Xcel Energy Inc. and Public Service Company of Colorado filed a Form 8-K on August 20, 2026, disclosing that the Colorado Public Utilities Commission verbally approved most terms of a settlement agreement in PSCo's pending electric rate case on August 19, 2026.

Key Highlights

  • Revenue increase approved: The CPUC verbally approved a revenue increase of $157 million (4.4% total, or an annual average of 1.5% since the last rate case), excluding rider roll-ins.
  • Original request reduced: PSCo had originally sought a $356 million (9.9%) revenue increase, or $526 million inclusive of rider roll-ins, filed in November 2025.
  • ROE and equity ratio set: The approved settlement terms include a return on equity of 9.3% and an equity ratio of 54.5%, versus the requested 9.8% ROE and 55% equity ratio.
  • Test year modified: The CPUC approved most settlement terms but modified the test year to a 13-month average historical test year based on 2025 data.
  • Comanche Unit 3 framework: A performance framework applicable to the Comanche Unit 3 coal facility will run from the effective date of rates through 2029.
  • Rates expected effective August 29, 2026: Rates are expected to become effective following a written decision on August 29, 2026.
  • 2026 EPS guidance reaffirmed: Xcel Energy reaffirmed its 2026 ongoing earnings per share guidance of $4.04 to $4.16.

CPUC Verbal Decision Reshapes PSCo Electric Rate Settlement Terms

According to the filing, Public Service Company of Colorado originally filed an electric rate case with the Colorado Public Utilities Commission in November 2025 seeking a revenue increase of $356 million (9.9%), or $526 million inclusive of rider roll-ins. The request was based on a 9.8% ROE, an equity ratio of 55%, and a 2025 test year with a projected rate base of $13 billion. In June 2026, PSCo, CPUC Staff, and various other parties filed a comprehensive non-unanimous settlement agreement, though the AARP, City of Boulder, and the UCA opposed the settlement.

The filing discloses that on August 19, 2026, the CPUC issued a verbal decision approving most terms of the proposed settlement, with a modification to a 13-month average historical test year. As approved, the settlement is expected to include a revenue increase of $157 million (4.4% total, or an annual average of 1.5% since the last rate case), an ROE of 9.3%, and an equity ratio of 54.5%. The settlement also provides for continuation of previously authorized trackers and deferrals, and establishes a performance framework for the Comanche Unit 3 coal facility from the effective date of rates through 2029.

The filing states that rates are expected to become effective August 29, 2026, following a written decision. Alongside the rate case disclosure, Xcel Energy reaffirmed its 2026 ongoing earnings per share guidance of $4.04 to $4.16. The filing notes that forward-looking statements, including those relating to EPS guidance, regulatory proceedings, and the expected effective date of rates, are subject to risks and uncertainties described in the filing and in PSCo's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

What Was Disclosed

Xcel Energy and PSCo disclosed the CPUC's verbal approval of most terms of the Colorado electric rate settlement on August 19, 2026, including a $157 million revenue increase, a 9.3% ROE, a 54.5% equity ratio, and reaffirmed 2026 ongoing EPS guidance of $4.04 to $4.16.