Item 8.01. Other Events
InFebruary 2021 , the central portion ofthe 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 ofXcel Energy Inc. , incurred net natural gas, fuel and purchased energy costs of approximately$610 million (largely deferred as regulatory assets) in the first quarter. InMay 2021 , PSCo filed a request with theColorado 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. OnSept. 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. --------------------------------------------------------------------------------
Certain information discussed in this Current Report on Form 8-K is
forward-looking information that involves risks, uncertainties and assumptions.
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addition to those discussed in
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