PUC DENIES XCEL ENERGY REQUEST FOR INTERIM RATE HIKE

DENVER – The Colorado Public Utilities Commission (PUC) today denied a request by Xcel Energy for a $100 million interim rate hike while its full electric rate case is being considered by the PUC.

The PUC said the company failed to demonstrate that it would be adversely impacted by maintaining current rates during the six-month period while its request for a $141.9 million rate increase is fully reviewed.

A 2010 law passed by the legislature allows the PUC to consider interim rates if the utility shows it will be adversely affected by the revenue deficiency during the time period required to hold hearings on the suspended rates. Xcel Energy had asked that interim rates be implemented by Jan. 21.

The PUC said Xcel’s filing did not adequately justify the need for interim rates, and did not demonstrate that the financial integrity of the company would be at-risk if the interim rates were not granted. The PUC emphasized that the $141.9 million request would be fully vetted during the hearing process, and that the company would be granted recovery of all just and reasonable costs.

A decision on the $141.9 million request is not expected until this summer. Xcel Energy’s proposal would increase monthly bills for residential customers, using an average of 632 kilowatt-hours (kwh) per month, by $4.01, or 5.99 percent. Monthly bills for commercial customers, using 1,123 kwh per month, would rise by $5.30, or 4.83 percent.