International conflict, extreme weather, and other external factors are driving higher home heating costs for Coloradans during our coldest winter months. Through no fault of our own, we Coloradans are seeing our monthly bills increase, meaning hundreds of dollars more each month to keep our houses warm. This is on top of the other inflation-related costs Coloradans are struggling with.
This is not a reality we should be forced to accept, and even though natural gas is a globally traded commodity and the market sets the price, I will do everything in my power to provide relief and save people money. My aggressive approach to reducing energy costs is no different than my work in other areas to save people money — from free, full-day kindergarten and preschool to capping insulin costs to cutting property and income taxes.
That’s why this week I will officially call on the Public Utilities Commission (PUC), the Colorado Energy Office (CEO), and all of Colorado’s utilities to look at how every single process and procedure can be altered to protect Colorado consumers, lower costs, and avoid price swings like the one we’re experiencing now.
I specifically spelled out immediate and longer-term actions for how each entity, in partnership with the state, can accomplish this vision.
I’m directing the Public Utilities Commission, within the Department of Regulatory Agencies, to improve long-term price stability and reduce customer exposure to spikes. Our utilities must be held accountable to ratepayers, and we must ensure that they lose profits over failure to protect consumers from increased natural gas prices.
I am also requesting that the PUC elevate frontline resources such as the Low-income Energy Assistance Program (LEAP), utility Percentage of Income Payment Plans (PIPP), and other forms of state or local assistance to support our most vulnerable Coloradans.
I’m further directing the Colorado Energy Office to expedite the creation of the federally funded Whole Home Energy Retrofit Program, which will help more Coloradans save money through increased access to energy efficiency upgrades like high-efficiency home appliances. I’m also directing the CEO to work with all utilities in Colorado to identify those most vulnerable to natural gas prices and prioritize outreach and resources to them.
Beyond that, I am urging the leadership at Colorado’s energy utilities to support regulatory changes and relief to reduce customers’ exposure to high and fluctuating gas prices. They need to coordinate with our state agencies to ensure our most vulnerable Coloradans can access the resources they need. All while supporting distributed generation and storage financing with on-bill tariff/rebate mechanisms, and continuing to drive the transition to lower-cost renewable energy.
To be clear, these are just a few of the ways we are looking to provide relief to Coloradans. I have spelled out over 30 recommendations and directions that the state and our partners should be moving full-steam ahead on.
But the only real, long-term solution to preventing these price swings and saving Coloradans money is the full transition to reliable, low-cost renewable energy that does not change in price with international events. We simply must end our reliance on costly fossil fuels and improve our energy security.
When I took office, I made putting our state on the path to 100% renewable energy by 2040 one of my bold goals. Had we gotten there faster, and shifted more heating from gas to electricity, we wouldn’t be facing price spikes that are costing all of us more this winter. We’ve already locked in more than 80% renewable energy in the future and I will be relentless in my pursuit of saving Coloradans money by helping Colorado secure the final 20%.
Colorado utilities have gotten bids for wind generation around 1.8 cents per kilowatt hour (KWH) and new solar energy around 3 cents per KWH, while natural gas generation costs range from 4 to 7 cents per KWH. These excess natural gas costs are passed along to consumers.
We know what needs to be done to lower costs, and I hope my fellow leaders join my efforts to protect Coloradans and put damaging utility-bill price swings in the past.
Jared Polis is the governor of Colorado.
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