Xcelenergywins $41.5M rate increase

State regulators have approved a $41.5 million annual electric rate increase for Xcel Energy-colorado, which is considerably lower than the $158 million the utility originally sought.

A written decision is expected some time in Januar y that will detail the Colorado Public Utilities Commission’s oral deliberations. The increase will add an estimated $1.03 to a monthly residential bill and $1.95 a month for small commercial customers.

The new rates won’t take effect until the decision becomes final. The parties involved in the proceedings, which wrapped up Dec. 17, can ask for reconsideration of the decision once it is issued, PUC spokesman Terry Bote said in an email.

Asked if Xcel Energy will ask for reconsideration, the company responded in an email Monday that it is waiting for “the Commission’s written order to determine our next steps.”

Xcel Energy, Colorado’s largest electric utility, has said it sought the rate increase to help pay for upgrades, including protecting the grid from wildfires.

Based on the PUC’S preliminary decision, the outcome looks good for customers, said Cindy Schonhaut, director of the Colorado Of fice of Consumer Counsel. She said consumers will see modest increases while the decision isn’t expected to create adverse financial impacts for the company “as we understand it today.”

The Minneapolis-based company, which has 1.5 million customers in the state, also wants to consolidate separate charges into a base rate. Those charges supported such projects as the Rush Creek Wind Project, which produces enough energy for 325,000 homes; new transmission lines; and closure of coal plants.

The utility last sought a rate increase in 2014. Since then, the company said it has added 80,000 customers.

“Xcel Energy is a leader in the journey to a carbon-free energy future. To continue on this path, we need to invest in our Colorado infrastructure to ensure clean, safe, and reliable energy at the lowest cost possible,” the utility said in its email.

Commissioner Frances Koncilja pointed to Xcel Energy’s leadership on renewable energy and efforts to cut greenhousegas emissions as she argued in a Dec. 17 hearing against the decision on the maximum rate of return the utility is allowed on its investments. The other two commissioners supported setting the rate at 9.3%, while Koncilja supported a higher rate.

Xcel Energy asked to be allowed a 10.2% return rate.

“I am concerned this sends the wrong message to (Xcel Energy), who’s really been out there in making these investments and trying to be a leader in the clean energy economy,” Koncilja said.

The decision makes the Colorado PUC an outlier when looking at other commissions, added Koncilja, who said she will write a dissent.