8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Apr 6, 2011)

Filed April 6, 2011For Securities:XELXELLL

Summary

This Form 8-K filing by Xcel Energy Inc. (XEL) on April 6, 2011, primarily reports on the progress of a Minnesota electric rate case filed by its subsidiary, Northern States Power Company (NSP-Minnesota). In November 2010, NSP-Minnesota requested an approximate $150 million annual electric rate increase for 2011, later revised to $148.3 million. The company sought a return on equity (ROE) of 11.25% and proposed an electric rate base of $5.6 billion. An interim rate increase of $123 million was approved, subject to refund. The filing details the direct testimony from intervening parties, notably the Minnesota Office of Energy Security (OES), which recommended a significantly lower increase of approximately $56.9 million for 2011, proposing a 10.53% ROE and various expense reductions. Other interveners, including the Attorney General and large industrial customer groups, also proposed modifications to the rate request. The Minnesota Public Utilities Commission (MPUC) is expected to issue a final decision in the fourth quarter of 2011.

Key Highlights

  • 1NSP-Minnesota initially requested a $150 million increase in annual electric rates for 2011, later revised to $148.3 million.
  • 2An interim rate increase of $123 million, subject to refund, was approved by the MPUC effective January 2, 2011.
  • 3The Minnesota Office of Energy Security (OES) recommended a much lower 2011 rate increase of approximately $56.9 million.
  • 4OES proposed a lower ROE of 10.53% compared to NSP-Minnesota's requested 11.25%.
  • 5Various interveners, including the Attorney General and customer groups, have filed testimony proposing modifications to the rate request.
  • 6A procedural schedule has been established, with an MPUC final decision anticipated in the fourth quarter of 2011.

Frequently Asked Questions

The main event reported is the progress of the Minnesota electric rate case initiated by Xcel Energy's subsidiary, Northern States Power Company (NSP-Minnesota). This includes updates on the rate increase request, intervening parties' testimony, and the procedural schedule for the MPUC's decision.

NSP-Minnesota initially requested approximately $150 million in annual electric rate increases for 2011, later revised to $148.3 million. An interim rate increase of $123 million, subject to refund, was approved by the MPUC and became effective on January 2, 2011, while the final decision is pending.

The Minnesota Public Utilities Commission (MPUC) is expected to issue its final decision on the rate case in the fourth quarter of 2011, with an order due by November 28, 2011, according to the established procedural schedule.

The Minnesota Office of Energy Security (OES) recommended a significantly lower increase for 2011, approximately $56.9 million, compared to NSP-Minnesota's revised request of $148.3 million. The OES also proposed a lower return on equity (ROE) of 10.53% versus the company's requested 11.25% and recommended several expense and rate base reductions.