Colorado Public Utilities Commission Approves 2022 Gas Demand-Side Management Bonus for Public Service Company of Colorado

Public Service Company of Colorado (Public Service) has been awarded a 2022 Gas Demand-Side Management (DSM) Bonus by the Colorado Public Utilities Commission (Commission) of $6,371,680. This decision was made after Public Service's application for approval of its 2022 DSM Plan was deemed complete and granted. The Commission's approval is based on the Company's actual gas DSM portfolio expenditures totaling $18,633,357, which is significantly more than the statutory minimum gas DSM expenditure target of $8,490,995. The Company's DSM achievements in 2022 resulted in a modified Total Resource Cost test value of 2.10 and net economic benefits totaling $41,019,593.

Key Takeaways:

• Public Service Company of Colorado was awarded a 2022 Gas Demand-Side Management Bonus of $6,371,680 by the Colorado Public Utilities Commission.
• The Company's actual gas DSM portfolio expenditures totaled $18,633,357, exceeding the statutory minimum gas DSM expenditure target of $8,490,995 by 126%.
• The Commission's Staff reviewed the accuracy of the calculation of the award and its adherence to the Commission's gas DSM rules.
• Public Service's DSM achievements in 2022 resulted in a modified Total Resource Cost test value of 2.10 and net economic benefits totaling $41,019,593.
• The Commission's approval of the Gas DSM Bonus represents 25% of the Company's expenditures for 2022.
• Public Service's 2022 DSM Plan year was cost-effective, leading to a net economic benefit of $41,019,593.

Statistics:

• $18,633,357: Actual gas DSM portfolio expenditures by Public Service in 2022.
• $8,490,995: Statutory minimum gas DSM expenditure target for Public Service in 2022.
• 126%: Excess of Public Service's actual gas DSM expenditures over the statutory minimum target in 2022.
• $6,371,680: 2022 Gas Demand-Side Management Bonus awarded to Public Service by the Colorado Public Utilities Commission.
• 2.10: Modified Total Resource Cost test value achieved by Public Service's DSM Plan in 2022.
• $41,019,593: Net economic benefits achieved by Public Service's DSM Plan in 2022.

Sources:

• Decision No. C23-0315, issued by the Colorado Public Utilities Commission on May 12, 2023.
• 4 CCR 723-1, 4 CCR 723-4, 4 CCR 723-4.
• Rule 4753(h)(I), Rule 4754(g)(I), Rule 4754(g)(III)-(IV).
• Proceeding No. 20A-0287EG, Recommended Decision No. R21-0081, issued by the Commission on February 12, 2021.
• Proceeding No. 23AL-0161G, Advice Letter No. 1014 - Gas.