CO SB002

Requires investor-owned electric utilities to establish a First Allotment of Residential Electricity (FARE) service program providing income-qualified customers a minimum level of electricity at a marginal cost rate lower than standard residential rates

Utilities must submit FARE service proposals to the Public Utilities Commission (PUC) as part of their first rate case filed on or after January 1, 2027, including the minimum electricity amount based on basic living needs and enrollment processes

Marginal cost rate must reflect the utility's actual costs of providing service (fuel, purchased power, operation/maintenance, capital additions, overhead, taxes, and fees) and cannot directly increase costs for other customers

If FARE implementation would increase costs for other customers, the PUC must reduce the utility's anticipated profit by that documented cost impact

Applies only to investor-owned electric utilities, excluding cooperative electric associations and municipally owned utilities; effective date approximately August 12, 2026