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HB 25-1260

Electrical Generation & Distribution Resiliency

2025 Regular Session Introduced by Carlos Barron and 17 co-sponsors

Directs Colorado PUC to evaluate electric grid resilience to geomagnetic storms and require utilities to implement mitigations to prevent outages and equipment damage.

Senate Committee on Transportation & Energy Postpone Indefinitely
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Bill Summary · HB 25-1260

HB 25-1260 — Electrical Generation & Distribution Resiliency

Status: Postponed indefinitely by Senate Transportation & Energy Committee (April 23, 2025)
Introduced: February 13, 2025
Primary Sponsors: Rep. Ken DeGraaf; Sen. Rod Pelton (co-sponsors listed below)

Purpose / Intent

The bill would have directed the Colorado Public Utilities Commission (PUC) to evaluate the reliability of electric generation and transmission systems with respect to geomagnetic storms (space-weather events such as coronal mass ejections) and, based on that evaluation, require utilities to meet specific resiliency standards intended to reduce the risk of equipment damage and widespread outages.

Key provisions

  • Require electric utilities to evaluate and report on the resilience of generation and distribution systems against geomagnetic storms.
  • Direct the PUC (in DORA) to compile and analyze utility reports and produce findings and legislative recommendations.
  • Require the PUC to adopt rules that could require utilities to take specific mitigation actions, including:
    • Monitor NOAA’s Space Weather Prediction Center and use warnings to isolate large transformers and generation from the grid when appropriate.
    • Mechanically isolate critical components when coronal mass ejections (CMEs) are likely to create geomagnetically induced currents (GICs).
    • Restrict or close fuel pipeline valves to limit damage from sectional failures.
    • Install automatic neutral ground blocking devices on large power transformers.
    • Ensure computer/control equipment can be mechanically isolated and sheltered from GIC-induced surges.
    • Require networked control systems for generation and distribution to be electronically and physically separable from outside networks.
    • Require cyber‑certification of hardware and software that operate generation and distribution.
  • Reporting/Deadlines (varied across bill versions):
    • In earlier/introduced versions: PUC to report findings to the General Assembly by July 1, 2026 and adopt rules thereafter.
    • In amended/final fiscal-note language: utilities report to the PUC and the PUC must include the results in its SMART Act hearing by January 2027.

Who would be affected

  • Regulated electric utilities in Colorado (required to evaluate and report on resilience and implement required mitigation measures under PUC rulemaking).
  • The PUC / Department of Regulatory Agencies (additional evaluation, rulemaking and reporting workload).
  • Potential indirect impacts on consumers and utility rates if utilities are required to implement physical or cyber upgrades (not specified in the bill text; would depend on later rulemaking and cost allocation).

Fiscal and workload impacts

  • Fiscal analysis evolved during the bill’s progression:
    • Initial Legislative Council estimate projected multi‑hundred‑thousand dollar costs (FY2025‑26 and FY2026‑27) and additional FTE in the PUC, funded from the Fixed Utility Fund (assessments on regulated utilities).
    • Later, revised analyses reduced the projected impact to a one‑time or minimal incremental workload.
    • Final fiscal note (June 12, 2025) states only a minimal, absorbable workload increase for the PUC and no appropriation required.
  • Because the bill was postponed indefinitely on April 23, 2025, none of the fiscal or operational impacts would take effect.

Procedure / Timeline / Effective date

  • House: Passed third reading April 14, 2025 (with House amendments on April 11).
  • Senate: Introduced April 15, 2025; assigned to Transportation & Energy; committee postponed indefinitely April 23, 2025.
  • If enacted (language in bill): effective 90 days after adjournment sine die, unless a referendum is filed.
  • Reporting deadlines in bill text vary by version: July 1, 2026 (original) and inclusion in SMART Act hearing by January 2027 (later version).

Sponsors and major actions

  • Sponsors: Rep. Ken DeGraaf; Rep. Elizabeth Velasco; Sen. Rod Pelton (primary Senate sponsor) and multiple cosponsors.
  • Major actions: Introduced 02/13/2025; House committee referrals and amendments in March–April 2025; House passed 04/14/2025; Senate Transportation & Energy postponed indefinitely 04/23/2025.

Notes / Context

  • Geomagnetic storms (G1–G5 scale) can induce geomagnetically induced currents (GICs) that damage transformers and other grid equipment. The bill focuses on physical and cyber protections, operational procedures tied to space‑weather warnings, and PUC-led standard setting.
  • Because the bill was postponed indefinitely, the requirements and any resulting rulemaking or costs did not advance. If revived later, substantive details (deadlines, scope of utilities covered, cost recovery mechanisms) could change during further amendment and rulemaking.

Compiled from official sources — confirm details with the bill’s official record.

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