Colorado Rural Electric Cooperatives Raise Concerns Over PSCo's Handling of Extreme Weather Event Costs

Strategic Insights -

In a joint filing with the Colorado Public Utilities Commission, four rural electric cooperatives have expressed concerns over Public Service Company of Colorado's (PSCo) handling of costs associated with the 2021 extreme weather event. The cooperatives, Grand Valley Rural Power Lines, Inc., Holy Cross Electric Association, Inc., Intermountain Rural Electric Association, Inc. (d/b/a CORE Electric Cooperative), and Yampa Valley Electric Association, Inc., collectively serve over 570,000 Coloradans and have raised questions about PSCo's failure to provide advance notice and adequate information about the expected cost impacts of the extreme weather event.

Key Takeaways:

  • PSCo had advance notice of the extreme weather event and took steps to prepare, but failed to provide the Rural Electric Cooperatives with advance notice or any information about natural gas supply and pricing issues during the event.
  • PSCo collected $17.79 million in fuel cost charges from the Rural Electric Cooperatives, which were subsequently passed on to their member-customers.
  • PSCo's parent company, Xcel Energy Inc., reported a $362 million profit in the quarter that included the extreme weather event.
  • The Rural Electric Cooperatives have concerns that PSCo's actions and decisions may not have aligned with the interests of its stakeholders, including its retail customers and wholesale partners.
  • The cooperatives are encouraging the Commission to thoroughly investigate PSCo's system planning, hedging practices, operational responses, communications, and management relating to natural gas during the extreme weather event.
  • The cooperatives are also concerned that PSCo's parent company and shareholders may have profited from the extreme weather event while its customers were left to shoulder the fuel cost bill.

Statistics:

  • $17.79 million: The total amount collected by PSCo in fuel cost charges from the Rural Electric Cooperatives.
  • 570,000: The number of Coloradans served by the Rural Electric Cooperatives.
  • $362 million: The profit reported by Xcel Energy Inc. in the quarter that included the extreme weather event.
  • 250,000: The number of meters covered by the Rural Electric Cooperatives in Colorado.

Sources:

  • Public Service Company of Colorado, Direct Testimony of PSCo Witness Michael Boughner (Hrg. Exh. 103)
  • Public Service Company of Colorado, February Extreme Weather Event Report for February 13-16, Proceeding No. 21I-0076EG
  • Xcel Energy Inc. Q1 2021 Earnings Call Transcript, available at: https://www.fool.com/earnings/calltranscripts/2021/04/29/xcel-energy-inc-xel-q1-2021-earnings-call-transcri/
  • Xcel Energy Inc. Q1 Earnings Climb, RTTNews (April 29, 2021), available at: https://www.nasdaq.com/articles/xcel-energy-inc-q1-earnings-climb-2021-04-29