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PUC hopes to prod efficiency

Energy-saving incentives among ideas for agenda

By Jeff Smith, Rocky Mountain News (Contact)

Published February 22, 2008 at 12:05 a.m.

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Colorado Public Utilities Commission Chairman Ron Binz on Thursday recommended that the PUC examine how best to provide energy-efficiency incentives to utilities and consumers.

"In my view it's a back-to-basics question . . . what are we trying to achieve?" Binz said of incentives to utilities to promote energy efficiency.

His comments came during a special meeting in which the three commissioners talked about issues they'd like to tackle this year.

Some critics charge that investments in renewable energy translate into higher prices for consumers because utilities such as Xcel continue to receive their guaranteed rate of return, or profit.

Binz said he would like to look at the fundamental question of how a utility's profitability should be decided.

He also said he wanted to look at consumer rate structures. He noted that during a road trip through the state last year, commissioners were frequently asked by Colorado residents why energy prices aren't higher as consumers use more. He said it would be helpful to look at how rate structures affect energy efficiency.

New PUC commissioners Jim Tarpey and Matt Baker agreed it would be beneficial to look at fundamental issues outside a specific rate case.

Tarpey said he wants the PUC to examine the efficiency of the regional transmission system, while Baker wants to look at how federal climate change legislation affects utilities and ratepayers.

Xcel spokesman Tom Henley said the utility will wait and see what the PUC decides to examine.

Among other topics, Binz said the commission should look at how to accomplish Gov. Bill Ritter's goal of providing high-speed Internet throughout Colorado. One option would be to restructure a fund that supports universal telephone service.

Binz said Colorado "can shine" during the Democratic National Convention if it can address the increase in visitors with adequate transportation. If not, Colorado could get a "shiner," he said. Binz said it could require some emergency measures to ensure enough taxis are on the road.

smithje@RockyMountainNews.com or 303-954-5155