Summary
This 8-K filing from Xcel Energy Inc. (XEL) on March 25, 2013, primarily details an update to a rate increase request by its subsidiary, Northern States Power Company (NSP-Minnesota), before the Minnesota Public Utilities Commission (MPUC). NSP-Minnesota initially sought an annual revenue increase of approximately $285 million (10.7%), which was partially approved as interim rates of $251 million effective January 1, 2013, subject to refund. Following the filing of direct testimony by intervening parties, including the Minnesota Department of Commerce which recommended a much lower increase of $93.6 million, NSP-Minnesota has revised its request. The company now seeks an approximately $219.7 million (8.23%) annual revenue increase. This revised request reflects adjustments for various factors including deferrals related to Sherco Unit 3 and Monticello nuclear plant projects, removal of Prairie Island project costs, adjustments to compensation and benefits recovery, and updated forecasts for property taxes and sales. Xcel Energy also reaffirmed its 2013 earnings guidance of $1.85 to $1.95 per share, contingent on constructive outcomes in regulatory proceedings and other key operational assumptions.
Key Highlights
- 1NSP-Minnesota, an Xcel Energy subsidiary, revised its annual revenue increase request to the MPUC from $285 million to $219.7 million (8.23%).
- 2Interim rates totaling $251 million (97% of the initial request) were approved by the MPUC and became effective January 1, 2013, subject to refund.
- 3The revised rate request incorporates adjustments for deferrals of Sherco Unit 3 and Monticello nuclear plant expenses, and removal of Prairie Island project costs.
- 4Key intervenors, including the Minnesota Department of Commerce, proposed significantly lower rate increases, with the DOC recommending $93.6 million.
- 5NSP-Minnesota is seeking a 10.6% return on equity (ROE) in its rate case.
- 6Xcel Energy reaffirmed its 2013 earnings per share guidance of $1.85 to $1.95.
- 7The company's 2013 guidance is based on assumptions of normal weather, modest retail electric sales growth, and projected increases in O&M and property taxes.