Notices concerning the Public Service Company of Colorado Phase II Rate Case

CPUC Docket Number 11AL-151G, Advice Letter Number 795-Gas:

Because you are one of our valued gas transportation shippers, we are committed to keeping you informed of regulatory changes affecting the gas transportation service we provide you. Attached is the formal notice concerning the Natural Gas Phase II Rate Case that Public Service Company of Colorado recently filed with the Colorado Public Utilities Commission (CPUC).

The included “Notice of Revision in the Colorado P.U.C. No. – 6 Gas Tariff of Public Service Company of Colorado” that Public Service is mailing to gas customers describes the proposed changes impacting both gas sales service and gas transportation service, and provides information on how to formally participate in the CPUC rate case proceeding.

The following summary illustrates the changes between current CLG and CSG sales rates, current TFL, TFS and TI transportation rates, and the Company’s proposed final rates for those classes. This comparison does not include gas commodity costs.

Description / Current
Effective Rate(s) / Proposed Final Rate(s)
TFL Service & Facility (x meter/month) / $69.69 / $72.00
TFL, CLG reservation (x PDQ/month) / $6.13 / $6.71
TFL, CLG throughput (x Dth delivered) / $0.1792 / $0.1200
TFS Service & Facility ( x meter/month) / $69.69 / $43.50
TFS, CSG throughput (x Dth delivered) / $1.3052 / $1.0737
TI Service & Facility (x meter/month) / $139.37 / $90.00
TI throughput (x Dth delivered) / $0.4131 / $0.2836

There are a number of additional proposed changes. These include: 1) modifications to the CLG service period to align it with the CSG service period, 2) minimum service periods for associated construction allowances; and, 3) new provisions addressing transportation and facility reinforcements for our downstream Local Distribution Company customers.

You can access the Advice Letter, Testimony and Exhibits either through the CPUC website, or through our own Xcel Energy corporate website through the following link:

Xcel Energy Website: hold down your control key and then click in the link: Phase II Filing Link

We hope this information will allow you to plan for these proposed modifications. While we are requesting an effective date of April 5, 2011, we don’t expect the Public Utilities Commission to complete its review of the rate filing until October 2011. We will post the approved rates and related information on the Gas Transportation Website at that time. We will also include the same information in an e-mail to customers who have asked to receive transportation-related notices or announcements via e-mail.

Please contact your Gas Transportation representative or call Vivian Ruth at 303-571-7719 if you have any questions. If you would like to be added to the e-mail announcement list, send an e-mail to Vivian.E.Ruth@xcelenergy with your name, telephone number, company affiliation and e-mail address.

Sincerely,

Lori Van West

Manager, Natural Gas Services


Date of Notice: February 24, 2011

NOTICE OF REVISION IN THE COLORADO

P.U.C. NO. – 6 GAS TARIFF OF PUBLIC SERVICE COMPANY OF COLORADO

1800 LARIMER STREET, DENVER, COLORADO 80202

You are hereby notified that Public Service Company of Colorado has filed with the Public Utilities Commission of the State of Colorado to revise its base rates for natural gas service in its Colorado P.U.C. No. 6 – Gas tariff effective April 5, 2011, unless suspended by the Public Utilities Commission.

The primary change is to update the rates assessed to various classes of gas sales and transportation customers, such as residential and commercial customers. These proposed rates are based on an updated study of the costs the Company incurs to serve these customer classes. In total, the proposed rates are designed to recover the annual gas department revenue requirement of $382,637,966 that the Company proposed in December 2010 (Docket No. 10AL-963G).

In addition to the proposed changes in base rates, the Company is proposing various tariff changes to modify the availability of and requirements for service under the Company’s gas rate schedules. The Company is also proposing to update the terms and conditions under which the Company will provide upstream gas transportation service to local distribution company customers.

The Company estimates that the typical monthly gas bill will increase by $1.96 for residential customers and by $5.06 for small commercial customers. Impacts on customers’ bills will depend upon monthly use.

Typical customers of the Company will be affected as shown below. The current average monthly bills include the currently effective base rates, a General Rate Schedule Adjustment (GRSA) of negative 0.4481 percent, a Demand Side Management Cost Adjustment (DSMCA) of positive 6.83 percent, and a Gas Cost Adjustment (GCA) of $.54447/Therm. The proposed average monthly bills reflect the proposed base rates, no GRSA and the same DSMCA and GCA as used to derive the current monthly bills:

TOTAL PROPOSED MONTHLY BILL IMPACTS ON CUSTOMERS

Type of Service / Present Monthly
Bill / Proposed Monthly
Bill / Percentage
Change
Residential / $54.47 / $56.43 / 3.60%
Commercial – Small / $219.50 / $224.56 / 2.31%
Commercial – Large / $4,146.44 / $4,173.17 / 0.64%
Interruptible Sales / $9,363.58 / $9,085.12 / -2.97%
Firm Transportation - Small / $354.48 / $279.46 / -21.16%
Firm Transportation – Large / $987.26 / $998.92 / 1.18%
Interruptible Transportation / $3,517.55 / $2,520.94 / -28.33%

Copies of the proposed and present tariffs summarized above, and as filed with the Commission, are available for examination and explanation at the main office of Public Service Company of Colorado, 1800 Larimer Street, Suite 1400, Denver, Colorado 80202; or at the office of the Public Utilities Commission, 1560 Broadway, Suite 250, Denver, Colorado, 80202. Customers who have questions may call the Commission at (303) 8942000, call Xcel Energy at 1-800-895-4999, fax the question to Xcel Energy at 1-800-895-2895, or email the question to .

Anyone who desires may file written comments or objections to this filing. If you wish only to object to the proposed action, you may file a written objection with the Commission. The filing of a written objection by itself will not allow you to participate as a party in any proceeding on the proposed action.

Anyone who desires to file written comments or objections to the proposed action shall file them with the Colorado Public Utilities Commission, 1560 Broadway, Suite 250, Denver, Colorado, 80202; or email the document to: at least ten (10) days before the proposed effective date of April 5, 2011.

If you wish to participate as a party in this matter, you must file written intervention documents in accordance with Rule 1401 of the Commissions Rules of Practice and Procedure or any applicable Commission order.

The rates, rules and regulations ultimately authorized may or may not be the same as those proposed and may include rates higher or lower than those proposed or currently in effect.

The Public Utilities Commission may hold a hearing to determine what rates, rules and regulations will be authorized. If a hearing is held, the Commission may suspend the proposed rates, rules or regulations.

Members of the public may attend any hearing and may make a statement under oath about the proposed revisions, regardless of whether they have filed a written objection or request to intervene. Anyone desiring information regarding if and when a hearing may be held shall submit a written request to the Commission or contact the External Affairs section of the Commission at its local number (303) 894-2070 or toll free number (800) 456-0858.

By: Scott B. Brockett

Director, Regulatory Administration and Compliance