~ 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

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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 , 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 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 , 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

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Exh i bit D to the Settlement Agreement e ntered 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 . 10AL- 963G; (2 ) t he p lant-related ownership costs associated wi t h s uch incremental p lant investment , including d epreciation , acc umulated defe r r e d i ncome t axes, and inc ome t a x e s; and (3 ) t he proj e c t ed i n c r eme nt al 20 14 Ope r ating a nd Maint enance e xp e n s e s related to the above projects . Wit h respect t o the Edward s to Meadow Mountain Pipel ine , the projected 20 14 net p lant in-service balances were reduce d by 2 6 .6 perce nt t o exc l ud e the porti o n o f the p ro j ect cost s associ ated wi t h increa s ing p i p e line c apaci ty . Similar ly, with respect to the West Main Replacement , the projected 2014 ne t p lant i n -service balances were reduced by 22 .9 percent .

In c a l c ulat i ng the 2 01 4 PS IA reve nu e requi r ements f o r pur p o s es of t h is 1 , 2013 Annua l PS IA f iling, the Company incorporated the same ratemaking pri nciples a nd assumpt ions f r om t he Compa ny 's l a s t gas r a t e case i n Docket No . 10AL -963G . For purposes of the ret urn calcu lat ion, U the Comp a n y use d a return on equ i t y (" RO E ) o f 10.1 per c e nt , a s author ized in Docket No. 10AL -963G , t he Company's projected 2014 cost o f l ong - t erm debt of 4. 66 percent , and the Company's proj ected 20 14 capital s tructure consisting o f 43 .98 percent long-term debt a nd 56 .02 percent equi t y . On ce the Commission i ssues i t s f inal decis i on resol v i ng t h e c o nte sted issues and est ablishi ng new gas base r a t e s i n Proceeding No . 12AL-1268G, the Compa ny wi l l recalcu late t he 20 14 PSIA revenue requi rements and f ile a n a mended advice l e t t e r to i mpl eme n t Public Utilitie s Commission o f the Stat e o f Colorado

Advice No. 84 9 - Gas

Pa ge 4 r e v i sed PSIA r a tes based o n the r atema king p r i nciples a nd assumpt ions from that c a se .

Th e Company i s attaching t he following e xhibits:

Exhibit No.1: Rate Ca lcu l a t ion and Bill Impacts Exhibit No.2: 20 1 4 Re v enue Requirement Ca l c u l a tion Exhibit No. 3: 2 012 Re v enue Requirement Ca lculat ion Exhibit No.4: Over a l l Pr ogram Su mmary Exhibit No.5: TIMP Su mmary Exhibit No .6: DI MP Summa ry Exhibi t No . 7 : AMR P Summary Exhibit No.8: CAB Se r vices Summary Exhibit No .9 : West Main Replac eme nt Summa ry Exhibit No. 10: Pre-1 950s Tr ansmis sion Main Replacement Program Summary

Exhibit No s. 1 and 2 pro vide der ivat ions o f the O& M expenses and capi t a l cos ts b y p rog r am o r p ro j ect and t he r e sulting rate s and customer bill impacts. Th e d erivation of t h e t otal 20 1 4 Pipeline System Inte grity Adj ust ment Re venue Requirement i s broken dow n by projec t as f ollows:

TIMP $26 , 406 , 5 47 DI MP $9 ,283 ,662 AMRP $14,494, 332 CAB Se rvices $6,050 ,648 Wes t Main Repla c ement $5 ,732 ,0 47 Edwards t o Meadow Mountain $3 , 2 66 , 53 8 Pre-1 950 s Tr ans mi ssio n $ 3 4 ,846 201 4 Proj ect Re v enue Requirement $65 ,268 ,619 Le s s: Pre-1 950s Transmi ssion ($ 3 4 ,8 46 ) Le s s: Accelerations ($ 3, 807, 8 95 ) 2 01 4 PSIA Re v enue Requirement $61 ,42 5 ,878 Les s: True-up of 2 012 PSIA Cos t s ($2,561, 650) Plus: Tru e-up o f 2 01 2 PSIA Revenue $2 ,650 ,234 Total 201 4 PSI A Revenue Requirement $ 61,514,4 62

Exhibit No. 3 i s the 20 12 true-up r e v enue r e quireme nt calculation.

Exhibit No. 4 is an overal l summar y o f t h e Company's inte grit y mana g ement p rog rams a nd p rojects . Thi s exh ibit i nt r oduc e s the Public Utilities Commi s sion of the State of Co lorado

Advice No . 849 - Gas

Page 5 specific program and proj ect detail i n Exhibit Nos. 5 t hrough 10 a nd explains the i n tegrity mana g e ment p lan n i ng process , as we l l as a s ummary of 20 14 programs and projects and revenue requirements.

Ex h ibi t No s. 5 through 1 0 pro vid e, by pro j ect , an over v iew and scop e o f the p r o j e c t, ke y changes since last year's PSIA filing , an update on 2013 activities , and p lan ned 20 14 activities . Al t hough the project costs are inclu d e d, t h e r e i s no narrative d iscussing the Edwards to Meadow Mountain p r o j ect , a s the pro j ect was c omple t e d in 2012 , and there are no act i v i ties a n t i c ipated .

Upon the proposed PSIA becoming effective , the average residential customer monthly b i l l wou ld i ncrease by $0 .36 , f r om $47 .76 to $48 . 12 , or by 0 .75 percent . The average small comme rcial cus t omer month l y b i l l wo u ld i n c rease by $ 1. 56 , f r om $1 9 6 .42 to $ 1 97. 98, o r by 0.79 percen t . Th e s e impa cts r e f lect t h e diff e r e n c e between the PS IA that was effective from January 1 , 2013 , through August 9 , 2013 , with t h e PS IA proposed in the ins t ant filin g. Given t h a t t h e ins t ant f i l i ng does not affect any base rates or r iders other than the PSIA, the se b i l l i mpac t s assume no chang es to any rat e s othe r than the PS I A.

