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Energy Affordability

Concerning energy affordability, and, in connection therewith, establishing a percentage-of-income payment plan program for income-qualified utility customers.

SB26-002 2026 Regular Session Signed into Law Energy

Cost estimates

At the first note read
$43,558
FACT February 5, 2026
At the last note read
$0
FACT July 24, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation is required.

Bill summary

     The act requires an investor-owned utility (utility) to establish a percentage-of-income payment plan program (PIPP program) to assist income-qualified residential utility customers with utility costs. An income-qualified utility customer is eligible for the PIPP program if the customer meets the income eligibility criteria, lives in the service area of the utility, and either submits an application to the utility or is referred by another income-eligible assistance program offered by the department of human services, the Colorado energy office, or another energy assistance program approved by the public utilities commission (commission). A utility must approve or deny a customer's application for participation in the PIPP program within 30 days.

     The utility bill for a customer enrolled in a utility's PIPP program is capped at a specific percentage of the customer's household income, typically ranging from 2% to 6% of the customer's household income depending on the heating source provided and the size of the utility. The difference between a customer's actual utility bill and their PIPP program bill is covered by a fixed credit, which can be an up-front annual credit or an equal monthly credit to the customer's utility bill. The act also establishes arrearage credits for customers in the PIPP program, which are applied to eliminate a customer's preexisting debt prior to the customer's enrollment in the PIPP program.

     A utility's PIPP program is funded through a 'PIPP charge' itemized on all customer bills. The amount of the PIPP charge is established by the commission by rule for the utility. A utility must submit an annual report related to the utility's PIPP program to the commission. The report must include the following information:

  • The PIPP charge revenue collected by the utility;
  • Any amount contributed to the PIPP program by the utility from shareholder profits;
  • A calculation of administrative costs associated with implementing and administering the PIPP program;
  • The amount of fixed monthly or annual credits provided to customers in the utility's PIPP program; and
  • The amount of arrearage credits provided to customers in the PIPP program.

     The act exempts products fueled by propane and products used exclusively for installation in manufactured homes from emissions standards adopted by the Colorado department of public health and environment related to heating and water heating appliances until January 1, 2031.

     The act extends the deadline by which money in the 'Infrastructure Investment and Jobs Act' cash fund may be appropriated from July 1, 2028, until July 1, 2031.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)