Xcel Energy 2015 Annual Report Download - page 142
Download and view the complete annual report
Please find page 142 of the 2015 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.124
In July 2015, PSCo filed rebuttal testimony with adjustments and modified recovery between base rates and the PSIA rider. The
revised request is summarized below:
(Millions of Dollars) 2015 2016 Step 2017 Step
PSCo’s filed base rate request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40.5 $ 7.6 $ 18.1
Shift O&M expenses between PSIA and base rates. . . . . . . . . . . . . . . . — 7.0 6.4
Rebuttal corrections and adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . — — (7.7)
Total base rate increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40.5 $ 14.6 $ 16.8
Incremental PSIA rider revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) 14.7 21.7
Total revenue impact from rebuttal . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40.4 $ 29.3 $ 38.5
Requested ROE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1% 10.1% 10.3%
Rate base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,260 $ 1,310 $ 1,360
In November 2015, the ALJ issued his recommended decision, which reflected a 2014 HTY with a 13-month average rate base, the
Cherokee pipeline investment adjusted to year-end rate base, a ROE of 9.5 percent and an equity ratio of 56.51 percent. In addition,
the ALJ’s recommendation included a three-year extension (2016 through 2018) of the PSIA rider with all O&M expenses transferred
to base rates as well as certain other projects shifting between the PSIA rider and base rates, beginning January 2016. The ALJ also
recommended that certain expenses, including property taxes and damage prevention costs that exceed the 2014 HTY level, be
deferred. He further recommended a pension cost tracker and certain other deferral related items.
In February 2016, the CPUC issued their written order. Key matters are as follows:
• 2014 HTY, with a 13-month average rate base, with the exception of the Cherokee pipeline which is included at a year-end
level;
• Extension of the PSIA rider through 2018 with all O&M expenses transferred to base rates;
• A ROE of 9.5 percent; and
• An equity ratio of 56.51 percent.
The following table reflects the ALJ’s position and the CPUC’s written order (estimated):
(Millions of Dollars) ALJ CPUC’s Written Order
PSCo’s filed 2015 base rate request (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40.5 $ 40.5
ROE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.8) (7.8)
Capital structure and cost of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.5)
Cherokee pipeline adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 4.1
Move to 2014 HTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.1) (14.1)
O&M expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.0) (2.4)
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.1) (1.1)
Overall recommended rate increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18.1 $ 18.7
(a) The ALJ’s recommendation and the CPUC’s written order also includes approximately $20.0 million of PSIA costs be transferred to base rates, effective Jan. 1,
2016.
The ALJ’s recommendation, as well as the CPUC’s written order for the PSIA rider, are as follows (estimated):
ALJ CPUC’s Written Order
(Millions of Dollars) 2016 2017 2016 2017
PSCo’s filed incremental PSIA request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21.7 $ 21.2 $ 21.7 $ 21.2
Transfer PSIA costs to base rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20.5) — (20.5) —
PSIA cost recovery remaining in base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.3) — (4.3) —
Projects not recovered through the PSIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6)(2.0)(3.3) (0.8)
ROE and capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.3)(1.6)(0.3) (1.6)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (7.0) $ 17.6 $ (6.7) $ 18.8