C.R.S. § 40-2-126: Transmission facilities - biennial review - energy resource zones - plans - approval - cost recovery - powerline trail consideration - rules - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) "Energy resource zone" means a geographic area in which transmission constraints hinder the delivery of electricity to Colorado consumers, the development of new electric generation facilities to serve Colorado consumers, or both.

(b) "Local government" has the meaning set forth in section 33-45-102 (3).

(c) "Powerline trail" has the meaning set forth in section 33-45-102 (5).

(2) Biennially, on or before a date determined by the commission, commencing in 2016, each Colorado electric utility subject to rate regulation by the commission shall:

(a) Designate energy resource zones;

(b) Develop plans for the construction or expansion of transmission facilities necessary to deliver electric power consistent with the timing of the development of beneficial energy resources located in or near such zones;

(c) Consider how transmission can be provided to encourage local ownership of renewable energy facilities, whether through renewable energy cooperatives as provided in section 7-56-210, C.R.S., or otherwise; and

(d) Submit proposed plans, designations, and applications for certificates of public convenience and necessity to the commission for review pursuant to subsection (3) of this section.

(2.5) In reviewing a plan that an electric utility submits pursuant to subsection (2)(d) of this section, the commission shall consider the need for expanded transmission capacity in the state, including the ability to expand capacity through the construction of new transmission lines, improvements to existing transmission lines, and connections to organized wholesale markets, as defined in section 40-5-108 (1)(a).

(3) The commission may, consistent with its authority, approve a utility's application for a certificate of public convenience and necessity for the cost-effective construction or expansion of transmission facilities pursuant to subsection (2)(b) of this section if the commission finds that:

(a) The construction or expansion:

(I) Is required to:

(A) Ensure the reliable delivery of electricity to Colorado consumers, either alone or in combination with the consumers of other states served by an organized wholesale market as defined in section 40-5-108 (1)(a); or

(B) Enable the utility to meet the renewable energy standards set forth in section 40-2-124 or achieve emission reductions under section 25-7-102 or 40-2-125.5;

(II) Can reasonably accommodate future expansion, through the addition of more lines or greater capacity, as may be required to support the utility's participation in an organized wholesale market as defined in section 40-5-108 (1)(a); and

(b) The present or future public convenience and necessity require such construction or expansion.

(4) Notwithstanding any other provision of law, in response to any application for a certificate of public convenience and necessity for the construction or expansion of transmission facilities that is submitted to the commission pursuant to subsection (2)(d) of this section, the commission shall issue a final order within two hundred forty days after the application is deemed complete and public notice of the application is given; except that the applicant may waive this two-hundred-forty-day deadline. Absent such waiver, if the commission does not issue a final order within that period, the application is deemed approved.

(5) In any construction or expansion approved pursuant to this section, the utility shall use its own employees or qualified contractors, or both, but shall not use a contractor unless the contractor's employees have access to an apprenticeship program registered with the United States department of labor's office of apprenticeship or by a state apprenticeship agency recognized by that office; except that this apprenticeship requirement does not apply to:

(a) The design, planning, or engineering of the transmission facilities;

(b) Management functions to operate the transmission facilities; or

(c) Any work performed in response to a warranty claim.

(6) The commission shall amend its rules requiring the filing of ten-year transmission plans by utilities to also require utilities to:

(a) Consider and address plans for the construction of new powerline trails in coordination with applicable local governments in each two-year update to a ten-year transmission plan;

(b) Demonstrate compliance with section 33-45-103 (2);

(c) For utilities subject to rate regulation by the commission, identify strategies to reduce the costs of construction and obtaining adequate financing for identified projects in the utility's ten-year transmission plan, including by considering, after evaluating whether applicable, the use of bonds issued by the Colorado electric transmission authority pursuant to section 40-42-104 (1)(r). If a utility identifies or evaluates the potential use of bonds issued by the Colorado electric transmission authority as a cost-reduction strategy in the utility's ten-year transmission plan, the utility shall consult with the Colorado electric transmission authority prior to filing the utility's ten-year transmission plan.

(d) Incorporate, in the utility's ten-year transmission plan, an evaluation of advanced transmission technologies, as defined in section 40-42-102 (1.5), which evaluation must include:

(I) A technical feasibility assessment;

(II) If technically feasible, a cost-effectiveness analysis and timetable for potential deployment;

(III) An assessment of advanced transmission technologies able to reduce or mitigate transmission system needs with the potential to achieve the following, as applicable:

(A) An increase in transmission system capacity, cost-effectiveness, reliability, or resiliency;

(B) A reduction of transmission system congestion;

(C) A reduction in the timeline to connect new generation or load to the grid;

(D) A reduction of the risk of igniting wildfires;

(E) An increase in capacity to connect new renewable energy and clean energy resources reflecting the utility's generation and load planning forecasts from the utility's most recent electric resource plan; or

(F) An increase in the transfer capability of electricity between Colorado and neighboring states;

(IV) A description of any additional potential benefits of deploying advanced transmission technologies, which benefits may include:

(A) The ability to meet short-term transmission needs while new transmission is being sited, permitted, or constructed; and

(B) A reduction in impacts to high-priority habitats, wildlife movement corridors and crossings, and species of greatest conservation need, as identified by the division of parks and wildlife created in section 33-9-104; and

(V) If advanced transmission technologies are found to offer a more cost-effective strategy to achieve the goals listed in subsection (6)(d)(III) of this section, whether in combination with or instead of other capital investments, but are not incorporated into the utility's ten-year transmission plan, a detailed explanation, including relevant analyses, submitted to the commission as part of the utility's ten-year transmission plan and advanced transmission technologies evaluation, explaining why advanced transmission technologies should not be deployed to meet a specific need or in lieu of another project.

(7) An identification of a wildfire-related benefit as described in subsection (6)(d)(III)(D) of this section in an assessment of advanced transmission technologies conducted by a utility pursuant to subsection (6)(d)(III) of this section does not trigger a separate commission approval process. The commission may consider the identified wildfire-related benefit during the commission's review of the utility's next wildfire mitigation plan filing or a future certificate of public convenience and necessity filed by the utility.

(8) Nothing in subsection (6) of this section precludes the evaluation of other technologies or devices that enhance the reliability, resilience, or protection of the electric transmission system, including by improving the stability of existing transmission infrastructure.

(9) (a) In amending its rules pursuant to subsection (6) of this section, the commission shall seek to minimize duplication of transmission planning processes, technical studies, or analyses conducted through an applicable regional transmission organization or independent system operator. In doing so, the commission may allow a utility to reference and incorporate analyses conducted through an applicable regional transmission organization or independent system operator, as appropriate, and to rely on these analyses to satisfy the requirements of this section to the extent that the analyses address the requirements of this section.

(b) A utility relying on analyses conducted through an applicable regional transmission organization or independent system operator shall identify in the utility's filing the section of each analysis that addresses the requirements of the advanced transmission technologies evaluation set forth in subsection (6)(d) of this section and the relevance of the analysis to those requirements.

(c) Participation in a regional transmission planning process does not by itself satisfy the requirements of commission rules amended pursuant to subsection (6) of this section.