Xcel’s Rate Increase Request Not in Line with Stated Carbon Reduction Goals
Clean Energy Action joined many in Colorado and around the country in applauding Xcel’s December 2018 stated intention to reduce its carbon emissions by 80% by 2030.
Now, however, Clean Energy Action is more than a bit disconcerted by Xcel’s current request to increase its rates in Proceeding 19AL-0268E at the Colorado PUC. Buried in the thousands of pages of rate case filings are Xcel Colorado’s request for ratepayers to pay for hundreds of millions of dollars of expenditures on its coal and natural gas plants—plants that are adding large amounts of carbon dioxide and methane to the atmosphere (and oceans) and which are either largely obsolete (i.e. coal) or are likely to become obsolete (i.e. natural gas.)
For its capital expenditures to fix “this-that-or-the-other-thing” on these aging fossil fuel plants, Xcel is asking its Colorado customers to pay a 10.35% return on the equity portion (about 55%) of these expenditures. Earning a large profit on fixing aging fossil fuel plants creates a very perverse incentive for Xcel to pour tens and hundreds of millions of dollars into these outdated fossil fuel plants.
Clean Energy Action c
an only wonder
why Xcel wants to earn a profit of over 10% on expenditures that are accelerating the climate crisis that is creating havoc in so many communities and ecosystems around the planet.
Clean Energy Action can only wonder how rate payers would benefit from Xcel earning a profit of over 10% on expenditures that are accelerating the climate crisis and creating havoc in so many communities and ecosystems around the planet.
