Comment, Interpretation, and Opinion on Significant Points of the 2/9/2001 Friday 9-noon PUC meeting
1. Xcel wanted for customers to pay interest when Xcel under-ecovered their gas cost , since they now pay interest on over-recovery. customers should pay for under-recovery.
(example: Xcel pays $1.00 but over recovers $1.50 to pay for the $1.00 cost, then they pay interest to customers on the $.50 they over recovered)
The PUC said Xcels having to pay interest when they over-recover gas cost is an incentive for Xcel to be prudent and timely when considering its gas purchases and so that it's forecast of gas prices is better.
2. Xcel has had depreciation methods that have been borrowing money from future rate payers, using "willy nilly" accounting methods, "fuzzy math", and not using detailed accounting records.
3. Xcel has over-accumulated depreciation expense, there by underestimating their revenue and trying to legitimize a higher return of equity based on (misstated) predicted low revenues.
(example: theysay they are not making enough money, but do not say they are over estimating their depreciation expenses, they are recovering their depreciable expense costs to soon and too fast.)
4. This rate is based on Xcels need to recover excess
a.operating costs,
b.capital improvements costs to its (real profit making gas transportation pipelines) and
c.not getting enough return of equity
The Colorado PUC grants a $14 million net in earnings increase by a rate increase instead of $38.7 million net for Return Oo Equity requested... a 5.23 % increase
Al Soto metro student
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