Colorado Public Utilities Commission Approves Public Service Company's Renewable Energy Compliance Plan

Strategic Insights -

The Colorado Public Utilities Commission has approved the Public Service Company's (Public Service) 2022-2025 Renewable Energy Compliance Plan, paving the way for the company to move forward with its solar garden program. This decision comes after a review of Public Service's request for proposal (RFP) process for reasonableness and consistency with the previously approved settlement agreement. The Commission has granted Public Service's motion, allowing it to initiate standard offer programs, including customer acquisition plans for income-qualified and disproportionately impacted communities.

Key Takeaways:

  • The Commission approved Public Service's 2022-2025 Renewable Energy Compliance Plan, which aims to achieve at least 280 MW of community solar garden (CSG) capacity.
  • Public Service received 77 bids with a total capacity of 236.7 MW and an average bid price of $9.80/MWh for the General RFP, and 79 bids with a total capacity of 210.5 MW and an average bid price of $48.42/MWh for the IQ/DIC RFP.
  • The company will calculate the cost of year-one incentives as -$2.7 million and 20-year incentives as -$54.5 million for the General RFP, and $1.2 million and 20-year incentives as $25 million for the IQ/DIC RFP.
  • Public Service will offer standard offer prices at -$0.03415/kWh for tranche 1, -$0.03757/kWh for tranche 2, and -$0.04132/kWh for tranche 3 for General RFP, and $0.01507/kWh for tranche 1, $0.01356/kWh for tranche 2, and $0.01221/kWh for tranche 3 for IQ/DIC RFP.
  • The Commissions noted concerns about CSGs delivering more robust value to the system, particularly in regards to incorporating storage and reducing capital expenditures and peaks in demand.
  • The Commission also encouraged utilities and other entities to explore ways to maximize the benefits of the Inflation Reduction Act.

Statistics:

  • 77 bids were received in the General RFP with a total capacity of 236.7 MW and an average bid price of $9.80/MWh.
  • 79 bids were received in the IQ/DIC RFP with a total capacity of 210.5 MW and an average bid price of $48.42/MWh.
  • Public Service will calculate the cost of year-one incentives as -$2.7 million and 20-year incentives as -$54.5 million for the General RFP.
  • Public Service will calculate the cost of year-one incentives as $1.2 million and 20-year incentives as $25 million for the IQ/DIC RFP.
  • The company will offer standard offer prices at -$0.03415/kWh for tranche 1, -$0.03757/kWh for tranche 2, and -$0.04132/kWh for tranche 3 for General RFP.
  • The company will offer standard offer prices at $0.01507/kWh for tranche 1, $0.01356/kWh for tranche 2, and $0.01221/kWh for tranche 3 for IQ/DIC RFP.

Sources:

  • Public Service Company of Colorado's 2022-2025 Renewable Energy Compliance Plan
  • Decision No. C22-0678, issued November 3, 2022
  • Decision No. C24-0344, issued May 24, 2024