8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (May 13, 2010)

Filed May 13, 2010For Securities:XELXELLL

Summary

This Form 8-K filing by Xcel Energy Inc. (XEL) and its subsidiary Northern States Power Company (NSP-Minnesota) reports on the ongoing Minnesota natural gas rate case. In November 2009, NSP-Minnesota requested a $16.2 million rate increase for 2010, with an additional $3.45 million for 2011 to cover pension funding costs. An interim rate increase of $11.1 million, effective January 11, 2010, was approved subject to refund. The filing highlights the testimony filed on May 3, 2010, by the Office of Energy Security (OES) recommending a significantly lower increase of approximately $1.9 million and opposing the pension funding cost recovery. The Minnesota Office of the Attorney General (OAG) also filed testimony recommending reductions in various expenses and opposing the pension funding cost recovery. Rebuttal testimony is expected in June 2010, with a final decision from the Minnesota Public Utilities Commission anticipated in the fourth quarter of 2010.

Key Highlights

  • 1NSP-Minnesota filed a request for a $16.2 million natural gas rate increase for 2010 with the MPUC.
  • 2An interim rate increase of $11.1 million, subject to refund, was approved and implemented on January 11, 2010.
  • 3The Office of Energy Security (OES) recommended a substantially lower rate increase of approximately $1.9 million.
  • 4The OES also recommended against the inclusion of an additional $3.45 million for 2011 related to pension funding costs.
  • 5The Minnesota Office of the Attorney General (OAG) recommended reductions in various expenses and opposed the pension funding cost recovery.
  • 6Rebuttal testimony is scheduled for June 2, 2010.
  • 7A final MPUC decision in this rate case is expected in the fourth quarter of 2010.

Frequently Asked Questions

This filing provides an update on the ongoing Minnesota natural gas rate case for Northern States Power Company (NSP-Minnesota), a subsidiary of Xcel Energy Inc. It details the requests made by the company, the interim decision, and the positions taken by key regulatory bodies like the Office of Energy Security (OES) and the Minnesota Office of the Attorney General (OAG).

NSP-Minnesota initially requested a $16.2 million increase in Minnesota natural gas rates for 2010, along with an additional $3.45 million for 2011 specifically for recovering pension funding costs required by federal law.

Both the OES and OAG recommended significantly lower rate increases than the company's request. The OES proposed an increase of approximately $1.9 million and opposed the pension funding cost recovery. Similarly, the OAG recommended reductions in several expense categories and also opposed the pension funding cost recovery for 2011.

A final decision from the Minnesota Public Utilities Commission (MPUC) regarding this rate case is anticipated in the fourth quarter of 2010.