8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (May 31, 2013)

Filed May 31, 2013For Securities:XELXELLL

Summary

Xcel Energy Inc.'s wholly-owned subsidiary, Northern States Power Company (NSP-Wisconsin), has filed a request with the Public Service Commission of Wisconsin (PSCW) to increase electric and natural gas rates. The proposed increase aims to take effect on January 1, 2014. This filing is a standard procedural step for utilities to recover ongoing investments in infrastructure and operational costs, and investors should monitor the PSCW's decision, expected in December 2013. The requested rate adjustments include a 6.5% increase for electric services ($40.0 million annually) and a 3.8% increase for natural gas services ($4.7 million annually). A significant portion of the natural gas rate increase, approximately two-thirds, is attributed to environmental remediation costs for a site in Ashland, Wisconsin. The electric rate increase is intended to fund essential investments in generation, transmission, and distribution facilities to ensure reliable service delivery.

Key Highlights

  • 1NSP-Wisconsin, a subsidiary of Xcel Energy, filed a request for electric and natural gas rate increases with the PSCW.
  • 2The requested rate hike is intended to become effective on January 1, 2014.
  • 3The proposed electric rate increase totals $40.0 million annually, a 6.5% rise.
  • 4The proposed natural gas rate increase totals $4.7 million annually, a 3.8% rise.
  • 5Approximately two-thirds of the natural gas rate increase is linked to environmental remediation at a site in Ashland, Wisconsin.
  • 6The rate filing is based on a 2014 forecast test year, a 10.4% return on equity, and specific investment rate base figures.
  • 7A decision from the PSCW is expected in December 2013.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report that Xcel Energy's subsidiary, Northern States Power Company (NSP-Wisconsin), has formally requested an increase in its electric and natural gas rates from the Public Service Commission of Wisconsin (PSCW).

NSP-Wisconsin is seeking an annual increase of $40.0 million (6.5%) for electric rates and $4.7 million (3.8%) for natural gas rates. The actual impact on Xcel Energy's consolidated financial statements will depend on the final decision by the PSCW.

The electric rate increase is to support investments in generation, transmission, and distribution facilities to meet customer demand reliably and cover increased operating costs. The natural gas increase is for investments in distribution facilities and to recover costs associated with environmental remediation of a site in Ashland, Wisconsin.

The Public Service Commission of Wisconsin (PSCW) is anticipated to make a decision on the rate requests in December 2013, with any approved final rates expected to go into effect in January 2014.