8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Dec 28, 2011)

Filed December 28, 2011For Securities:XELXELLL

Summary

This 8-K filing by Xcel Energy Inc. (XEL) on December 28, 2011, details a significant regulatory event for its subsidiary, Public Service Company of Colorado (PSCo). PSCo filed a request on November 22, 2011, with the Colorado Public Utilities Commission (CPUC) to increase its retail electric rates by $141.9 million, based on a 2012 forecast test year and a proposed 10.75% return on equity. The company also sought interim rate relief of $100 million, expected to be effective in January 2012, pending a final decision on the larger rate increase.

Key Highlights

  • 1Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, filed a request for a $141.9 million retail electric rate increase with the Colorado Public Utilities Commission (CPUC).
  • 2The rate increase request is based on a 2012 fully forecast test year, a proposed 10.75% return on equity, and a rate base of $5.4 billion.
  • 3PSCo also filed a petition for interim rates of $100 million, intended to be effective in January 2012.
  • 4The CPUC Staff recommended rejecting the interim rate request, citing PSCo's strong financial condition and the lack of extraordinary revenue deficiency drivers.
  • 5Alternatively, the CPUC Staff proposed an interim rate increase of $45.3 million to $57.1 million, a reduction from the requested amount.
  • 6The Colorado Office of Consumer Counsel (OCC) opposed the interim rate increase, suggesting a cap of $11.2 million if granted.
  • 7A decision from the CPUC on the interim rate petition is expected in January 2012, with PSCo having an opportunity to provide reply comments by January 5, 2012.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report on a significant regulatory event: Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, filed a request to increase its retail electric rates and is seeking interim rate approval.

PSCo requested a total retail electric rate increase of $141.9 million, with final rates expected to be effective in the summer of 2012. They also requested interim rates of $100 million to be effective in January 2012.

The CPUC Staff recommended rejecting the interim rate request entirely or, alternatively, approving a lower increase between $45.3 million and $57.1 million. The Colorado Office of Consumer Counsel (OCC) also opposed the increase, suggesting a cap of $11.2 million if granted.

The rate increase request is based on a 2012 fully forecast test year, a proposed 10.75 percent return on equity, a rate base of $5.4 billion, and an equity ratio of 56 percent.