Excel Energy addresses fixed bill credit calculation in regulatory hearing

Key discussions surrounding the fixed bill credit calculation took center stage during the recent government meeting regarding the Public Service Company of Colorado's tariff adjustments. The meeting, held on May 30, 2025, highlighted two critical issues: the number of vintages required for the utility's tariff filings and the potential adjustment mechanism for the fixed bill credit.

Mister Cowen confirmed that the fixed bill credit requirements stem from House Bill 23-1137 and the commission's electric rules implementing this legislation. He emphasized that the commission's order in docket 24R0133E provides guidance on how the fixed bill credit methodology should be adopted. The discussions revealed that the commission is expected to make annual decisions regarding the bill credits for 2023, 2024, and 2025, with a focus on how these credits will be adjusted.

Excel Energy has conceded that the vintage years for the fixed bill credit should start from 2023, aligning with the year the house bill was signed into law. However, the company does not support a consumer protection index (CPI) adjustment mechanism, arguing that such an approach could distort the fixed bill credit's value. Cowan stated that while the commission has broad authority to make regulatory decisions, there is no statutory foundation for a CPI adjustment in this context.

The meeting underscored the ongoing complexities in determining how utility rates are set and adjusted, particularly in light of legislative mandates. As the commission prepares to finalize its decisions, stakeholders are closely watching how these discussions will influence future tariff filings and consumer rates. The outcome of this proceeding could have significant implications for both the utility and its customers, as adjustments to the fixed bill credit methodology are set to unfold in the coming years.