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Public Service Company of Colorado Files Comprehensive Settlement with CPUC and Colorado Energy Office

Strategic Insights

— 2 min read

Public Service Company of Colorado (PSCo), a wholly owned subsidiary of Xcel Energy Inc., has filed a comprehensive settlement with the Colorado Public Utilities Commission (CPUC) and the Colorado Energy Office. This settlement aims to address four outstanding regulatory items, including the recovery of fuel costs related to Winter Storm Uri, disputed revenue associated with the 2020 electric decoupling pilot program year, replacement power costs associated with an extended outage at Comanche Unit 3 during 2020, and deferred customer bad debt balances associated with COVID-19. The settlement proposal would allow PSCo to fully recover Winter Storm Uri deferred net natural gas, fuel, and purchased energy costs of $263 million (electric utility) and $287 million (natural gas utility) over a 24-month and 30-month period, respectively, with no carrying charges through a rider mechanism.

Key Takeaways:

  • PSCo would fully recover Winter Storm Uri deferred net natural gas, fuel, and purchased energy costs of $263 million (electric utility) and $287 million (natural gas utility) over a 24-month and 30-month period, respectively, with no carrying charges through a rider mechanism.
  • $41 million (previously deferred) would be refunded to electric customers related to the 2020 electric decoupling pilot program.
  • PSCo would forego recovery of $14 million for replacement power costs due to an extended outage at Comanche Unit 3 during 2020.
  • PSCo would not seek recovery of COVID-19 related bad debt expense, previously deferred as a regulatory asset, and would record an additional $11 million of incremental bad debt expense for the period ended Sept. 30, 2021.
  • The settlement proposal is pending CPUC approval and review.
  • The Colorado Office of the Utility Consumer Advocate has not yet signed the settlement.
  • A hearing and a CPUC decision on the settlement are expected in the first quarter of 2022.

Statistics:

  • $263 million: Winter Storm Uri deferred net natural gas, fuel, and purchased energy costs for the electric utility over a 24-month period.
  • $287 million: Winter Storm Uri deferred net natural gas, fuel, and purchased energy costs for the natural gas utility over a 30-month period.
  • $41 million: Amount to be refunded to electric customers related to the 2020 electric decoupling pilot program.
  • $14 million: Amount of replacement power costs to be foregone by PSCo due to an extended outage at Comanche Unit 3 during 2020.
  • $11 million: Incremental bad debt expense recorded by PSCo for the period ended Sept. 30, 2021.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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