The Colorado Public Utilities Commission (PUC) is currently hearing testimonies regarding Xcel Energy’s Solar Rewards program and a settlement between Colorado solar groups and the utility company, which would turn the program back on and set up a new rate and ratcheting-down schedule.

On Feb. 17, Xcel announced it would reduce the rate for the Solar Rewards program, from $2.35 per watt to $2.01. Within 24 hours, Xcel had received so many applications for the existing rate—under which applicants would be grandfathered in before the new rates were put into effect— that the utility reached its spending cap for the program and shut it down.

Xcel then announced it would reduce the rate to $1.25 per watt.

As a result, Colorado solar groups, led by the Colorado Solar Industries Association, held a rally at the state Capitol building on Feb. 25.

On March 4, Xcel, COSEIA, and other interested parties appeared before the PUC to discuss Xcel’s proposal to reduce the solar rebate at the $1.25-per-watt level.

Colorado solar advocates argued that the new rates essentially gutted the state’s industry, and pushed the PUC to deny Xcel’s proposal, reinstate the Solar Rewards program at the previous rate ($2.01 per watt), and set up a predictable schedule for the program to ratchet down.

But Xcel contended that the growth of the Colorado industry, which far surpassed most other states, was due to the rebate itself, and didn’t represent the actual climate of the solar market in the state. In addition, Xcel advocates said the utility was paying out much more than it was taking in due to the amount of applications for the rebate.

Last week, Xcel and Colorado solar groups reached a settlement and submitted it to the PUC. Hopefully, by the end of today’s hearing, which has been going on since 9 a.m. MST, the PUC may have a final decision on the settlement plan.