8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (May 21, 2019)

Filed May 21, 2019For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) subsidiary, Public Service Company of Colorado (PSCo), has filed a request with the Colorado Public Utilities Commission (CPUC) for a net increase in retail electric base rate revenue of $158.3 million. This represents a 5.7% increase and is based on a historic test year ended December 31, 2018, with adjustments for forecasted plant additions through year-end 2019. The filing reflects a projected return on equity of 10.35% and an equity ratio of 56.46%, incorporating the full impact of tax reform. The requested rate increase is driven by significant investments in crucial areas including distribution infrastructure to support growing customer demand, wildfire mitigation efforts, and modernization of outdated software systems to enhance effectiveness and customer satisfaction. Furthermore, the request includes approved investments in an Advanced Grid Intelligence and Security (AGIS) initiative aimed at improving grid reliability and customer service, along with recovery of environmental investments and early coal plant retirements associated with the Clean Air Clean Jobs Act (CACJA). PSCo is seeking to have these new rates effective January 1, 2020.

Key Highlights

  • 1PSCo, a subsidiary of Xcel Energy, filed a request for a net increase in retail electric base rate revenue of $158.3 million.
  • 2The proposed increase represents a 5.7% rise in total retail electric revenue and is targeted for effectiveness on January 1, 2020.
  • 3Key investments driving the request include distribution infrastructure, wildfire mitigation, software modernization, and the AGIS initiative.
  • 4The filing incorporates recovery of environmental investments and early coal plant retirements, notably those related to the Clean Air Clean Jobs Act (CACJA).
  • 5The request is based on a historic test year ending December 31, 2018, adjusted for forecasted additions through year-end 2019.
  • 6A 10.35% return on equity and an equity ratio of 56.46% are proposed, reflecting the impact of tax reform.
  • 7The rate base is expected to reach $8.2 billion by year-end.

Frequently Asked Questions

The primary purpose of this filing is for Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), to request approval from the Colorado Public Utilities Commission (CPUC) for an increase in retail electric base rates. This increase is intended to recover significant investments made in the utility's infrastructure and operations.

PSCo is seeking a net increase in retail electric base rate revenue of $158.3 million, which represents a 5.7% increase in total retail electric revenue. This increase is expected to become effective on January 1, 2020.

The requested rate increase is primarily driven by PSCo's investments in modernizing its distribution infrastructure to meet growing customer demand, implementing wildfire mitigation measures, upgrading outdated software systems, and deploying the Advanced Grid Intelligence and Security (AGIS) initiative. It also includes recovery of costs associated with environmental investments and early coal plant retirements, such as those under the Clean Air Clean Jobs Act (CACJA).

PSCo is proposing a 10.35% return on equity (ROE) and an equity ratio of 56.46%, based on actual equity as of March 31, 2019. The request also incorporates the full impact of tax reform and updated cost of capital.