Frequently Asked Questions (FAQs)

Colorado’s 66th General Assembly passed Senate Bill 07-100 (SB 07-100) upon the recommendation of the 2006 Transmission Task Force on Reliable Electricity Infrastructure (Task Force). In its November 1, 2006 report, the Task Force recognized that “Colorado’s ability to ensure the continued supply of affordable, reliable electricity and to build a vibrant economy depends on sufficient transmission capability.” The Task Force indicated that the system is strained and, if current trends continue, there would not be adequate transmission to meet the electricity demand.

To address these concerns, the Task Force recommended:

1. Establishing a transmission cost recovery rider to create a robust and reliable transmission system to meet Colorado’s future energy needs;
2. Increasing governmental involvement with organizations like the Colorado Coordinated Planning Group (CCPG);
3. Appropriating adequate funding for the Colorado Public Utilities Commission (CPUC) to actively participate in regional electricity transmission planning, reliability and regulatory forums.
4. Identifying renewable generation resource development areas within Colorado. In order to develop economic, safe, reliable and low-cost renewable electricity, the Task Force recommended that the state identify renewable generation resource development areas that have potential to support competition among renewable energy developers for development of renewable energy projects. In response to those recommendations, the Colorado legislature passed SB 07-100.

In 2007, Colorado Governor Bill Ritter signed into law SB 07-100, which established requirements for utilities to continually evaluate and, if necessary, improve electric transmission facilities to meet the state’s existing and future energy needs. SB 07-100 essentially seeks to expand Colorado’s electric transmission system and promote the use of renewable resources.

SB 07-100 calls for the creation of Energy Resource Zones (ERZs), defined as geographic areas in which transmission constraints hinder the delivery of electricity to Colorado consumers, the development of new electric generation facilities to serve Colorado consumers, or both. Public Service Company of Colorado (PSCo) has identified five such zones where development interest has been shown in the past, and where there is significant potential for renewable generation from wind and solar resources.

SB 07-100 requires Colorado electric utilities that are subject to rate regulation by the CPUC to file, at least on a biennial basis, transmission development plans (SB 07-100 report). The plans are to consist of the following:

• Designation of ERZs
• Development of plans for the construction or expansion of transmission facilities necessary to deliver power consistent with the timing of energy resources located in or near such zones;
• Consideration of how transmission can be provided to encourage local ownership of renewable energy facilities; and,
• Submission of proposed plans and applications for a Certificate of Public Convenience and Necessity (CPCN) to the CPUC for review.

The Company’s 2009 SB100 report identifies the following proposed projects:

In its 2009 SB100 report, PSCo proposed nine transmission line projects (SB100) around the state in compliance with the SB 07-100 mandates.

• Lamar-Front Range
• Lamar-Vilas
• Midway-Waterton
• Missile Site 230-kV Switching Station
• Missile Site 345-kV Substation
• Pawnee-Smoky Hill
• Pawnee-Daniels Park
• San Luis Valley-Calumet-Comanche
• Ault-Cherokee 230/345kV

PSCo is partnering with Tri-State Generation and Transmission on the proposed San Luis Valley-Calumet-Comanche project. The proposed projects are in varying stages of the regulatory and/or siting process.

The proposed projects will help meet the goals of SB 07-100, which requires rate regulated utilities, such as PSCo, to plan transmission projects that accommodate the development of beneficial resources, including renewable generation.

Since these proposed projects are an addition to the high-voltage transmission system, they will improve PSCo’s ability to move large quantities of electricity around the system. Additionally, the proposed projects will help by alleviating reliability problems, which can currently lead to customer outages.

The proposed projects are expected to provide significant socioeconomic benefits to local residents as a result of a more reliable supply of power for businesses and agricultural operations. In addition, by providing a more robust transmission system for delivery of electric power (including renewable energy), the entire region will benefit from the proposed projects.

The proposed projects may generate a broad array of public revenues from sales and property taxes and franchise, license and permit fees, and other charges. The ongoing revenues from the taxes and fees generated by the proposed projects will benefit the region and its residents.

The proposed projects will generally be funded through rates which are established and/or approved by the CPUC.

• Lamar-Front Range
• Lamar-Vilas
• Midway-Waterton
• Missile Site 230-kV Switching Station
• Missile Site 345-kV Substation
• Pawnee-Smoky Hill
• Pawnee-Daniels Park
• San Luis Valley-Calumet-Comanche
• Ault-Cherokee 230/345kV

SB 07-100 states the CPUC must rule on an application filed pursuant to that statute within six months. If a CPCN application is not filed pursuant to that statute, the review process can take approximately nine to 12 months.

The CPCN process does not decide the final location of the transmission line.

PSCo determines a proposed line’s preferred location with input from the public and stakeholder agencies. This is completed through a multi-step siting process that includes detailed analysis of resources within proposed project study areas and identification of opportunities and constraint areas for location of transmission facilities. Based on the opportunities and constraints analysis, preliminary alternative corridors are identified. The corridors are at least one mile wide to allow for flexibility in selecting alternative routes within them that can avoid the most sensitive areas, residences, etc.

Next, PSCo conducts corridor refinement and alternative route analysis. Public and agency input is important to this process. Once feasibly routes are identified, a comparative analysis of these routes is completed, and the public has an opportunity to review the comparative analysis and alternative route(s).

You can provide comments to PSCo on the proposed SB100 projects. All comments, information and suggestions are valued and taken into consideration when developing proposals.