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Colorado PUC Issues Proposed Wholesale Market Rules
The Colorado Public Utilities Commission issued proposed rules setting a process Public Service Co. of Colorado, or PSCo, an Xcel Energy utility, Black Hills Colorado Electric and Tri-State Generation and Transmission Association must follow to join an organized wholesale market.
The Colorado the Colorado Transmission Coordination Act of 2019 (CTCA) law requires the state’s transmission-owning utilities to join an organized wholesale market by 2030.
Among other things the proposed rules set utility filing requirements, timelines and criteria the utilities must meet to have an application to join a market approved by the commission.
The Hearing Commissioner will establish a schedule for the filing of written comments and a date for a continued public comment hearing by separate decision.
A public comment hearing in this matter was held on March 5, 2024.
As background, this rulemaking was opened after the Commission’s completion of its work under the requirements of the Colorado Transmission Coordination Act of 2019 (CTCA). The CTCA directed the Commission to investigate the costs and benefits resulting from electric utility participation in an organized wholesale market (OWM).
By Decision No. C21-0755 in Proceeding No. 19M-0495E, the Commission determined pursuant to its report to the Colorado General Assembly (CTCA Study) that utility participation in an Energy Imbalance Market (EIM), a Day-Ahead Market (DAM), a regional transmission organization (RTO), power pool, or joint tariff is generally in the public interest. The Commission clarified that this general determination on OWM participation did not extend to participation in a specific market and that any analysis of the costs, benefits, and public interest associated with participation in a specific OWM would have to occur through a separate proceeding.
The Commission is considering amendments to its Rules Regulating Electric Utilities (4 CCR 723-3) to implement sections of Senate Bill 21-072 and set forth provisions governing Colorado utilities’ participation in wholesale electricity markets. The central purpose of the rulemaking is to specify filing requirements for utilities seeking approval to join wholesale electricity markets and reporting requirements regarding utilities’ plans, commitments, and actual participation in these markets. The Commission has designated Chairman Eric Blank as the Hearing Commissioner to conduct this rulemaking. The Hearing Commissioner will issue a recommended decision, which will then be considered by the full Commission. Any adopted rules will take effect 20 days after publication in the Colorado Register.
Decision No. R24-0121-I
