Summary
Xcel Energy Inc. (XEL), through its wholly owned subsidiary Public Service Company of Colorado (PSCo), has filed a request with the Colorado Public Utilities Commission (CPUC) for a net increase in retail natural gas rates of $107 million. This request is based on a 10.25% Return on Equity (ROE) and a 10.25% equity ratio for a 2022 test year, with a proposed effective date of November 1, 2022. The rate increase is primarily driven by $215 million in plant-related investments and other operational expenses, partially offset by the transfer of $108 million previously recovered through a rider mechanism. PSCo is also proposing step increases of $40 million in 2023 and $41 million in 2024, with no further base rate changes anticipated before November 1, 2025. The filing emphasizes that these investments are crucial for maintaining safe and reliable service and supporting the clean energy transition.
Key Highlights
- 1PSCo filed a request for a $107 million net increase in retail natural gas rates.
- 2The proposed rate change is based on a 10.25% ROE and a 55.66% equity ratio for a 2022 test year.
- 3The effective date for the new rates is proposed as November 1, 2022.
- 4The request includes projected step revenue increases of $40 million in 2023 and $41 million in 2024.
- 5No further base rate changes are anticipated prior to November 1, 2025, under this proposal.
- 6Investments aim to support infrastructure, safe and reliable service, and clean energy goals.
- 7Projected 2022 year-end rate base is estimated at $3.6 billion.