4 Colo. Code Regs. § 723-3-3205
Current through Register Vol. 47, No. 22, November 25, 2024
Section 4 CCR 723-3-3205 - Construction or Expansion of Generating Capacity(a) No utility may commence new construction or an expansion of generation facilities or projects until either the Commission notifies the utility that such facilities or projects do not require a certificate of public convenience and necessity or the Commission issues a certificate of public convenience and necessity for the facility or project. Rural electric cooperatives do not need a certificate of public convenience and necessity for new construction or an expansion of generation facilities provided that such construction or expansion is contained entirely within the cooperative's certificated area. The certificate of public convenience and necessity requirement under subparagraph (b)(II) of this rule applies only to jurisdictional electric utilities subject to resource regulation under Rule 3603 and rate regulation under either Rule 3108 or Rule 3109.(b) The following shall be deemed to occur in the ordinary course of business and shall not require a certificate of public convenience and necessity: (I) New construction or expansion of existing generation, which will result in an increase in generating capacity of less than ten megawatts.(II) A generating plant remodel, or installation of any equipment or building space, required for pollution control systems where the estimated total cost in nominal dollars including, but not limited to, engineering, procurement, construction, and interrelated work for such project is reasonably expected to be less than $50 million. The total estimated project cost below which a project is considered to be in the ordinary course of business shall be reviewed and adjusted annually, as necessary, to account for inflation. Within 14 days after the appropriate information is available, the Director of the Commission shall annually determine and publish the amount of such adjustment based on the percentage change in the United States Bureau of Labor Statistics Consumer Price Index for Denver-Boulder, all items, all urban consumers, or its successor index.(III) When a certificate of public convenience and necessity is sought for a pollution control system required by a determination of the Colorado Department of Public Health and Environment or an identified law, regulation, or administrative or judicial order, there is a presumption, rebuttable by a preponderance of the evidence, that the public convenience and necessity require such pollution control system. This presumption does not alter or diminish the Commission's duty and authority, including its consideration: (A) in a CPCN proceeding, of the utility's cost estimate for the proposed pollution control project, and whether the utility should pursue plant retirement (with or without an associated plant replacement) or fuel switching as alternatives to the pollution control project; and(B) in a subsequent rate proceeding, of the prudence, justness, and reasonableness of costs associated with the pollution control project.(c) For each new construction or expansion of existing generation that will result in an increase in generating capacity of ten megawatts or more, the electric utility shall submit to the Commission, no later than April 30 of each year, a filing for a determination of which of the utility's proposed new construction or expansions for the next three calendar years, commencing with the year following the filing, are necessary in the ordinary course of business and which require a certificate of public convenience and necessity prior to construction. For each project, the filing shall contain the following:(I) The name, proposed location, and function or purpose of the project.(II) The estimated cost of the project and the manner in which it is expected to be financed.(III) The projected date for the start of construction, the estimated date of completion, and the estimated date of commencement of operation.(d) The Commission will give notice of each filing made pursuant to paragraph (c) of this rule to all those who it believes may be interested. Any interested person may file comments regarding the projects by May 15.(e) The Staff shall review the filing and any comments received and shall make recommendations in accordance with the following schedule: (I) For any new construction or expansion project which is scheduled to begin in the year of the filing or the next calendar year and which will result in an increase in generating capacity of ten megawatts or more, the Staff shall make its recommendations by May 31 of the year in which the filing is made.(II) For any new construction or expansion project which is scheduled to begin in the second or third calendar year following the year in which the filing is made and which will result in an increase in generating capacity of ten megawatts or more, the Staff shall make its recommendations by August 31 of the year in which the filing is made.(f) The Commission shall issue its decision in accordance with the following schedule: (I) For any new construction or expansion project which is scheduled to begin in the calendar year of the filing or in the next calendar year and which will result in an increase in generating capacity of ten megawatts or more, the decision designating each generation project that requires a certificate of public convenience and necessity will be issued by June 30 of the year in which the filing is made.(II) For any new construction or expansion project which is scheduled to begin in the second or third calendar year following the year in which the filing is made and which will result in an increase in generating capacity of ten megawatts or more, the decision designating each generation project that requires a certificate of public convenience and necessity will be issued by October 31 of the year in which the filing is made.38 CR 17, September 10, 2015, effective 9/30/201539 CR 06, March 25, 2016, effective 4/14/201639 CR 08, April 25, 2016, effective 5/15/201640 CR 22, November 25, 2017, effective 12/15/201742 CR 03, February 10, 2019, effective 3/2/201942 CR 07, April 10, 2019, effective 4/30/201942 CR 09, May 10, 2019, effective 5/30/201943 CR 08, April 25, 2020, effective 5/15/202043 CR 12, June 25, 2020, effective 7/15/202043 CR 20, October 25, 2020, effective 11/14/202044 CR 13, July 10, 2021, effective 7/30/202144 CR 24, December 25, 2021, effective 1/14/202245 CR 18, September 25, 2022, effective 10/15/202246 CR 02, January 25, 2023, effective 2/14/2023