Summary
Xcel Energy Inc.'s wholly-owned subsidiary, Public Service Company of Colorado (PSCo), has filed an electric rate case with the Colorado Public Utilities Commission (CPUC). This filing seeks an overall increase in annual revenue of approximately $137.7 million, representing a 4.86 percent increase. A significant component of this request is the initiation of a Clean Air Clean Jobs Act (CACJA) rider, which aims to recover costs associated with retiring certain coal plants, upgrading pollution controls, and adding natural gas generation. This rider is projected to contribute approximately $95 million in 2015, with further amounts for 2016 and 2017, subject to true-up mechanisms. PSCo's objective is to establish a multi-year regulatory plan to provide revenue recovery certainty for both the company and its customers. The filing is based on a 2015 test year, requesting a 10.35 percent return on equity and a jurisdictional electric rate base of $6.39 billion. A decision from the CPUC is anticipated in the first quarter of 2015, with rate implementation expected shortly thereafter. Investors should monitor the CPUC's decision for potential impacts on Xcel Energy's future revenue and profitability.
Key Highlights
- 1Public Service Company of Colorado (PSCo), an Xcel Energy subsidiary, filed an electric rate case in Colorado seeking a $137.7 million annual revenue increase (4.86%).
- 2The rate case includes a Clean Air Clean Jobs Act (CACJA) rider to recover costs for coal plant retirements, pollution control upgrades, and new natural gas generation.
- 3The CACJA rider is projected to generate approximately $95 million in 2015, with subsequent amounts for 2016 and 2017, subject to true-up.
- 4PSCo aims to establish a multi-year regulatory plan for revenue certainty.
- 5The filing is based on a 2015 test year, requesting a 10.35% return on equity and a jurisdictional electric rate base of $6.39 billion.
- 6A CPUC decision is anticipated in Q1 2015, with new rates expected to be implemented in Q1 2015.