Summary
Xcel Energy Inc. (XEL) reported through its wholly-owned subsidiary, Public Service Company of Colorado (PSCo), a filing with the Colorado Public Utilities Commission (CPUC) on November 14, 2008, seeking a retail electric general rate increase. This filing represents a significant event for investors as it directly impacts the revenue generation of a key subsidiary in Colorado. The proposed rate increase aims to boost annual revenues by approximately $174.7 million, reflecting a 7.4 percent rise. The request is based on a 2009 budget and includes specific financial parameters such as a requested rate of return on equity of 11.00%, an electric net rate base of about $4.15 billion for the Colorado retail jurisdiction, and an equity ratio of 58.08%. Investors should monitor the CPUC's review process and the ultimate outcome of this rate case, as it will influence Xcel Energy's future financial performance in Colorado.
Key Highlights
- 1Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), filed for a retail electric rate increase with the Colorado Public Utilities Commission (CPUC).
- 2The requested increase amounts to approximately $174.7 million in annual revenues, representing a 7.4% rise.
- 3The filing is based on a 2009 calendar year budget.
- 4PSCo is requesting a rate of return on equity of 11.00%.
- 5The filing includes an electric net rate base of approximately $4.15 billion allocated to the Colorado electric retail jurisdiction.
- 6An equity ratio of 58.08% is proposed.
- 7PSCo anticipates that the new rates could become effective in the third quarter of 2009.