Colorado’s Rule Against Ratepayer Funds for Lobbying

A 2023 law in Colorado prohibits investor-owned utility companies from using ratepayer money to fund trade associations, promotional advertising, certain kinds of lobbying, and other political influence activities. In addition to new rules prohibiting utilities from using ratepayer money for political spending, the bill includes other ratepayer protections such as directing the Colorado Public Utilities Commission (PUC) to establish rules limiting how much investor-owned utilities can charge ratepayers for lawyers and consultants that argue on behalf of the utility’s efforts to raise rates, phasing out ratepayer subsidies for extending gas pipelines to new construction, and other measures aimed at reducing the risks to ratepayers of methane gas price spikes.

The legislation also prohibits investor-owned utilities from charging Colorado ratepayers for a variety of other types of spending that primarily benefit the company’s shareholders and board of directors, including: Investor-relation expenses; tax penalties or fines issued against the utility; charitable giving expenses; contributions to political candidates, campaign committees, issue committees, or independent expenditure committees or similar political expenses; travel, lodging, food, and beverage expenses for the utility’s board of directors and officers; entertainment or gift expenses; expenses related to any owned, leased, or chartered aircraft for the utility’s board of directors and officers; and expenses related to marketing and administration or customer service for unregulated products or services provided or sold by the utility or the utility’s affiliates.