Public Service Company of Colorado Receives Approval for Gas Cost Adjustment

Strategic Insights -

The Public Utilities Commission of Colorado has authorized Public Service Company of Colorado (Public Service) to revise its gas cost adjustment (GCA) on less-than-statutory notice, effective April 1, 2023. This approval allows Public Service to decrease its natural gas rates for residential, commercial, industrial, and resale customers in its Colorado certificated areas. The proposed tariffs, attached to the Commission's Decision No. C23-0188, aim to bring future gas cost recovery amounts more closely in line with the predicted future price of gas.

Key Takeaways:

  • Public Service Company of Colorado filed an application on March 13, 2023, requesting a Commission order to decrease its existing natural gas rates.
  • The proposed tariffs are estimated to decrease GCA revenues by $10,681,359, approximately a 10.21 percent decrease below the first quarter 2023 revenues.
  • The natural gas costs reflected in this filing are based on the New York Mercantile Exchange (NYMEX) April, May, and June 2023 daily Settlement Price for natural gas.
  • Public Service affirms that the GCA is currently not impacted by gas transportation commodity discounts on its system.
  • The filing of this application has been brought to the attention of affected customers by means of a legal notice in a newspaper of general circulation and a first of the month display advertisement.
  • The Commission finds good cause to allow the proposed decrease on less-than-statutory notice.
  • The Commission Orders That: the application filed by Public Service is deemed complete, and the application for authority to change tariffs on less-than-statutory notice is granted.

Statistics:

  • $10,681,359: estimated decrease in GCA revenues.
  • 10.21 percent: decrease in GCA revenues below the first quarter 2023 revenues.
  • $3.209-Dth: Gas Commodity Cost for the second quarter 2023.
  • $0.445-Dth: Deferred Gas Cost for the second quarter 2023.
  • April 1, 2023: effective date of the revised tariffs.

Sources:

  • Public Utilities Commission of the State of Colorado, "Decision No. C23-0188" (March 22, 2023)