Item 8.01. Other Events



In February 2021, the central portion of the United States experienced a major
winter storm (Winter Storm Uri). Extreme cold temperatures impacted certain
operational assets as well as the availability of renewable generation across
the region. The cold weather also affected the country's supply and demand for
natural gas. These factors contributed to extremely high market prices for
natural gas and electricity.
As a result of the extremely high market prices, Public Service Company of
Colorado (PSCo), a wholly owned subsidiary of Xcel Energy Inc., incurred net
natural gas, fuel and purchased energy costs of approximately $610 million
(largely deferred as regulatory assets) in the first quarter. In May 2021, PSCo
filed a request with the Colorado Public Utilities Commission (CPUC) to recover
$263 million in weather-related electric costs and $287 million in incremental
gas costs over 24 months with no financing charge.
On Sept. 9, 2021, PSCo received answer testimony regarding Winter Storm Uri cost
recovery from multiple intervenors, including the CPUC Staff, Colorado Office of
the Utility Consumer Advocate (UCA) and Colorado Energy Office (CEO).
Summarized recommendations:
•CPUC Staff - disallow approximately $99 million for the electric utility and
$105 million for the gas utility. Additionally, net approximately $50 million of
regulatory liabilities (decoupling related) from electric costs.
•UCA - disallow approximately $131 million.
•CEO - disallow approximately $3 million.
Proposed disallowances were based primarily on the intervenors' assessment of
(1) operation of fuel oil capable plants; (2) PSCo's conservation efforts to
reduce demand; (3) forecasted baseload gas purchases; and (4) incremental base
rate revenue collected during the event due to increased demand.
PSCo believes Winter Storm Uri costs were prudent and in accordance with CPUC
approved procedures and processes. PSCo intends to refute intervenors'
recommendations through rebuttal testimony to be submitted in the fourth quarter
of 2021. A CPUC decision is expected in the first quarter of 2022.



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Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy's and PSCo's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of PSCo and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.

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