8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (May 15, 2020)

Filed May 15, 2020For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported on its ongoing electric and natural gas rate cases in Colorado via a Form 8-K filing on May 15, 2020. In the electric rate case, the Colorado Public Utilities Commission (CPUC) made modifications that are expected to result in an approximate $11 million net increase in revenue for its subsidiary, Public Service Company of Colorado (PSCo). Key adjustments include confirmation of rate base methodology, changes to the return on long-term debt for certain assets, and a reversal of a disallowance for Comanche Unit 3, which will also be subject to further investigation. Regarding the natural gas rate case, PSCo had previously requested a net increase of $126.8 million. The filing details the comprehensive answer testimony from the CPUC Staff and Office of Consumer Counsel, along with estimated impacts of their recommendations. While the Staff and OCC recommended significant reductions to the requested rate base and ROE, the ultimate CPUC decision, expected in the latter half of 2020, will determine the final rates. Investors should note the procedural schedule and the potential for a November 2020 effective date for new gas rates.

Key Highlights

  • 1CPUC approved modifications in PSCo's electric rate case, leading to an estimated $11 million net revenue increase.
  • 2Key electric rate case adjustments include rate base methodology confirmation and reversal of a disallowance for Comanche Unit 3.
  • 3PSCo's natural gas rate case seeks a $126.8 million net increase in retail rates.
  • 4CPUC Staff and Office of Consumer Counsel have filed answer testimony with differing recommendations for the natural gas rate case, suggesting lower approved revenue increases.
  • 5The CPUC's decision on the natural gas rate case is anticipated in the second half of 2020, with potential rate implementation in November 2020.
  • 6The filing also reiterates forward-looking statement disclaimers and lists various risk factors that could impact actual results, including COVID-19 impacts, regulatory changes, and economic conditions.

Frequently Asked Questions