Summary
Xcel Energy Inc. (XEL) subsidiary Public Service Company of Colorado (PSCo) has reached a non-unanimous settlement agreement with various parties regarding its electric rate case filed in November 2025. The proposed settlement, filed on June 2, 2026, seeks a revenue increase of $225 million (6.3%), a reduction from the initially requested $356 million. This settlement includes an authorized Return on Equity (ROE) of 9.3% and an equity ratio of 54.5%, with a decision and rate implementation expected in the third quarter of 2026. While the settlement has broad support, notable opposition comes from the AARP, City of Boulder, and the Colorado Office of Utility Consumer Advocate. Investors should note that Xcel Energy reaffirms its 2026 ongoing earnings per share guidance of $4.04 to $4.16, indicating confidence in continued performance despite the negotiated rate increase. The filing also mentions the inclusion of a performance framework for the Comanche Unit 3 coal facility and the transfer of certain transmission costs into rate base.
Key Highlights
- 1PSCo has reached a non-unanimous settlement agreement on its electric rate case, reducing the sought revenue increase from $356 million to $225 million (6.3%).
- 2The settlement proposes a 9.3% Return on Equity (ROE) and a 54.5% equity ratio, lower than the initial request.
- 3A performance framework for the Comanche Unit 3 coal facility through 2029 is a key component of the agreement.
- 4Previous Transmission Cost Adjustment investments will be transferred into rate base.
- 5The Colorado Public Utilities Commission (CPUC) is expected to make a decision and implement new rates in the third quarter of 2026.
- 6Xcel Energy reiterates its 2026 ongoing earnings per share (EPS) guidance of $4.04 to $4.16.