Summary
Xcel Energy Inc.'s subsidiary, Public Service Company of Colorado (PSCo), has filed an electric rate case with the Colorado Public Utilities Commission (CPUC) seeking an annual revenue increase of approximately $136.0 million (4.83%). A significant portion of this request, $98.7 million, is for the recovery of costs associated with the Clean Air Clean Jobs Act (CACJA) project, which involves retiring coal plants, upgrading existing ones, and adding natural gas generation, expected to be completed by 2017. The company is aiming for a multi-year regulatory plan to provide stability for both PSCo and its customers. Following initial filings and testimonies from intervenors like the CPUC Staff and Office of Consumer Counsel (OCC), which proposed lower rate increases and different cost recovery mechanisms, PSCo revised its request to $107.2 million (3.79%) on December 17, 2014. This revision includes a slightly reduced return on equity (ROE) and updated financial forecasts. The regulatory process is moving forward with an evidentiary hearing scheduled for January 2015, interim rates expected by February 2015, and a final decision anticipated in the second quarter of 2015. Concurrently, Xcel Energy reaffirmed its 2014 and 2015 ongoing earnings guidance, contingent on constructive outcomes in regulatory proceedings.
Key Highlights
- 1PSCo filed a rate case in Colorado requesting a $136 million annual revenue increase, with a primary focus on recovering $98.7 million for the Clean Air Clean Jobs Act (CACJA) project.
- 2The CACJA project involves significant environmental investments, including coal plant retirements and new natural gas generation, expected to be completed by 2017.
- 3PSCo revised its rate request downwards to $107.2 million after considering testimony from the CPUC Staff and OCC, who proposed lower rate increases and alternative cost recovery methods.
- 4The regulatory proceedings are advancing, with an evidentiary hearing set for January 2015 and a final decision expected in Q2 2015.
- 5Interim rates are anticipated to be effective in February 2015, subject to refund.
- 6Xcel Energy reaffirmed its 2014 and 2015 ongoing earnings per share guidance, emphasizing that this guidance assumes favorable outcomes in regulatory proceedings.