Summary
Xcel Energy Inc. (XEL) reported via an 8-K filing on November 12, 2010, that its wholly-owned subsidiary, Northern States Power Company (NSP-Wisconsin), is seeking an increase in retail electric rates by $29.1 million (5.4%) for 2011. This request was filed with the Public Service Commission of Wisconsin (PSCW) to update rates reflecting anticipated increases in fixed charges, fuel costs, and pension-related components. The PSCW staff has recommended a lower increase of $20.1 million (3.7%). The primary drivers for the requested increase are investments in cleaner energy sources and transmission infrastructure, alongside higher fuel and purchased power costs. A partial offset comes from a refund related to the Monticello nuclear generating plant's decommissioning fund. The company is not seeking changes to its authorized capital structure or return on equity. The filing indicates that rebuttal testimony is due November 12, 2010, with hearings to follow, and NSP-Wisconsin aims for new rates to be effective January 1, 2011.
Key Highlights
- 1NSP-Wisconsin, a subsidiary of Xcel Energy, has requested a $29.1 million (5.4%) increase in retail electric rates for 2011.
- 2The PSCW staff has recommended a lower rate increase of $20.1 million (3.7%).
- 3Key drivers for the requested increase include investments in cleaner energy and transmission, higher fuel costs, and pension-related expenses.
- 4A refund from the Monticello nuclear decommissioning fund will partially offset the proposed rate hike.
- 5No changes are proposed to the company's capital structure or return on equity.
- 6The PSCW will hold technical and public hearings on November 17, 2010.
- 7NSP-Wisconsin is seeking to have the new rates effective January 1, 2011.