Colorado § 40-7-113.5 - Civil penalties applicable to public utilities - exclusion from rate base.

§ 40-7-113.5. Civil penalties applicable to public utilities - exclusion from rate base.

(1) (a) In addition to any other penalty otherwise authorized by law and except as otherwise provided in subsections (3), (4), and (5) of this section, a public utility furnishing electric, gas, water, water and sewer, or telecommunications service that intentionally violates any provision of articles 1 to 7 or 15 of this title 40 or of any rule, tariff, or order of the commission adopted or issued pursuant to articles 1 to 7 or 15 of this title 40, which provision is applicable to such utility, may be assessed a civil penalty of not more than seven thousand five hundred dollars; except that nothing in this subsection (1) shall be construed to authorize the imposition of civil penalties upon:

(I) A cooperative electric association that has voted to exempt itself from regulation pursuant to section 40-9.5-103;

(II) A cooperative telephone association;

(III) A municipally owned utility; or

(IV) A nonprofit generation and transmission electric corporation or association.

(b) Civil penalties assessed pursuant to this section shall be paid and credited to the general fund, in addition to any other sanctions that may be imposed pursuant to law; except that civil penalties assessed against an electric or gas utility shall be paid to the public utilities commission fixed utility fund created in section 40-2-114 (1)(b)(II) and shall be used for affordability programs or outreach and engagement directly related to income-qualified customers or disproportionately impacted communities. The amount of any such penalties paid shall not be an allowable expense for rate-making purposes.

(2) (a) The commission shall adopt rules specifying the amount of the civil penalties to be assessed for each violation pursuant to subsection (1) of this section. In determining the amount of civil penalties to be assessed for each violation, the commission shall consider factors including the utility size, the actual or potential harm of a violation, and any mitigating circumstances or actions of the utility.

(b) No public utility shall be assessed a civil penalty if the utility is already subject to an existing reparation due to a commission order, commission rule, or statutory provision for the same violation.

(3) If any public utility receives a second civil penalty assessment for a violation of the same statute, rule, or order within one year after the first violation, the civil penalty assessed for the second violation shall be no greater than twice the amount specified by rule for such violation.

(4) If any public utility receives more than two civil penalty assessments for violation of the same statute, rule, or order within one year, the civil penalty assessed for each such subsequent violation shall be no greater than three times the amount specified by rule for such violation.

(5) Notwithstanding any provision of this section to the contrary, the total amount of civil penalties assessed against one public utility under this section shall not exceed the lesser of the following:

(a) One hundred fifty thousand dollars in any six-month period; or

(b) In any twelve-month period, one percent of the utility's gross annual revenues from services regulated by the commission, based on the most recent fiscal year for which final revenue figures are available.

Source: L. 2008: Entire section added, p. 1798, § 20, effective July 1. L. 2026: IP(1)(a), (1)(b), and (2)(a) amended, (HB 26-1326), ch. 210, p. 1220, § 14, effective August 12.

Editor's note: Section 50(2) of chapter 210 (HB 26-1326), Session Laws of Colorado 2026, provides that the act changing this section applies to conduct occurring on or after August 12, 2026.