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Electric vehicles

Public Utilities Commission Denies Application for Rehearing on Public Service Company of Colorado's Electric Vehicle Incentive Plan

Strategic Insights

— 2 min read

The Public Utilities Commission of the State of Colorado has issued a decision denying the application for rehearing filed by the Office of the Utility Consumer Advocate (UCA) regarding the Public Service Company of Colorado's electric vehicle incentive plan. The UCA had requested that the Commission modify the equity performance incentive mechanism (Equity PIM) to allow bonuses only for incremental rebates and ports completed above the category thresholds. However, the Commission denied the request, citing that the Recommended Decision, affirmed by Decision C22-0485, establishes a minimum incentive threshold at a reasonable level.

Key Takeaways:

  • The Public Utilities Commission of the State of Colorado has denied the application for rehearing filed by the Office of the Utility Consumer Advocate (UCA) regarding the Public Service Company of Colorado's electric vehicle incentive plan.
  • The UCA had requested that the Commission modify the equity performance incentive mechanism (Equity PIM) to allow bonuses only for incremental rebates and ports completed above the category thresholds.
  • The Commission denied the request, citing that the Recommended Decision, affirmed by Decision C22-0485, establishes a minimum incentive threshold at a reasonable level.
  • Public Service may earn bonuses only for the ports and rebates above the five percent "threshold" of the target in each PIM category.
  • The Commission believes the Equity PIM offers a generous incentive for a fairly low level of performance, but being the first effort in this area, it is appropriate.
  • The Commission will reevaluate the Equity PIM thresholds in Public Service's next TEP filing, which is less than a year away.
  • The Commission views this Equity PIM as focused on progress made pursuant to the Company's 2021-2023 TEP, and sees no legal or policy impediment to the PIM being structured to track and reward progress during the entire implementation period for the current TEP.

Statistics:

  • The target for the EV Purchase/Lease Rebate category is 1075 rebates.
  • The five percent threshold for this category is 54 rebates.
  • Under the Company's interpretation, it would earn a 54 x $500 = $27,000 bonus upon paying the 54th rebate.
  • The Company would earn a maximum of $806,500 in bonuses upon reaching 150 percent of the target in this category, or 1,613 rebates.

Sources:

  • Public Utilities Commission of the State of Colorado, Decision No. C22-0590 (September 29, 2022).
  • Office of the Utility Consumer Advocate, Application for Rehearing, Reargument, or Reconsideration of Decision No. C22-0485 (September 6, 2022).
  • Public Service Company of Colorado, Advice Letter No. 1867 - Electric (October 15, 2021).
  • Public Service Company of Colorado, Advice Letter and Tariffs in Proceeding No. 22AL-0364E (filed August 17, 2022).
  • Recommended Decision No. R22-0378 (June 24, 2022).
  • Decision No. C22-0485 (August 15, 2022).

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