Summary
This Form 8-K filing by Xcel Energy Inc. (XEL) on May 26, 2011, primarily concerns a significant development in a retail gas rate case for its subsidiary, Public Service Company of Colorado (PSCo). PSCo had initially requested a $27.5 million rate increase, later revised to $25.6 million. Following extensive proceedings involving intervenors, CPUC Staff, and the Office of Consumer Counsel (OCC), a settlement has been reached. The proposed settlement, filed on May 25, 2011, calls for a $10.9 million increase in base rates. Importantly, it also includes provisions to recover future pipeline integrity management costs through a rider starting in 2012, estimated to generate around $14 million annually. Furthermore, underground gas storage costs will be removed from base rates and recovered through the Gas Cost Adjustment (GCA) rider, expected to generate an additional $10 million in annual incremental revenue. The Colorado Public Utilities Commission (CPUC) is expected to make a decision on this settlement in June 2011.
Key Highlights
- 1Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, reached a settlement for a gas rate increase.
- 2The settlement proposes a $10.9 million increase in base retail gas rates.
- 3Future pipeline integrity management costs will be recovered through a new rider, estimated at $14 million annually starting January 1, 2012.
- 4Underground gas storage costs will be removed from base rates and recovered via the Gas Cost Adjustment (GCA) rider, expected to yield $10 million annually.
- 5The settlement was filed on May 25, 2011, with the Colorado Public Utilities Commission (CPUC).
- 6A decision from the CPUC on the settlement is anticipated in June 2011.
- 7The proposed new base rates and GCA recovery are expected to go into effect on September 5, 2011.