Summary
Xcel Energy Inc. (XEL) subsidiary, Public Service Company of Colorado (PSCo), has filed a request with the Federal Energy Regulatory Commission (FERC) to implement formula-based wholesale electric customer rate changes. This filing seeks an annual revenue increase of approximately $16.1 million, anticipated to become effective in April 2011, though the FERC has the discretion to delay this by up to five months. The proposed rate adjustments are based on a 2011 forecast test year and reflect significant investments, including the acquisition of the Blue Spruce and Rocky Mountain Energy Centers, as well as costs associated with retiring certain coal plants to comply with emissions reduction plans approved by the Colorado Public Utility Commission.
Key Highlights
- 1Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, filed a rate increase request with FERC.
- 2The requested annual increase amounts to $16.1 million for wholesale electric customers.
- 3The new rates are proposed to be effective in April 2011, subject to FERC approval and potential suspension.
- 4The filing is based on a 2011 forecast test year with a projected 10.90% return on equity.
- 5Key drivers for the rate increase include costs for newly acquired generation units (Blue Spruce and Rocky Mountain Energy Centers).
- 6Costs associated with the early retirement of coal plants due to Clean Air Clean Jobs Act compliance are also a factor.
- 7The proposed rate structure is formula-based, allowing for annual adjustments and true-ups to actual costs.