{"operation":"document","citation":"4 CCR 723-4 Rule 4102","title":"Certificate of Public Convenience and Necessity for Facilities","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(a) A utility seeking authority to construct and to operate a facility, or an extension or expansion of a facility, pursuant to § 40-5-101, C.R.S., shall file an application in accordance with this rule. The utility shall apply to the Commission for issuance of a certificate of public convenience an","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4102.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4102.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4102","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) A utility seeking authority to construct and to operate a facility, or an extension or\nexpansion of a facility, pursuant to § 40-5-101, C.R.S., shall file an application in\naccordance with this rule. The utility shall apply to the Commission for issuance\nof a certificate of public convenience and necessity for approval of construction\nand operation of a facility, or an extension or expansion of a facility, which is not\nin the ordinary course of business.\n(b) For a utility with 500,000 full-service customers or more, the utility shall apply to\nthe Commission for issuance of a certificate of public convenience and necessity\nfor construction and operation of a facility, or an extension or expansion of a\nfacility, where the total utility capital investment value is greater than $12 million\nin 2020 dollars, unless the utility has already received approval by the\nCommission pursuant to paragraph 4555(c).\n(c) For a utility with more than 50,000 full-service customers but less than 500,000\ncustomers, the utility shall apply to the Commission for issuance of a certificate of\npublic convenience and necessity for construction and operation of a facility, or\nan extension or expansion of a facility where the total utility capital investment\nvalue is greater than $10 million in 2020 dollars, unless the utility has already\nreceived approval by the Commission pursuant to paragraph 4555(c).\n(d) For any utility with less than 50,000 full-service customers, the utility shall apply\nto the Commission for issuance of a certificate of public convenience and\nnecessity for construction and operation of a facility, or an extension or\nexpansion of a facility where the total utility capital investment value is greater\nthan $5 million in 2020 dollars, unless the utility has already received approval by\nthe Commission pursuant to paragraph 4555(c).\n\n(e) The cost thresholds set forth in paragraphs (b) through (d) above shall be\nadjusted for inflation annually on March 1 of each year, based upon the annual\npercentage change in the United States Bureau of Labor Statistics Consumer\nPrice Index - Denver-Aurora-Lakewood as published by the Colorado\nDepartment of Local Affairs for the immediately preceding calendar year. These\nadjustments shall be compounded annually. For reference, the Commission will\npost a notice on its website, https://puc.colorado.gov/, by March 15 of each year\nreporting the annual inflation adjustments applicable pursuant to this paragraph.\n(f) An application for issuance of a certificate of public convenience and necessity to\nconstruct and to operate facilities, or an extension or expansion of a facility,\npursuant to § 40-5-101, C.R.S., shall include, in the following order and\nspecifically identified, the following information, either in the application or in\nappropriately identified attachments:\n(I) the information required in rule 4002;\n(II) a statement of the facts (not conclusory statements) relied upon by the\napplying utility to show that the public convenience and necessity require\nthe granting of the application or citation to any Commission decision that\nis relevant to the proposed facilities;\n(III) the project category, consistent with the categories defined in\nsubparagraph 4553(a)(III), or otherwise identified and justified by the\nutility;\n(IV) a description of the general scope of work and an explanation of the need\nfor the proposed facilities, including any applicable U.S. Department of\nTransportation Pipeline and Hazardous Materials Safety Administration\ncode requirements for the facilities;\n(V) the projected life of the proposed facilities;\n(VI) the anticipated construction start date, construction period, with any\nphases indicated, and the expected in-service date for the proposed\nfacilities;\n(VII) relevant technical details, such as physical equipment characteristics of\nthe proposed facilities, pipeline length, pipeline diameter, project\nmaterial(s), and maximum allowable operating pressure;\n(VIII) the estimated total cost and annual incremental revenue requirements of\nthe proposed facilities, assuming both conventional depreciation and\naccelerated depreciation as applicable;\n\n(IX) a cost estimate classification using the utility’s or an industry-accepted\ncost estimate classification index, and explanation and support of\nmethodology;\n(X) the project location and an illustrative map of the proposed facilities\n(subject to necessary and appropriate confidentiality provisions), which\nincludes:\n(A) the pressure district or geographic area that requires the proposed\nfacilities;\n(B) the existing and proposed regulator stations and existing and\nproposed distribution piping and higher capacity pipelines served\nby or representing the proposed facilities;\n(C) whether the facilities will be located in any disproportionately\nimpacted community;\n(D) identification of the electric utility service provider(s); and\n(E) any other information necessary to allow the Commission to make\na thorough evaluation of the application.