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DENVER, CO – On August 12, legislation led by Colorado Democrats to make energy and utility costs more affordable for Colorado families will go into effect. The new laws will improve energy assistance programs and boost geothermal energy development.
SB26-002, sponsored by Senate President Pro Tempore Cathy Kipp, D-Fort Collins, Senator Tony Exum, D-Colorado Springs, and Representatives Jenny Willford, D-Northglenn, and Elizabeth Velasco, D-Glenwood Springs, standardizes and improves energy assistance programs to ensure Coloradans have access to affordable, reliable energy.
“No one should be spending an exorbitant amount of their income on utilities,” said Kipp. “Colorado families face difficult choices every month between rent, groceries, bills, and all the unexpected expenses life throws their way. This law is about ensuring that Coloradans who need energy assistance are able to access these programs in a simple, efficient way no matter what part of the state they live in or who provides their utilities.”
“Coloradans are dealing with longer, hotter summers which can drive up utility costs,” said Willford. “No one should have to choose between paying their utility bill or feeding their family, which is why we are standardizing utility assistance programs so ratepayers can easily access support they qualify for. Affordability is top of mind, and our new law will streamline energy assistance programs to boost Colorado families.”
“Every Colorado family should be able to keep the lights on and keep their home safe and functioning without breaking the bank,” said Exum. “The purpose behind this law has never wavered – to bring down energy bills for families who need it. This law standardizes utility assistance programs, increases their visibility, and simplifies the application process so that more Coloradans can benefit.”
“Energy assistance programs need to be accessible, standardized and simple so Coloradans who qualify can save time and money,” said Velasco. “Our new law, going into effect next month, will knock down accessibility barriers to assistance programs so Coloradans can save money on their utility bills. We’re making sure energy assistance programs are available to Coloradans who qualify.”
Starting August 12, SB26-002 requires all investor-owned gas and electric utilities in Colorado to have a standardized framework for energy assistance programs known as Percentage of Income Payment Plans (PIPP). It requires utilities to clearly post information about eligibility criteria and enrollment processes for the PIPP program on their websites and standardizes the name of PIPP programs across all investor-owned utilities to reduce confusion for customers.
Under the new law, customers will be allowed to apply directly with their utility for the program, rather than having to first enroll in another assistance program. Utilities will determine an annual bill credit for the customer delivered either as an up-front annual credit or a monthly credit on their utility bill. To improve and expedite the application experience, utilities must inform applicants within 30 days whether they have been approved or denied for PIPP and the reason why. The programs will be under the oversight of the Public Utilities Commission, to which utilities must submit an annual report about their PIPP program.
SB26-142, sponsored by Senator Matt Ball, D-Denver, Senator Kipp, and Representative Junie Joseph, D-Boulder, will help municipalities reach clean energy goals by streamlining the development of geothermal energy projects.
“If we’re serious about meeting our goal of 100% clean energy by 2040, we need to capitalize on Colorado’s unique potential for geothermal energy,” Ball said. “This new law is an innovative and exciting step towards allowing local governments to develop more energy for themselves, making energy cleaner and cheaper for all.”
“Geothermal energy–the heat beneath our feet–can lower utility costs and save Coloradans money in the long run,” said Joseph. “Our new bipartisan law, which goes into effect next month, will streamline geothermal energy projects at the local level. Once installed, geothermal is a low-cost renewable energy source that will save Coloradans money and bring us closer to our climate goals.”
“Local governments know their needs best, and they should be able to utilize the energy that local industries produce as a byproduct,” Kipp said. “This legislation is a huge step forward for these municipalities who have been facing red tape and regulatory barriers in their pursuit of these projects and their clean energy goals.”
SB26-142 expands the use of geothermal energy by removing barriers to allow local governments to more easily enter into agreements for new projects and create new pathways for geothermal innovation.
Under the new law, local governments can enter into their own agreements to develop, operate, and finance geothermal energy projects and provide that energy outside their jurisdiction through collaboration with other local governments. Investor-owned utilities such as Xcel must also identify geothermal projects that would increase their generation capacity and include their findings in their electric resource planning filing with the PUC.
Additionally, the law requires the Colorado Energy and Carbon Management Commission to collect data from orphaned oil wells for geothermal energy resources in the state and make recommendations for safe and effective development to the General Assembly by November 15, 2026.
Colorado has been ranked as having the highest geothermal resource of all 50 states in the three to four kilometer depth range, but technology isn’t currently ready to extract this heat and generate electricity. This new law removes some of the red tape that has restricted development of geothermal energy in order to help the state reach its clean energy goals.