News Details

DENVER--(BUSINESS WIRE)-- Xcel Energy today proposed a $174.7 million electricity rate increase for Colorado, expected to become effective next summer. The increase is the result of the company's efforts to meet state energy needs through power generation expansion; continued emission reductions work; and system reliability improvements.

The filing today with the Colorado Public Utilities Commission (CPUC), would increase electricity bills for typical residential customers by $5.13 a month to $66.31, or 8.4 percent, based on use of 625 kilowatt-hours. Small-business customers would see an increase of $7.84 a month to $105.83, or 8 percent, based on use of 1,025 kilowatt-hours.

"Xcel Energy has made significant investments in recent years in our generation, transmission and distribution systems, to ensure that we have adequate, reliable, cost-effective and environmentally sound resources to meet the energy needs of Colorado," said Tim Taylor, president and CEO of Public Service Co. of Colorado, an Xcel Energy company.

The implementation of the new rates mostly likely would not occur until next summer, as Xcel Energy has noted, to allow for extensive hearings on the request.

Xcel Energy filed its last electric rate case in April 2006; prior to that time, Xcel Energy had not filed an electric rate case since 2001. The 2006 electric rate case resulted in a 7.7 percent increase for typical residential and small-business customers.

Taylor noted that the company has invested or will invest nearly $1.7 billion in major new electricity infrastructure, since the last rate case and through 2009. He noted that continued investment in utility infrastructure is critical, even during difficult financial times, to ensure the state will be poised for economic recovery.

"We know our customers' budgets are stretched, but we also know they count on us for the electricity they need in their homes and businesses. We would not ask for an increase unless it was truly needed," Taylor said.

Taylor also noted that several of the projects contributing to the electric rate case request today were previously discussed and approved in detailed hearings before the CPUC.

Among other notable components of the filing today:

    --  Costs are included for some of the 750-megawatt expansion of the
        Comanche Generating Station in Pueblo, Colo., such as construction and
        retrofitting existing units at the plant with state-of-the-art emissions
        controls;
    --  Costs are included for two new, natural gas-fired generating units at
        the Fort St. Vrain Generating Station in Platteville, Colo., which total
        300 megawatts; and
    --  Costs are included for significant investment in distributions systems
        in Colorado, those that deliver electricity to the end-use customers.

Xcel Energy encourages customers to explore ways to conserve energy and lower their natural gas bills by visiting www.xcelenergy.com/energy savings or by calling 1-800-895-4999 for a free copy of "60 Simple Ways to Save Money on Your Energy Bill." Customers also are encouraged to contact the company for information on Averaged Monthly Payment or energy assistance programs. Business customers may order a free copy of the "Small Business Guide to Energy Savings" on the company's Web site at www.xcelenergy.com/businessenergyguide.

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

This news release includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "estimate," "expect," "projected," "objective," "outlook," "possible," "potential" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; changes in federal or state legislation; regulation; risks associated with the California power market; currency translation and transaction adjustments; the higher degree of risk associated with Xcel Energy's non-regulated businesses compared with Xcel Energy's regulated business; and the other risk factors listed from time to time by Xcel Energy in reports filed with the Securities and Exchange Commission.

    Source: Xcel Energy