DENVER—Xcel Energy’s request to increase rates to recoup $159.3 million spent on power plants and equipment is drawing fire from an activist and the state’s consumer counsel.
Xcel Energy has asked the state Public Utilities Commission for an increase that would raise residential rates by about $4.50 per month and small business rates about $7 per month.
The Minneapolis-based utility says it invested in a coal plant, two natural gas plants, power lines and other equipment to improve the reliability of its electric service and that recovering the costs is justified.
Leslie Glustrom of Clean Energy Actions questions the request at a time when Xcel’s net income has risen $100 million in two years.
Net income at Public Service of Colorado, an Xcel subsidiary, rose from $241.4 million in 2006 to $339.8 million in 2008.
Xcel Energy spokesman Tom Henley said the utility wants to cover costs projected for this year. He said the coal and natural gas plants will help meet demand during peak periods and back up such variable renewable energy sources as wind.
“We feel we have filed the accurate costs,” Henley said.
“We don’t think this benefits consumers,” Office of Consumer Counsel director Bill Levis said of the request. “They have earned a fair rate of return, and there is no need at this point, especially in view of this weak economy.”
The PUC has recommended the utility recover $132 million. The Office of Consumer Counsel pegs the amount at $11.1 million.
Xcel Energy says it has invested more than $1.7 billion in Colorado from 2006 to present. Most of that was for a coal-fired unit at the Comanche Generating Station in Pueblo and transmission lines.
The company has also built two natural-gas plants at Fort St. Vrain and installed pollution-control equipment at existing coal plants.
The PUC will hold two weeks of hearings in Denver on Xcel’s request beginning April 20, when a public meeting is scheduled from 4 to 6 p.m.
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Information from: The Denver Post,
