Summary
Xcel Energy Inc. (XEL) subsidiary Public Service Company of Colorado (PSCo) has reached a comprehensive, unopposed settlement regarding its natural gas rate case filed with the Colorado Public Utilities Commission (CPUC). This settlement, agreed upon by PSCo, the CPUC Staff, and various intervenors, will result in a net increase to retail gas rates of approximately $76.9 million. This is a significant reduction from the initially requested $126.8 million and the revised $121 million. The settlement establishes key financial parameters including a return on equity (ROE) of 9.20% and an equity ratio of 55.62%. Importantly, the new rates are scheduled to be implemented on April 1, 2021, with retroactive effectiveness back to November 2020. This filing provides clarity on the regulatory outcome of the rate case, which is a crucial factor for investors evaluating the company's future revenue and profitability in Colorado.
Key Highlights
- 1PSCo reached an unopposed settlement on its natural gas rate case with the CPUC.
- 2The settlement results in a net increase to retail gas rates of $76.9 million, substantially lower than the initial request.
- 3The approved return on equity (ROE) for the settlement is 9.20%.
- 4The approved equity ratio for the settlement is 55.62%.
- 5New rates are set to be implemented on April 1, 2021.
- 6The rate increase will be retroactively effective from November 2020.
- 7This settlement provides regulatory certainty for PSCo's natural gas operations in Colorado.