4 CCR 723-3-3882 - Purchases from CSGs

(a) The Commission shall establish the minimum and maximum purchases from new CSGs for each year in accordance with § 40-2-127(5)(a)(IV), C.R.S. The Commission shall establish such minimum and maximum levels of purchases through the utility's acquisition plan for new CSGs filed by the utility pursuant to rule 3656 or rule 3603.

(I) The utility's acquisition plan shall include a proposed method for requiring CSG subscriber organizations to verify that the organization will sell and maintain CSG subscriptions to achieve the result that at least 50 percent of the established minimum aggregate new CSG purchases correspond to residential, small commercial, agricultural, and eligible low-income CSG subscribers, and eligible low-income service providers.

(II) The utility's acquisition plan shall explain how it will use a combination of one or more competitive solicitations and one or more standard offers to cause purchases from new CSGs over the period covered by the plan.

(III) The utility shall propose as part of its acquisition plan a standard offer pricing program in order to acquire new CSG generation.

(A) At least one standard offer must enable CSG subscribers to keep the RECs generated by the CSG. The standard offer may result in differing compensation that would enable the CSG subscribers to keep the RECs generated by the CSG.

(B) The standard offer may include a price adder for purchases from new CSGs with subscribers from the categories identified in subparagraph 3882(a)(I), or for the purpose of encouraging CSGs with certain beneficial characteristics or innovations.

(IV) For acquisitions made through competitive solicitations, the utility shall select projects in combination to ensure participation of subscribers from the categories identified in subparagraph 3882(a)(I).

(b) All of the electricity from a CSG shall be acquired and distributed by the utility. A utility shall not restrict or unreasonably delay any CSG that is approved pursuant to a Commission approved procurement plan from interconnecting to the utility's distribution or transmission system in accordance with the applicable interconnection standards and procedures.

(c) The utility shall enter into contracts with CSG owners in accordance with the competitive solicitations and standard offers identified in the utility's acquisition plan. The CSG owner shall state in its proposed contract with the utility whether the RECs will be retained by CSG subscribers or ownership of the RECs will be transferred to the utility. Compensation may differ that would enable the CSG subscribers to keep the RECs generated by the CSG. A CSG whose owner enters into a contract with the utility shall be deemed to be part of the utility's Commission-approved acquisition plan if the cumulative total of the nameplate capacity of the acquired new CSGs does not exceed the maximum purchases established by the Commission for that year.

(d) The utility shall conduct due diligence on proposed contracts with new CSG owners to reasonably assure that the CSG owner and CSG subscriber organization have sufficient resources to successfully construct and commence operations of the CSG.

(I) Except for CSGs owned by governmental, quasi-governmental, or non-profit entities, the utility shall be deemed to have conducted sufficient due diligence by requiring from the CSG owner documentation of escrowed funds of not less than $100 per kW AC of the CSG's nameplate rating. The escrow shall be maintained by its terms until such time as the CSG owner makes an interconnection agreement deposit payment.

(II) If a CSG owner properly documents escrowed funds consistent with this paragraph, the utility may not refuse to enter into a contract with the CSG owner for failure to demonstrate sufficient resources to reasonably assure successful construction and commencement of CSG operations.

(e) In each acquisition plan for purchases from new CSGs, the utility shall reserve, on a program-wide basis and to the extent there is demand for such ownership, at least ten percent of its electricity purchases from new CSGs for eligible low-income CSG subscribers.

(I) CSG subscriber organizations and utilities may rely on certification by the Colorado Department of Human Services for acceptance in the Colorado Low-Income Energy Assistance Program (LEAP) as evidence of eligibility as an eligible low-income CSG subscriber in a CSG or other reliable verification methods from low-income service providers.

(II) CSGs for eligible low-income CSG subscribers may be either dedicated low-income CSGs or low-income set asides within other CSGs.

(III) The utility's CSG acquisition plan shall be designated to ensure reasonable access for low-income residential customers as distinct from low-income service providers.

Notes

4 CCR 723-3-3882

38 CR 17, September 10, 2015, effective 9/30/2015 39 CR 06, March 25, 2016, effective 4/14/2016 39 CR 08, April 25, 2016, effective 5/15/2016 40 CR 22, November 25, 2017, effective 12/15/2017 42 CR 03, February 10, 2019, effective 3/2/2019 42 CR 07, April 10, 2019, effective 4/30/2019 42 CR 09, May 10, 2019, effective 5/30/2019 43 CR 08, April 25, 2020, effective 5/15/2020 43 CR 12, June 25, 2020, effective 7/15/2020 43 CR 20, October 25, 2020, effective 11/14/2020 44 CR 13, July 10, 2021, effective 7/30/2021 44 CR 24, December 25, 2021, effective 1/14/2022 45 CR 18, September 25, 2022, effective 10/15/2022 46 CR 02, January 25, 2023, effective 2/14/2023