8-KEarnings & ResultsOther EventsExhibits & Filings

XCEL ENERGY INC 8-K Report, Financial Results (Dec 5, 2006)

Filed December 5, 2006For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) filed an 8-K report on December 5, 2006, detailing significant events occurring in early December. The company announced its intention to discuss financial information with industry professionals at the Wall Street Utility Group Conference, beginning December 6, 2006, with the presentation furnished as an exhibit. This provides investors with a look into the company's financial discussions and forward-looking statements that will be shared with the investment community. A key development reported is the filing by Xcel Energy's subsidiary, Public Service Company of Colorado, with the Colorado Public Utilities Commission on December 1, 2006. This filing seeks a $41.5 million increase in natural gas rates, representing a 2.96% rise, to cover capital investments and escalating operating costs. The company is proposing a common equity ratio of 60.17% and an 11% return on equity, with an anticipated rate decision in the third quarter of 2007. This rate increase request is a material event for investors as it directly impacts the subsidiary's revenue and profitability.

Key Highlights

  • 1Xcel Energy plans to present financial information at the Wall Street Utility Group Conference starting December 6, 2006.
  • 2The presentation materials from the conference have been filed as Exhibit 99.01.
  • 3Public Service Company of Colorado (a subsidiary) filed a natural gas rate increase request with the Colorado Public Utilities Commission on December 1, 2006.
  • 4The requested rate increase is $41.5 million, equating to a 2.96% overall increase in natural gas rates.
  • 5The rate increase is attributed to Colorado capital investments and rising operating costs.
  • 6The company is seeking an 11% return on equity and a common equity ratio of 60.17% for this request.
  • 7The Colorado Public Utilities Commission is expected to rule on the rate request in time for potential implementation in the third quarter of 2007.

Frequently Asked Questions

Xcel Energy announced its intention to discuss financial information with industry professionals at the Wall Street Utility Group Conference. While the specific details are not in the 8-K itself, the presentation furnished as Exhibit 99.01 likely contains updates on financial performance, strategic initiatives, and future outlook.

The subsidiary is seeking to increase natural gas rates by $41.5 million to recover costs associated with capital investments made in Colorado and to address rising operating expenses. This is a common regulatory process for utility companies to ensure they can maintain service and infrastructure.

Xcel Energy anticipates that the Colorado Public Utilities Commission will make a decision on the rate request such that any approved rates could become effective in the third quarter of 2007. This timeline suggests a lengthy regulatory review process.

In its filing with the Colorado Public Utilities Commission, Public Service Company of Colorado requested a common equity ratio of 60.17% and a return on equity of 11%. These figures are used by regulators to determine the appropriate level of revenue the utility company should be allowed to earn.