What is the primary reason for the increased rates for Cheyenne's retail customers?

The primary reason is significant increases in energy costs experienced by Cheyenne in 2001, especially after the expiration of its long-term power purchase agreement with PacifiCorp and the subsequent transition to purchasing power from PSCo under market-based tariffs.

What does the Stipulation Agreement entail for Cheyenne's customers?

The Stipulation Agreement aims to mitigate the impact of rising electric rates. It establishes a fixed energy supply rate for customers through 2003 and includes provisions for recovering past unrecovered costs through amortization. Estimated retail rate increases are expected to recover additional revenue for Cheyenne.

What is Xcel Energy's (XEL) role in this filing?

Xcel Energy Inc. is the parent company, and Cheyenne Light, Fuel and Power Company (Cheyenne) is a wholly owned subsidiary. The filing concerns the WPSC's approval of the Stipulation Agreement related to Cheyenne's power costs and retail rates.

When will the new rates and cost recovery mechanisms become effective?

The new cost levels consistent with the Stipulation Agreement will be reflected in Cheyenne's expenses and deferred costs effective June 1, 2001, with retroactive adjustments back to February 25, 2001, the date of the initial cost increase.

XEL/XELLL 8-K SEC Disclosure

Summary

Xcel Energy Inc. (XEL) reported on May 25, 2001, through its wholly owned subsidiary Cheyenne Light, Fuel and Power Company (Cheyenne), that the Wyoming Public Service Commission (WPSC) approved a Stipulation Agreement concerning increased rates for Cheyenne's retail customers. This agreement aims to recover increased power costs resulting from significant energy cost escalations in 2001, particularly after Cheyenne's long-term power purchase agreement with PacifiCorp expired on February 24, 2001. Cheyenne has transitioned to purchasing wholesale energy from PSCo under a market-based tariff, pending FERC approval. The Stipulation Agreement provides a framework for cost recovery, including a fixed energy supply rate through 2003, amortization of unrecovered costs through December 2005, and the continued supply of energy from PSCo under FERC-approved tariffs. This is intended to mitigate the immediate impact of rising electric rates on customers, with estimated retail rate increases to recover an additional $18 million in 2001 and $28 million annually in 2002 and 2003.

Key Highlights

1Wyoming Public Service Commission (WPSC) approved a Stipulation Agreement for Cheyenne Light, Fuel and Power Company (Cheyenne).
2The agreement allows Cheyenne to recover increased power costs from retail customers.
3Cheyenne's prior power purchase agreement with PacifiCorp expired on February 24, 2001.
4Cheyenne is currently receiving power from PSCo under a market-based tariff (pending FERC approval).
5The Stipulation includes a fixed energy supply rate through 2003 and amortization of unrecovered costs until December 2005.
6Estimated retail rate increases to recover an additional $18 million in 2001 and $28 million annually in 2002-2003.

XCEL ENERGY INC 8-K Report (Jun 4, 2001)

Summary

Key Highlights

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