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DENVER, CO - The House today passed bipartisan legislation sponsored by Representative Tisha Mauro that would modify the Economic Development Rate to help attract businesses to Colorado and create more good-paying jobs. HB25-1177 passed by a vote of 62-3.
“The Economic Development Rate allows utilities to offer competitive electric rates to large customers and can be a powerful tool to help drive business to Colorado and create more jobs, but the current qualification requirements severely limit eligible projects,” said Rep. Tisha Mauro, D-Pueblo. “This bill expands eligible project size and reduces application review timelines to increase the number of projects that can benefit from these lower rates. By attracting more businesses to operate in Pueblo and other Colorado communities, we can create more good-paying jobs, lower electric rates for businesses, and generate more economic growth in our state.”
HB25-1177, also sponsored by Assistant Minority Leader Ty Winter, R-Trinidad, would make adjustments to the economic development rate (EDR) tariff by:
Increasing the maximum project size without requiring approval from the Public Utilities Commission (PUC) from 20 megawatts to 40 megawatts,
Expanding the maximum timeframe for rate eligibility from 10 years to 25 years, and
Establishing 120-day deadlines for PUC action for projects larger than 40 megawatts to ensure timely review and approval.
To be eligible for the EDR, businesses would have to undergo the societal economic benefit test, which takes into account the economic benefits that the EDR provides for the surrounding community, as well as an evaluation of the marginal cost to ensure other ratepayers in the utility’s territory aren’t negatively impacted.
The legislature created the Economic Development Rate in 2018, allowing regulated electric utilities to offer lower rates for up to 10 years to commercial and industrial users who do business in Colorado.