While Xcel claims it will get to 80% renewable by 2030, it is asking the Colorado PUC to charge ratepayers for hundreds of millions of dollars on coal and gas plants–and to earn 10.35% return on the equity portion of those expenditures

This testimony submitted in Xcel’s current request to increase its rates in Colorado (Docket 19AL-0268E) provides important background information on Xcel with numerous references to source documents. 

While Xcel has stated its intention to reduce its carbon, what it is actually doing is asking the Colorado PUC to charge its customers for hundreds of millions of dollars of expenditures on coal and natural gas/fossil methane plants–and to earn 10.35% return on the equity portion of those expenditures.  This is like a dieter who says “I’ll start my diet tomorrow” when the chocolate cake (think profits from fossil fuel expenditures) is waved under their nose….

Please skim the Table of Contents (copied below) because this information is not something that Xcel will tell you, but which is part and parcel of what having choice really means. The details are in the attached Answer Testimony. If you’d like copies of any of the Attachments which provide the sources for the facts, please let Leslie know lglustrom (at) cleanenergyaction.org

TABLE OF CONTENTS

I. INTRODUCTION AND QUALIFICATIONS

II. SUGGESTED APPROACH—START WITH THE LEGAL MANDATES OF THE PUC

III. SUMMARY

IV. BACKGROUND INFORMATION

A. Xcel Had Over $551 Million in After Tax Net Income in Colorado in 2018

B. PSCo Has Had Numerous Rate Increases Since the Turn of the Century, Increasing Its Revenue by Over $500 Million Per Year

C. PSCo After-Tax Profits Are Soaring Despite Basically Flat Sales and Peak Capacity

D. Xcel Share Price Has Also Soared In Recent Years

E. PSCo Contributes More to Xcel’s Earnings Per Share Than Xcel’s Minnesota Utility (NSP-Minn), Despite NSP-Minnesota Having a Larger System Size

F. PSCo Has Had Hundreds of MW of Excess Capacity (Above the Approved Reserve Margin) for Most Years in the Last Decade—Ratepayers Should Not Be Responsible for Paying For This Excess Capacity

G. PSCo’s Fuel Mix in Colorado in 2018 was 73% Fossil Fuel—40% Coal and 33% Natural Gas—This is Most Definitely Not Promoting the Health and Safety of the Public as Called for By Colorado Statute

H. Xcel Projects PSCo’s 2027 Fuel Mix to Still Be 46% Fossil Fuel in 2027

I. There are Thousands of MW of Low-Cost Wind, Solar and Storage Projects Ready to Be Developed in Colorado

J. The Climate Crisis is Here and Extremely Serious

K. Coal Supply Issues Are Intensifying and Could Easily Become Critical in the Coming Decade

V. FIND CACJ EXPENDITURES ON PAWNEE AND HAYDEN IMPRUDENT AND REDUCE RETURN ON ANY ALLOWED EXPENDITURES TO THE COST OF DEBT

VI. DISALLOW 50% OF 2018 RUSH CREEK EXPENDITURES—TOO EXPENSIVE AND NOT PRUDENT

VII. REDUCE RETURN ON CAP EX ON FOSSIL FUEL RESOURCES TO 4% AND REQUIRE ESSENTIAL RELIABILITY ANALYSES IN THE FUTURE BEFORE SPENDING MORE THAN $1 MILLION ON A FOSSIL FUEL PLANT

VIII. REQUIRE REPORTS OF EXPENSES BY PLANT AND BY YEAR—PUT PSCo ON NOTICE THAT FOSSIL FUEL EXPENSES WILL NO LONGER BE AUTOMATICALLY APPROVED

IX. OTHER ISSUES TO EXAMINE

A. Tax Cut and Jobs Act (TCJA) Treatment

B. EAF—Equivalent Availability Factor

C. Comanche 3

X. CONCLUSION