IMPORTANT – This is not the final approach for the program plan, CAA is seeking input on potential approaches for reimbursement and your feedback is integral in developing a successful approach for Colorado.
In open market service areas CAA is considering two potential options for establishing reimbursement values for single family residential services, a ‘Market Clearing Price’ and an ‘Actual Cost’ submission. Under the “Market Clearing Price’ a reimbursement rate could be calculated per household by region based on cost formula factors and market inputs. The reimbursement rate could be offered to any service provider that meets the minimum service requirements. Service providers that chose to accept the market clearing price could enter into agreements with CAA to be reimbursed based on the market clearing price. In service areas where the Market Clearing Price does not fully cover the service provider’s net costs of recycling services, service providers could potentially choose to submit a request for an ‘Actual Cost’ reimbursement along with verified service cost data. Additional information on the potential approach is included on the presentation side deck posted on the program website.
The following set of questions are around the ‘Market Clearing Price’ option.