C06 0713 06A 246FEG 06A 247FEG

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					Decision No. C06-0713

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO

DOCKET NO. 06A-246FEG

IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF
COLORADO PURSUANT TO C.R.S. 40-5-103(2) FOR AN ORDER APPROVING
CONTEMPLATED FRANCHISE TO PROVIDE ELECTRIC, GAS AND STEAM SERVICE
IN THE CITY AND COUNTY OF DENVER. COLORADO.


DOCKET NO. 06A-247FEG

IN THE MATTER OF THE APPLICATION OF PUBLIC SERVICE COMPANY OF
COLORADO FOR AN ORDER APPROVING AGREEMENTS RELATED TO THE
FRANCHISE TO PROVIDE ELECTRIC, GAS AND STEAM SERVICE IN THE CITY
AND COUNTY OF DENVER, COLORADO.


                      COMMISSION ORDER REQUESTING BRIEFS


                                  Mailed Date: June 16, 2006
                                  Adopted Date: June 16, 2006
I.     BY THE COMMISSION

       A.      Statement
       1.      This matter comes before the Commission for consideration of legal issues that

arose during hearings in this docket, held on June 15 and 16, 2006.

       2.      The parties indicated their willingness to answer legal questions through briefs

submitted to the Commission. The questions are as follows:

           Does Commission approval of the franchise agreement, operating agreement, Denver
            International Airport agreement and lighting agreement (the latter three are known as
            the "side agreements") create a presumption that there are no unlawful subsidies or
            discrimination?

           If the side agreements are approved in this docket, would any subsequent changes to
            the side agreements need to be brought before the Commission for approval?
                         Before the Public Utilities Commission of the State of Colorado
Decision No. C06-0713                                                     DOCKET NO. 06A-246FEG, 06A-247FEG



            What legal problems would be created if the Commission were to remain silent with
             respect to the side agreements, that is, not approve or disapprove them?

            Section 40-3-106(4), C.R.S. states as follows:
        The commission shall order a fixed public utility, except a municipally owned
        utility, to increase its rates only to its customers in a municipality by adding a
        surcharge to recover the amount such fixed public utility pays to that municipality
        as a cost of doing business within that municipality, so long as the increase in
        rates by such fixed public utility is pursuant to a method of surcharge approved by
        the commission.
        To what costs does this statute apply, all costs incurred by the Company as a result
        of being granted permission to conduct business within the specific franchise
        territory (the election and campaign costs, the transfer fee, for example), only the
        franchise fee, or some other group of costs?
        Does this statute trump Article 14.2 of the proposed franchise agreement, which
        concerns the transfer fee?

            Would approval of the franchise agreement and the side agreements change any
             burdens of proof with respect to cost recovery issues in future cases?

            Are there any unlawful subsidies from customers in unincorporated areas or unlawful
             discrimination against customers in unincorporated areas created by the tariff
             proposed in exhibit A to the settlement agreement?

        3.       Briefs on these questions shall be due on Thursday June 22, 2006, by the close of

business. No answer or reply briefs shall be permitted. Parties may address all, none, or some of

the questions above. Parties shall provide email copies of their briefs, in addition to the required

paper copies by the June 22, 2006 deadline, to the following email addresses:

Mark.Valentine@state.co.us and Frank.Shafer@dora.state.co.us.


II.     ORDER

        A.       The Commission Orders That:
        1.       Parties, to the extent they wish to answer any questions, as discussed above, shall

submit briefs by June 22, 2006, at the close of business.




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                           Before the Public Utilities Commission of the State of Colorado
Decision No. C06-0713                                                         DOCKET NO. 06A-246FEG, 06A-247FEG



         2.        Parties shall provide email copies of their briefs, in addition to the required paper

copies        by   the   June    22,     2006      deadline,      to    the     following    email   addresses:

Mark.Valentine@state.co.us and Frank.Shafer@DORA.state.co.us.

         3.        This Order is effective on its Mailed Date.

         B.        ADOPTED DURING HEARING
                   June 16, 2006.



                                                         THE PUBLIC UTILITIES COMMISSION
                                                           OF THE STATE OF COLORADO



                                                           ________________________________



                                                           ________________________________



                                                           ________________________________
                                                                              Commissioners




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