8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Oct 5, 2017)

Filed October 5, 2017For Securities:XELXELLL

Summary

Xcel Energy Inc.'s subsidiary, Public Service Company of Colorado (PSCo), has filed a multi-year request with the Colorado Public Utilities Commission (CPUC) to increase retail electric rates. This filing outlines a revenue request totaling $378.0 million over four years (2018-2021), with an expected year-end rate base growing from $6.8 billion in 2018 to $7.4 billion in 2021. The proposed rate increase is driven by ongoing capital investments in distribution infrastructure, a new Advanced Grid Intelligence and Security initiative, and increased depreciation expense related to environmental investments and coal plant retirements. Key to this filing is the proposed 10.0 percent return on equity and an equity ratio of 55.25 percent. While the revenue conversion from certain riders (CACJA and TCA) into base rates will not immediately impact total customer bills or revenue, it signals a shift in cost recovery mechanisms. The company anticipates final rates to be effective by June 2018, with a stay-out provision and earnings test proposed through 2021. Investors should note that this request does not include impacts from renewable energy investments scheduled for late 2018 or the proposed Colorado Energy Plan.

Key Highlights

  • 1PSCo is seeking a multi-year increase in retail electric rates, totaling $378.0 million from 2018 through 2021.
  • 2The rate request is supported by an expected year-end rate base that is projected to grow from $6.8 billion in 2018 to $7.4 billion in 2021.
  • 3The proposed rate increase incorporates ongoing capital investments in infrastructure and a new grid modernization initiative.
  • 4PSCo is proposing a 10.0 percent return on equity and an equity ratio of 55.25 percent.
  • 5The filing includes increased depreciation expense to recover environmental investments and costs associated with early coal plant retirements.
  • 6Final rates are anticipated to be effective in June 2018, with proposed protections (stay-out provision and earnings test) through 2021.
  • 7The rate request does not yet incorporate the financial impact of upcoming renewable energy projects or the proposed Colorado Energy Plan.

Frequently Asked Questions

This filing announces that Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), has submitted a request to the Colorado Public Utilities Commission (CPUC) to increase retail electric rates. This is part of the regulatory process to allow PSCo to recover its operating costs and investments.

PSCo is requesting a total of $378.0 million in new rates over a four-year period from 2018 to 2021. The revenue request varies by year, with larger amounts in 2018 and 2019 ($207.7 million and $74.9 million, respectively) and smaller amounts in 2020 and 2021.

The rate increase is primarily driven by continued capital investments in distribution infrastructure to meet customer demand, the planned implementation of an Advanced Grid Intelligence and Security initiative, and increased depreciation expense related to environmental investments and early retirement of coal plants.

The company expects that final rates will become effective in June 2018, subject to the CPUC's review and approval process.