Last December, thousands of Colorado families received an unpleasant early gift for the holidays: an energy bill that was, in many cases, hundreds of dollars more expensive than normal.

Many reacted in shock, and our offices were flooded with emails and phone calls from constituents asking for help: Surely, this must be some sort of mistake? I don’t remember using twice as much energy this month; why is my bill twice as expensive? Isn’t there something someone can do to help?

Unfortunately, the answer to the first question is no, there was no mistake. Customers really were expected to pay hundreds more than they’re used to for the same exact service. Although it was a colder winter than the previous, that fact alone doesn’t account for the huge increase in costs. The reasons why are as complex as they are infuriating, but the result is the same: an enormous burden on Colorado families and businesses.

The answer to the second and third questions is a bit more complicated. Some of the factors driving price spikes, like volatile natural gas prices due to Putin’s war in Ukraine and record cold snaps, are outside of anyone’s control.

But luckily, there are things we can do to help.

We formed a Joint Select Committee on Rising Utility Rates to investigate the root causes of the recent energy bill spikes, and to consider potential policy measures to mitigate those increases and stop the seemingly never ending rise in your utility bills.

We asked hard questions and sought answers from expert witnesses, including regulators, consumer advocates, policy experts and the utilities themselves to better understand the impact of volatility in natural gas markets and the frequency and justification for rate increases sought by utilities.

Now, we’re taking what we’ve learned and applying it through a new bill – Senate Bill 291 – that has one simple goal: improving accountability for utilities in order to save people money on their energy bills.

That goal will be accomplished through a number of provisions that rebalance the types of expenses that are paid by utility shareholders vs. ratepayers, better align incentives to control fuel costs, and level the playing field at Public Utilities Commission (PUC) proceedings, where infrastructure plans – which make up the basis of utility profits – are proposed and approved.

Right now, nothing in state law prevents utilities from charging their customers for their lobbying and advertising expenses. That’s not right, which is why our bill will prohibit charging customers for those expenses, and limit the utilities’ ability to pass along the cost of expensive attorneys and consultants who argue on behalf of raising rates on those very ratepayers. This change will yield immediate savings by removing those costs from utility bills and, perhaps more importantly, create a fairer process where utilities cannot utilize superior resources – paid for by ratepayers – to overwhelm the system and get their rate hikes approved.

Another cost that utilities pass on to consumers is the price of fuel; while they don’t profit from high prices, they have little business incentive to purchase fuel at a reasonable price or find cost savings for their ratepayers. Our bill requires utilities to cover a portion of fuel costs themselves. Skin in the game will motivate utilities to control fuel costs, providing savings that will be passed along directly to consumers on their bills.

In addition, the bill will allow the PUC to create a mechanism to smooth out monthly bills and avoid sudden price shocks, insulating consumers so they aren’t caught off guard by unexpectedly high bills. It also simplifies the process to disconnect from the gas system by prohibiting utilities from imposing large fees on customers who do so.

Finally, the bill requires utilities to provide more detailed justification for their plans when requesting a rate increase, which will help regulators and watchdogs better evaluate energy generation and transmission plans and make sure proposed investments are truly in the public interest.

These are common sense reforms, but more importantly, they’re necessary ones. Coloradans have spoken loud and clear: they’re sick and tired of being squeezed by high energy bills while utilities boast record profits. Our people and our communities deserve better.

Action is clearly needed, and this bill will help us hold utilities accountable to consumers so that every Coloradan can afford the energy they need to power their homes, keep the lights on, and live their Colorado dream.

Steve Fenberg is president of the Colorado Senate. Lisa Cutter is a Colorado state senator. Chris deGruy Kennedy is House speaker pro tempore. Matt Martinez is a Colorado state representive. 

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