Gas and electric consumers statewide have been paying more for their energy than ever before, with many reporting bills that have doubled and even tripled in the past year or so.

The number and severity of complaints to the Colorado Public Utilities Commission prompted Commissioner John Gavan to remark at a public listening session this week that the nearly 90 people who showed up were probably the most people he had seen sign up for a commission hearing.

During that online meeting, frustrated ratepayers voiced a litany of complaints about skyrocketing energy bills and the responsiveness of some utilities to complaints about service.

So, what is the Public Utilities Commission?

Public utility commissions go back more than a century to the early days of the development of public transportation systems, such as railroads and electric, water and gas systems.

Generally, they regulate industries known as “natural monopolies,” where it makes economic sense to authorize only one provider to avoid duplication of infrastructure like power lines, as well as water and gas distribution lines, in order to provide orderly distribution of basic services to homes and businesses.

The legislative mandate of the Colorado Public Utilities Commission is to “serve the public interest by effectively regulating utilities and facilities so that the people of Colorado receive safe, reliable, and reasonably-priced services consistent with the economic, environmental and social values of our state.”

In addition to approving rate increases, the agency also establishes standards for business practices, analyzes market and economic conditions and promulgates rules for the various industries it regulates. These include electric, natural gas, steam, telecommunications, transportation, railroad, and water systems, taxi and limo services, and public transportation, — including buses and trains — and commercial freight companies.

It can enforce those rules with civil sanctions and fines and can refer violations for criminal prosecutions when necessary.

Excluded from the commission’s authority over rates and energy plan approvals are Colorado’s 29 municipal utilities and 22 rural electric cooperatives, leaving only the two for-profit investor-owned electric utilities — Public Service Company of Colorado, more popularly known as Xcel, and Black Hills Energy — under PUC control.

Created in 1913, the PUC is an independent, quasi-executive agency in the Colorado government and is a subdivision of the state’s Department of Regulatory Agencies.

The commission has three members, all of whom are appointed by the governor and confirmed by the state Senate for four-year terms. No more than two members can be affiliated with the same political party. Commissioner’s salaries are set at $145,152 annually.

It is authorized for up to 96 full-time employees. The 2022 FY Budget for the agency stood at $18,347,390.

A director manages the staff and daily operations of the PUC. Staff members have specialized knowledge in engineering, economics, law, finance, support or management.

As a state agency, it is subject to legislative actions and decisions about its regulatory scope and authority.

In recent years the state General Assembly has amended the agency’s mandate to include considerations of specific things, such as reducing greenhouse gas emissions, beneficial electrification of buildings and social justice issues.

Unlike a city council or county commission, the PUC commissioners operate more like judges than politicians. This means that they must be careful about expressing their personal opinions on matters that are before them to avoid prejudicing either regulated petitioners or those who join the proceedings by which the commissioners make decisions.

The commission also has an Administrative Hearings Section comprising of administrative law judges and court reporters who establish procedural schedules, conduct hearings, and issue recommended decisions for all types of proceedings referred to them by the commissioners. They also offer mediation services to the parties in proceedings.

Commissioners can accept a judge’s recommendation as a decision, reject it and decide for themselves, or modify the recommendation.

Ultimately, commissioners have the final say in proceedings, although their decisions may be appealed to the civil court system by parties to the proceeding.

These quasi-judicial proceedings are complex and legalistic, and it can be years before the commissioners render a decision. Proceedings may have dozens of parties and produce thousands of documents.

A separate agency organized under the Department of Regulatory Affairs is the Office of the Utility Consumer Advocate, which is tasked with representing the interests of consumers in agency proceedings. Created under the state Attorney General’s office in 1984 and formerly known as the Office of Consumer Council, it was moved to the Department of Regulatory Affairs and renamed in 2021.

Its mandate is to advocate on behalf of residential, small business, and agricultural customers, considering both short- and long-term interests of the public before the Public Utilities Commission, federal agencies and the courts.

According to the agency’s website, the Office of the Utility Consumer Advocate plays a significant role in advocating for consumers’ interests in multi-million-dollar rate proceedings involving energy.

Utility regulatory proceedings are very technical and and complicated, requiring specialized analyses and modeling tools, resources that are not readily available to the average citizen or small business owner.