Colorado Public Utilities Commission Approves 2023 Gas Demand-Side Management Bonus for Public Service Company of Colorado

Strategic Insights -

Public Service Company of Colorado has been granted approval for its 2023 Gas Demand-Side Management Bonus, exceeding its minimum expenditure target of $7.6 million with actual expenditures of $23,614,178. The bonus, totaling $5,134,323, will be reflected in the company's Gas Demand-Side Management Cost Adjustment and will be effective July 1, 2024. This decision comes after the commission reviewed the company's evaluation, measurement, and verification report, which showed verified net savings of 914,655 dekatherms and delivered net economic benefits of $34.1 million, exceeding its annual goal by approximately 110 percent.

Key Takeaways:

  • Public Service Company of Colorado has been granted approval for its 2023 Gas Demand-Side Management Bonus, totaling $5,134,323.
  • The company met the minimum threshold requirement of Rule 4753(h)(I) and exceeded its Commission-approved DSM goals for 2023.
  • Public Service's actual gas DSM portfolio expenditures totaled $23,614,178, exceeding the statutory minimum gas DSM expenditure target of $7.6 million.
  • The company's 2023 Gas DSM program and budget were approved in Proceeding No. 22A-0315EG, Decision No. C23-0381.
  • Public Service achieved verified net savings of 914,655 dekatherms and delivered net economic benefits of $34.1 million, exceeding its annual goal by approximately 110 percent.
  • The total award amount of $7,953,667 includes the Gas DSM Bonus of $5,134,323 and the Acknowledgement of Lost Revenues of $2,819,344.
  • The Commission Staff reviewed the calculations of the award and confirmed their accuracy and adherence to the Commission's gas DSM rules.

Statistics:

  • Public Service Company of Colorado's actual gas DSM portfolio expenditures totaled $23,614,178.
  • The company's verified net savings were 914,655 dekatherms.
  • Public Service delivered net economic benefits of $34.1 million, exceeding its annual goal by approximately 110 percent.
  • The total award amount of $7,953,667 includes the Gas DSM Bonus of $5,134,323 and the Acknowledgement of Lost Revenues of $2,819,344.
  • The company's minimum gas DSM expenditure target was $7.6 million.
  • The Commission's gas DSM rules require utilities to expend at least the minimum amount set forth in Rule 4753(h)(I), with a minimum of 2% of natural gas utility base rate revenues.

Sources:

  • Colorado Public Utilities Commission Decision No. C24-0421, PROCEEDING NO. 24A-0156G
  • Colorado Revised Statutes, Section 40-6-109.5, C.R.S.
  • Colorado Revised Statutes, Section 40-6-114, C.R.S.
  • Public Service Company of Colorado's Application for Approval of its 2023 Gas Demand-Side Management Bonus.