Colorado Public Utilities Commission Grants Motion to Initiate Stage 2 Price Relief Process

Strategic Insights -

The Colorado Public Utilities Commission has granted a motion to initiate Stage 2 price relief process with additional directives, allowing developers to seek price relief due to changes in federal law. This decision is in response to the certification of new tariff actions, the passage of the Reconciliation Bill, and recent executive orders affecting the renewable energy sector. The Stage 2 relief process will provide up to a 15% total price increase, inclusive of any prior approved increase in Stage 1, and will allow developers to terminate PPAs and recover security payments.

Key Takeaways:

  • The Colorado Public Utilities Commission granted a motion to initiate Stage 2 price relief process with additional directives on August 12, 2025.
  • Public Service Company of Colorado filed the motion on July 15, 2025, citing changes in federal law due to new tariff actions, the Reconciliation Bill, and recent executive orders.
  • The Stage 2 relief process will provide up to a 15% total price increase, inclusive of any prior approved increase in Stage 1.
  • Developers can terminate PPAs and recover security payments up to 100% in cases where there is a change of law exceeding the 15% cap.
  • Public Service Company of Colorado will notify relevant developers of the initiation of the Stage 2 price relief process, the possibility of timing relief, and the flexible stance the Commission is taking regarding the acquisition of additional clean energy resources.
  • The Commission will evaluate the possibility of acquiring additional clean energy resources through this proceeding and consider timing relief for backup bids that can no longer meet their initial construction timelines.
  • The Commission will be flexible on the 30-day deadline for bidders to submit documentation to the IA, as appropriate and requested.

Statistics:

  • Up to 15% total price increase under Stage 2 relief process
  • Up to 100% recoupment of security payments in cases where there is a change of law exceeding the 15% cap
  • 30-day deadline for bidders to submit documentation to the IA (flexible as requested)
  • July 15, 2025: Date Public Service Company of Colorado filed the motion
  • August 1, 2025: Date Governor Jared Polis issued a letter addressing the Stage's commitment to prioritizing the deployment of affordable clean energy
  • August 12, 2025: Date Commission decision issued
  • August 18, 2025: Date Secretary of Treasury expected to release additional guidance regarding the expiration of tax credits

Sources:

  • Decision No. C25-0587-I: Decision by the Public Utilities Commission of the State of Colorado on August 12, 2025
  • Decision No. C25-0024: Decision by the Public Utilities Commission of the State of Colorado on January 14, 2025
  • CEP Delivery Decision: Decision by the Public Utilities Commission of the State of Colorado on January 14, 2025
  • Reconciliation Bill: Congress passed the Reconciliation Bill on July 3, 2025
  • Executive Order: Imposing tariffs on Mexico and Canada on February 1, 2025, and subsequent updates.