Summary
This 8-K filing from Xcel Energy Inc. reports on the outcome of a rate case filed by its subsidiary, Northern States Power Company (NSP-Wisconsin). On December 5, 2013, the Public Service Commission of Wisconsin (PSCW) approved an electric rate increase of approximately $19.5 million, which is a 3.1% increase. This is lower than the $40.0 million initially requested by NSP-Wisconsin. The PSCW also approved cost deferrals of $4.1 million related to the Monticello Extended Power Uprate (EPU) project, pending a prudence review in Minnesota. Notably, the PSCW made no changes to natural gas rates, determining that the utility was in a revenue surplus position for 2014. Instead of a rate reduction, the surplus will be used to increase funding for environmental clean-up at the Ashland site, as proposed by NSP-Wisconsin. The approved electric rate increase is expected to have an estimated pre-tax income impact of $29.8 million, including the impact of cost deferrals and recognition of nuclear settlement proceeds. New rates are anticipated to become effective January 1, 2014, with a final written order expected by the end of December 2013.
Key Highlights
- 1NSP-Wisconsin received approval for an electric rate increase of $19.5 million (3.1%) from the PSCW on December 5, 2013.
- 2The approved electric rate increase is less than the initial request of $40.0 million.
- 3No change was made to natural gas rates; a 2014 revenue surplus of $1.1 million will fund environmental clean-up.
- 4Cost deferrals of $4.1 million related to the Monticello EPU project were approved, subject to a prudence review.
- 5The approved electric rate increase is expected to positively impact pre-tax income by an estimated $29.8 million, considering various adjustments.
- 6New electric rates are expected to be effective January 1, 2014, pending the final written order.