Summary
Xcel Energy Inc. (XEL), through its wholly-owned subsidiary Northern States Power Company, Wisconsin (NSP-Wisconsin), has filed an application with the Public Service Commission of Wisconsin (PSCW) for a rate case settlement covering 2020-2021. The proposed settlement is largely favorable for electric customers, with no expected changes to base rates through the end of 2021. For the natural gas utility, a modest $3.2 million, or 4.6%, decrease in base rates is anticipated effective January 1, 2020, with no further changes through December 31, 2021. The settlement includes several key provisions such as an allowed return on equity (ROE) of 10.0% for the electric utility and an equity ratio of 52.5%. Notably, NSP-Wisconsin will retain fuel cost savings from new wind farms and will utilize tax reform benefits to offset regulatory assets and fund customer bill credits. An earnings sharing mechanism is also included for 2020-2021, which would return a portion of excess earnings to customers.
Key Highlights
- 1NSP-Wisconsin files for a rate case settlement with the PSCW for 2020-2021.
- 2No change to NSP-Wisconsin's electric utility base rates through December 31, 2021.
- 3A $3.2 million (4.6%) decrease in NSP-Wisconsin's natural gas utility base rates effective January 1, 2020.
- 4Settlement includes an allowed electric ROE of 10.0% and an equity ratio of 52.5%.
- 5NSP-Wisconsin will retain fuel cost savings from new wind farms and utilize tax reform benefits.
- 6An earnings sharing mechanism will return 50%-100% of excess earnings above 10.25% ROE to customers in 2020-2021.
- 7A PSCW decision on the settlement is anticipated in Q3 2019.