~ Xcelenerqv: PUBLIC SERVICE COMPANY P.O
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~ XcelEnerqv: PUBLIC SERVICE COMPANY P.O. Box 840 Denver, Colorad o 80201-0840 October 1 , 2013 Adv ice No. 849 - Gas Public Utilitie s Commission o f t h e State Of Colorado 1560 Br oadwa y , Su i t e 250 Den ver, Co lorado 802 02 Th e accomp a ny i ng tariff s h e e t issued b y Public Se r vic e Comp any of Co l o r a d o i s sent t o you f o r filing i n acco r d a nce wi t h the r e quirements o f t h e Publ i c Utilities La w: CO LORADO P .U . C. NO .6 - GAS and the foll owing she et is a tta ched: Ca ncels Colora do P .U. C. Sheet No . Title of Sheet Color a do P .U . C. Sh eet No . Fou r t h Re v i s ed 47C Pipe l i ne Syst em Th ird Re vis e d 47C Integrity Adj ustme nt The p r i n c i pal propos ed c hange is to i n crea s e the Company ' s Pipel i ne System Inte grity Adjustment (" PS IA ") , appl icable to a l l ga s sal es and gas trans p ortation r ate schedu les , in the Company's Colorado P . U. C. No . 6 Ga s t ariff, as ref l e c ted i n the a t tach e d t ariff sheet , t o bec ome e f fective Janu a r y 1, 201 4 . This r e v ision i s b e ing fi l e d d u r i ng the p e nd e ncy o f the Comm i ssion ' s d etermination i n the Company ' s Ga s Rate Case (Proceed i ng No . 12AL-12 68Gl, which ha s b e e n he ard before an Administr a tive La w Judge , h a s b e en ful l y bri efed b y t he p arties a nd i s cur r e nt ly p ending a r ecommend ed d e cision . In that p r oceedi ng , the Compa ny ma d e ce r t ain p r op o s als a nd interv e ning par tie s ma d e r e c omme ndatio n s wh ich , if approved, wou ld ma terial l y a f f ect t h e r e venue r e quirements calcu lat ions underl ying t he d e velopment o f t he 2 01 4 PSIA rates , a s wel l as t h e t e r ms and conditions o f the Compa ny ' s PSIA tar iff, a s set f o rth o n Sh e e t Nos. 47 thr ough 47B o f the Comp any 's gas tar i f f o r i g i na l ly a ppr ov ed b y the Commi s s ion i n De c i sion No . CI I - 0946 in Do cke t No . 10AL- 963G. Of part icular no t e , in i t s revi s e d t a ri f f s heets f i l e d De c emb er 12 , 2012 wi t h Advice Letter No. 83 0- Ga s , the Compa ny p r oposed to remov e all o f t h e 20 13 PS IA costs from r ecovery t h r ou gh t h e PSIA a nd s i mu l t a neous l y r o ll s a i d cost s into Publ ic Utilities Commission of the State of Colorado Adv ice No . 849 - Gas Page 2 base rates . The Company also p roposed to modi f y the l i s t o f integrity-related projects included i n the PSIA to r emove t he Edwards to Me a d ow Mountain Pipeline Replacement Project and to add the Pre 1 950s Tra ns mi s s i o n Main Replacement Program. Lastly, the Company p r opos e d to a c c eler ate i ts t i metab le fo r c ompleting certain integrity ma na geme nt initiatives within t e n years that were schedu led f o r l o nger than ten ye ars , i ncluding in-line i n s pection a ssess ments o f i ts transmission system, replacement o f vintage coated steel distribution mains , and its Accelerated Main Replacement Program . Th e Company's PSIA tariff was modified on Aug ust 10, 2013 , when the t a riff cha nges p ropos ed by t h e Company i n Adv ice Le t ter No . 8 30-Gas went int o effect by operation of l a w fo l lowing the max imum 210-day suspension p eriod, as further mod ifi e d to r eflect cer t ain i nterv ening changes . Those intervening changes were authori zed pursuant to Interim Decision No . R13-0972 -I , i s s ue d August 8 , 2013 . The t a r i ff shee ts t hat c ame ou t o f s uspension and became effective on August 10 , 20 13 , are s ubject to t h e r efu nd condition adopted in I nt e r i m Decision No. R13-027 9-I i s s ued March 5 , 20 13 , in Do cket No . 12AL-12 68G, which wi ll cease to apply for periods after December 31 , 2013 . Th e Company , as well as o t h e r par ties in Proceeding No. 1 2AL-1268G ful ly exp e ct that the Commission will issue a fina l decision before December 31 , 2013 resolving al l l i t i ga t ed issues concerning the Company's gas r a t es, i ncluding those issues a ffecti ng the PSIA . Accordingly, the PS IA rates reflected herein wi l l like l y need to be recalculated to be c o n sis t ent wi th the Comm iss ion ' s det erminatio ns in that f i nal decision. Based on these c ircumstances , this PS IA f ili ng does not i n c orp o rat e any o f the proposals o f the Company o r r e c omme ndations o f the intervening parties i n Proceeding No . 12AL -1268G and is being fi led with the expectation that it wi ll be modified at a later date p e nding suc h f i nal Commission d e cisio n i n t h at p roceeding . Compar e d to the Company's PS I A rate s t hat we nt i nto e ffect o n January 1 , 2013 (and remained i n effect through August 9 , 2013) , as fi led wi th Advice Le tter No. 827-Gas i n Docket No . 12 AL-10 53G , the r e v ise d PSIA reflects an i nc r e a s e o f $0 .00577 , f r om $0 .02035 to $0.02612 , on a per therm basis and a $0 .05770 increase , from $0 .20353 t o $ 0 .26123 , on a p er d e katherm ("D t h") b a s is. Th e PSIA rate is d e signe d t o a l low the Company to r e cover $4 7 ,264 ,935 from its gas customers during 2014 , which ref lects the difference between t h e t o t a l projected 2014 Pipeline System I ntegrity Co s ts of $ 61,51 4, 4 62, as d e s c rib e d in detail below, and the Projects Base Amo unt of $ 14 ,249 ,527 reflecting t h e base rate r e v e nu e requirement a ttributabl e to Pipel i n e Sy stem Integrit y Costs as der ived i n Publ i c Ut ilities Commission of the St a t e o f Co l o rado Adv ice No. 849 - Gas Page 3 Exh i bit D to the Settlement Agreement e ntered May 25 , 2011, a nd approved by the Commission in Docket No . 10AL -963G . Th e 201 4 Pi p e line Syst em Inte g r i ty Costs c o n s i st of the revenu e requirements associated with the following six programs or projects : U • Tra nsmissio n Integr ity Mana gement Prog r am ("T I Mp ) ; U • Distr i bu tion I nt egrit y Mana gement Pro g r am ("DIMp ) ; U • Accelerated Main Renewal Program ("AMRp ) ; • Ce l l u lose Acetate Butyrate Services ("CAB Services") Rep lacement Program; • We s t Main Rep l a c ement; and • Edwards to Meadow Mo u ntain Pip eline. As p r ovided fo r i n t h e PS IA tar iff in effect on Aug u s t 9 , 2 013 , t his revenu e requ i r ement includ e s: (1) a ret urn, at a per centage e qual to the Company's projected 2014 weighted average cost of capital , o n the p rojected i ncrease in t h e retai l juris dictio na l portion of the t h i r t e e n-mont h proj ected 2014 average net r a te base a s s ociated with the abov e progr ams or p ro j e c ts exc l usive of a l l pla nt in-s e r v i c e included i n t h e f i nal base r a t e revenue requirement in Docket No .