4 Colo. Code Regs. § 723-3-3538
Current through Register Vol. 47, No. 11, June 10, 2024
Section 4 CCR 723-3-3538 - Approvals and Cost Recovery(a) The utility may seek Commission approval of a NWA, pilot, or program in its DSP application filing. Should such an approval be sought, the Commission may require a hearing specifically on the NWA pilot, or program in addition to the process described in rule 3536. The Commission may require the utility to demonstrate satisfactory compliance with appropriate benchmarks or performance metrics outlined in the Commission's decision approving pilots, programs or NWA or other components of the DSP. Utilities may seek approval to implement an NWA, pilot, or program not classified as major distribution grid projects without performing a competitive solicitation. New pilots or programs should meet the standards and requirements set forth in paragraph 3533(a).(b) A utility may seek any necessary approvals for a NWA, pilot or program in other proceedings, including, but not limited to:(I) demand side management planning;(II) renewable energy standard compliance planning;(III) transportation electrification planning; or(IV) innovative technology pilot programs or demonstrations.(c) The Commission shall approve a utility's investment in NWAs, pilots, or programs if the Commission finds the investment to be in the public interest. In considering whether the investment is in the public interest, the Commission shall determine whether the utility's ratepayers realize benefits from the NWA, pilot, or program and whether the associated costs are just and reasonable. The utility may seek approval to implement NWAs, pilot, or program not classified as major distribution grid projects without performing a competitive solicitation.(d) In the application for approval of a DSP, the utility shall address how it anticipates recovering costs associated with the investments put forward in its DSP in accordance with subparagraph 3529(a)(XI).(I) Investments made to implement an approved DSP shall be deemed to made in the ordinary course of business and shall be recovered through the normal implementation of the utilities rate mechanisms.(II) The utility shall demonstrate that the investments made to implement an approved DSP do not undermine equitable access to other utility programs and do not materially impact the related utility program's targeted performance.(III) The utility may propose a performance incentive for implementing any NWA, pilot, or program as a component of its cost recovery proposal. The performance mechanism, if proposed, shall also be included as part of the cost-benefit analysis specified in rule 3535. A performance incentive may include allocating to the utility a share of the cost-savings derived from NWA implementation as compared to the avoided capital investment.(IV) For costs the Commission deems to be incurred outside the ordinary course of business, the utility may seek approval of a regulatory asset for recovery as part of the utility's next rate case or may be placed in another cost recovery mechanism as proposed by the utility. The Commission shall establish the authorized rate of return on any regulatory asset created pursuant to this paragraph.(e) The Commission shall issue written decisions approving, conditioning, modifying, or rejecting the utility's DSP filing. The Commission may modify any plan, as appropriate, to optimize overall system costs and ratepayer benefits, to improve services derived from the distribution grid, and to achieve state policy goals pursuant to rule 3526. These decisions create a presumption that utility actions consistent with the decisions are prudent.(f) The utility shall file a final DSP, which may include required modifications, within 60 days of the Commission's final decision.38 CR 17, September 10, 2015, effective 9/30/201539 CR 06, March 25, 2016, effective 4/14/201639 CR 08, April 25, 2016, effective 5/15/201640 CR 22, November 25, 2017, effective 12/15/201742 CR 03, February 10, 2019, effective 3/2/201942 CR 07, April 10, 2019, effective 4/30/201942 CR 09, May 10, 2019, effective 5/30/201943 CR 08, April 25, 2020, effective 5/15/202043 CR 12, June 25, 2020, effective 7/15/202043 CR 20, October 25, 2020, effective 11/14/202044 CR 13, July 10, 2021, effective 7/30/202144 CR 24, December 25, 2021, effective 1/14/202245 CR 18, September 25, 2022, effective 10/15/202246 CR 02, January 25, 2023, effective 2/14/2023