Rate Matters (Tables)

3 Months Ended

Mar. 31, 2013

Major Adjustments to PSCo's Test Year in Colorado 2013 Gas Rate Case Proposed by the Staff and OCC

The CPUC Staff recommended a rate reduction of $14.4 million, based on a HTY, an ROE of 9 percent and an equity ratio of 52 percent and other adjustments. The OCC recommended a rate increase of $0.5 million based on a HTY, an ROE of 9 percent and equity ratio of 51.03 percent and other adjustments. While the OCC did not recommend that the CPUC set rates using a FTY, they did calculate a revenue deficiency of $12.4 million for 2013. No other intervenor made ROE recommendations or specific recommendations regarding the revenue deficiency. The major adjustments to the test year proposed by the CPUC Staff and OCC are presented below.

(Millions of Dollars)	CPUC Staff			OCC
PSCo deficiency based on a HTY	$	28.3		$	28.3
ROE and capital structure adjustments		(20.8	)		(20.0	)
Move to a 13 month average from year end rate base		(5.7	)		(3.2	)
Remove pension asset		(5.9	)		-
Remove incentive compensation		(3.5	)		(0.2	)
Challenge known and measurable		-			(9.0	)
Eliminate depreciation annualization		-			(1.8	)
Revenue adjustments		(4.1	)		(1.4	)
Resulting tax impacts		1.5			4.7
Other adjustments		(4.2	)		3.1
Recommendation	$	(14.4	)	$	0.5