Summary
Xcel Energy Inc. (XEL) subsidiary, Public Service Company of Colorado (PSCo), has filed its 2024 Electric Resource Plan with the Colorado Public Utilities Commission (CPUC). This plan, named the Just Transition Solicitation, outlines PSCo's strategy for meeting projected system growth through 2031, anticipating a 7% compound annual sales growth in its base scenario and 3% in a low-sales scenario. The plan requires significant new generation capacity, forecasting a need for 5-14 GW of additional capacity, including substantial renewable and firm dispatchable resources, to be acquired through a competitive solicitation process commencing in early 2026. A decision on the resource plan is expected by Fall 2025. Additionally, PSCo has received a preliminary decision from the CPUC regarding its natural gas rate case. While PSCo requested a $171 million (9.5%) increase, the CPUC's deliberations suggest an annual revenue increase of approximately $135 million, inclusive of accelerated depreciation. Key aspects of the decision include a lower authorized return on equity and a historical test year. Xcel Energy has reaffirmed its 2024 ongoing earnings guidance of $3.50 to $3.60 per share, contingent on constructive regulatory outcomes.
Key Highlights
- 1PSCo filed its Electric Resource Plan with the CPUC, forecasting significant new generation capacity needs (5-14 GW) through 2031.
- 2The resource plan anticipates substantial sales growth, with a base case of 7% compound annual growth through 2031.
- 3New generation resources will be procured via a competitive solicitation process starting in early 2026.
- 4CPUC decision on the Electric Resource Plan is expected by Fall 2025.
- 5CPUC preliminarily approved an annual natural gas rate increase for PSCo of approximately $135 million, less than the $171 million requested.
- 6The natural gas rate case decision includes a lower weighted-average cost of capital (7.0%) and an authorized ROE range of 9.2%-9.5%.
- 7Xcel Energy reiterates its 2024 ongoing earnings guidance of $3.50-$3.60 per share, assuming constructive regulatory outcomes.