Item 8.01. Other Events
Colorado Electric Rate Request
On July 2, 2021, Public Service Company of Colorado (PSCo), a wholly owned subsidiary of Xcel Energy Inc. (Xcel Energy), filed a request with the Colorado Public Utilities Commission (CPUC) seeking a net increase to retail electric base rate revenue of $343 million (or 12.4% of total revenue). The total request reflects a $470 million increase, which includes $127 million of previously authorized costs currently recovered through various rider mechanisms. The request is based on a 10.0% return on equity (ROE), an equity ratio of 55.64% and a 2022 forecast test year. A historical test year including a 10.5% ROE was also filed as required by the CPUC.
The request reflects continued investments in several initiatives the CPUC has previously approved, including: (1) distribution infrastructure to meet growing customer energy needs, (2) wildfire mitigation improvements, (3) investment in an Advanced Grid Intelligence and Security (AGIS) initiative, which will provide increased reliability and improve customer products and services, (4) transmission expansion projects to enable industry leading renewable integration in Colorado and (5) the 500-MW Cheyenne Ridge wind farm, which provides enough clean energy to power approximately 270,000 average Colorado homes. The avoided fuel costs and PTC benefits from Cheyenne Ridge are estimated at approximately $120 million, which are passed back to customers through the fuel clause mechanism. The request also includes impacts of a new depreciation and decommissioning study. PSCo has requested rates effective April 1, 2022.
|
|
|
|
|
|
|
|
|
Revenue Request (millions of dollars)
|
|
2022
|
Changes since 2019 rate case:
|
|
|
Plant-related growth
|
|
$
|
95
|
|
AGIS
|
|
73
|
|
Updated cost of capital
|
|
53
|
|
New depreciation rates
|
|
43
|
|
Wildfire mitigation
|
|
25
|
Property taxes
|
|
25
|
Amortization of previously approved deferrals
|
|
17
|
|
Other
|
|
12
|
|
Net increase to revenue
|
|
343
|
|
Roll-in of previously authorized costs:
|
|
|
TCA rider revenues and Cheyenne Ridge costs
|
|
127
|
|
Total base revenue request
|
|
$
|
470
|
|
|
|
|
|
|
|
Expected average 2022 rate base (billions of dollars)
|
|
$
|
10.3
|
|
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy's and PSCo's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of PSCo and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.