Summary
This Form 8-K filing by Xcel Energy Inc. (XEL) reports on a significant regulatory development for its wholly-owned subsidiary, Northern States Power Company (NSP-Wisconsin). On December 14, 2012, the Public Service Commission of Wisconsin (PSCW) approved a rate increase for NSP-Wisconsin's electric and natural gas services, effective January 1, 2013. The approved increases are slightly lower than initially requested by the company, but still represent a positive outcome for revenue generation. The PSCW authorized an electric rate increase of $35.5 million (6.1%) and a natural gas rate increase of $2.7 million (2.5%). The electric rate hike is attributed to factors supporting a 10.4% return on equity, while the natural gas increase is primarily to recover environmental cleanup costs at a site in Ashland, Wisconsin. Investors should note that while the PSCW has approved these rates, a final written order is anticipated later this month.
Key Highlights
- 1NSP-Wisconsin, a subsidiary of Xcel Energy, received approval for electric and natural gas rate increases from the Public Service Commission of Wisconsin (PSCW).
- 2The approved electric rate increase is $35.5 million, representing a 6.1% rise.
- 3The approved natural gas rate increase is $2.7 million, representing a 2.5% rise.
- 4The new rates are scheduled to become effective on January 1, 2013.
- 5The electric rate increase is based on a 10.4% return on equity.
- 6A portion of the natural gas rate increase is to recover environmental cleanup costs for a site in Ashland, Wisconsin.
- 7A final written order from the PSCW is expected later in December 2012.