Colorado electric energy cost adjustment
Adjustment to the Energy Cost Adjustment (“ECA”) effective October 1, 2019.
On August 30th, 2019, we filed Advice Letter No. 775 at the Colorado Public Utilities Commission. The ECA rate is updated quarterly (February, May, August, and November) and is applicable to all retail customers. The ECA is strictly a pass-through charge. The ECA recovers costs incurred by the Company for natural gas used in the production of electricity, for costs associated with renewable energy production, and/or for wholesale power purchased on the open market by the Company to meet customers’ energy needs. These costs incurred by the Company are strictly pass-through costs.
The principal purpose of this filing is to amend the ECA rate consistent with the Company’s tariff as approved by Commission Decision No. C13-0794 in Proceeding No. 12AL-1052. Additionally, Advice letter No. 775 continues the calculation of the ECA based on the annual forecast method that was approved in Proceeding No. 19AL-0043.
The proposed ECA rate is $0.03913 per kWh, which if approved, is to be prorated to bills for all kilowatt-hour usage beginning October 1, 2019. The proposed ECA rate is a $0.00186 per kWh decrease from the current ECA rate of $0.04099 per kWh. Appendix A provides the applicable tariff sheet. Appendix B provides a redlined version of the applicable tariff sheet, and Appendix C provides the calculation support for the proposed ECA rate.
The primary reasons for the decrease in the ECA rate are described below:
- Recovery True-up – The current ECA rate includes a $4,749,611 under-recovery and the proposed rate reflects a $1,792,250 under-recovery from the period May 2019 – July 2019. The under-recovery position decreased $2,957,361 from $4,749,611 to $1,792,250 as a result of recoveries being higher than actual costs for the May 2019 – July 2019 period.
- Estimated Sales – Estimated Sales for the period October 2019 – September 2020 increased 17,694,400 kWh, or 0.88%, from 2,018,785,394 kWh to 2,036,479,794 kWh. The increase in kWh sales decreases the ECA rate.
If permitted to go info effect on October 1, 2019, the tariff revision will decrease annualized revenues by approximately $3.07M. Based on this proposed decrease, the average residential customer monthly bill, under Rate Schedule RS-1 with an average usage of 600 kWh per month, will decrease $1.16, from $102.08 to $100.92, or 1.13%. The average small commercial customer monthly bill, under Rate Schedule SGS-N with an average usage of 2,300 kWh per month, will decrease $4.44, from $333.30 to $328.86, or 1.33%.
View the filed documents below: