Xcel Energy 2006 Annual Report Download - page 14

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Fuel, Purchased Gas and Resource
Adjustment Clauses
AQIR Air-quality improvement rider. Recovers, over a 15-year period, the incremental cost (including fuel and
purchased energy) incurred by PSCo as a result of a voluntary plan to reduce emissions and improve air
quality in the Denver metro area.
DSM Demand-side management. Energy conservation, weatherization and other programs to conserve or manage
energy use by customers.
DSMCA Demand-side management cost adjustment. A clause permitting PSCo to recover demand-side management
costs over five years while non-labor incremental expenses and carrying costs associated with deferred
DSM costs are recovered on an annual basis. Costs for the low-income energy assistance program are
recovered through the DSMCA.
ECA Retail electric commodity adjustment. The ECA, effective Jan. 1, 2004, is an incentive adjustment
mechanism that compares actual fuel and purchased energy expense in a calendar year to a benchmark
formula. The ECA also provides for an $11.25 million cap on any cost sharing over or under an allowed
ECA formula rate. The current ECA mechanism expired Dec. 31, 2006. Effective Jan. 1, 2007 the ECA has
been modified to include an incentive adjustment to encourage efficient operation of base load coal plants
and encourage cost reductions through purchases of economical short-term energy. The total incentive
payment to PSCo in any calendar year will not exceed $11.25 million. The ECA mechanism will be revised
quarterly and interest will accrue monthly on the average deferred balance. The ECA will expire at the
earlier of rates taking effect after Comanche 3 is placed in service or Dec. 31, 2010.
FCA Fuel clause adjustment. A clause included in electric rate schedules that provides for monthly rate
adjustments to reflect the actual cost of electric fuel and purchased energy compared to a prior forecast. The
difference between the electric costs collected through the FCA rates and the actual costs incurred in a
month are collected or refunded in a subsequent period.
FCA (Wholesale) Wholesale fuel clause adjustment. A fuel cost recovery mechanism in the NSP-Wisconsin, PSCo and SPS
wholesale electric tariff that provides for monthly adjustments to reflect the actual cost of electric fuel and
purchased energy compared to a prior forecast for certain customers. The difference between the electric
costs collected through the wholesale FCA tariff and the actual costs incurred in a month are collected or
refunded in a subsequent period.
GCA Gas cost adjustment. Allows PSCo to recover its actual costs of purchased natural gas and natural gas
transportation. The GCA is revised monthly to coincide with changes in purchased gas costs.
PCCA Purchased capacity cost adjustment. Allows PSCo to recover from customers purchased capacity payments
to power suppliers under specifically identified power purchase agreements not included in the
determination of PSCo’s base electric rates or other recovery mechanisms. This clause expired in 2006. A
new PCCA clause became effective Jan. 1, 2007, which permits recovery from retail customers for all
purchased capacity payments to power suppliers. Capacity charges are not included in PSCo’s base electric
rates or other recovery mechanisms.
PGA Purchased gas adjustment. A clause included in NSP-Minnesota’s and NSP-Wisconsin’s retail natural gas
rate schedules that provides for prospective monthly rate adjustments to reflect the forecasted cost of
purchased natural gas and natural gas transportation. The annual difference between the natural gas costs
collected through PGA rates and the actual natural gas costs is collected or refunded over the subsequent
period.
QSP Quality of service plan. Provides for bill credits to retail customers if the utility does not achieve certain
operational performance targets and/or specific capital investments for reliability. The current QSP for
PSCo and SPS electric utility expired in 2006. A new QSP for the PSCo electric utility provides for bill
credit to customers based upon operational performance standards through December 31, 2010. The QSP for
the PSCo natural gas utility expires December 2007.
RCR Renewable cost recovery adjustment. Allows NSP-Minnesota to recover the cost of transmission facilities
and other costs incurred to facilitate the purchase of renewable energy (including wind energy) in retail
electric rates in Minnesota. The RCR is revised annually. The RCR will be replaced by the TCR adjustment
effective in 2007.
SCA Steam cost adjustment. Allows PSCo to recover the difference between its actual cost of fuel and the
amount of these costs recovered under its base steam service rates. The SCA is revised annually to coincide
with changes in fuel costs.
TCR Transmission cost recovery adjustment. Allows NSP-Minnesota to recover the cost of transmission facilities
not included in the determination of NSP-Minnesota’s base electric rates in retail electric rates in Minnesota.
The TCR was approved by the MPUC in 2006 to be effective in 2007, and will be revised annually as new
transmission investments and costs are incurred.