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.