Summary
Xcel Energy Inc. (XEL) subsidiary, Northern States Power Company (NSP-Minnesota), is undergoing a significant rate case proceeding with the Minnesota Public Utilities Commission (MPUC). NSP-Minnesota initially requested an approximate $285 million increase in annual revenues, based on a 2013 forecast year and a requested Return on Equity (ROE) of 10.6%. The MPUC approved interim rates of $251 million, effective January 1, 2013, subject to refund. On February 28, 2013, intervening parties, including the Minnesota Department of Commerce (DOC), filed direct testimony presenting significantly lower proposed revenue increases. The DOC recommended an increase of approximately $93.6 million, citing various adjustments such as a lower ROE, exclusion of costs related to Sherco Unit 3 (currently out of service), reduced recovery for nuclear plants, and lower pension/employee benefit expenses. The filing outlines a detailed procedural schedule for the remainder of the rate case, with a final MPUC Order anticipated by September 2013. Xcel Energy reaffirmed its 2013 earnings guidance of $1.85 to $1.95 per share, contingent on constructive outcomes in regulatory proceedings.
Key Highlights
- 1NSP-Minnesota, a subsidiary of Xcel Energy, requested a $285 million annual revenue increase from the MPUC.
- 2Interim rates of $251 million were approved by the MPUC, effective January 1, 2013, subject to refund.
- 3The Minnesota Department of Commerce (DOC) recommended a much lower revenue increase of approximately $93.6 million.
- 4Key contentious points include the ROE, recovery of costs for the Sherco Unit 3 power plant, and expenses for nuclear generating plants.
- 5A comprehensive procedural schedule for the rate case has been established, with a final MPUC order expected by September 2013.
- 6Xcel Energy reaffirmed its 2013 earnings per share guidance of $1.85 to $1.95, assuming favorable regulatory outcomes.