# Regulated Gas Utility Violations, Civil Enforcement, and Enhancement of Civil Penalties

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4010
- **title:** Regulated Gas Utility Violations, Civil Enforcement, and Enhancement of Civil Penalties
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** (a) The Commission may impose a civil penalty in accordance with the requirements and procedures contained in § 40-7-113.5, C.R.S., § 40-7-116.5, C.R.S., and paragraph 1302(b), 4 Code of Colorado Regulations 723-1, for intentional violations of statutes in Articles 1 to 7 and 15 of Title 40, C.R.S.,
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- **source url:** https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4
**body:**

(a) The Commission may impose a civil penalty in accordance with the requirements
and procedures contained in § 40-7-113.5, C.R.S., § 40-7-116.5, C.R.S., and
paragraph 1302(b), 4 Code of Colorado Regulations 723-1, for intentional
violations of statutes in Articles 1 to 7 and 15 of Title 40, C.R.S., Commission
rules, or Commission orders as specified in §§ 40-7-113.5 and 40-7-116.5,
C.R.S., and in these rules.
(b) The Director of the Commission or his or her designee shall have the authority to
issue civil penalty assessments for the violations enumerated in § 40-7-113.5,
C.R.S., subject to hearing before the Commission. When a public utility is cited
for an alleged intentional violation, the public utility shall be given notice of the
alleged violation in the form of a civil penalty assessment notice.
(c) The public utility cited for an alleged intentional violation may either admit liability
for the violation pursuant to § 40-7-116.5(1)(c) or the public utility may contest
the alleged violation pursuant to § 40-7-116.5(1)(d), C.R.S. At any hearing
contesting an alleged violation, trial staff shall have the burden of demonstrating
a violation by a preponderance of the evidence.
(d) In any written decision entered by the Commission pursuant to § 40-6-109,
C.R.S., adjudicating a public utility liable for an intentional violation of a statute in
Articles 1 to 7 and 15 of Title 40, C.R.S., a Commission rule, or a Commission
order, the Commission may impose a civil penalty of not more than two thousand
dollars, pursuant to § 40-7-113.5(1), C.R.S. In imposing any civil penalty
pursuant to § 40-7-113.5(1), C.R.S., the Commission shall consider the factors
set forth in Rule 1302(b).
(e) The Commission may assess doubled or tripled civil penalties against any public
utility, as provided by § 40-7-113.5(3), C.R.S., § 40-7-113.5(4), C.R.S., and this
rule.
(f) The Commission may assess any public utility a civil penalty containing doubled
penalties only if:
(I) the public utility has admitted liability by paying the civil penalty
assessment for, or has been adjudicated by the Commission in an
administratively final written decision to be liable for, engaging in prior
conduct that constituted an intentional violation of a statute in Articles 1 to
7 and 15 of Title 40, C.R.S., a Commission rule, or a Commission order;
(II) the conduct for which doubled civil penalties are sought violates the same
statute, rule, or order as conduct for which the public utility has admitted
liability by paying the civil penalty assessment, or conduct for which the
public utility has been adjudicated by the Commission in an
administratively final written decision to be liable; and

(III) the conduct for which doubled civil penalties are sought occurred within
one year after conduct for which the public utility has admitted liability by
paying the civil penalty assessment, or conduct for which the public utility
has been adjudicated by the Commission in an administratively final
written decision to be liable
(g) The Commission may assess any public utility a civil penalty containing tripled
penalties only if:
(I) the public utility has admitted liability by paying the civil penalty
assessment for, or has been adjudicated by the Commission in an
administratively final written decision to be liable for, engaging in prior
conduct that constituted two or more prior intentional violations of a statute
in Articles 1 to 7 and 15 of Title 40, C.R.S., a Commission rule, or a
Commission order;
(II) the conduct for which tripled civil penalties are sought violates the same
statute, rule, or order as conduct for which the public utility has either
admitted liability by paying the civil penalty assessment or been
adjudicated by the Commission in an administratively final written decision
to be liable, in at least two prior instances; and
(III) the conduct for which tripled civil penalties are sought occurred within one
year after the two most recent prior instances of conduct for which the
public utility has either admitted liability by paying the civil penalty
assessment, or been adjudicated by the Commission in an
administratively final written decision to be liable.
(h) When more than two instances of prior conduct exist, the Commission shall only
consider those instances occurring within one year prior to the date of such
alleged conduct for which tripled civil penalties are sought.
(i) Nothing in this rule shall preclude the assessment of tripled penalties when
doubled and tripled penalties are sought in the same civil penalty assessment
notice.
(j) The Commission shall not issue a decision on doubled or tripled penalties until
after the effective date of the administratively final Commission decision upon
which the single civil penalty was based.
(k) The civil penalty assessment notice shall contain the maximum penalty amount
provided by rule for each individual violation noted, with a separate provision for
a reduced penalty of 50 percent of the penalty amount sought if paid within ten
days of the public utility’s receipt of the civil penalty assessment notice.
(l) The civil penalty assessment notice shall contain the maximum amount of the
penalty surcharge pursuant to § 24-34-108(2), C.R.S., if any.

(m) A penalty surcharge referred to in paragraph (l) of this rule shall be equal to the
percentage set by the Department of Regulatory Agencies on an annual basis.
The surcharge shall not be included in the calculation of the statutory limits set in
§ 40-7-113.5(5), C.R.S.
(n) Nothing in these rules shall affect the Commission’s ability to pursue other
remedies in lieu of issuing civil penalties.
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