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Public utilities

Public Utilities Commission Approves Settlement Agreement for Barker Substation and Transmission Line Project

Strategic Insights

— 1 min read

The Public Utilities Commission of the State of Colorado has approved a settlement agreement for the Barker Substation and transmission line project, a new substation intended to increase capacity of the network distribution system serving downtown Denver. The project, valued at approximately $213.6 million, aims to address growth in demand caused by population increases, high-density demand, new all-electric residential buildings codes, and successful urban revitalization efforts.

Key Takeaways:

  • The Commission approved the settlement agreement between Public Service Company of Colorado (Public Service) and Trial Staff of the Colorado Public Utilities Commission (Staff), which addresses concerns regarding the project's cost, construction schedule, and environmental impact.
  • The settlement agreement requires Public Service to recover the transmission costs of the project through the Transmission Cost Adjustment (TCA) tariff, consistent with the terms of the Company's TCA tariff.
  • The agreement also states that Public Service will bear the burden of demonstrating actual costs incurred are prudent and reasonable when bringing the costs of the project forward for recovery in base rates.
  • The Commission has accepted the Settlement Agreement and finds that the parties have established by a preponderance of the evidence that the Settlement Agreement is just, reasonable, and in the public interest.
  • The project is expected to cost approximately $213.6 million, with about $100 million related to the transmission line and the transmission-level substation facilities.
  • Public Service plans to recover costs through its TCA tariff and proposed Grid Modernization Adjustment Clause.
  • The project is expected to increase capacity of the network distribution system serving downtown Denver, addressing growth in demand caused by population increases, high-density demand, new all-electric residential buildings codes, and successful urban revitalization efforts.

Statistics:

  • The project is valued at approximately $213.6 million.
  • Approximately $100 million of the project costs are related to the transmission line and transmission-level substation facilities.
  • The Transmission Cost Adjustment (TCA) tariff will be used to recover transmission costs.
  • The Grid Modernization Adjustment Clause is proposed for distribution cost recovery.
  • The project is expected to increase capacity of the network distribution system serving downtown Denver.
  • The settlement agreement requires Public Service to file semi-annual project progress reports.

Sources:

  • Decision No. R25-0597, Public Utilities Commission of the State of Colorado, August 19, 2025.
  • Decision No. C06-0259, Public Utilities Commission of the State of Colorado, March 20, 2006.
  • Caldwell v. Pub. Utils Comm'n, 692 P.2d 1085, 1089 (Colo. 1984).

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