Xcel Energy has reached a $136 million settlement in its rate case with two of the groups that opposed the utility’s initial $182 million request, according to Public Utilities Commission filings.
Bill Levis, director of the state’s Office of Consumer Counsel, said his office thinks the settlement figure is still too high.
“Our concern is that rates for consumers, especially low-income families, will still be too high,” Levis said.
His office recommended a $68 million rate increase.
Xcel had adjusted its request to $177 million.
The settlement was struck with the PUC staff and Colorado Energy Consumers, a group of large-business customers.
Under the settlement, Xcel said the typical monthly residential bill would increase $4.66, based on using 632 kilowatt-hours.
The average small-business customer would pay an extra $7.16 a month, based on 1,123 kilowatt-hours of use.
The rate increase would allow Xcel to recover more than $1.7 billion in power-plant, transmission and distribution- system investments.
“We see this as a significant step to continuing our ability to provide reliable service,” said Tim Taylor, chief executive of Xcel’s Public Service Company of Colorado.
PUC staff in a filing said the commission supported the settlement since rates would be based on historic costs, rather than projected costs as Xcel had wanted, and that the return on equity was trimmed to 10.5 percent from Xcel’s requested 11.25 percent.
Energy Outreach Colorado signed on to part of the settlement for programs to help low- income households pay their utility bills, said Skip Arnold, the organization’s executive director.
“We are not supportive of an additional $4 in monthly bills,” Arnold said.
In May, Xcel was granted a $112.2 million rate increase, which went into effect in July.
Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
