Summary
This Form 8-K filing from Xcel Energy Inc. (XEL) on March 19, 2013, reports on a significant development regarding a rate increase request by its subsidiary, Northern States Power Company (NSP-Minnesota), in South Dakota. NSP-Minnesota had initially requested an annual electric rate increase of $19.4 million. Following negotiations, NSP-Minnesota and the South Dakota Public Utilities Commission (SDPUC) Staff have reached a settlement agreement. The settlement proposes a combined increase of approximately $15.3 million for 2013, consisting of an $11.6 million base rate increase and an additional $3.7 million through a new Rate Phase-In Rider. This rider is intended to recover costs for certain capital projects and incremental property taxes. The agreement also includes a moratorium on further base rate increases until January 1, 2015, should it be approved by the SDPUC. The decision on this settlement is anticipated in the first half of 2013.
Key Highlights
- 1NSP-Minnesota and SDPUC Staff have reached a settlement agreement on electric rate increases.
- 2The proposed settlement includes an approximate $11.6 million increase in base electric rates.
- 3A new Rate Phase-In Rider is proposed to recover an additional $3.7 million for capital projects and property taxes.
- 4The total revenue increase for 2013 under the settlement is projected to be approximately $15.3 million (9.1%).
- 5The settlement includes a moratorium on base rate increases until January 1, 2015, if approved.
- 6The SDPUC is expected to make a decision on the settlement in the first half of 2013.
- 7Interim rates of $19.4 million implemented on January 1, 2013, are subject to refund based on the final decision.