Summary
This 8-K filing from Xcel Energy Inc. (XEL) on March 15, 2001, primarily concerns its wholly-owned subsidiary, Cheyenne Light, Fuel and Power Co. (Cheyenne). Cheyenne is transitioning from being a full requirements customer of Pacificorp to an operating utility. This transition, coupled with current market conditions, is projected to increase Cheyenne's purchased power costs by approximately $80 million in 2001, with an expectation of costs declining thereafter. In response to these anticipated cost increases, Cheyenne has filed an application with the Wyoming Public Service Commission (WPSC) for an electric cost adjustment increase. A significant portion, an estimated $61 million of the 2001 projected increase, has been requested to be deferred and recovered in future customer rates through 2006. Investors should monitor the WPSC's regulatory review process and its impact on Cheyenne's financial performance and customer rates.
Key Highlights
- 1Xcel Energy's subsidiary, Cheyenne Light, Fuel and Power Co., is transitioning to an operating utility model.
- 2Cheyenne's purchased power costs are projected to increase by approximately $80 million in 2001.
- 3Future purchased power costs are anticipated to decrease after 2001.
- 4Cheyenne has filed an application with the Wyoming Public Service Commission (WPSC) for an electric cost adjustment increase.
- 5Cheyenne is requesting to defer $61 million of the 2001 projected cost increases.
- 6Deferred costs are expected to be recovered through customer rates between 2001 and 2006.
- 7The WPSC has initiated a regulatory review process concerning these cost increases and their impact on customers.