Summary
Xcel Energy Inc. (XEL) filed an 8-K on March 19, 2007, primarily to report on regulatory proceedings and investor presentations. The most significant event detailed is the ongoing Minnesota gas rate case for its subsidiary, Northern States Power Company (NSP-Minnesota). NSP-Minnesota initially requested an annual revenue increase of approximately $18.5 million (2.4%) to support its operations and requested a return on equity of 11.00%. However, interveners in the case, including the Minnesota Department of Commerce and the Office of Attorney General, have filed testimony recommending lower revenue increases and lower rates of return on equity. The Department of Commerce proposed an $8.6 million revenue increase and a 9.71% return on equity, while the Attorney General proposed an 8.16% overall rate base return. Both parties also expressed opposition to a proposed decoupling mechanism, suggesting it be examined separately. The Energy CENTS Coalition, however, supported the decoupling mechanism. An interim rate increase of approximately $15.8 million was already in effect.
Key Highlights
- 1Xcel Energy Inc. (XEL) is providing an update on a Minnesota gas rate case for its subsidiary NSP-Minnesota.
- 2NSP-Minnesota initially requested an approximate $18.5 million (2.4%) increase in annual gas revenues.
- 3Key interveners, including the Minnesota Department of Commerce and Office of Attorney General, have recommended significantly lower revenue increases and return on equity figures.
- 4The Minnesota Department of Commerce proposed an $8.6 million revenue increase and a 9.71% return on equity.
- 5The Office of Attorney General proposed an 8.16% overall rate base return.
- 6Opposition to NSP-Minnesota's proposed decoupling mechanism was noted by the Department of Commerce and Attorney General, who suggested separate exploration.
- 7An interim rate increase of approximately $15.8 million was already implemented in January 2007.