The Colorado Public Utilities Commission on Oct. 1 approved a securities application from Durango Mountain Utilities to allow a change in ownership, to secure new lower-cost financing, and to encumber the utility to secure that financing, subject to a set of commitments negotiated with staff.

Mister Oserra, presenting the staff review, said the ski-area owners are forming a holding company that will consolidate the resort, related real estate and the utility. The reorganization constitutes a change in control that requires commission approval. The proposed financing would lower the utility’s cost of debt by about 3 percentage points compared with its existing loan, the presentation said. Staff reviewed the application and negotiated commitments that staff said protect ratepayers, including prohibitions on cross-subsidies, requirements to provide data and audits to staff on request, restrictions on pledging utility assets for affiliate debt, and a requirement that any future transfer of control be subject to commission approval.

Because Durango Mountain Utilities did not provide audited financial statements in the typical form, the company asked for waivers of two filing requirements; staff recommended granting those waivers and approving the application. "The commitments negotiated with staff provide additional protections and transparency," Oserra said, and commissioners agreed, recording an ABC decision granting the application and requested waivers.

Details: Staff also recommended the utility file an updated cost-allocation manual and cost study by June 1, and either pursue tariff and rate modifications with staff cooperation or file a rate case by June 1, 2028. The commission’s approval included these commitments as conditions.

Next steps: Staff will issue a written decision approving the change in control, financing authority and the requested waivers conditioned on the commitments negotiated with staff.