Public Service Company of Colorado Receives Approval for 2021 Gas Demand-Side Management Bonus

Strategic Insights -

The Public Utilities Commission of the State of Colorado has issued a decision granting approval for Public Service Company of Colorado's 2021 Gas Demand-Side Management Bonus, totaling $5,824,243. The decision was adopted on May 11, 2022, and mailed on May 13, 2022. The company exceeded its Commission-approved gas DSM savings goal by nearly 7 percent, achieving 812,605 Dth in gas savings by expending $17,621,430.

Key Takeaways:

  • Public Service Company of Colorado's application for approval of its 2021 Gas Demand-Side Management Bonus was deemed complete and granted by the Public Utilities Commission of the State of Colorado, totaling $5,824,243.
  • The company exceeded its Commission-approved gas DSM savings goal by nearly 7 percent, achieving 812,605 Dth in gas savings by expending $17,621,430.
  • The Gas Demand-Side Management Bonus represents 25 percent of the expenditures for 2021, and the Commission's Staff has reviewed the accuracy of the calculation of the award and its adherence to the Commission's gas DSM rules.
  • The company's modified Total Resource Cost test value was 1.76, resulting in net economic benefits totaling $35,515,895.
  • Public Service Company of Colorado is eligible to receive its requested total award of $5,824,243, which will be collected over a 12-month period through the Gas Demand-Side Management Cost Adjustment, effective July 1, 2022.
  • The company's 2021 DSM Plan year was cost-effective, leading to a modified Total Resource Cost test value of 1.76 and resulting in net economic benefits totaling $35,515,895.
  • Public Service Company of Colorado has calculated an Acknowledgement of Lost Revenues in the amount of $1,418,885 for 2021.

Statistics:

  • The minimum expenditure target for Public Service Company of Colorado's gas demand-side management programs is $8,490,995.
  • The company's actual gas DSM portfolio expenditures totaled $17,621,430, which is significantly more than the statutory minimum gas DSM expenditure target.
  • The Gas Demand-Side Management Bonus represents 25 percent of the expenditures for 2021.
  • The modified Total Resource Cost test value for Public Service Company of Colorado's 2021 DSM Plan year was 1.76.
  • The net economic benefits totaling $35,515,895 were achieved by Public Service Company of Colorado in 2021.

Sources:

  • Colorado Public Utilities Commission (May 13, 2022): Decision No. C22-0300
  • Public Service Company of Colorado's application for approval of its 2021 Gas Demand-Side Management Bonus (April 1, 2022)
  • Rule 4753(h)(I) of the Rules Regulating Gas Utilities, 4 CCR 723-4
  • Rule 4754(g)(II) of the Rules Regulating Gas Utilities, 4 CCR 723-4
  • Rule 4754(i) of the Rules Regulating Gas Utilities, 4 CCR 723-4