Alliance Suggests Changes to Colorado’s Recycled Energy Incentive

Nov 27, 2013


The Alliance for Industrial Efficiency submitted a letter of interest to the Colorado Public Utilities Commission (PUC) highlighting shortcomings in and suggesting changes to the Public Service Company of Colorado’s (PSCo’s) recycled energy incentive. The incentive is designed to encourage recycled energy (i.e., waste heat to power) projects in the state; however, as written, it is unlikely to do so. The proposed incentive is insufficient on its face, and made smaller because it is spread out over a 20-year contract term, without adjusting for inflation. Its value is further eroded by standby rates. What’s more, the incentive includes an inappropriate limit on both project size and imposes an annual eligibility cap. In light of these deficiencies, the Alliance urges the PUC to require PSCo to increase the size of the recycled energy incentive, adjust payment for inflation throughout the contract term, eliminate the standby charge (applying a demand charge instead), extend eligibility to larger projects, and remove the annual cap.

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