Working on an audit for a manufacturing client in Sioux Falls and trying to understand Xcel Energy's transmission cost recovery rider (TCRR). The tariff shows it should be $0.00447/kWh but I'm seeing $0.00521/kWh on recent bills. Anyone familiar with how Xcel calculates this rider? Is there an annual true-up that might explain the higher rate?
Question about Xcel Energy's transmission cost recovery rider
Lester, Xcel does an annual TCRR true-up but it usually happens in December for the following year's rates. The rate you're seeing might be from a mid-year adjustment due to higher than projected transmission costs. I'd check if there was a regulatory filing with the South Dakota PUC for an interim rate increase. PSO here in Oklahoma does similar mid-year adjustments when actual costs exceed projections by more than 10%.
Ed's probably right about a mid-year adjustment. Puget Sound Energy up here in Seattle had a similar transmission rider bump earlier this year due to wildfire mitigation costs. Check Xcel's website for recent tariff updates or call their large customer service group directly. For manufacturing accounts, they're usually pretty responsive about explaining rider calculations since the dollar amounts can be significant.