Summary
This Form 8-K filing from Xcel Energy Inc. (XEL) on June 8, 2012, details the outcome of a petition by its subsidiary, Northern States Power Company (NSP-Minnesota), regarding deferred accounting for 2012 property tax expense. Following a settlement agreement from a November 2011 rate case, NSP-Minnesota sought to defer approximately $24 million in incremental property taxes that would not be recovered in base rates, or alternatively, to implement a property tax rider. However, on June 7, 2012, the Minnesota Public Utilities Commission (MPUC) verbally denied both the deferred accounting request and the property tax rider. A formal written order is expected soon. In response to this denial, NSP-Minnesota is exploring its options, including potentially accelerating a planned electric rate case filing to implement interim rates in the fall of 2012. This development is significant for investors as it indicates a potential delay in cost recovery for NSP-Minnesota and may impact future earnings or require adjustments to rate structures. The company is actively reviewing strategies to address the financial implications of the MPUC's decision.
Key Highlights
- 1NSP-Minnesota's request for deferred accounting of approximately $24 million in incremental 2012 property taxes was denied by the MPUC.
- 2The MPUC also denied NSP-Minnesota's alternative proposal for a property tax rider.
- 3The decision by the MPUC occurred on June 7, 2012, with a written order anticipated shortly.
- 4This denial stems from a petition filed in December 2011, as part of a November 2011 settlement agreement in a Minnesota electric rate case.
- 5NSP-Minnesota is considering accelerating its planned electric rate case filing to seek interim rate implementation in Fall 2012.
- 6Key stakeholders like the Minnesota Department of Commerce and Office of the Attorney General recommended denying the request.
- 7Other parties, such as the Xcel Large Industrials and Minnesota Chamber of Commerce, had supported deferred accounting over a rider.