Committee passes Hansen bill to establish the Colorado Electric Transmission Authority & encourage regional grid coordination

DENVER, CO - This afternoon, the Senate Transportation & Energy Committee gave bipartisan approval to SB21-072, a Hansen bill that would transition Colorado toward a regional transmission organization while simultaneously interconnecting the grid, enhancing grid reliability, decreasing costs for utilities and ratepayers, and increasing capacity for renewable energy that will help us reach out statewide greenhouse gas emissions reduction goals.

“As Colorado works to navigate this inevitable transition of our energy sector, we cannot do it alone,” said Senator Chris Hansen (D-Denver). “By interconnecting Colorado’s grid to our neighboring states through a regional transmission organization, we will not only be able to increase competition and ensure low-cost power delivery, but we’ll also be able to enhance grid reliability and more easily achieve our statewide clean energy goals."

Currently, Colorado’s grid is controlled by just a few utilities and transmission owners, which allows monopolies to dominate regions and inhibit economic competition, resulting in high-cost electricity for consumers. This bill would streamline new transmission investments and create the Colorado Energy Transmission Authority to independently develop projects that support ratepayers.

Additionally, the bill would require utilities to move toward a regional transmission organization. Our current system operates where a few power providers share resources, but they must constantly negotiate and barter with one another to sell power back and forth in bi-lateral, short-term agreements. In a regional transmission organization, that interstate commerce is instantaneous.

A recent analysis from nonpartisan Legislative Council Staff found that the bill will “facilitate and potentially accelerate the state’s ongoing transition to clean energy by alleviating constraints in transmission and market access” which will “lead to greater greenhouse gas emissions reductions than are currently projected for the electric power sector under current law.”

The legislation now moves to the Senate Appropriations Committee for further consideration. Information and updates regarding the bill can be found at leg.colorado.gov/bills/sb21-072.