Just finished reviewing my October Xcel bills here in Minneapolis and I'm seeing massive jumps in the Environmental Cost Recovery (ECR) rider. Some commercial accounts are up 47% from last year on this rider alone. The tariff shows it's supposed to recover costs for air quality improvements at coal plants, but these numbers seem excessive. Anyone else in Xcel territory seeing similar spikes? I'm pulling together documentation for challenges but want to know if this is system-wide.
Xcel Energy's Environmental Cost Recovery Rider - Anyone else seeing 47% increases?
Hank, we don't have Xcel down here in Charlotte but Duke Energy pulled something similar with their coal ash cleanup rider last year. Started at $2.8 million recovery and ballooned to $8.1 million in six months. The trick is to demand the detailed cost breakdown - utilities often include non-recoverable O&M expenses in these environmental riders. File for the supporting documentation under your state's discovery rules.
Same issue with AEP Indiana. Their Environmental Compliance Plan rider went from $0.0087/kWh to $0.0129/kWh between filing periods. When we dug into it, they were double-recovering certain transmission upgrade costs that should have been in base rates. Saved our client $31,000 annually just on that one correction. These riders are goldmines for overcharges if you know where to look.
Greg's right about the double recovery issue. Alabama Power tried the same thing with their Rate CNM environmental compliance rider. They were including costs already recovered through their Certificate of Environmental Compatibility and Public Need proceedings. The PSC made them refund $2.3 million to customers. Always cross-reference the rider tariff language with recent rate case settlements.
Update - got the cost breakdown from Xcel and Derek was spot on. They're including routine maintenance costs that should be in base O&M. Found $18,400 in inappropriate charges on just three accounts. The Sherco Unit 3 scrubber costs are legitimate, but they're padding it with standard boiler tube replacements and ash handling upgrades. Filing challenges next week.
This is exactly why I hate these environmental riders. FirstEnergy in Ohio does the same shell game with their Environmental Investment Rider. They pile everything remotely related to emissions into one bucket and hope nobody notices the kitchen sink expenses. Last month caught them including office furniture for the environmental compliance department - $14,000 worth of desks and chairs in a $40 million rider.
Jim, that's ridiculous but not surprising. Duke Energy Carolinas tried to sneak fleet vehicle costs into their coal ash cleanup rider last year. $127,000 for pickup trucks and SUVs because the environmental staff "needed transportation to cleanup sites." The NCUC shut that down fast. These utilities will try anything if they think nobody's watching the details.