8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Dec 28, 2009)

Filed December 28, 2009For Securities:XELXELLL

Summary

This 8-K filing from Xcel Energy Inc. (XEL) on December 28, 2009, primarily concerns a rate settlement reached by its subsidiary, Northern States Power Company (NSP-Minnesota), with the South Dakota Public Utilities Commission (SDPUC). The original request was for an $18.6 million annual increase in South Dakota retail electric rates. The settlement agreement, filed on December 22, 2009, proposes an overall increase of approximately $10.95 million in electric base rates. Key aspects of the settlement include a 20-year extension of the Prairie Island nuclear generating plant's depreciable life, effective January 1, 2010, which will result in an approximate $3.2 million reduction in the overall rate adjustment. The SDPUC is expected to review the settlement in early January 2010, with new rates anticipated to be effective mid-January 2010. This filing provides investors with an update on regulatory proceedings that will impact future revenue for NSP-Minnesota.

Key Highlights

  • 1NSP-Minnesota and SDPUC Staff filed a joint motion and settlement stipulation agreement on December 22, 2009.
  • 2The settlement proposes an overall increase of approximately $10.95 million in NSP-Minnesota's electric base rates.
  • 3This is a reduction from the initial request for an $18.6 million annual increase in South Dakota retail electric rates.
  • 4The settlement includes a 20-year extension of the Prairie Island nuclear generating plant's depreciable life, effective January 1, 2010, leading to an approximate $3.2 million reduction.
  • 5The South Dakota Public Utilities Commission (SDPUC) is expected to review the settlement in early January 2010.
  • 6New rates are anticipated to become effective in mid-January 2010.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a settlement agreement reached between Xcel Energy's subsidiary, Northern States Power Company (NSP-Minnesota), and the South Dakota Public Utilities Commission (SDPUC) regarding proposed increases in South Dakota retail electric rates.

The settlement proposes an overall increase of approximately $10.95 million in NSP-Minnesota's electric base rates. This is lower than the initial request of $18.6 million.

The settlement recognizes a 20-year extension of the depreciable remaining life of the Prairie Island nuclear generating plant, effective January 1, 2010. This extension is expected to result in a reduction of approximately $3.2 million from the overall rate adjustment.

The South Dakota Public Utilities Commission (SDPUC) is expected to review the settlement in early January 2010, and new rates are anticipated to become effective in mid-January 2010.