Colorado § 40-3.2-104.3 - Eliminating incentives for gas service to properties - gas line extension allowances - exemptions - definitions.

§ 40-3.2-104.3. Eliminating incentives for gas service to properties - gas line extension allowances - exemptions - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) "Applicant" means a person that requests natural gas service and that owns the real property requiring the service. "Applicant" includes a developer, builder, legal entity, or other person that has legal authority over the property.

(b) "Dual-fuel utility" means a utility that offers its customers both electric and gas service.

(c) "Gas utility" means a gas utility that the commission regulates with respect to rates and charges.

(d) "Line extension allowance" means a bundle of costs that includes construction allowances for new service lines, meters, and other infrastructure associated with the addition of a new customer to a gas utility's distribution system.

(2) (a) A gas utility shall not provide an applicant an incentive, including a line extension allowance, to establish gas service to a property.

(b) The commission may require a dual-fuel utility to provide its customers that receive gas and electric service from the utility with relevant information regarding options for switching to high-efficiency electric space heating or water heating, including:

(I) A list of appliances for which the utility provides incentives or rebates; and

(II) For existing or prospective customers that are government entities, a cost-benefit analysis of electrification options that includes up-front and lifetime costs, which analysis must take into account available incentives and rebates and use a reasonable cost that reflects gas price volatility.

(c) On or before December 31, 2023, each gas utility shall file with the commission an updated tariff to reflect the removal of any incentives for an applicant to establish gas service to a property.

(d) Notwithstanding subsection (2)(c) of this section, a utility may exempt from the updated tariff any applicant that:

(I) Has already submitted an application that has been approved or is pending as of August 7, 2023;

(II) Can demonstrate or attest that the applicant has submitted a permit application to the local government with permitting authority in the location of the property and that the application is either approved or pending as of August 7, 2023; or

(III) Can demonstrate or attest that the applicant has submitted to a local government a site development plan or plat that is either approved or pending as of August 7, 2023; except that an applicant that has submitted a site development plan or plat for which a permit application to the local government has not been approved on or before December 31, 2024, is not exempt.

Source: L. 2023: Entire section added, (SB 23-291), ch. 163, p. 717, § 5, effective August 7.