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.