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.