Public Service Company of Colorado, a subsidiary of Xcel Energy Inc. (NASDAQ: XEL), reached a settlement agreement with regulators regarding its electric rate case filed with the Colorado Public Utilities Commission in November 2025.

The settlement calls for a revenue increase of $225 million, or 6.3%, based on a 2025 historic test year. This represents a reduction from the company's initial request of $356 million, or 9.9%.

Under the settlement terms, the utility would operate with a 9.3% return on equity and an equity ratio of 54.5%. The agreement also establishes a performance framework for the Comanche Unit 3 coal facility through 2029 and transfers previous Transmission Cost Adjustment investments into the rate base.

The Colorado Public Utilities Commission filed the settlement agreement on June 2, 2026, along with PSCo and various other parties. The AARP, City of Boulder and the Colorado Office of Utility Consumer Advocate oppose the settlement, while other parties either support portions of it or do not oppose it.

Hearings regarding the settlement are scheduled for June 2026, with a final commission decision and rate implementation expected in the third quarter of 2026.

The settlement maintains continuation of previously authorized trackers and deferrals. Xcel Energy confirmed its 2026 ongoing earnings per share guidance range of $4.04 to $4.16.

PSCo's original rate case was based on a projected rate base of $13 billion and included a request for a 9.8% return on equity with a 55% equity ratio.