Colorado Public Utilities Commission Approves Shortened Notice and Intervention Period for Public Service Company's 2024 Gas Price Risk Management Plan

Strategic Insights -

The Colorado Public Utilities Commission has issued an interim decision establishing a shortened notice and intervention period for Public Service Company's application for approval of its 2024 Gas Price Risk Management (GPRM) Plan. The decision aims to expedite the review process and potentially have the plan in place for the bulk of the current heating season. Senate Bill 23-291 requires Public Service to file a GPRM plan by November 1, 2023, which must include a maximum per-month fuel cost that accounts for price fluctuations based on seasonality.

Key Takeaways:

  • The Public Utilities Commission has granted Public Service Company's request for a shortened notice and intervention period of 14 calendar days for its 2024 Gas Price Risk Management Plan.
  • The request was filed on October 31, 2023, and is consistent with the discussion in the Commission's Rules of Practice and Procedure.
  • The plan proposes a maximum cap of the Gas Cost Adjustment (GCA) equal to 180 percent of the five-year historical average of the Company's GCAs, and a minimum threshold equal to 80 percent of the five-year historical average of the Company GCAs.
  • Public Service requests to build up a reserve fund not to exceed $75 million during times when natural gas prices are low to help moderate customers' natural gas costs when market prices are historically high.
  • The Commission has established a 14-day notice and intervention period from the effective date of this Decision, with requests for intervention to be filed no later than November 15, 2023.
  • Public Service states that the Company developed the 2024 GPRM Plan with the support of Staff and the Colorado Office of the Utility Consumer Advocate and conferred with them on the Application before it was submitted.

Statistics:

  • 14 calibration days: the shortened notice and intervention period granted by the Public Utilities Commission.
  • $7.80 per dekatherm (dth): the current maximum cap for the Gas Cost Adjustment (GCA) under the proposed plan.
  • $3.46 per dth: the current soft minimum threshold for the GCA under the proposed plan.
  • $75 million: the maximum reserve fund to be built up during times when natural gas prices are low to help moderate customers' natural gas costs when market prices are historically high.
  • November 15, 2023: the deadline for requests for intervention in the proceeding.
  • November 1, 2023: the date Public Service filed its application for approval of the 2024 Gas Price Risk Management Plan.
  • December 15, 2023: the date the first quarter Gas Cost Adjustment (GCA) will be filed.

Sources:

  • Decision No. C23-0741-I, Public Utilities Commission of the State of Colorado, November 1, 2023.
  • Senate Bill 23-291, Colorado General Assembly, 2023.
  • Colorado Public Utilities Commission Rules of Practice and Procedure, 4 CCR 723-1.