\n(XI) to the extent practicable, the number of customers, annual sales, and\ndesign peak demand requirements, by customer class, directly impacted\nor served by the proposed facilities;\n(XII) the application shall include information about Best Value Employment\nmetrics consistent with paragraph 4211(a) or, in the alternative,\ninformation to demonstrate that the project qualifies for an exemption\nunder paragraph 4211(e). If the information required in paragraph 4211(a)\nis not available at the time an application is filed because relevant\ncontracts have not yet been entered into, the applicant shall file a status\nreport in the proceeding within 45 days after the last contract has been\nentered into that identifies how selected contractor(s) meet Best Value\nEmployment metrics;\n(XIII) the application shall address whether it includes one or more projects that\nare also ESPW projects, and if so, the applicant shall further attest that\nmaterial contract terms that comply with paragraph 4211(b) have been or\nwill be included in any relevant contracts and that such terms will be\nrequired to be included in any relevant subcontracts;\n(XIV) if the proposed facilities are located in a disproportionately impacted\ncommunity, a description of:\n(A) the nature of the utility’s outreach to members of that\ndisproportionately impacted community, as appropriate to the filing;\n\n(B) the communications and materials employed; and\n(C) the findings from those outreach efforts.\n(XV) identification of any permit(s) required to begin work;\n(XVI) a description of the environmental requirements associated with\ncompletion of the proposed facilities, if any;\n(XVII) the change in projected utility-wide greenhouse gas emissions due to the\nproposed facilities, as calculated relative to the utility’s most recently\napproved clean heat plan greenhouse gas emission forecast or\nsubsequent interim-year update, in accordance with subparagraphs\n4731(a)(I) and 4731(c)(I) or 4733(a)(VI), as applicable; and\n(XVIII) for proposed facilities meeting the definition of a new business project or a\ncapacity expansion project, as defined in subparagraphs 4553(a)(III)(B)\nand (C), the utility shall also present an analysis of alternatives including\nnon-pipeline alternatives, costs for those alternatives, and criteria used to\nrank or eliminate such alternatives.\n(A) An analysis of alternatives shall consider, at a minimum:\n(i) one or more applicable clean heat resources consistent with\nthe utility’s most recently approved clean heat plan, pursuant\nto rule 4732, demand side management plan, pursuant to\nrule 4753, or beneficial electrification plan, as applicable;\n(ii) a cost-benefit analysis including the costs of direct\ninvestment and the social costs of carbon and methane for\nemissions due to or avoided by the alternative, and other\ncosts determined appropriate by the Commission; and\n\n(iii) available Best Value Employment metrics associated with\neach alternative, as defined in paragraph 4211(a), including\na projection of gas distribution jobs affected by the\nalternative and jobs made available through the alternative,\nopportunities to transition any affected gas distribution jobs\nto the alternative, pay and benefit levels of the affected gas\ndistribution jobs and the jobs available through a transition\nopportunity, and how employment impacts associated with\neach alternative could affect disproportionately impacted\ncommunities.\n(B) An analysis of alternatives shall include, at a minimum:\n(i) the technologies or approaches evaluated;\n(ii) the technologies or approaches proposed, if applicable;\n(iii) the projected timeline and annual implementation rate for the\ntechnology or approaches evaluated;\n(iv) the technical feasibility of the alternative assuming full\nadoption of the technologies and approaches evaluated; and\n(v) the utility’s strategy to implement the technologies or\napproaches evaluated.\n(XIX) For proposed facilities meeting the definition of a system safety and\nintegrity project, as defined in subparagraph 4553(a)(III)(A), the utility shall\nprovide the risk ranking and detailed information regarding the utility’s risk\nranking methodology including, but not limited to, the material, age,\nmaximum allowable operating pressure, density of surrounding residences\nand businesses, and any other physical and operating characteristics\nrelevant to the risk ranking of the proposed facilities and the risk ranking\nmethodology. The utility must also identify, explain, and provide the output\nto any risk-related models developed or employed by the utility in\nconducting risk analyses to support planned system safety and integrity\nprojects.\n(g) A separate certificate of public convenience and necessity is not required for\nmandatory relocations of a utility’s gas infrastructure.\n(h) In accordance with subparagraph 4552(d)(II), the utility may satisfy the\nrequirements of rule 4102 in an application submitted pursuant to the Gas\nInfrastructure Planning Rules.\n(i) Within 30 days of final Commission approval of an application pursuant to this\nrule, or after the last contract has been entered into that includes one or more\n\nESPW projects, the applicant or its subcontractor(s) shall notify the Department\nof Labor Standards and Statistics within the Colorado Department of Labor and\nEmployment about the project to facilitate the collection of craft labor\ncertification(s).","truncated":false,"body_characters":10399}