Summary
This 8-K filing from Xcel Energy Inc. (XEL) on September 15, 2017, provides an update on a rate increase request filed by its subsidiary, Northern States Power Company, Wisconsin (NSP-Wisconsin), with the Public Service Commission of Wisconsin (PSCW). NSP-Wisconsin initially requested an annual increase of $24.7 million (3.6%) for electric rates and $12.0 million (10.1%) for natural gas rates, effective January 1, 2018. These requests are intended to support ongoing investments in utility infrastructure and align revenues with forecasted expenses and sales. The PSCW Staff and intervenors have filed their direct testimony, recommending a lower rate increase than initially requested. The PSCW Staff recommended an electric rate increase of $10.9 million (1.6%) and a natural gas rate increase of $9.9 million (8.3%). These recommendations are based on a lower return on equity (ROE) and adjusted capital structure compared to NSP-Wisconsin's filing. The filing outlines the procedural schedule leading to a PSCW decision expected in December 2017, with new rates anticipated in January 2018.
Key Highlights
- 1NSP-Wisconsin, a subsidiary of Xcel Energy, requested rate increases for electric and natural gas services from the PSCW.
- 2Initial electric rate increase request: $24.7 million (3.6%).
- 3Initial natural gas rate increase request: $12.0 million (10.1%).
- 4These increases are to fund investments in generation, transmission, distribution, and environmental remediation.
- 5PSCW Staff recommended a lower electric rate increase of $10.9 million (1.6%) and a natural gas rate increase of $9.9 million (8.3%).
- 6The difference in recommendations is largely due to differing views on ROE and capital structure.
- 7A PSCW decision is expected in December 2017, with new rates potentially effective in January 2018.