Reportede by CEN Staff

DENVER - Late Wednesday Xcel Energy said it has reached agreement with state utility regulators and several business and consumer groups on a revised electric rate increase.

The agreement calls for a $112.2 million annual increase in Xcel’s base rates, down from the $159 million increase that it originally proposed. In a statement released yesterday, a company spokesperson said, “The proposed settlement would increase electricity bills by 5.2 percent for typical residential customers, or by $2.94 to $59.17 a month, based on use of 625 kilowatt-hours. Small-business customers would see a 4.9 percent increase, or $4.42 to $94.33 a month, based on use of 1,025 kilowatt-hours. If approved by the PUC, the rates will take effect July 1st.

Colorado’s largest utility company originally filed its “rate case” last November to cover costs associated with the construction of its new Comanche 3 coal-fired power plant in Pueblo, which is expected to commence operation sometime this year.

Several consumer groups objected to the rate hike request and a PUC hearing which began last Monday, was suspended while Xcel worked out a settlement with the groups. On Wednesday, it said it had reached the “settlement agreement” on rate increases with six “interveners”: PUC staff, the Colorado Office of Consumer Counsel, Colorado Energy Consumers, CF&I Steel LP, Wal-Mart Stores Inc. and Sam’s West Inc., and Energy Outreach Colorado.

Xcel said an additional rate-increase will be filed soon to help pay for improvements to the utility’s power system. If approved by the PUC, those rates would go effect in January 2010. The Mineapolis-headquartered power company says it has spent or will spend almost $1.7 billion for new electricity infrastructure from 2006 through 2009.