UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 2, 2017
Commission File Number | Exact Name of Registrant as Specified in its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number | IRS Employer Identification Number | ||
001-3034 | XCEL ENERGY INC. | 41-0448030 | ||
(a Minnesota corporation) | ||||
414 Nicollet Mall | ||||
Minneapolis, Minnesota 55401 | ||||
(612) 330-5500 | ||||
001-3280 | PUBLIC SERVICE COMPANY OF COLORADO | 84-0296600 | ||
(a Colorado corporation) | ||||
1800 Larimer Street Suite 1100 | ||||
Denver, Colorado 80202 | ||||
(303) 571-7511 | ||||
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Item 8.01. Other Events
On June 2, 2017, Public Service Company of Colorado (PSCo), a Colorado corporation, and wholly owned subsidiary of Xcel Energy Inc., filed a multi-year request with the Colorado Public Utilities Commission seeking to increase retail natural gas rates to recover capital investments and increased operating costs since PSCo’s previous case in 2015.
Since 2015, PSCo has invested approximately $300 million annually in its natural gas utility business to deliver on its commitment to pipeline safety and reliability and expects to continue that pace of investment through 2020. As part of its pipeline integrity program, PSCo has removed all known cast iron pipe and over 350 miles of vintage plastics and steel. These historic and future capital expenditures are designed to further improve safety and energy reliability, build system resiliency and diversify energy supply.
The request, detailed below, is based on forecast test years, a 10.0 percent return on equity and an equity ratio of 55.25 percent.
Revenue Request (Millions of Dollars) | 2018 | 2019 | 2020 | Total | ||||||||||||
New revenue request | $ | 63.2 | $ | 32.9 | $ | 42.9 | $ | 139.0 | ||||||||
PSIA revenue conversion to base rates (a) | — | 93.9 | — | 93.9 | ||||||||||||
Total | $ | 63.2 | $ | 126.8 | $ | 42.9 | $ | 232.9 | ||||||||
Expected Year-End Rate Base (Billions of dollars) (b) | $ | 1.5 | $ | 2.3 | $ | 2.4 | N/A | |||||||||
(a) The roll-in of PSIA rider revenue into base rates will not have an impact on customer bills or total revenue as these costs are already being recovered from customers through the rider. PSCo plans to request new PSIA rates for 2018 in November 2017. The recovery of new, incremental Pipeline System Integrity Adjustment (PSIA) related investments in 2019 and 2020 are included in the base rate request.
(b) The additional rate base in 2019 predominantly reflects the roll-in of capital associated with the PSIA rider.
Final rates are expected to be effective in February 2018. In conjunction with the multi-year base rate step increases, PSCo is also proposing a stay-out provision and an earnings test through the end of 2020.
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Forward-looking information includes, among other information, the expected impact of PSCo’s natural gas rate case, the impact of proposed rate adjustments, interim rates, and other statements identified by words such as “may,” “believe,” “expect,” “estimate,” “anticipate,” “would,” or “plan.” Forward-looking statements are subject to certain risks, uncertainties and assumptions. Although Xcel Energy believes that its expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. 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, 2016, and subsequent securities filings, that could cause actual results to differ materially include: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) to obtain financing on favorable terms; business conditions in the energy industry; including the risk of a slow down in the U.S. economy or delay in growth recovery; trade, fiscal, taxation and environmental policies in areas where Xcel Energy and PSCo have a financial interest; customer business conditions; actions of credit rating agencies; competitive factors including the extent and timing of the entry of additional competition in the markets served by Xcel Energy and its subsidiaries; unusual weather; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership; or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; financial or regulatory accounting policies imposed by regulatory bodies; outcomes of regulatory proceedings; availability of cost or capital; and employee work force factors. Forward-looking statements speak only as of the date they are made, and Xcel Energy expressly disclaims any obligation to update any forward-looking information.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
June 2, 2017 | Xcel Energy Inc. (a Minnesota corporation) |
Public Service Company of Colorado (a Colorado corporation) | |
/s/ ROBERT C. FRENZEL | |
Robert C. Frenzel | |
Executive Vice President, Chief Financial Officer | |