Colorado regulators move $20.5 million in clean-heat funds into 2026

Colorado regulators approved Public Service’s request to use $20.5 million in 2027 clean-heat electrification funds in 2026, giving the utility more funding flexibility as rebate demand outpaced its current-year budget.

At their Oct. 21 meeting, commissioners approved the transfer in Public Service’s Clean Heat Plan proceeding. The utility said it had no existing way to draw on approved future-year funds for current spending. Without that flexibility, it said, its 2026 budget would be exhausted and rebate applications would have to wait until 2027, as Public Service explained in its meeting presentation.

Public Service reported rebate applications totaling as much as $57.7 million through August 2026, compared with $38.8 million for all of 2025. Commission advisers recommended approval, saying the request and the utility’s rebate changes appeared reasonable to maintain program continuity and manage the overall budget.

The transfer moves access to $20.5 million earlier; it does not add that amount to the program’s total funding. Public Service and commission staff agreed to assess by the end of the second quarter of 2027 how much clean-heat funding would be available for business electrification for the rest of that year, and to limit additional transfers of unspent funds between years.

Separately, Public Service said it halved bonus rebates for many market-based electrification offerings starting Oct. 1. The reduction did not apply to income-qualified offerings supported with Clean Heat Plan funds. The utility said the approved flexibility was intended to reduce or eliminate the need to pause rebate processing for the rest of 2026.