# General Provisions Concerning Cost Allocation and Recovery

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4756
- **title:** General Provisions Concerning Cost Allocation and Recovery
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** (a) Amortization periods. (I) For the base rate method, the utility shall propose the amortization period. The utility shall specify and explain the rationale for the amortization period proposed for each DSM program as a part of its DSM plan application, filed pursuant to rule 4753. (II) For the ex
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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) Amortization periods.
(I) For the base rate method, the utility shall propose the amortization period.
The utility shall specify and explain the rationale for the amortization
period proposed for each DSM program as a part of its DSM plan
application, filed pursuant to rule 4753.
(II) For the expense method, the utility shall recover the annual expenditures
projected for that year over a one-year period.
(b) A utility that provides both regulated gas and electric service shall give
consideration to the administrative benefits and reduced costs associated with
combining gas and electric DSM activities and shall assign costs and benefits
appropriately to each plan.
(c) Distribution of DSM program expenses.
(I) The utility shall include in its portfolio-level benefit/cost analysis all indirect
costs relating to DSM, including but not limited to DSM customer
education, program design, and evaluation costs.
(II) A utility’s existing gas efficiency and conservation customer education
tools, such as on-line energy assessment tools or other similar internet
based tools, may be included in a utility’s gas DSM plan and costs
recovered pursuant to a gas DSM cost adjustment consistent with rule
4758.
(d) Decoupling.
(I) The utility may file for approval of a revenue decoupling mechanism to
remove disincentives to the implementation of effective gas DSM
programs.
(A) The decoupling rate adjustment mechanism shall ensure that the
revenue per customer, as established by the Commission, in
setting base rates in a general rate case, is recovered by the utility
without regard to the utility’s sales to customers in the applicable
rate class or classes after the date the adjusted base rates take
effect.
(B) The Commission shall separately calculate, for the rate class or
classes to which a decoupling rate adjustment mechanism applies,
the regulatory disincentives removed through that decoupling
mechanism and collected or refunded by the utility through a tariff
mechanism.

(II) The implementation of a revenue decoupling mechanism does not
preclude a utility from receiving a G-DSM bonus pursuant to rule 4760.
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