Summary
Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), has filed a multi-year request with the Colorado Public Utilities Commission to increase retail natural gas rates. This filing, made on June 2, 2017, aims to recover approximately $300 million in annual capital investments made since 2015 and ongoing operating cost increases. These investments are primarily directed towards enhancing pipeline safety, reliability, and system resiliency, including the replacement of older infrastructure like cast iron pipes and vintage plastic/steel lines. The proposed rate increase, totaling $232.9 million over 2018-2020, is based on a 10.0 percent return on equity and a 55.25 percent equity ratio. The company anticipates final rates will be effective in February 2018. Notably, PSCo is also proposing a stay-out provision and an earnings test through the end of 2020 as part of this multi-year rate adjustment strategy, aiming for greater regulatory certainty.
Key Highlights
- 1PSCo, a subsidiary of Xcel Energy, is seeking to increase natural gas rates in Colorado.
- 2The request aims to recover approximately $300 million in annual capital investments for pipeline safety and reliability improvements made since 2015.
- 3Total requested revenue increase over 2018-2020 is $232.9 million, including $139.0 million in new revenue and $93.9 million from PSIA revenue conversion.
- 4The proposed rate case is based on a 10.0% return on equity and a 55.25% equity ratio.
- 5Final rates are anticipated to be effective by February 2018.
- 6PSCo is proposing a 'stay-out' provision and an earnings test through the end of 2020 to provide regulatory stability.
- 7Investments include the removal of all known cast iron pipe and over 350 miles of vintage plastics and steel.