What is the net impact of the rate case settlement and CPUC adjustments on PSCo's revenue?

The CPUC approved adjustments to the settlement, resulting in an estimated increase in base rates of $128.3 million. This is lower than the initial settlement proposal of $136 million.

How will the delay in the Comanche 3 plant's in-service date affect customers?

The delay means the full rate increase will not be implemented immediately. PSCo proposed a phased approach, starting with a smaller increase on January 1, 2010, with subsequent increases to be implemented once Comanche 3 is operational and reflecting future property taxes.

Were the earnings sharing and rate stay-out provisions of the settlement approved?

No, the CPUC did not approve the earnings test for sharing earnings with customers or the rate stay-out provisions that would have prevented PSCo from filing its next general rate case before December 31, 2011.

What is the status of the Comanche 3 power plant?

The Comanche 3 plant experienced leaks in boiler tube welds during testing, delaying its expected online date from late 2009 into 2010. PSCo is providing status updates to the CPUC, and further deliberation on the impact of this delay is scheduled.

XEL/XELLL 8-K SEC Disclosure

Summary

Xcel Energy Inc.'s subsidiary, Public Service Company of Colorado (PSCo), has reached a settlement agreement with various parties regarding a requested increase in Colorado retail electric rates. Initially seeking $180.2 million and later revising it to $177.4 million, PSCo agreed to a settlement for a $136 million increase based on a 10.5% return on equity, with certain conditions and provisions for future cost recovery and customer benefits. The Colorado Public Utilities Commission (CPUC) approved most aspects of the settlement but made several financial adjustments, resulting in an estimated base rate increase of $128.3 million. The CPUC also did not approve the earnings test or rate stay-out provisions from the settlement. Furthermore, the filing addresses delays in the in-service date for the Comanche 3 power plant, which initially impacted rate increase assumptions. PSCo has proposed a phased implementation of rate increases to align with the plant's actual cost of service and delayed operational start. The CPUC has scheduled further hearings to deliberate on PSCo's proposal and the Comanche 3 delay. Investors should monitor the final CPUC decisions and the operational status of Comanche 3 for impacts on future earnings and rates.

Key Highlights

1Public Service Company of Colorado (PSCo) reached a settlement for a $136 million electric rate increase, down from its initial request.
2The settlement is based on a 10.5% return on equity, lower than the initially proposed 11.25%.
3The Colorado Public Utilities Commission (CPUC) approved most of the settlement but made adjustments, leading to an estimated $128.3 million base rate increase.
4The CPUC did not approve the earnings sharing test or the rate stay-out provisions included in the settlement.
5Delays in the in-service date of the Comanche 3 power plant will affect the phased implementation of the rate increase.
6PSCo proposed a phased rate increase, starting with $67.0 million on Jan. 1, 2010, with further increases tied to Comanche 3's operation and property taxes.

XCEL ENERGY INC 8-K Report, Corporate Update (Dec 18, 2009)

Summary

Key Highlights

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