Summary
Xcel Energy Inc.'s subsidiary, Northern States Power Company (NSP-Wisconsin), has filed a request with the Public Service Commission of Wisconsin (PSCW) for an increase in annual electric rates of $17.4 million (2.4%) and natural gas rates of $4.8 million (3.9%), expected to be effective in January 2017. The electric rate increase is primarily to recover costs associated with generation and transmission, fuel, purchased power, and forecasted rate base investments. The natural gas rate increase is specifically to cover environmental remediation expenses at a former manufactured gas plant site in Ashland, Wisconsin. Importantly, the filing indicates no proposed changes to the capital structure or the currently authorized 10.0% return on equity (ROE). As part of an agreement to limit the scope of the rate case, NSP-Wisconsin has also agreed to an earnings cap for 2017, where any earnings exceeding the authorized ROE will be refunded to customers. A decision from the PSCW is anticipated in the fourth quarter of 2016.
Key Highlights
- 1NSP-Wisconsin requests a $17.4 million (2.4%) increase in annual electric rates.
- 2NSP-Wisconsin requests a $4.8 million (3.9%) increase in annual natural gas rates.
- 3Requested rate increases are expected to be effective January 2017.
- 4Electric rate increase driven by generation/transmission costs, fuel, purchased power, and rate base investments.
- 5Natural gas rate increase primarily for environmental remediation costs in Ashland, WI.
- 6No changes proposed to capital structure or the authorized 10.0% return on equity (ROE).
- 7NSP-Wisconsin agreed to an earnings cap for 2017, with excess earnings to be refunded to customers.
- 8PSCW decision on the rate request is anticipated in Q4 2016.