Public Service Company of Colorado Seeks Rate Increase

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) for a net electric rate increase of $343 million, or 12.4%. The request includes $127 million of previously authorized costs recovered through various rider mechanisms. In January 2022, PSCo reached an unopposed comprehensive settlement with the CPUC, agreeing to a net electric rate increase of $177 million. The settlement includes a 9.3% return on equity (ROE) and an equity ratio of 55.69%.

Key Takeaways:

• The CPUC approved the settlement without modification, with rates effective April 1, 2022.
• The settlement includes a net electric rate increase of $177 million, with a total change in base rates of $299 million.
• The ROE is reduced from 10.0% to 9.3%, and the equity ratio remains at 55.69%.
• The CPUC approved PSCo's proposed depreciation adjustments, continuation of property tax, qualified pension, and non-qualified pension trackers.
• The settlement also includes continuation of Advanced Grid Intelligence and Security deferral and Wildfire Mitigation Plan deferral with a debt return.

Statistics:

• The requested net electric rate increase is $343 million, or 12.4%.
• The total change in base rates is $299 million, which includes $122 million of revenue previously collected through various rider mechanisms.
• The ROE is reduced from 10.0% to 9.3%.
• The approved settlement includes a debt return for the Wildfire Mitigation Plan deferral.
• The rates will be effective April 1, 2022.

Sources:

• Securities and Exchange Commission (2022)
• Public Service Company of Colorado (2022)
• Colorado Public Utilities Commission (2022)
• Xcel Energy's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021