Colorado regulators on Jan. 11 filed their formal approval of Xcel Energy-Colorado's $110-million transportation-electrification plan that will bring around 20,000 electric-vehicle charging stations to the state and provide EV rebates for low-income customers.
Members of the Colorado Public Utilities Commission approved a monthly bill rider of around 67 cents for an average residential customer as the plan's cost-recovery mechanism. Commission staff in a previous filing said the commission should require Xcel to recover costs through a rate case, but Xcel argued that a cost-recovery delay might result in the company scaling back its investments.
The company will also be permitted to move funds between its portfolio of plans and potentially increase its overall budget by up to 125 percent of annual costs to address the evolving EV landscape, commissioners said in the order.
Xcel's proposed $30-million rebate program was significantly scaled back, to $5 million over the plan's three-year period, and limited to low-income customers only. The PUC approved Xcel's proposal to amortize the rebates in a regulatory asset account over a 10-year period and to earn a return at the company's weighted annual cost of capital (see CEM No. 1623).
"Although we recognize this will increase long-term ratepayer costs, we believe the Company's proposal creates the incentive structure necessary for a robust [transportation electrification plan]," commission members wrote in the order.