HB 15-1250: Performance-Based Utility Regulation

• Directs the Colorado Public Utilities Commission to investigate alternative utility business and revenue models that align utility earnings with public policy objectives including long-term economic sustainability, system efficiency, renewable energy diversity, greenhouse gas emissions reduction, water consumption, and customer satisfaction.

• Requires the commission to explore performance-based regulation including suitable metrics for evaluating utility performance, earnings mechanisms based on achievement of outcomes, innovative service delivery models, and decoupling utility revenues from sales volume.

• Specifies that the commission examine business models where utilities remain profitable while reducing carbon emissions, consumers receive increasing value as utilities become more efficient, and customers have incentives to reduce overall energy usage.

• Requires the commission to complete its investigation by August 1, 2016, and report findings and recommendations to the legislative council, governor's office, House Transportation and Energy Committee, and Senate Agriculture, Natural Resources, and Energy Committee by October 1, 2016.

• Section automatically repeals effective July 1, 2017; act subject to referendum petition and takes effect August 5, 2015, unless challenged, in which case it requires voter approval in November 2016.