Public Service Company of Colorado Receives Approval for Rate Decrease

Strategic Insights -

The Colorado Public Utilities Commission has approved Public Service Company of Colorado's (PSCo) request to lower its natural gas rates, effective March 1, 2023. The decision, made on February 22, 2023, allows PSCo to implement tariffs resulting in a 21.91% decrease in its current effective gas cost adjustment (GCA) revenues. This rate decrease is a result of a downward revision in the GCA, which is attributed to lower natural gas costs. The revised GCA is estimated to decrease GCA revenues by $22,959,665.

Key Takeaways:

  • Public Service Company of Colorado has received approval from the Colorado Public Utilities Commission to decrease its natural gas rates by 21.91%.
  • The rate decrease is attributed to lower natural gas costs, with the revised gas commodity cost and deferred gas cost decreasing to $3.959 per Dth from $5.391 per Dth.
  • The decrease in gas costs is expected to bring future gas cost recovery amounts more closely in line with the predicted future price of gas.
  • The revised GCA is estimated to decrease GCA revenues by $22,959,665.
  • The rate decrease becomes effective on March 1, 2023.
  • Public Service Company of Colorado is authorized to file the revised tariffs on two-day notice.
  • The decision was made in Proceeding No. 23L-0073G, and the order was adopted in the Commissioners' Weekly Meeting on February 22, 2023.

Statistics:

  • 21.91% decrease in current effective GCA revenues (Paragraph 12)
  • $22,959,665 estimated decrease in GCA revenues (Paragraph 12)
  • $3.959 per Dth revised gas commodity cost (Paragraph 13)
  • $5.391 per Dth prior gas commodity cost (Paragraph 13)
  • Effective date of rate decrease: March 1, 2023 (Paragraph 1)
  • Statutory notice period: two days (Paragraph 3)

Sources:

  • Decision No. C23-0113
  • Public Utilities Commission of the State of Colorado PROCEEDING NO. 23L-0073G