8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Mar 2, 2012)

Filed March 2, 2012For Securities:XELXELLL

Summary

This Form 8-K filing from Xcel Energy Inc. and its subsidiary Northern States Power Company (NSP-Minnesota) reports on the resolution of a North Dakota electric rate case. On February 29, 2012, the North Dakota Public Service Commission (NDPSC) voted to approve a settlement agreement regarding NSP-Minnesota's electric rates. This agreement was reached after an initial request for a significant rate increase in December 2010, followed by revisions and a settlement with the NDPSC Advocacy Staff in September 2011. The approved settlement will result in a new rate increase of $13.7 million for 2011 and an additional step increase of $2.0 million for 2012. The new rates are anticipated to become effective on May 1, 2012. The settlement also includes provisions for a true-up of 2011 non-fuel revenues to address sales falling below test year projections, with a provision for revenue subject to refund already recorded by NSP-Minnesota. This resolution provides regulatory clarity for NSP-Minnesota's operations in North Dakota.

Key Highlights

  • 1NSP-Minnesota's North Dakota electric rate case has been settled and approved by the NDPSC.
  • 2New electric rates are expected to become effective on May 1, 2012.
  • 3The settlement includes a $13.7 million rate increase for 2011 and a $2.0 million step increase for 2012.
  • 4The approved Return on Equity (ROE) in the settlement is 10.4 percent.
  • 5A provision for revenue subject to refund of approximately $2.4 million for 2011 has been recorded by NSP-Minnesota related to the settlement terms.
  • 6The settlement addresses 2011 sales coming in below test year projections through a revenue true-up mechanism.

Frequently Asked Questions

The main event is the approval of a settlement agreement by the North Dakota Public Service Commission (NDPSC) for Northern States Power Company's (NSP-Minnesota) electric rates in North Dakota. This resolves a rate case initiated in December 2010.

The new rates are expected to become effective on May 1, 2012, following the NDPSC's approval of the settlement agreement on February 29, 2012.

The settlement provides for a rate increase of $13.7 million in 2011 and an additional step increase of $2.0 million in 2012.

Yes, NSP-Minnesota has recorded a provision for revenue subject to refund of approximately $2.4 million for 2011. The settlement also includes a true-up mechanism for 2011 non-fuel revenues to address sales that fell below test year projections.