Summary
Xcel Energy Inc. (XEL) has filed an 8-K report disclosing a significant event for its subsidiary, Northern States Power Company (NSP-Minnesota). On June 30, 2009, NSP-Minnesota submitted a request to the South Dakota Public Utilities Commission (SDPUC) for an annual increase in electric rates amounting to $18.6 million, representing a 12.7% rise. This filing details the basis for the requested increase, including a historical test year, a proposed electric rate base of $282 million, and a requested return on equity of 11.25% with an equity ratio of 51.63%. The company anticipates that these new rates will be implemented by January 31, 2010, in accordance with South Dakota's statutory timelines.
Key Highlights
- 1NSP-Minnesota, a wholly owned subsidiary of Xcel Energy, is seeking an $18.6 million annual increase in South Dakota electric rates.
- 2The requested rate hike represents a 12.7% increase in overall rates.
- 3The filing specifies a 2008 historic test year and adjusted known changes in rate base and operating expenses.
- 4The proposed electric rate base is $282 million.
- 5NSP-Minnesota is requesting a return on equity of 11.25% and an equity ratio of 51.63%.
- 6The company expects the new rates to be effective on or before January 31, 2010.
- 7The report includes forward-looking statements regarding the rate case and its potential impact, subject to various risks and uncertainties.