Energy Affordability Bill Establishes FARE Service Program for Income-Qualified Utility Customers
Summary
Colorado SB26-002 proposes establishing a First Allotment of Residential Electricity (FARE) service program for income-qualified utility customers. The bill requires investor-owned electric utilities to submit proposals to the Public Utilities Commission (PUC) offering a minimum level of electricity at a marginal cost rate below standard residential rates. The PUC would approve proposals found to be in the public interest. The bill is currently in draft form, pending consideration by the Senate Transportation and Energy Committee.
What changed
Colorado SB26-002 proposes creating the FARE (First Allotment of Residential Electricity) service program requiring investor-owned electric utilities to submit proposals to the Public Utilities Commission offering income-qualified customers a minimum level of electricity at a marginal cost rate lower than standard residential rates. The bill specifies that proposals must include the minimum electricity amount based on monthly usage for basic needs, a per-kilowatt-hour marginal cost rate, and an enrollment process description.
Affected utilities would need to develop and submit FARE service proposals to the PUC for approval if this bill becomes law. The PUC would evaluate proposals based on public interest. Energy companies operating as investor-owned utilities in Colorado should monitor this legislation and prepare compliance mechanisms for potential FARE program requirements.
What to do next
- Monitor SB26-002 progress through Colorado legislature
- Prepare FARE service program proposals for PUC submission if bill passes
- Review enrollment processes for income-qualified customers
Archived snapshot
Apr 11, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
SB26-002
Energy Affordability
| Type | Bill |
|---|---|
| Session | 2026 Regular Session |
| Subjects | Energy |
Concerning energy affordability, and, in connection therewith, establishing a first allotment of residential electricity service program that provides income-qualified utility customers a minimum level of electricity service at a marginal cost rate.
Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:
The bill requires an investor-owned electric utility (utility) to submit a proposal to the public utilities commission (PUC) that establishes a first allotment of residential electricity service (FARE service) program.
The FARE service program provides a minimum level of electricity at a marginal cost rate for income-qualified utility customers. A FARE service proposal that a utility submits to the PUC must include:
- The amount of electricity that qualifies as a minimum level of electricity for an average income-qualified utility customer based on monthly usage to support a customer's basic needs;
- A marginal cost rate on a per-kilowatt-hour basis for delivering electricity to a customer, which marginal cost rate must be lower than the residential customer rate that the income-qualified utility customer would normally be charged; and
- A description of the process by which an income-qualified utility customer may enroll in the FARE service program. The PUC shall approve a utility's FARE service proposal if the PUC determines that the proposed FARE service would be in the public interest.
(Note: This summary applies to this bill as introduced.)
Prime Sponsors
Cathy Kipp
Senator
Tony Exum
Representative
Jenny Willford
Committees
Senate
Transportation & Energy Appropriations
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Status
Under Consideration
Introduced
Under Consideration
Upcoming Schedule
1 meeting
Apr 14
Senate General Orders - Second Reading of Bills
9:00 AM Senate Chamber
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 01/14/2026 | Introduced |
| Date | Version | Documents |
|---|---|---|
| 03/12/2026 | PA1 |
| Date | Version | Documents |
|---|---|---|
| 03/18/2026 | First Revised Fiscal Note | |
| 02/06/2026 | Initial Fiscal Note |
| Date | Version | Documents |
|---|---|---|
| 04/07/2026 | SA1 |
| Activity | Vote | Documents |
|---|---|---|
| Refer Senate Bill 26-002 to the Committee of the Whole. | The motion passed on a vote of 4-3. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Activity | Vote | Documents |
| --- | --- | --- |
| Adopt amendment L.006 | The motion passed without objection. | Vote summary |
| Adopt amendment L.005 | The motion passed without objection. | Vote summary |
| Refer Senate Bill 26-002, as amended, to the Committee on Appropriations. | The motion passed on a vote of 6-3. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Date | Amendment Number | Committee/ Floor Hearing |
| --- | --- | --- |
| 03/11/2026 | L.005 | SEN Transportation & Energy |
| 03/11/2026 | L.006 | SEN Transportation & Energy |
- Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.
** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.
| Date | Location | Action |
|---|---|---|
| 04/10/2026 | Senate | Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole |
| 03/11/2026 | Senate | Senate Committee on Transportation & Energy Refer Amended to Appropriations |
| 01/14/2026 | Senate | Introduced In Senate - Assigned to Transportation & Energy |
Prime Sponsor
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