Summary
Xcel Energy Inc. (XEL) has filed a request with the Minnesota Public Utilities Commission (Commission) on November 9, 2006, to increase its natural gas rates by $18.5 million. This proposed increase represents a 2.4% overall rise in rates, primarily attributed to capital investments made within Minnesota and escalating operating expenses. The filing also outlines specific financial parameters for the rate adjustment, including a requested common equity ratio of 51.98% and a target Return on Equity (ROE) of 11%. The jurisdictional rate base involved in this request is approximately $439 million. If the Commission approves, interim rates could take effect as early as January 8, 2007, potentially leading to an 11.53% increase on the current distribution margin or a 2.07% increase on total gas revenues, should the case be suspended.
Key Highlights
- 1Xcel Energy filed a request on November 9, 2006, with the Minnesota Public Utilities Commission to increase natural gas rates.
- 2The proposed rate increase amounts to $18.5 million, representing a 2.4% overall rise.
- 3Key drivers for the rate increase include Minnesota capital investments and rising operating costs.
- 4The company is requesting a common equity ratio of 51.98% and a Return on Equity (ROE) of 11%.
- 5The jurisdictional rate base for this request is approximately $439 million.
- 6Interim rates, if approved and the case is suspended, are proposed to be effective January 8, 2007.
- 7Interim rates could result in an 11.53% increase on the current distribution margin or a 2.07% increase on total gas revenues.