Gov. Jared Polis orders state action to reduce Colorado's high energy bills

With our cold and snowy winter, many Coloradans are really noticing the rising price of heating their homes. Now, Gov. Jared Polis says the state is looking at ways to reduce those costs.

"We're going to be very aggressive in our approach to lowering costs," he said Monday.

Following months of skyrocketing heat and energy bills, Polis is directing state agencies to find short and long-term solutions to help people struggling to make ends meet.

"I am directing the Public Utility Commission to improve long-term price stability and reduce customer exposure to price spikes," Polis said during a press conference.

While Colorado has a lower average natural gas cost compared to the rest of the nation, Polis said that is little consolation to those who are paying hundreds of dollars in increases.

"There's a lot we can do to be more immune to that in the future, provide relief now and save people money now," he said.

For immediate relief, the governor is urging the PUC to elevate low-income assistance programs – such as LEAP – and improved access to budget payment plans. He also directed the state's energy office to identify those most vulnerable and prioritize additional outreach and resources to people disproportionately impacted by rising prices.

"We must leave no stone unturned to save Coloradans money on utility bills," said Polis. 

As of this winter, gas bills increased by 75% compared to last year. The governor noted swings in market prices are due to factors beyond Colorado's immediate control – including extreme weather, changes in global demand and the war in Ukraine. While the PUC did approve a 15% decrease in Xcel's rates last week, the governor said more needs to be done. He wants to see comprehensive strategies to make homes more energy efficient and hold utility companies accountable.

"Of course, the long-term solution is to continue driving towards 100% low-cost renewable energy, ending our reliance on costly fossil fuels that also make us vulnerable to price increases," he said.

RELATED: High energy prices keep hitting Coloradans hard: A look at the cause and effect

Following the governor's announcement Monday afternoon, natural gas and oil industry leaders announced a $1 million investment to help low-income Coloradans. Xcel Energy is dishing out half of that using shareholder funds in an effort to help their customers struggling to pay their bills.

"Look, we're empathetic, sympathetic to the challenges that our customers are experiencing," said Bob Frenzel, President & CEO of Xcel. "We're trying to provide access through our programs, through state programs, and through federal programs to direct our customers to all the assistance they need to manage their home, their lives and make sure they don't have to make tough decisions."

The executive of Energy Outreach Colorado --  one of the non-profit programs that will receive some of the funding – said one in four Coloradans qualifies for energy assistance.

"Our toll-free call center – 1-866-HEAT-HELP -- is receiving 16-18,000 calls a week for people requiring energy assistance," said Jennifer Gremmert.

The call volume shows just how widespread the high-cost impact is having on every community in Colorado. Local oil & gas industry leaders say this is a supply & demand issue, and they want to be part of the solution.

"Our industry is absolutely part of the solution, and we stand ready to work with the governor, state agencies and come to the table," said Lynn Granger, executive director of American Petroleum Institute Colorado. "But in order to be part of the solution we have to be part of the conversation; we have to be at the table."

In his letter, the Governor directed the PUC to take action including: 

• Improving access to and capacity of bill pay assistance programs
• Working with utilities to secure federal funding for programs targeting Colorado homes and businesses
• Incentivizing utilities to reduce customer costs
• Identifying potential utility actions related to gas contracting, financial hedging, and gas storage; educating consumers on energy conservation
• Analyzing ways to limit bill spikes
• Identifying ways to support consumers in the most dire circumstances, including outreach about payment options for those behind on their bills
• Implementing new approaches to increase public engagement with utility issues at the PUC

Governor Polis directed the Colorado Energy Office to take action including:

• Expediting the creation of federally funded home energy rebate and other programs
• Identifying new regulatory approaches and rate structures to align customer and utility conservation incentives
• Implementing the state's building performance standards, which apply to many large multifamily residences to reduce utility bills 
• Consider establishing m new statewide building energy codes and providing technical assistance to local governments adopting the codes, in collaboration with the Department of Local Affairs to reduce utility bills 
• Implementing microgrid programs with state and federal funding.