Summary
Xcel Energy Inc.'s subsidiary, Northern States Power Company (NSP-Minnesota), has reached a settlement agreement with the North Dakota Public Service Commission (NDPSC) Advocacy Staff regarding its 2011 electric rate case in North Dakota. This filing updates investors on the key terms of this settlement, which is anticipated to result in a smaller rate increase than initially requested. The settlement proposes an increase of approximately $13.7 million (8.3%) in 2011 retail electric base rates and a $2.0 million (1.2%) step increase for 2012. This is a reduction from the original request for $19.8 million in 2011 and $4.2 million in 2012, partly due to revisions stemming from the termination of the Merricourt wind project. The agreed-upon return on equity (ROE) is 10.4%. The settlement also addresses recovery of capital investments related to the Minot electric system flood and includes provisions for a sales forecast true-up in 2012. A final decision is pending NDPSC settlement hearings scheduled for October 18, 2011.
Key Highlights
- 1NSP-Minnesota reached a settlement on its North Dakota electric rate case.
- 2The proposed 2011 rate increase is approximately $13.7 million (8.3%), down from the initial request of $19.8 million.
- 3A 2012 step increase of approximately $2.0 million (1.2%) is included in the settlement.
- 4The agreed-upon Return on Equity (ROE) is 10.4%.
- 5The settlement allows for recovery of capital investments related to the Minot electric system flood.
- 6A true-up mechanism for 2012 sales forecasts to weather-normalized actual sales is part of the agreement.
- 7Final NDPSC decision is pending, with hearings scheduled for October 18, 2011.