Colorado lawmakers are fast-tracking a proposal that aims to make utility bills a little less scary for households on tight budgets. Senate Bill 26-002 would require investor-owned utilities to offer a standardized percentage-of-income payment plan so that qualifying customers pay a set share of their income toward electricity and gas, instead of watching bills spike from month to month. The measure cleared the state Senate in mid-April and now heads to a House committee for debate this week.
What the bill would do
Under SB 26-002, investor-owned electric and combined electric-gas utilities would have to create a percentage-of-income payment plan (PIPP) for income-qualified residential customers and use uniform naming and customer communications so the programs are easier to find and understand. The bill spells out "affordable percentage" caps that change based on the size of the utility and whether a home uses gas or electric heat. It also requires utilities to let customers apply directly instead of forcing them to enroll through other assistance programs first, to clearly post eligibility rules and application steps online, and to approve or deny applications within 30 days. Those details are laid out in the bill text on the Colorado General Assembly website.
Supporters say it will cut red tape
Supporters that include faith leaders and lawmakers argue that simplifying these programs could make the difference between getting help and giving up in frustration. As reported by Denver7, retired teacher Charles Patterson said, “PIPP is also there… it’s a resource that you can’t access without some digging,” capturing how hidden the assistance can feel. Rep. Jenny Willford pointed out that most Coloradans already chip in around $1 to $1.50 per month on their utility bills to fund these programs, yet many of the people who qualify have trouble actually using them. Advocates say clearer names and standardized presentations could ease the process for households already under financial stress.
How this fits into Colorado policy
The proposal builds on earlier statewide efforts to connect more people with utility-run assistance. The Public Utilities Commission launched a Utility Bill Help pilot program to reach customers who were denied LEAP and steer them toward utility assistance options, according to a DORA press release. Across the country, researchers and advocates have highlighted PIPP-style plans as a tool to keep energy burdens in check and cut down on service shutoffs, a trend outlined by the American Council for an Energy-Efficient Economy. Backers in Colorado say combining a PIPP with outreach and energy efficiency programs could help shrink monthly bills while also stabilizing energy costs for households over time.
What’s next
According to the Colorado General Assembly bill page, SB 26-002 passed the Senate on April 17, then moved to the House, where it was assigned to the Energy & Environment Committee for review. If it becomes law, the Public Utilities Commission would handle rule-making and could allow utilities to add a small PIPP charge to customer bills to cover program costs, a tradeoff sponsors say is intended to keep the program broadly affordable for ratepayers. Lawmakers, advocates and utilities would then have to hammer out the rules, outreach strategies, and on-the-ground implementation if the House signs off on the measure.
