 |
RPS Colorado
(Last updated November 17th, 2004)
RENEWABLE PORTFOLIO STANDARDS-STATE SUMMARY
I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH
AND EDUCATION
I. POLICY
Date Enacted
November 2, 2004
Effective Date
January, 2007
Time Period
2007-2015 and onward
Extensions to Time Period
not applicable
Applicable Laws, Orders, and Regulations
Amendment 37 - Renewable Energy Requirement
Colorado Ballot Proposal for the November 2, 2004 Election
http://www.state.co.us/gov_dir/leg_dir/lcsstaff/2004/ballot/2004BluebookforInternet.PDF
Description
Colorado voters passed an amendment to the Colorado Revised
Statues calling for a renewable energy requirement of 3% beginning
in 2007, and incrementing to 6% in 2011 and 10% in 2015 and
beyond. The requirement applies to utilities serving 40,000
or more customers; and utilities may hold an election of their
customers to be included or exempted from the requirement.
The renewable requirement includes a solar set-aside stating
that at least 4% of the renewable generation in each year
must come from solar resources. In addition, a solar rebate
program is offered, providing utility customers an incentive
for installing solar equipment. Cost increase on average residential
electric bills is limited to less than 50 cents per month.
Utilities may purchase renewable energy credits in lieu of
actual generation to meet the requirement, under a renewable
energy credit trading system. Colorado's RPS is the first
RPS to be passed by ballot initiative.
Program Name
Renewable Energy Standard
Standard
Note: The Standard currently applies only to utilities with
40,000 or more retail customers. At the time of passage of
the amendment nine utilities will be affected, accounting
for 80% of customers in the state.
Year
|
% Retail Sales from Renewable Sources for Affected
Utilities
|
% Renewable Retail Sales from Solar
|
2007–2010
|
3%
|
4% minimum*
|
2011–2014
|
6%
|
4% minimum*
|
2015–onward
|
10%
|
4% minimum*
|
* At least 2% of the 4% solar set-aside must come from customer-sited
generation.
Eligibility Date
An eligibility date is not specified in the legislation, thus
both existing and new sources are eligible under the RPS.
Generation Limit
Hydroelectricity generation must have a nameplate capacity less
than 10 MW to qualify for the renewable requirement. There are
no generation limits on other renewable sources.
Fuels/Technologies
- Solar
- Wind
- Geothermal
- Hydroelectric less than 10 MW capacity
- Eligible Biomass, which includes:
- Agricultural Crops, Urban Wood Waste, Mill Residue, Slash, or Brush
- Animal Wastes and Products of Animal Wastes
- Methane produced from Landfills or Wastewater Treatment
- Fuel Cells using Hydrogen produced from the above defined renewable sources
II. ADMINISTRATION
Administering Entities
Public Utility Commission
Type of Entity
State
Administrative Contacts
Public Utilities Commission of Colorado
1580 Logan Street, OL 2
Denver, CO 80203
Phone: (800) 888-0170
Fax: (303) 894-2065
http://www.dora.state.co.us/puc/
III. FINANCING
Funding Level
none specified
Funding Source
The PUC will approve retail rates sufficient to cover the costs
of a renewable generation contract with a utilily, subject to
the cost cap below. If implementation of renewable generation
results in a net decrease in cost to customers, the utility
may keep up to 50% of the difference.
Cost Cap
The average utility customer retail electric rate may not
increase more than 50 cents per month.
Charge
included in retail electric rate
IV. CRITICAL ELEMENTS
Trading
The amendment tasks the Public Utility Commission with establishing
a system under which renewable generation credits can be traded.
The Commission is also to analyze the effectiveness of using
a regional trading system, which most likely refers to the
system adopted by the Western Governor's Association. Further
details of the trading system are not provided at this time.
Green Pricing
Renewable energy sold under green pricing programs is not
addressed for currently affected utilities. The amendment
does require that utilities exempted from this standard due
to already having a sufficient standard of their own in place,
must also have a green pricing option.
Certification
The commission may adopt regulations that establish a system
of renewable energy credits that may be used by a provider
to comply with its portfolio standard.
Out-of-State
Out-of-State generation is not specifically addressed in the
amendment. However, the amendment does establish that generation
from renewable resources within the state of Colorado count
for 1.25 kWh per 1 kWh of generation for the purposes of meeting
the RES requirement.
Self-generation
Utilities are required to offer a rebate to customers of $2.00
per watt of installed solar electric capacity at a customer's
facilities, up to 100 kiloWatts. A net-metering system is
established, and excess generation in a given month is applied
as a credit for the following month. If in a calendar year
a customer's generation exceeds consumption, the utility must
reimburse the customer for the excess generation at the utility's
average hourly incremental cost for the prior 12-month period.
Electricity generated at a customer site can be applied toward
meeting the utility's renewable generation requirement. In
fact, the standard requires that 4% of the renewable requirement
be met with solar, and that half of this 4% come from generation
at customer's facilities. The utilities are prohibited from
establishing unreasonably burdensome interconnection requirements.
Flexibility
Utilities may purchase renewable generation credits to meet
the requirement, however the details of this system are not
worked out yet. Utilities may also count verified generation
savings due to energy-efficiency programs towards the requirement.
Utilities currently affected by the requirement can exempt themselves,
and utilities not affected may opt in, by holding an election
of the utility's customers. At least 25% of customers must vote,
with a simple majority required for passage of either exemption
or inclusion.
If a municipally-owned utility already has in place a similar
renewable energy standard, that utility may be exempted from
the regulations of this amendment. For the utility standard
in question, only the above listed renewable sources may count,
and the percentage requirements must meet or exceed the requirements
of this amendment. The utility is also required to have a
green-pricing option.
Contracts
The Public Utility Commission must approve the terms and conditions
of renewable energy contracts between a qualifying utility
and another party. Contracts must have a minimum term of 20
years, including contracts acquiring renewable energy credits
from customer-sited facilities. Utilities are required to
consider proposals from third parties for the provision of
renewable energy and/or credits.
V. POLICY/PROGRAM ASSESSMENT
Reporting Requirement
Each utility is required to submit a report once annually
to the PUC detailing the utility's compliance with the statutes
of this amendment.
Assessing Entity
Public Utilities Commission
Report Date
not yet available
Report Name
not yet available
Status
Amendment to the Colorado Revised Statutes is effective immediately
from passage of the amendment on November 2, 2004. The Public
Utility Commission is required to adopt regulations enforcing
the statutes on or before April 1, 2005.
Cost Information
Actual cost information is not yet available, as the program
has not yet been implemented.
Assessment Contact
Public Utilities Commission of Colorado
1580 Logan Street, OL 2
Denver, CO 80203
Phone: (800) 888-0170
Fax: (303) 894-2065
http://www.dora.state.co.us/puc/
VI. PUBLIC OUTREACH AND EDUCATION
Outreach/Customer Education
Governor's Office of Energy Management & Conservation
- Renewables
http://www.state.co.us/oemc/programs/renewable/index.htm
Press Release
http://www.eere.energy.gov/news/news_detail.cfm?news_id=8267
|
|
