Summary
This Form 8-K filing from Xcel Energy Inc. (XEL) reports on the outcome of a rate case for its subsidiary, Northern States Power Company of Wisconsin (NSP-Wisconsin), with the Public Service Commission of Wisconsin (PSCW). Initially, NSP-Wisconsin requested significant increases in electric and natural gas rates for 2012. However, following testimony from PSCW Staff and subsequent adjustments by NSP-Wisconsin, the PSCW has approved smaller increases than originally sought. The approved rate increases are approximately $12.2 million (2.1%) for electric and $2.9 million (2.4%) for natural gas, effective January 1, 2012. These increases are based on a revised return on equity (ROE) of 10.4%. Notably, the natural gas rate increase was impacted by the PSCW's denial of NSP-Wisconsin's proposal to pre-collect certain manufactured gas plant remediation costs. Investors should note that the final written order is anticipated by the end of 2011, with the new rates taking effect at the start of the new year.
Key Highlights
- 1NSP-Wisconsin received approval for electric rate increases of approximately $12.2 million (2.1%) and natural gas rate increases of approximately $2.9 million (2.4%) from the PSCW.
- 2The approved rate increases are effective January 1, 2012.
- 3The approved rate increases are lower than NSP-Wisconsin's initial request of $29.2 million for electric and $8.0 million for natural gas.
- 4The PSCW approved a return on equity (ROE) of 10.4% for NSP-Wisconsin.
- 5The PSCW denied NSP-Wisconsin's request to pre-collect certain manufactured gas plant remediation costs, impacting the natural gas rate increase.
- 6NSP-Wisconsin had previously adjusted its rate requests downwards due to updated fuel costs and project scheduling.
- 7A final written order from the PSCW is expected in the fourth quarter of 2011.