| As an advocate
organization, Energy Outreach Colorado
represents the interests of Colorado’s
low-income seniors and families before the
Colorado Public Utilities Commission, the state
legislature and in other capacities.
Here are of the
details of some of our recent projects:
2008
Legislative Session
Energy Outreach Colorado worked very hard on
passing Colorado House Bill 1387, sponsored by
State Rep. Buescher and State Sen. Veiga. The
bill provides additional funding from state
severance taxes for the Low-Income Energy
Assistance Program (LEAP). It also authorizes
funds for the Governor's Energy Office for
energy bill payment assistance for low-income
households through Energy Outreach Colorado, and
for home energy efficiency improvements. This
funding was originally established by HB 1200 in
2006 and provided funding from 2005-06 to
2008-09. The latest bill extends funding through
2011-12. It also requires the existing
Legislative Commission on Low-income Energy
Assistance to review and make recommendations on
how to improve the state's low-income energy
assistance services, such as how to best target
the low-income population and coordinate public
and private energy assistance services. The
commission must make its recommendations by
December 15, 2008. The bill allows the
commission to seek public and private funding
for its efforts.
2007
Legislative Session
Energy Outreach Colorado is pleased that the
2007 General Assembly overwhelmingly passed
Senate Bill 22, which authorizes the Colorado
Public Utilities Commission to consider the
needs of low-income utility customers when
approving utility rates and practices and that
Governor Bill Ritter signed it into law. This
legislation is an important step in helping to
assure that they are represented in the
regulatory process and have a stronger voice as
energy consumers. Dramatic increases in utility
prices in recent years have disproportionately
affected low-income seniors and families.
Although heating costs are relatively stable in
Colorado this winter, many income-limited
households that depend on energy assistance are
reeling from a significant drop from last year’s
state and federal assistance. Colorado AARP,
along with the Colorado Environmental Coalition
and a large number of low-income advocates,
worked closely with Energy Outreach Colorado to
get this bill passed.
2006
Legislative Session
On February 3, 2006, Gov. Bill Owens signed legislation to
allocate an additional $20 million for energy
assistance from mineral and energy severance
taxes paid to the state. This includes $17
million for the Colorado LEAP program and $3
million for Energy Outreach Colorado. In
addition, $4 million goes to the Governor’s
Office of Energy Management and Conservation (OEMC)
for energy efficiency programs. The legislation
also designates that an additional $7 million
will go toward energy assistance and about $4
million to the OEMC in each of the next three
years.
“We’re absolutely thrilled that Gov. Bill Owens
and the Colorado Assembly recognize how critical
it is for our state that all residents can
afford home energy, and that the foundation has
been laid to accomplish this,” said Skip Arnold,
Energy Outreach executive director. “We thank
all of the many supporters who have worked so
hard and given so much this year to turn the
tide on this desperate situation.”
Colorado Public
Utilities Commission
When Mother Nature or the global economy impact
energy prices in Colorado, there’s not much we
can do. Along with all of you, we’ve heard how
everything from hurricanes in the Gulf Coast to
increasing demand for energy in China has
factored into rising costs, particularly for
natural gas. We understand that utility
companies have no choice but to pass these costs
on to their customers.
However, when Xcel Energy filed a rate case last
summer asking for a $34.5 million increase for
its natural gas business, we got involved as one
of the state’s main advocates for low-income
residents. We joined forces with AARP to
intervene in the case before the Colorado Public
Utilities Commission. Our mission was to ensure
that the interests of limited-income families,
seniors on fixed incomes and individuals with
special needs were factored into the equation
and that the outcome would be equitable for all
Coloradans.
After months of negotiations, Xcel Energy, state
regulators and other interested parties –
including Energy Outreach and AARP – reached a
settlement that goes into effect this month.
Instead of receiving an additional $34.5
million, Xcel will collect an additional $22.5
million – a savings of $12 million for Colorado
ratepayers.
Although we regret the need for any increase at
all, we support this settlement and believe it
is an acceptable outcome for all involved. We’re
pleased that Xcel listened to our arguments and
agreed to shift the major impact of this
increase away from residential consumers. As a
result, the total impact to residential base
rates – the variable portion of the bill that is
based on actual usage – will be an increase of
4.9%, which is far less than the proposed
13.59%.
The overall impact of this settlement is an
average increase for residential customers of 73
cents a month, or about $8.76 a year. This is
much easier to swallow than the original
request, which would have meant an average
residential increase of $2.02 a month, or about
$24 per year.
Royalty in Kind
The proposed Royalty-in-Kind program included in
the recently passed federal Energy Bill creates
a program to transfer some profits from the sale
of natural gas obtained from federal lands to
benefit low-income energy consumers. These funds
are intended to supplement, and not replace,
LIHEAP funds.
This concept was introduced in 2001 in a letter
from Colorado Governor Bill Owens to Secretary
of the Interior Gale Norton and Vice President
Dick Cheney. John Harpole, Energy Outreach board
member and president of a Colorado-based natural
gas marketing company, testified on behalf of
the proposed program before the House
Subcommittee on Energy and Mineral Resources in
June 2001.
A pilot Royal-in-Kind program was included in
the Energy Bill, authorizing the Secretary of
Interior to grant “preference” to low income
energy consumers when disposing of royalty in
kind gas. Xcel Energy and Western Gas Resources
have agreed to participate in the pilot and are
developing a program to implement in Colorado.
The program is currently being considered at the
Department of the Interior.
National Fuel Funds
Network
Energy Outreach
Colorado works with the National Fuel Funds
Network (NFFN) to secure additional federal LEAP
funding. NFFN is a national membership
organization consisting of nonprofit agencies,
utilities, and government representatives that
provide utility bill assistance raised as
charitable donations. Its purpose is to increase
resources available to meet the energy needs of
low-income people. EOC has been a member of NFFN
since 1990. To learn more about NFFN, visit them
online at
www.nationalfuelfunds.org
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