Xcel Energy Inc.
06/27/2024 | Press release | Distributed by Public on 06/27/2024 14:44
Material Event Form 8 K
Item 8.01. Other Events
Wildfire Mitigation Plan
On June 27, 2024, Public Service Company of Colorado (PSCo), a Colorado corporation and wholly owned subsidiary of Xcel Energy Inc., filed an Updated Wildfire Mitigation Plan (the Plan) and request for recovery of costs covering the years 2025 to 2027 with the Colorado Public Utilities Commission (CPUC). The estimated total cost for this plan is approximately $1.9 billion.
The Plan is a key component of keeping our customers and communities safe while providing reliable and affordable electric service. The Plan integrates industry experience; incorporates evolving risk assessment methodologies; adds new technology; and expands the scope, pace and scale of our work to reduce wildfire risk in a comprehensive and efficient manner under four core programs that include the following:
•Situational awareness - Meteorology, area risk mapping and modeling, artificial intelligence cameras and continuous monitoring.
•Operational mitigations - Enhanced powerline safety settings and public safety power shutoffs (PSPS).
•System resiliency - Asset assessment and remediations, pole replacements, line rebuilds, targeted undergrounding and vegetation management.
•Customer support - Coordination and real-time data sharing with customers and other stakeholders and PSPS resiliency rebates.
Total capital investments and O&M expenses associated with the proposed plan are estimated at the following for 2025-2027:
| (Millions of Dollars) | 2025 | 2026 | 2027 | Total | ||||
| Capital investments | ||||||||
| Situational awareness | $ | 24 | $ | 17 | $ | 10 | $ | 51 |
| Operational mitigations | 58 | 66 | 83 | 207 | ||||
| System resiliency | 368 | 411 | 565 | 1,344 | ||||
| Total capital investments | $ | 450 | $ | 494 | $ | 658 | $ | 1,602 |
| O&M expenses | ||||||||
| Situational awareness | $ | 9 | $ | 10 | $ | 10 | $ | 29 |
| Operational mitigations | 3 | 3 | 4 | 10 | ||||
| System resiliency | 44 | 69 | 77 | 190 | ||||
| Customer support | 7 | 8 | 9 | 24 | ||||
| Total O&M expenses | 63 | 90 | 100 | 253 | ||||
| Total expenditures | $ | 513 | $ | 584 | $ | 758 | $ | 1,855 |
A CPUC decision is expected in early 2025.
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including those relating to capital investment and expense amounts, expectations and intentions regarding regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would" and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in PSCo's Annual Report on Form 10-Kfor the fiscal year ended Dec. 31, 2023, and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of PSCo to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.