Compared to the Company' s PS IA rates t h a t went into effect on January 1, 2013 , the PS IA rates ref lected in t his filing wou ld i ncrease the Company's annual gas revenues by $11 ,013 ,401 , based on the twelve-month p eriod endi ng Decembe r 31 , 201 4 .

In orde r to mini mi ze confus ion, t h e Comp a n y i s not proposing as part of this advice letter t o modify t h e currently-effective tarif f sheets set ting fort h rate components p ursuant to Ru le 4406(b) of the Commission's Rules Regulating Gas u t ilities and Pipel i ne Operat o r s (Sheet Nos. lOA , l OB, 10C and 100) or rate summation tari ff s h e e t s (Sheet Nos. 11, 11A, 11B a nd 1 1C) to inc o r p o r a te the PSIA r a t e changes detailed herein . As stated above, the proposed PSIA rates are likely to be mod i fi e d o n or before J anua r y 1, 20 14 , in accordance wi t h t he Commission's determinations i n a decision issued i n the Company's gas rate cas e in Proce eding No . 1 2AL- 1 2 68G. Moreov e r , t h e Comp a n y wi l l a lso be impl ementing c hanges eff e ctive Janu a r y 1 , 2 0 14 p ursu a nt t o the terms o f i t s effec t ive Gas Cost Adjustment ("GCA") tariff and Demand­ Side Management Cost Ad j ustment (" DSMCA") tariff. Th e Company p lans to ma ke t he ne c e s s a r y changes to the Ru le 4406 (b) rate component and rate s ummation tariff sheets in a s i n g le advice l ette r filin g that will include a ll of the PS I A, GCA and DSMCA c han g e s to be impleme n t ed effect i v e January 1, 20 14 . Public Util ities Commission o f the State of Colorad o

Advice No . 849 - Gas

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Pursuant t o t he Applic ation fo r Al t e rnat ive Fo r m of Not i c e and f o r Wa iver of Response Time fi l e d with the Commission contemporaneously h ere with, t h e Compa ny p lans t o provide notic e o f this filing by causi ng t o be p ub lished i n The Denver Post on Sunday, December 1 , 2013 , a notice s i mila r in fo rm a nd content to thos e t h e Compa ny t ypically uses to p r ovide noti c e o f change s pursua nt to other gas and e lectr i c automat ic adjustme nt c lause s for which the Company files on l e s s t h a n t h i r t y days ' no t i c e . A copy of t he p roposed notice i s a ttached t o t he App l ication . In addi t ion , t he Company wi l l post this advice l e t t e r and al l accompanying tar i f f sheets and e xh ibits to i t s webs i t e fo r pub l ic ins pectio n. Lastl y, Publi c Ser v i c e wi l l also p rovi d e customer e d u c a t i on inf ormation regardi ng t he nat u re and b a sis o f the PSIA rate change d i rectly to all of the Company's natur al gas c ustomers thr ough a b i l l ins ert t o be includ e d in c ustomer b i l ls during De c embe r 20 13 .

It is r e que s ted that the tar iff change s accomp anying t h is a d v ice l ett er, as ame nd ed to ref lect the Commission 's determinations i n a fina l decision ln Proceedi ng No . 12AL-1 2 68G, become effective o n J a nua r y 1, 2014 .

Please s end c op i es o f all notices, p leadi ngs , corre s p ondence , and ot her doc ument s rega r ding this fil ing t o:

Scott B. Brocket t Director Regula t o ry Admi ni s tratio n and Compliance Xcel Energy Se r vic es Inc. 1 800 La rimer St , Suite 1400 Denv er, Colorado 80202-5533 Tel: (303) 294 -2164 Fa x: (303) 294 -2329 Email: scot t . b .brocke t t @xcelene r gy .com and Public Utilities Comm iss i o n o f t he State o f Colorado

Advi c e No. 8 4 9 - Gas

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Stev e n H. Denman, # 7 857 Assist a nt Gener a l Cou nse l Xcel En ergy Ser v ices Inc. 1 800 Larimer St r eet , Suite 11 0 0 Denv er, CO 802 02 Ph one: (3 03) 29 4-222 5 Fax: (30 3 ) 29 4 - 2 988 E-mail : Steve n . H. Denma n @xce lene rgy .com

Mana ger

MAM: p e j

Enclo sures COLO. PUC NO.6 Gas PUBLIC SERVICE COMPANY OF COLORADO Fourth Revised 47C

P.O. Box 840 Denver, CO 80201-0840 Third Revised 47C

NATURAL GAS RATES

PIPELINE SYSTEM INTEGRITY ADJUSTMENT

RATE TABLE

Rate Schedule Billing Units Type of Charge PSIA Rate

Residential Service

RG Therm Usage $0.02612 I

RGL Therm Usage $0.02612 I

Commercial & Industrial Sales Service

CSG Therm Usage $0.02612 I

CLG Dekatherm Usage $0.26123 I

CGL Therm Usage $0.02612 I

IG Dekatherm Usage $0.26123 I

Gas Transportation Service

TFS Dekatherm Usage $0.26123 I

TFL Dekatherm Usage $0.26123 I

TI Dekatherm Usage $0.26123 I

ADVICE LEDER ISSUE NUMBER 849 -l~~~~~~~~~~~~~TE , 2013

DECISION VICE PRESIDENT, EFFECTIVE NUMBER Rates & Regulatory Affairs DATE January 1, 2014