Public Service Company of Colorado Seeks Net Electric Rate Increase of $343 Million

Strategic Insights -

Public Service Company of Colorado (PSCo), a wholly owned subsidiary of Xcel Energy Inc., has filed a request with the Colorado Public Utilities Commission (CPUC) seeking a net electric rate increase of $343 million, or 12.4%. The total request reflects a $470 million increase, which includes $127 million of previously authorized costs currently recovered through various rider mechanisms. The proposed rate adjustment is based on a 10.0% return on equity (ROE), an equity ratio of 55.64%, a 2022 forecast test year, a rate base of $10.3 billion, and impacts of a new depreciation study.

Key Takeaways:

  • PSCo is requesting a net electric rate increase of $343 million, or 12.4%, which includes $127 million of previously authorized costs.
  • The proposed rate adjustment is based on a 10.0% return on equity (ROE), an equity ratio of 55.64%, and a 2022 forecast test year.
  • The total request reflects a $470 million increase, with rate adjustments of $255 million to $385 million recommended by intervenors.
  • Eight intervenors, including the Staff, Utility Consumer Advocate, Colorado Energy Consumers, and Federal Executive Agencies, filed comprehensive testimony with the CPUC on November 3, 2021.
  • The proposed rate changes are expected to be effective April 9, 2022, with a CPUC decision expected in the first quarter of 2022.
  • PSCo anticipates rebuttal testimony by December 3, 2021, settlement deadline by December 22, 2021, and a public hearing from January 11-21, 2022.

Statistics:

  • Net electric rate increase sought: $343 million, or 12.4%.
  • Proposed rate adjustment based on 10.0% ROE and 2022 forecast test year.
  • Total request: $470 million, including $127 million of previously authorized costs.
  • Recommended rate adjustments by intervenors: $255 million to $385 million.
  • CPUC decision expected in the first quarter of 2022.
  • Effective date of proposed rate changes: April 9, 2022.
  • Rebuttal testimony due: December 3, 2021.
  • Settlement deadline: December 22, 2021.
  • Public hearing dates: January 11-21, 2022.

Sources:

  • Xcel Energy Inc. Form 8-K filing with the Securities and Exchange Commission, dated November 5, 2021.
  • Public Service Company of Colorado request to the Colorado Public Utilities Commission, filed in July 2021.
  • Testimony filed by intervenors with the CPUC on November 3, 2021.