Xcel Energy 2015 Annual Report Download - page 143
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The following table summarizes the estimated annual pre-tax impact of the CPUC’s written order:
(Millions of Dollars) 2015 2016 2017
Base rate increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18.7 $ 19.7 $ —
Incremental PSIA rider revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2)(6.7) 18.8
Expense deferrals, net amortization (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6) 1.5 5.2
Estimated pre-tax impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14.9 $ 14.5 $ 24.0
(a) Deferral and amortization impacts relate primarily to recognition of accelerated amortization of prepaid pension assets and deferrals of pension expense in excess
of the amount approved in the prior general gas rate case.
Interim rates, subject to refund, went into effect Oct. 1, 2015. PSCo has recognized management’s best estimate of the potential
customer refund obligation.
PSCo – Colorado 2015 Steam Rate Case — In November 2015, PSCo filed a request to increase Colorado retail steam rates by $3.5
million in 2016. In December 2015, the CPUC approved the filed request which recovers costs related to upgrades for the state steam
plant as well as the Zuni Station and permits use of the Zuni Station exclusively for steam business. Final rates are implemented in
two steps with $2.8 million, which began on Jan. 1, 2016, and the remaining $0.7 million which will be effective Nov. 1, 2016.
PSCo – Annual Electric Earnings Test — In February 2015, in the Colorado 2014 Electric Rate Case, the CPUC approved an annual
earnings test in which PSCo shares with customers earnings that exceed the authorized ROE threshold of 9.83 percent for 2015
through 2017. As of Dec. 31, 2015, PSCo has recognized management’s best estimate of the expected customer refund obligation for
the 2015 earnings test of $15 million. PSCo will file its 2015 earnings test with the CPUC in April 2016. The final sharing obligation
will be based on the CPUC approved tariff and could vary from the current estimate.
Electric, Purchased Gas and Resource Adjustment Clauses
DSM and the DSMCA — Energy efficiency and DSM costs are recovered through a combination of the DSMCA riders and base
rates. DSMCA riders are adjusted biannually to capture program costs, performance incentives, and any over- or under-recoveries are
trued-up in the following year. Savings goals were 384 GWh in 2014 and 400 GWh in 2015 with incentives awarded in the year
following plan achievements. PSCo is able to earn $5 million upon reaching its annual savings goal along with an incentive on five
percent of net economic benefits up to a maximum annual incentive of $30 million. For the years 2016 through 2020, the annual
electric energy savings goal is 400 GWh per year with an annual spending limit of $84.3 million.
In July 2015, the CPUC approved PSCo’s 2015-2016 DSM plan:
• A 2015 DSM electric budget of $81.6 million and a natural gas budget of $13.1 million; and
• A 2016 DSM electric budget of $78.7 million and a natural gas budget of $13.6 million.
REC Sharing — In 2011, the CPUC approved margin sharing on stand-alone REC transactions at 10 percent to PSCo and 90 percent
to customers for 2014. In 2012, the CPUC approved an annual margin sharing on the first $20 million of margins on hybrid REC
trades of 80 percent to the customers and 20 percent to PSCo. Margins in excess of the $20 million are to be shared 90 percent to the
customers and 10 percent to PSCo. The CPUC authorized PSCo to return to customers unspent carbon offset funds by crediting the
RESA regulatory asset balance. PSCo credited to the RESA regulatory liability balance approximately $5.5 million and $0.6 million
in 2015 and 2014, respectively. The cumulative credit to the RESA regulatory liability balance was $110.6 million and $105.1 million
at Dec. 31, 2015 and Dec. 31, 2014, respectively. The credits include the customers’ share of REC trading margins and the unspent
share of carbon offset funds. The current sharing mechanism, without modification, extends through 2017.
SPS
Pending and Recently Concluded Regulatory Proceedings — PUCT
SPS – Texas 2015 Electric Rate Case — In December 2014, SPS filed a retail electric rate case in Texas seeking an overall increase in
annual revenue of approximately $64.8 million, or 6.7 percent. The filing was based on a HTY ending June 2014, adjusted for known
and measurable changes, a ROE of 10.25 percent, an electric rate base of approximately $1.6 billion and an equity ratio of 53.97
percent.
SPS requested a waiver of the PUCT post-test year adjustment rule which would allow for inclusion of $392 million (SPS total
company) additional capital investment for the period July 1, 2014 through Dec. 31, 2014. In June 2015, SPS revised its requested
rate increase to $42.1 million.