Summary
This Form 8-K filing by Xcel Energy Inc. (XEL) on May 28, 2009, primarily reports on the outcome of a rate case initiated by its subsidiary, Public Service Company of Colorado (PSCo), before the Colorado Public Utilities Commission (CPUC). PSCo had initially requested an annual electric rate increase of $174.7 million. After various filings and negotiations with intervenors, a settlement agreement was reached and subsequently approved by the CPUC on May 27, 2009. The approved settlement provides for an overall increase in base rates of $112.2 million annually, which is lower than the initial request but higher than some of the recommendations from parties like the CPUC staff and the Office of Consumer Counsel. New rates are expected to become effective on July 1, 2009. A key aspect of the settlement is the treatment of Construction Work in Progress (CWIP) for the Comanche Unit 3, which will be removed from rate base but allows PSCo to continue recording Allowance for Funds Used During Construction (AFDC) income on this balance until the unit is placed into service.
Key Highlights
- 1Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), received approval for a $112.2 million annual base rate increase from the Colorado Public Utilities Commission (CPUC).
- 2The new rates are effective July 1, 2009, providing an incremental revenue boost for PSCo.
- 3The approved increase is a result of a settlement agreement reached on April 22, 2009, with various parties including CPUC staff and consumer advocates.
- 4PSCo's initial request for a $174.7 million rate increase was significantly moderated through the settlement process.
- 5The settlement addresses the treatment of Construction Work in Progress (CWIP) for the Comanche Unit 3, removing it from rate base but allowing AFDC income accrual until the unit is operational.
- 6This outcome provides a degree of regulatory certainty for Xcel Energy regarding its Colorado operations.