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

3. Xcel =Revenue Collection
with out
Competition
or
Representation

4. 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?

5. 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….

6. Boulder
Xcel
Faster
Better
Cheaper….
Risk of Staying With Xcel??

7. 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

8. 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

9. Xcel’s Proposed Rate Increase October 2017
9.6% 2018-2021
Docket 17L-XXXX Colorado PUC, Direct Testimony Alice Jackson

10. 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

11. 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

12. 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%

13. Xcel Energy September 20, 2017 Presentation to MUFG Utilities Conference
Xcel Colorado Planning to Spend $6.4 Billion
in CapEx from 2017-2021

14. 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….

15. 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

16. Xcel Energy September 20, 2017 Presentation to MUFG Utilities Conference
Xcel Colorado Planning to Spend $6.4 Billion in CapEx from 2017-2021

17. Boulder Electric
Utility:

18. Boulder
Xcel
Faster
Better
Cheaper….
Risk of Staying With Xcel??

19. http://www.planetware.com/picture/rouen-rouen-cathedral-f-f1447.htm
Important Things Take Time….

21. Data from PSCo Annual 10-K Reports
Xcel’s Colorado Profits Have Soared While
Sales and System Size Essentially Flat

22. 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