Summary
Xcel Energy Inc.'s subsidiary, Northern States Power Company (NSP-Minnesota), has filed a request to increase Minnesota gas rates. This filing, dated November 12, 2009, seeks an aggregate increase of $16.2 million for 2010, representing a 2.8% rise in customer bills. The request is based on a proposed return on equity of 11%, an equity ratio of 52.46%, and a rate base of $441 million. In addition to the 2010 request, NSP-Minnesota is seeking a further $3.45 million increase effective January 1, 2011, to cover pension funding costs mandated by federal law. Interim rates amounting to $11.1 million are anticipated to be implemented on January 11, 2010, with a final decision on the rate case expected in the fall of 2010. Investors should note the forward-looking nature of these statements and the associated risks, including economic conditions, regulatory actions, and competitive factors.
Key Highlights
- 1NSP-Minnesota, a subsidiary of Xcel Energy, filed to increase Minnesota gas rates by $16.2 million for 2010.
- 2This proposed increase equates to an overall customer bill hike of 2.8%.
- 3The filing is based on a requested return on equity of 11%, an equity ratio of 52.46%, and a rate base of $441 million.
- 4An additional $3.45 million increase is requested for January 1, 2011, to recover pension funding costs.
- 5Interim rates of $11.1 million are expected to be effective January 11, 2010.
- 6A final decision on the rate case is anticipated in the fall of 2010.