PSCo Settles Colorado Gas Rate Case at $123M, Well Below the $190M Request
XEL sits 18% above its 52-week low of $67.81.
Summary
Xcel Energy's Colorado gas utility settled its rate case for a $123 million revenue increase, significantly below the $190 million request, with a 9.2% ROE. Final rates are expected in Q4 2026.
Key Events · Product Development and Regulatory · XEL
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Rate Settlement Reached
PSCo agreed to a $123 million (7.5%) revenue increase, down from the $190 million (11.6%) requested, based on a 2025 test year with forward-looking adjustments.
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ROE Set at 9.2%
The settlement includes a 9.2% return on equity, below the 10.75% sought, with an equity ratio of 54.5%.
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Regulatory Timeline
Hearings on the settlement are scheduled for July 2026, with a CPUC decision and final rates anticipated in Q4 2026.
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Broader Regulatory Context
This settlement follows other recent rate case outcomes for Xcel subsidiaries, including a $211 million Minnesota electric rate increase and a Colorado electric settlement, indicating active regulatory engagement across jurisdictions.
Analysis · XEL · Energy & Transportation
PSCo, Xcel Energy's Colorado subsidiary, has settled its natural gas rate case for a $123 million revenue increase — 35% below the $190 million originally sought. The approved ROE of 9.2% is well under the 10.75% request, reflecting a tougher regulatory environment. While the outcome is less favorable than hoped, it removes uncertainty and locks in a 7.5% rate bump, with final rates expected in Q4 2026. For a $50 billion utility, the financial impact is modest, but the settlement signals regulatory headwinds in Colorado that could affect future rate cases and the company's broader $60 billion capital plan.
At the time of this filing, XEL was trading at $80.14 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $50.2B. The 52-week trading range was $67.81 to $84.23. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.