Public Utilities Commission of Colorado Issues Decision on Rate Adjustments for Public Service Company of Colorado

Strategic Insights -

The Public Utilities Commission of Colorado has issued a decision regarding rate adjustments for Public Service Company of Colorado, effective June 20, 2019. The decision addresses the allocation of gains and losses from the sale of certain assets and requires a compliance tariff filing to modify the company's electric base rates. The Commission has ordered Public Service to allocate gains and losses from non-depreciable asset sales to itself and to allocate gains from depreciable asset sales consistent with the district court's order.

Key Takeaways:

  • The Public Utilities Commission of Colorado has issued a decision on rate adjustments for Public Service Company of Colorado, effective June 20, 2019.
  • The decision requires Public Service to allocate gains and losses from non-depreciable asset sales to itself and to allocate gains from depreciable asset sales consistent with the district court's order.
  • The Commission has ordered Public Service to make a compliance tariff filing to modify its electric base rates in accordance with the implementation of the allocation methodology.
  • The district court's order disagreed with the Commission's initial allocation approach, relying on foreign case law to conclude that allocation of gains and losses from asset sales must be differentiated by whether the asset was depreciable or not.
  • The court remanded the proceeding to the Commission to reallocate the gains and losses from the asset sales consistent with its order.
  • Public Service proposed an allocation methodology that allocates gains and losses from non-depreciable asset sales to itself and allocates gains from depreciable asset sales based on how much of the asset ratepayers had paid in depreciation expense at the time of sale.

Statistics:

  • The decision affects Public Service Company of Colorado's electric base rates.
  • The compliance tariff filing is required to modify the company's electric base rates in accordance with the implementation of the allocation methodology.
  • The Commission has notified Public Service to file an advice letter compliance filing on not less than two business days' notice.
  • The 20-day period for filing applications for rehearing, reargument, or reconsideration begins on the first day following the effective date of this Decision.
  • The Mailed Date of this Decision is November 28, 2022.

Sources:

  • Before the Public Utilities Commission of the State of Colorado Decision No. C22-0738 PROCEEDING NO. 19AL-0268E
  • SS 40-6-114, C.R.S.