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2017 10-24 City council ppt costs of staying with Xcel

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2017 PPT presentation by Leslie Glustrom on why we should vote yes on 2L to continue Boulder Utility Occupation Tax

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2017 10-24 City council ppt costs of staying with Xcel

  1. 1. Xcel =Revenue Collection with out Competition or Representation
  2. 2. Costs of Staying With Xcel • Revenues Leaving Our Community—Over $2 Billion Over 20 Years • Rate Increases—At 1% Increase Per Year—Another $200 Million Leaving At 2% Increase Per Year—Another $500 Million Leaving Over 20 Years • Cost of Xcel Overbuilding Capacity to Boost Profits • Stranded Assets—Billions in Coal and Natural Gas Assets • Capital Expenditures—PSCo planning $6.4 Billion in CapEx 2017-2021 Boulder share at 4% of PSCo Electric Sales is $256 million • PUC Legal and Expert Witness Costs—Many Millions—From Where?
  3. 3. Costs of Staying With Xcel • Higher Rates • Higher Debt • Higher Cost of Capital • Higher Legal Expenses And Essentially No Control Over Any of These Costs….
  4. 4. Boulder Xcel Faster Better Cheaper…. Risk of Staying With Xcel??
  5. 5. 1) Xcel Increasing Rates $3/Month—Fossil Fuel Costs Rising— Ratepayers Carry All the Risk All True Stories— Not Covered by the Daily Camera 2) Xcel Asking For $244 Million Rate Increase— >$9 Million More Per Year From Boulder—More to Follow 3) Xcel Planning $6.4 Billion in Capital Expenditures— Boulder’s Share $256 Million (Xcel’s Current WACC = 6.78%) 4) Winter Park Florida—Municipalization Best Thing We Ever Did— Rates Lower, Reliability Higher, Making Money 5) Sterling, Massachusetts—Municipal Microgrid Back Up Essential Services—Likely to Save Money
  6. 6. Docket 17L-0612E Exhibit 10—Customer Impact Study 2017 Q4 ECA Colorado PUC—Approved September 27, 2019 in Weekly Meeting Decision C17-0778E $3/Month Increase in PSCo’s ECA Approved September 27, 2017 By Colorado PUC with Less Than 5 Minutes Deliberation—Docket 17L-0612E
  7. 7. Xcel’s Proposed Rate Increase October 2017 9.6% 2018-2021 Docket 17L-XXXX Colorado PUC, Direct Testimony Alice Jackson
  8. 8. Xcel Has Had 6+% Compound Annual Growth Rate (CAGR) In Earnings Per Share Over the Past Decade MUFG Presentation by Xcel. Available from Xcel Energy website under Investor Presentations
  9. 9. 2016 PSCo Total Long Term Debt $4.2 Billion PSCo 2016 Shareholder’s Equity $5.2 Billion Xcel-Colorado = PSCo 2016 Debt and Equity Total $9.4 Billion PSCo 2016 10-K, page 40
  10. 10. Boulder at approx 4% of PSCo’s Load Responsible for $376 Million of PSCo’s 2016 Debt and Equity PSCo’s Current Weighted Average Cost of Capital = 6.78% Boulder Cost of Debt Likely to be Under 6%
  11. 11. Xcel Energy September 20, 2017 Presentation to MUFG Utilities Conference Xcel Colorado Planning to Spend $6.4 Billion in CapEx from 2017-2021
  12. 12. Boulder at approx. 4% of PSCo’s Load Responsible for About $256 Million of PSCo’s 2017-2021 Projected Capital Expenditures More PSCo Capital Expenditures Very Likely After 2021….
  13. 13. Boulder Likely Responsible for Well Over $600 Million in Debt and Equity if Stay with Xcel Boulder Municipal Electric Utility Would Likely Have Less Debt and No Equity And a Lower Cost of Capital
  14. 14. Xcel Energy September 20, 2017 Presentation to MUFG Utilities Conference Xcel Colorado Planning to Spend $6.4 Billion in CapEx from 2017-2021
  15. 15. Boulder Electric Utility:
  16. 16. Boulder Xcel Faster Better Cheaper…. Risk of Staying With Xcel??
  17. 17. http://www.planetware.com/picture/rouen-rouen-cathedral-f-f1447.htm Important Things Take Time….
  18. 18. Data from PSCo Annual 10-K Reports Xcel’s Colorado Profits Have Soared While Sales and System Size Essentially Flat
  19. 19. Colorado PUC Docket Year Xcel Rate Increase Went Into Effect Percentage Increase (1) Annual Increase in Base Rate Revenue for Xcel (3) 06S-234EG 2007 7.73% $107 million per year 08S-520E 2009 5.23% $112 million per year 09AL-299E 2010 6.8% $128 million per year 11AL-947E 2012 2.51% $73 million per year 11AL-947E 2013 1.88% $16 million per year 11AL-947E 2014 1.04% $25 million per year TOTAL 2007- 2014 27.76% $461 million per year Xcel’s Rate Increases 2007-2014 Source: Final Decision and Customer Impact Study in Colorado PUC Dockets Listed Above

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