To offer competitive pricing plans and meaningful incentives to attract and grow large businesses in Colorado, we partnered with Xcel Energy to create an economic development electricity rate that mirrors successful programs in other states and takes advantage of an efficient use of existing utility infrastructure.
In 2017, discussions started with the idea of introducing state legislation to create the program. We collaborated with Xcel Energy to help craft the draft legislation with economic development input and brought in industry partners to gauge interest and discuss its potential. In 2018, HB18-1271 Public Utilities Commission Electric Utilities Economic Development Rates was introduced during the Colorado General Assembly session. The bill allows the Public Utilities Commission to approve economic development rates to help encourage commercial and industrial power customers to locate or expand their operations in Colorado.
Once the bill was introduced in the House, we immediately began advocating in favor of the legislation using all our available resources. After being assigned to the House Transportation & Energy Committee for consideration, we testified before that committee in favor of the bill. After passing out of committee and the full House, the bill was referred to the Senate and its Business, Labor, & Technology Committee where we testified in favor of the bill before that committee as well. The bill was passed out of both the Senate committee and the full chamber and was signed into law by then-Governor Hickenlooper on June 1, 2018.
In 2020, Xcel Energy filed the proposed economic development rate with the Colorado Public Utilities Commission. Under the rate, eligible companies will receive a lower electric rate price for up to 10 years. Tiered pricing will gradually step down over a multi-year term.
To qualify, a new or expanding business must:
