Summary
This Form 8-K filing from Xcel Energy Inc. (XEL), filed on April 13, 2011, pertains to its wholly-owned subsidiary, Public Service Company of Colorado (PSCo), and its ongoing natural gas rate case before the Colorado Public Utilities Commission (CPUC). PSCo initially requested a $27.5 million increase in Colorado retail gas rates, later revised to $25.6 million, based on a 2011 forecast test year, a proposed 10.90% return on equity, and a $1.1 billion rate base. The filing details that intervenors, including the CPUC Staff and the Colorado Office of Consumer Counsel (OCC), have filed answer testimony. The CPUC Staff recommended a rate decrease of approximately $20.1 million, while the OCC proposed a $1 million decrease, each citing different assumptions for test year, return on equity, and various cost components.
Key Highlights
- 1Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, filed a rate case with the Colorado Public Utilities Commission (CPUC).
- 2PSCo initially sought a $27.5 million increase in retail gas rates, subsequently revised to $25.6 million.
- 3The CPUC Staff recommended a rate decrease of approximately $20.1 million, differing significantly from PSCo's request.
- 4The Colorado Office of Consumer Counsel (OCC) also recommended a rate decrease, estimated at $1 million.
- 5Key areas of contention include the test year methodology (forecast vs. historic), return on equity (ROE), and treatment of pipeline integrity costs and gas in underground storage.
- 6PSCo's proposed ROE was 10.90%, while the CPUC Staff proposed 9.375% and the OCC proposed 9.0%.
- 7A final decision from the CPUC is expected in the summer of 2011, with hearings scheduled for late May 2011.