Item 8.01. Other Events



In July 2021, Public Service Company of Colorado (PSCo), a wholly owned
subsidiary of Xcel Energy Inc., filed a request with the Colorado Public
Utilities Commission (CPUC) seeking a net electric rate increase of $343 million
(or 12.4%). The total request reflects a $470 million increase, which includes
$127 million of previously authorized costs currently recovered through various
rider mechanisms. The request is based on a 10.0% return on equity (ROE), an
equity ratio of 55.64%, a 2022 forecast test year, a rate base of $10.3 billion
and impacts of a new depreciation study. A historical test year was filed with a
revenue deficiency of $404 million, including a 10.5% ROE.
On Jan. 5, 2022, PSCo, the CPUC Staff and various intervenors filed a
comprehensive unopposed settlement, which results in a net increase to retail
electric rates of $177 million. The total change in base rates is $299 million,
which includes $122 million of revenue previously collected through various
rider mechanisms.
The settlement is based on:
•A ROE of 9.3%.
•An equity ratio of 55.69%.
•A current 2021 test year, based on average rate base with the transfer of
Cheyenne Ridge, Wildfire Mitigation Plan and Advanced Grid Intelligence and
Security (AGIS) investments at year-end rate base.
•Approval of all of PSCo's proposed depreciation adjustments.
•Continuation of AGIS deferral including interest equivalent to PSCo's weighted
average cost of capital once the balance exceeds $50 million.
•Continuation of the Wildfire Mitigation Plan deferral, with a debt return.
•Continuation of the property tax, qualified pension and non-qualified pension
trackers.
Hearings to discuss the settlement are scheduled for January 2022. A CPUC
decision is expected in the first quarter of 2022 and rates will be effective
April 2022.
Xcel Energy reaffirms its GAAP and ongoing 2022 earnings guidance of $3.10 to
$3.20 per share.

--------------------------------------------------------------------------------

Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings, the effective date of the rates and the 2022 guidance, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would," 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 and PSCo's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of PSCo and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses