Colorado PUC opens 2027 911 case as Xcel heat-pump pilot advances

The Colorado Public Utilities Commission on Wednesday opened its annual proceeding to set 2027 911 charges, allowed Xcel Energy’s voluntary residential heat-pump rate pilot to begin Aug. 1, suspended separate proposed flexible-grid tariffs and opened a utility rulemaking. The July 29 meeting record shows the actions were separate proceedings.

911 charges

Staff proposed a 16-cent monthly state surcharge per access connection, a $2.26 threshold for local emergency telephone charges requiring PUC approval, and a $2.43 charge on each prepaid-wireless retail transaction. The amounts are not final. Comments are due Aug. 28, responses Sept. 11, and the commission plans to issue an order by the statutory Oct. 1 deadline for new amounts to take effect Jan. 1, 2027.

The state surcharge would appear on monthly telecommunications bills. Sellers would collect and remit the prepaid-wireless charge, according to Colorado Department of Revenue guidance. Local governments seeking a local emergency telephone charge above the proposed threshold would need commission approval.

Heat-pump pilot starts Aug. 1

The commission allowed Public Service Company of Colorado, Xcel’s Colorado electric utility, to put a voluntary residential electric space-heating rate pilot into effect Aug. 1. The pilot is for customers who use a heat pump as their primary heat source and is expected to include about 3,000 participants during the 2026-27 heating season.

The pilot pairs a higher seasonal service-and-facilities charge with a lower off-peak electric rate from October through May. Xcel says it will gather information about customers’ electricity use and system impacts before filing a permanent heat-pump rate on Aug. 1, 2027. Conservation Advocates and local-government groups raised concerns but did not seek to suspend the pilot or hold a hearing.

The immediate effect is a test rate for participating customers, not a systemwide heat-pump tariff. The record does not establish customer savings, utility revenue changes or broader bill effects.

Solar groups challenge flexible tariffs

In a separate Xcel filing, the commission suspended proposed flexible-interconnection and flexible-energization tariffs that were set to take effect Aug. 1 and referred the case to an administrative law judge.

The proposals addressed distributed-energy projects and controllable loads that could not receive full service, or service on the requested schedule, because of distribution constraints or needed upgrades. Xcel proposed initially limiting each offering to one project per feeder.

The Joint Solar Parties argued that the tariffs gave Xcel too much discretion over service availability, operating conditions and curtailment. They sought clearer criteria, procedural protections and PUC oversight. The referral does not determine whether the tariffs will be approved, changed or rejected.

Rulemaking could change utility connections

The commission also opened an administrative-law-judge-referred rulemaking to implement Senate Bill 24-218 and House Bill 26-1225. It covers distribution-system planning, energization timelines, interconnection, customer cost caps, third-party contractors for interconnection work, utility cost recovery and performance metrics for large utilities.

Concepts discussed at the meeting included a 30-day average and 90-day maximum energization target, a potential $300-per-unit cap for affordable-housing upgrades, zero-cost caps for some residential electrification projects and rules allowing third-party contractors to perform interconnection studies. Those are concepts in a new rulemaking, not rules in force.

If adopted, the rules could affect how utilities upgrade distribution systems, how quickly customers and projects receive service, and what some customers or developers pay for interconnection or electrification work. The final costs, timelines and eligibility will depend on the rules and later utility filings. The legislation and PUC’s distribution-system-planning materials also emphasize upgrades for income-qualified or disproportionately impacted communities.