Xcel Energy 2012 Annual Report Download - page 26

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PSCo
Public Utility Regulation
Summary of Regulatory Agencies and Areas of Jurisdiction — PSCo is regulated by the CPUC with respect to its facilities,
rates, accounts, services and issuance of securities. PSCo is regulated by the FERC with respect to its wholesale electric
operations, accounting practices, hydroelectric licensing, wholesale sales for resale, the transmission of electricity in interstate
commerce, compliance with the NERC electric reliability standards and natural gas transactions in interstate commerce.
Fuel, Purchased Energy and Conservation Cost-Recovery Mechanisms — PSCo has several retail adjustment clauses that
recover fuel, purchased energy and other resource costs:
• ECA — The ECA recovers fuel and purchased power costs. Short-term sales margins are shared with retail customers
through the ECA. The ECA is revised quarterly.
• PCCA — The PCCA recovers purchased capacity payments.
• SCA — The SCA recovers the difference between PSCo’s actual cost of fuel and the amount of these costs recovered
under its base steam service rates. The SCA rate is revised annually in January, as well as on an interim basis to coincide
with changes in fuel costs.
• DSMCA — The DSMCA recovers DSM, interruptible service option credit costs and performance initiatives for
achieving various energy savings goals.
• RESA — The RESA recovers the incremental costs of compliance with the RES and is set at its maximum level of 2
percent of the customer’s total bill.
• Wind Energy Service — Wind Energy Service is a premium service for those customers who voluntarily choose to pay
an additional charge to increase the level of renewable resource generation used to meet the customer’s load
requirements.
• TCA — The TCA recovers transmission plant revenue requirements and allows for a return on CWIP outside of rate
cases.
PSCo recovers fuel and purchased energy costs from its wholesale electric customers through a fuel cost adjustment clause
approved by the FERC. PSCo’s wholesale customers have agreed to pay the full cost of certain renewable energy purchase and
generation costs through a fuel clause and in exchange receive RECs associated with those resources. The wholesale customers
pay their jurisdictional allocation of production costs through a fully forecasted formula rate with true-up.
PBRP and QSP Requirements — PSCo operates under an electric PBRP. This regulatory plan provides for bill credits to
customers if PSCo does not achieve certain performance targets relating to electric reliability and customer service through 2012.
PSCo regularly monitors and records, as necessary, an estimated customer refund obligation under the PBRP. In April of each
year following the measurement period, PSCo files its proposed rate adjustment under the PBRP. The CPUC conducts
proceedings to review and approve these rate adjustments annually. In July 2012, PSCo filed an application with the CPUC to
extend the terms of the current QSP through the end of 2015. PSCo is in settlement discussions and expects resolution in the first
quarter of 2013.
Capacity and Demand
Uninterrupted system peak demand for PSCo’s electric utility for each of the last three years and the forecast for 2013, assuming
normal weather, is listed below.
System Peak Demand (in MW)
2010 2011 2012 2013 Forecast
PSCo ............................................. 6,436 6,896
6,689
6,428
The peak demand for PSCo’s system typically occurs in the summer. The 2012 uninterrupted system peak demand for PSCo
occurred on June 25, 2012, which was an extremely hot day. The forecasted 2013 system peak is lower than the 2012 peak,
primarily due to the assumption of normal weather.
Energy Sources and Related Transmission Initiatives
PSCo expects to meet its system capacity requirements through existing electric generating stations, power purchases, new
generation facilities, DSM options and phased expansion of existing generation at select power plants.