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Colorado Public Utilities Commission Approves Gas Price Volatility Mitigation Plan

Strategic Insights

— 1 min read

The Colorado Public Utilities Commission has approved a Master Gas Price Volatility Mitigation (GPVM) Plan for Public Service Company of Colorado, allowing the utility to implement a gas price volatility mitigation plan for its gas utility. This decision grants the company's unopposed motion for variances from previous decision C21-0764 and approved master GPVM plan and GPVM procedures. The plan aims to protect gas sales customers from price spikes due to volatility in the natural gas market.

Key Takeaways:

  • The Public Utilities Commission of Colorado approved Public Service Company of Colorado's application for a three-year renewal of the procedures for obtaining approval to implement GPVM plans for its gas utility.
  • The Master GPVM Plan includes a hedging target of 50 percent of projected winter volumes for the five-month heating season from November to March.
  • The plan requires the company to implement financial hedging for only the months of December through February with a budget reflective of this shorter hedging period.
  • The Commission granted the company's unopposed motion for variances from previous decision C21-0764 and approved master GPVM plan and GPVM procedures.
  • The decision aims to protect gas sales customers from price spikes due to volatility in the natural gas market.
  • Public Service Company of Colorado sought approval of a 2023-2024 Annual GPVM Plan, which includes a proposed quantity of gas to be hedged, the timing of the hedges, the annual hedging budget, and the amount of hedging costs.
  • The company's Master GPVM Plan and GPVM Procedures were approved in 2021, and this decision allows for a streamlined annual GPVM review process.

Statistics:

  • 50 percent: The hedging target of projected winter volumes for the five-month heating season from November to March.
  • 2021: The year in which the commission approved the Master GPVM Plan and GPVM Procedures.
  • 22A-0033G: The proceeding number for the Joint Motion to Approve Unopposed and Comprehensive Settlement Agreement.
  • 20 days: The time period provided by SS 40-6-114, C.R.S., to file an application for rehearing, reargument, or reconsideration.

Sources:

  • Decision No. C23-0106, Public Utilities Commission of Colorado, February 16, 2023.
  • Decision No. C21-0764, Public Utilities Commission of Colorado, December 3, 2021.
  • Joint Motion to Approve Unopposed and Comprehensive Settlement Agreement, Proceeding No. 22A-0033G, March 9, 2022.

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