What was the outcome of the rate case filed by NSP-Wisconsin?

NSP-Wisconsin, a subsidiary of Xcel Energy, was approved for an electric rate increase of approximately $6.4 million (1.2%) by the Public Service Commission of Wisconsin (PSCW). The PSCW did not approve any changes to natural gas rates. This is significantly less than the $30.4 million increase initially requested by NSP-Wisconsin.

Will customers see an increase in their utility bills in 2010?

While an electric rate increase was approved, the PSCW directed that $6.4 million of NSP-Wisconsin's 2009 fuel refund obligation be used to offset this increase. Consequently, Xcel Energy expects that, generally, there will be no change to NSP-Wisconsin's overall customer bills in 2010. However, individual customer bills may vary based on the new rate design.

What factors contributed to the PSCW approving a lower rate increase than requested?

The PSCW's decision was based on several factors, including a lower approved return on equity (10.4% vs. 10.75% requested), reduced interchange agreement fixed charge billings, a disallowance of certain employee compensation expenses, and a reduction for Prairie Island nuclear plant decommissioning expense related to its life extension. The PSCW also adjusted fuel cost projections.

When will these new rates go into effect?

A written order from the PSCW is expected by the end of 2009, with the new rates scheduled to become effective in January 2010.

XEL/XELLL 8-K SEC Disclosure

Summary

This Form 8-K filing from Xcel Energy Inc. (XEL) reports on a significant decision by the Public Service Commission of Wisconsin (PSCW) regarding Northern States Power Company (NSP-Wisconsin), a subsidiary. In June 2009, NSP-Wisconsin filed for an electric rate increase of $30.4 million (5.7%) and no change in natural gas rates, citing a need for a 10.75% return on equity. On December 11, 2009, the PSCW approved a much lower electric rate increase of approximately $6.4 million (1.2%), with no change in gas rates. The approved return on equity was also reduced to 10.4%.

Key Highlights

1NSP-Wisconsin, a subsidiary of Xcel Energy, sought a $30.4 million electric rate increase (5.7%) and no gas rate change.
2The Public Service Commission of Wisconsin (PSCW) approved a significantly lower electric rate increase of $6.4 million (1.2%).
3Gas rates were approved with no change, as requested.
4The PSCW reduced the approved return on equity (ROE) for NSP-Wisconsin from 10.75% to 10.4%.
5A portion of NSP-Wisconsin's 2009 fuel refund obligation ($6.4 million) will be used to offset the approved rate increase, resulting in generally no change to overall customer bills in 2010.
6The PSCW disallowed certain employee compensation expenses and reduced the rate base related to Prairie Island nuclear plant decommissioning costs.
7New rates are expected to take effect in January 2010, with a written order anticipated by the end of 2009.

XCEL ENERGY INC 8-K Report, Corporate Update (Dec 17, 2009)

Summary

Key Highlights

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