DENVER, Colorado (October 3, 2017) – In support of the on-going development of an advanced electric grid, infrastructure investments, power plant improvements, and changing customer needs, Xcel Energy today filed for a gradual and moderate regulatory rate review that would allow the company to continue as a low-cost energy provider for its Colorado customers.
In a filing made today with the Colorado Public Utilities Commission (CPUC), Xcel Energy requested a four-year plan that would fund investments to better integrate renewable energy, boost grid reliability, offer customers more information for greater control over their energy budget, reduce system fuel and energy costs, and put in place technology to keep costs low over the long-term.
“Smart investments, sound cost management and productivity enhancements mean that Xcel Energy can deliver energy at a good value and at the lowest cost possible for our customers. Our four-year plan supports customer-centered initiatives that allow us to further manage our costs, offer ways to help keep electricity bills low, and deliver reliable service,” said David Eves, president, Xcel Energy – Colorado.
The total regulatory rate request is for $244.9 million over four years. Pending approval, it would affect Colorado customer bills by approximately 2 percent annually, on average through 2021. Average monthly bills would increase by $1.73 for residential customers and by $2.68 for small-business customers, on average over the four-year term of the multi-year proposal.
Xcel Energy’s current three-year plan has been very successful, allowing the company to begin recovering nearly $1 billion of investments in new emission control equipment and new gas-fired generation to replace older coal plants – all while average customer bills have actually fallen by more than 5 percent since 2014. The company is again pursuing a multi-year plan because it gives all customers a predictable price for their base energy services.
Eves noted that Xcel Energy is continuing to focus on initiatives that fulfill its “Our Energy Future” priorities for Colorado, which includes powering technology, empowering customer options and powering the economy. The proposed regulatory rate review would allow the company and its customers to continue on a path toward building a smarter and more efficient energy infrastructure.
Additionally, Eves noted that cost-effective renewable energy, improved customer energy efficiency, and investment in new technologies (such as advanced meters) to boost productivity and reduce costs make it an ideal time to invest in grid improvements. Xcel Energy operation and maintenance expenses have increased by less than 1 percent each year since 2013, significantly lower than the rate of inflation. The trend toward lower operation and maintenance expenses is expected to continue during the term of this proposal.
Xcel Energy residential bills in Colorado currently are and would remain well below the national average over the next four years; the current national average for electricity is approximately $109 a month, according to the U.S. Energy Information Administration. Xcel Energy monthly residential bills in Colorado would be approximately $79 in 2021.
Drivers for the regulatory rate review include:
The regulatory rate review must be approved by the CPUC, and new rates if approved would be expected to be in place by mid-2018.
About Xcel Energy
Xcel Energy (NYSE: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
Safe Harbor Statement
Certain matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including potential changes to our generation mix and the timing of such changes, are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and subsequent securities filings, could cause actual results to differ materially from those discussed in this release as suggested by such forward-looking information: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) to obtain financing on favorable terms; business conditions in the energy industry; including the risk of a slow down in the U.S. economy or delay in growth, recovery, trade, fiscal, taxation and environmental policies in areas where Xcel Energy has a financial interest; customer business conditions; actions of credit rating agencies; competitive factors including the extent and timing of the entry of additional competition in the markets served by Xcel Energy; unusual weather; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; financial or regulatory accounting policies imposed by regulatory bodies; outcomes of regulatory proceedings; availability or cost of capital; and employee work force factors.
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