{"operation":"document","citation":"4 CCR 723-4 Rule 4528","title":"Social Cost of Carbon and Social Cost of Methane","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(a) The cost of carbon dioxide emissions shall be established by the Commission based on the most recent social cost of carbon dioxide developed by the federal government, in accordance with the following: (I) the cost of carbon dioxide emissions starting in 2020, shall not be less than the base cos","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4528.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4528.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4528","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 cost of carbon dioxide emissions shall be established by the Commission\nbased on the most recent social cost of carbon dioxide developed by the federal\ngovernment, in accordance with the following:\n(I) the cost of carbon dioxide emissions starting in 2020, shall not be less\nthan the base cost of $68.00 per metric ton in 2020 dollars;\n(II) the Commission shall update the social cost of carbon values to the\npresent dollar year for each year after 2020 by applying an escalation rate\nequal to or greater than the escalation rates established in the federal\ntechnical support document.\n(b) For net present value calculations of the social cost of carbon dioxide emissions,\nthe utility shall use a discount rate equal to the lesser of 2.5 percent or the\ndiscount rate established by the federal technical support document.\n(c) The cost of methane emissions shall be established by the Commission based\non the values set forth in the federal technical support document or on the federal\ngovernment’s most recent assessment of the global cost of methane as updated\nto reflect the latest available values derived from peer-reviewed, published\nstudies, in accordance with the following:\n(I) the social cost of methane emissions, starting in 2020, shall not be less\nthan the base cost of $1,756 per metric ton in 2020 dollars;\n(II) the Commission shall update the annual social cost of methane emissions\nvalues to the present dollar year for each year after 2020 by applying an\nescalation rate equal to or greater than the escalation rates established in\nthe federal technical support document or the addendum to the 2016\nfederal technical support document if the social cost of methane is not\nincluded in the federal technical support document; and\n\n(III) the social cost of methane emissions shall use the best available leakage\nrates to determine the methane emissions from fossil gas extraction and\nprocessing, in addition to the greenhouse gas emissions identified in rule\n4527, and consistent with § 40-3.2-107(2)(b), C.R.S.\n(d) For net present value calculations of the social cost of methane emissions, the\nutility shall use a discount rate equal to the lesser of 2.5 percent or the discount\nrate established in the federal technical support document.\n(e) For net present value calculations of portfolios of resources presented pursuant\nto rules governing clean heat plans or any type of DSM plan, the utility shall also\npresent net present value calculations using the utility’s weighted average cost of\ncapital universally on all costs included within the relevant portfolio.","truncated":false,"body_characters":2587}