8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Jun 17, 2022)

Filed June 17, 2022For Securities:XELXELLL

Summary

Xcel Energy Inc.'s 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 approximately $107 million. This request, aiming for an effective date of November 1, 2022, is based on a proposed Return on Equity (ROE) of 10.25% and a projected rate base of $3.6 billion for 2022. The filing also includes requests for incremental revenue increases in 2023 and 2024 related to ongoing capital investments.

Key Highlights

  • 1PSCo is seeking a $107 million net increase in retail natural gas rates, with a proposed effective date of November 1, 2022.
  • 2The rate increase is supported by a requested 10.25% Return on Equity (ROE) and a 2022 projected rate base of $3.6 billion.
  • 3The proposed rate change includes the transfer of $108 million from the Pipeline System Integrity Adjustment (PSIA) rider to base rates.
  • 4PSCo has also requested step revenue increases of $40 million (2023) and $41 million (2024) for continued capital investments.
  • 5Key parties, including the CPUC Staff and the Office of the Utility Consumer Advocate (UCA), have filed testimony proposing significant adjustments to PSCo's request.
  • 6CPUC Staff and UCA recommend substantially lower revenue increases than requested, with recommended total proposed revenue changes of $31 million and $12 million, respectively.
  • 7The regulatory process includes rebuttal testimony, settlement discussions, evidentiary hearings, and a statement of position throughout August and September 2022.

Frequently Asked Questions

This 8-K filing announces that Xcel Energy's subsidiary, Public Service Company of Colorado (PSCo), has filed a request for a rate increase for its natural gas customers with the Colorado Public Utilities Commission (CPUC). It details the requested amount, the basis for the request, and the initial responses from regulatory parties.

PSCo is requesting a net increase in retail natural gas rates of $107 million. This includes $215 million in base rate changes, offset by the transfer of $108 million previously recovered through a rider.

The CPUC Staff and the Office of the Utility Consumer Advocate (UCA) have filed testimony recommending significantly lower rate increases than PSCo requested. For instance, the Staff proposed a total revenue change of $31 million, and the UCA proposed $12 million, citing adjustments to test year figures and a lower Return on Equity (ROE) of 9.00% compared to PSCo's requested 10.25%.

PSCo has requested that the new rates become effective on November 1, 2022. However, the final outcome and effective date will depend on the CPUC's decision following the ongoing regulatory proceedings.