Last month, Xcel Energy subsidiary Public Service Company of Colorado (PSCo) filed a rate case at the Colorado Public Utilities Commission (Docket: 14AL-0660E). A lot of the case — the part that’s gotten most of the press — is about PSCo recovering the costs of retiring and retrofitting coal plants as agreed to under the Clean Air Clean Jobs Act (CACJA) of 2010. However, there’s a piece of the case that could have much wider implications. Way down deep in the last piece of direct testimony, PSCo witness Scott B. Brockett:
…provides support and recommendations regarding the initiation of a decoupling mechanism for residential and small commercial customers.
This recommendation has captivated all of us here at CEA because it could open the door to Xcel adopting a radically different business model, and becoming much more of an energy services utility (PDF), fit for the 21st century.
To explain why, we’re going to have to delve a ways into the weeds of the energy wonkosphere.