8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (May 12, 2017)

Filed May 12, 2017For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) reported on May 12, 2017, several significant regulatory updates across its subsidiaries, primarily concerning rate cases and infrastructure investments. Notably, Northern States Power Company (NSP-Minnesota) received verbal approval from the Minnesota Public Utilities Commission for a settlement agreement that is expected to result in a total rate increase of approximately $245 million over four years (2016-2019). This settlement includes key terms such as an annual sales true-up and a return on equity of 9.2 percent. In Colorado, Public Service Company of Colorado (PSCo) filed a settlement agreement for its Advanced Grid Intelligence and Security (AGIS) project, a significant initiative involving advanced meters and grid optimization. The total estimated capital cost for this project is now $537 million, with a portion deferred. Southwestern Public Service Company (SPS) also reached settlements in Texas regarding transmission cost recovery, allowing for approximately $14.4 million in annual revenue recovery. However, SPS's electric rate case in New Mexico was dismissed by the New Mexico Public Regulatory Commission, and the company is considering its legal options while planning to file a new rate case later in the summer. Xcel Energy reaffirmed its 2017 earnings guidance, contingent on constructive outcomes in regulatory proceedings.

Key Highlights

  • 1NSP-Minnesota's settlement agreement for its 2016 electric rate case received verbal approval from the MPUC, projecting a $245 million rate increase over four years (2016-2019).
  • 2Key terms of the NSP-Minnesota settlement include a four-year rate case stay-out provision, annual sales true-up, and a 9.2% ROE.
  • 3PSCo's AGIS project, aimed at grid modernization, now has an estimated capital cost of $537 million (2017-2024) after a settlement agreement was filed.
  • 4SPS reached a settlement in Texas for its Transmission Cost Recovery Factor (TCRF) application, allowing for approximately $14.4 million in annual revenue recovery.
  • 5SPS's electric rate case in New Mexico was dismissed by the NMPRC, and SPS is exploring legal options and plans to refile.
  • 6Xcel Energy reaffirmed its 2017 GAAP and ongoing earnings guidance of $2.25 to $2.35 per diluted share.
  • 7The company's guidance is based on the assumption of constructive outcomes in all pending rate case and regulatory proceedings.

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