Public Service Co. Of Colorado

Overview Key strengths Key risks Fully regulated electric and natural gas utility strategy. Limited geographic and regulatory diversity. Large base of stable electric and natural gas customers. Constructiveness of regulatory process Energy transition plan with an approved accelerated timeline. Negative discretionary cash flow results in external funding need. PSCo was authorized to recover over 90% of the $550 million initially requested while $75 million in carrying costs will not be recovered from customers. The $508 million is comprised of $287 million in costs to be recovered from gas customers over 30 months and $220 million to be recovered from electric customers over 24 months through a rate rider. Overall, we view this outcome as supportive of credit quality and demonstrating

...Public Service Co. of Colorado (PSCo) was recently authorized to recover $508 million in extraordinary gas costs incurred by its electric and natural gas utilities during the February 2021 winter storm. PSCo was authorized to recover over 90% of the $550 million initially requested while $75 million in carrying costs will not be recovered from customers. The $508 million is comprised of $287 million in costs to be recovered from gas customers over 30 months and $220 million to be recovered from electric customers over 24 months through a rate rider. Overall, we view this outcome as supportive of credit quality and demonstrating PSCo's ability to effectively manage regulatory risk in a state whose consistency in rate making has weakened over the past several years. PSCo filed its second wildfire mitigation plan in May 2022, reflecting its reporting of key performance indicators, including capital and operating costs incurred during the calendar year 2021. Every May, PSCo files its wildfire...

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