Colorado Regulators Probe into Retail Natural Gas Industry Emissions

The Colorado Public Utilities Commission on Nov. 4 opened a proceeding to investigate retail natural gas industry emissions as the state explores ways to meet the requirements of a 2019 law that set statewide goals to achieve emission cuts of 26 percent by 2025, 50 percent by 2030, and 90 percent by 2050, relative to 2005 levels. The law requires state regulators to establish implementation rules that may be revised as necessary to ensure timely progress toward the goals.

Although no specific requirements for the gas sector have been established, the commission intends to evaluate possible changes in the natural gas use emissions to support the statewide goals. The law requires the “use of all available practical methods which are technologically  feasible and economically reasonable so as to reduce, prevent, and control air pollution” in the state.

The proceeding will serve as a repository for presentations, comments, and other documents pertaining to the general investigation of the retail gas industry’s greenhouse gas emissions in view of the statewide goals. The commission is examining information on a range of topics such as the mathematical and scientific expectations for reducing gas sector emissions and options to decarbonize retail natural gas. The agency is also weighing near-term measures that can be implemented now while long-term technological and regulatory changes are underway.

In addition to renewable development, the law allows the commission to include regulatory strategies that have been adopted by other jurisdictions to cut multi-sector emissions and facilitate zero-emission technologies. The state’s renewable energy goal calls for investor-owned utilities to source 30 percent of energy supplies from renewables by 2020, with 3 percent of their retail sales coming from distributed generation by 2020.

The commission regulates several aspects of the retail natural gas industry, including rate setting, system safety and integrity provisions, demand-side management initiatives, service reliability, and pipeline safety. Given the short timeline to make progress on meeting the goals, the commission highlights the importance of obtaining adequate information on the potential impacts to utility systems and how they may affect utility investments and rates charged to customers.