are open to the public and will be broadcast through the PUC’s website. The public is encouraged to participate in each proceeding by visiting this webpage and providing written comments or by participating in the assigned public comment hearings scheduled for each proceeding. Visit the PUC homepage to view upcoming public comment hearings on each proceeding. 

21A-0186G – Atmos

Atmos Energy Corporation, Commission Staff, Utility Consumer Advocate (UCA), and the Colorado Energy Office (CEO) filed a settlement that was approved by the Commission. (Decision No. Decision No. R21-0720, issued on November 12)  The Settlement allows Atmos to recover $23,549,609 in extraordinary gas costs (EGC) incurred 13-19 February 2021.  Atmos will not receive any carrying costs or interest on the EGC. 

Recovery of the EGC will be in two parts: $13,391,800 will be recovered through an Extraordinary Gas Cost Recovery Rider (EGCRR), effective for 24 months in the North rate division and for 12 months in the Southeast and Southwest rate divisions.  Low-income Energy Assistance Program (LEAP) and Percentage of Income Payment Programs (PIPP) recipients will be exempted from the EGCRR, as will irrigation customers.

Information on this proceeding can be found here.

$10,157,808 of the EGC will be applied to regulatory accounts related to pension expenses and income taxes.  This means the money is not recovered directly from customers, but will be included in the calculation for Atmos’ rates in a future proceeding to set rates. Atmos cost adjustments will begin showing up on consumer bills in January 2022.

21A-0188G – Colorado Natural Gas

Colorado Natural Gas, Commission Staff, and the Utility Consumer Advocate (UCA), filed a settlement that was that was approved by the Commission. (Decision No. Decision No. R21-0759, issued on December 1)  The Settlement allows CNG to recover $7,076,906 in extraordinary gas costs (EGC) incurred 13-19 February 2021. CNG will not receive any carrying costs or interest on the EGC. 

The EGC will be recovered through an Extraordinary Gas Cost Recovery Rider (EGCRR) effective for 24 months in all CNG rate areas and will begin no sooner than April 1, 2022.  Low-income Energy Assistance Program (LEAP) and Percentage of Income Payment Programs (PIPP) recipients will be exempted from the EGCRR, as will irrigation customers. CNG customers will begin seeing this adjustment on bills beginning April, 2022.

Estimated residential customer impact:

21A-0192EG - Public Service Company of Colorado (Electric and Gas)

Public Service Company of Colorado requests recovery of $263 million for its Electric Department, either for a period of 24 months, which would mean an average residential bill increase of $2.86 per month or 60 months, which would mean an increase of $1.24 per month for an average residential bill. For its Gas Department, Public Service requests recovery of $287 million, either for 24 months or 60 months.  If recovery is for 24 months, the average residential bill for that period would increase by $6.20, if it is for 60 months, the average residential bill increase per month would be $1.88.

Information on this proceeding can be found here, and evidentiary hearings are scheduled for January 26-28, 2022 from 9:00 a.m. to 5:00 p.m., and February 3, 2022 from 1:00 p.m. to 5:00 p.m.

21A-0196G - Black Hills Gas

Black Hills Gas proposes to recover $72.7 million proportionally across its rate areas. Black Hills Gas requests a three-year recovery period for its Central and North/Southwest rate areas and a one-year recovery period for its Western Slope rate areas. The average monthly residential bill increase during this time would be $8.05 per month in Central Rate Area 2, $11.73 per month in Central Rate Area 3, $15.48 per month in North/Southwest Rate Area 1, and $10.62 per month in North/Southwest Rate Area 2. For the Western Slope Rate Area, the average residential bill would increase by $12.46 per month.

The Administrative Law Judge assigned to this proceeding is considering testimony from intervenors in the proceeding and a settlement filed by Black Hills Gas, the Colorado Energy Office (CEO), and A M Gas Transfer. The hearing will be re-scheduled for early 2022.

Information on this proceeding can be found here.

21A-0197E - Black Hills Electric

Black Hills Electric is seeking recovery of $23.1 million over two years for its entire service territory. This would mean an increase in average residential bills of $3.83 per month for 24 months.

A hearing was held on November 29, 2021 to consider a settlement filed by Black Hills Electric, Commission Staff, and the Utility Consumer Advocate (UCA).  A decision from the Administrative Law Judge assigned to this case is expected in early 2022.

Information on this proceeding can be found here.

21A-0203ST - Public Service Steam

Public Service Company and Commission Staff filed a settlement that was approved by the Commission. (Decision No. Decision No. R21-0689, issued on November 3) The Settlement allows Public Service Steam to recover $1,998,011 in extraordinary fuel costs (EFC) over 24 months, with no carrying costs or interest.  The EFC will be included in the Steam Cost Adjustment at a rate of $1.339/Mlbs.

Information on this proceeding can be found here.