What is PSCo asking for in terms of a rate increase, and when might it take effect?

PSCo is requesting an approximate $180.2 million increase in annual retail electric revenues. Based on the procedural schedule, a final decision on Phase 1 is expected in December 2009, which would likely allow PSCo to implement new base rates effective January 1, 2010.

Are there any significant disagreements or potential challenges to PSCo's rate increase request?

Yes, there are significant disagreements. Various intervenors, including regulatory staff and consumer advocates, have proposed much smaller rate increases than requested by PSCo and have recommended lower rates of return on equity. Disputes also exist over the accounting methods, test year periods, and the recovery of certain costs and revenues.

What are the key differences between PSCo's proposal and the intervenors' recommendations?

PSCo proposed a $180.2 million increase with an 11.25% ROE using a 2010 Forward Test Year. Intervenors recommended significantly lower increases (e.g., $46 million to $68.6 million) and lower ROEs (9.75% to 9.84%), often based on an adjusted 2008 Historic Test Year. Specific areas of contention include adjustments for new plant costs, incentive compensation, and revenue sharing on generation sales.

XEL/XELLL 8-K SEC Disclosure

Q: What is the primary reason for this 8-K filing?

This 8-K filing primarily serves to inform investors about the significant progress and differing viewpoints in the rate increase request initiated by Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), with the Colorado Public Utilities Commission (CPUC). It details the company's request and the responses from intervenors regarding proposed new electric rates.

Summary

This 8-K filing from Xcel Energy Inc. (XEL) on September 9, 2009, details the proceedings of a rate increase request filed by its subsidiary, Public Service Company of Colorado (PSCo), on May 1, 2009. PSCo is seeking an approximate $180.2 million increase in annual retail electric revenues, proposing to implement this through a 2010 Forward Test Year and requesting an 11.25% rate of return on equity (ROE). The filing also outlines a proposal to integrate costs from the Air Quality Improvement Rider and Demand-Side Management Cost Adjustment into base rates, which would not result in a net change to customer bills but would adjust how these costs are recovered. The report highlights significant responses from various intervenors, including CPUC staff, the Colorado Office of Consumer Counsel (OCC), and consumer groups. These intervenors have proposed substantially lower revenue increases, ranging from approximately $46 million to $95.4 million, and recommended lower ROEs (9.75% to 10.0%). Key points of contention include the test year methodology (Forward Test Year vs. Historic Test Year), adjustments for major plant investments like Comanche 3 and Fort St. Vrain, and the allocation of costs and revenues, particularly regarding generation book sales. A final decision on Phase 1 of the rate case is anticipated in December 2009, with new rates likely effective January 1, 2010.

Key Highlights

1Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, filed for a $180.2 million retail electric rate increase effective in 2010.
2The rate request is based on a 2010 Forward Test Year and seeks an 11.25% rate of return on equity (ROE).
3PSCo proposes to move costs from riders into base rates, aiming for no net impact on customer bills.
4Intervenors, including CPUC staff and the Colorado Office of Consumer Counsel, have recommended much lower rate increases ($46 million to $68.6 million) and lower ROEs (9.75% to 9.84%).
5Key disagreements center on the test year methodology, adjustments for new plant costs (Comanche 3, Fort St. Vrain), and revenue sharing mechanisms.
6A decision on Phase 1 of the rate case is expected in December 2009, with potential new rates effective January 1, 2010.

XCEL ENERGY INC 8-K Report, Corporate Update (Sep 9, 2009)

Summary

Key Highlights

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