Summary
Xcel Energy Inc. (XEL) subsidiary Northern States Power Company (NSP-Minnesota) has filed for significant electric and natural gas rate increases with the Minnesota Public Utilities Commission (MPUC). The electric rate case seeks a total increase of $677 million over three years (2022-2024), driven by investments in carbon-free generation and infrastructure. The company requested interim electric rates of $288 million for 2022, but the MPUC approved $247 million, effective January 1, 2022, subject to refund. A final decision is expected in Q2 2023. In parallel, NSP-Minnesota filed for a $36 million annual natural gas rate increase and interim rates of $25 million, both of which were approved by the MPUC effective January 1, 2022. Additionally, the MPUC approved extending the recovery period for Winter Storm Uri costs for residential customers from 27 to 63 months. Despite these regulatory filings, Xcel Energy reaffirms its 2022 GAAP earnings guidance of $3.10 to $3.20 per share.
Key Highlights
- 1NSP-Minnesota filed a three-year electric rate case requesting $677 million in total increases, driven by investments in carbon-free generation and infrastructure.
- 2The MPUC approved interim electric rates of $247 million for 2022, lower than the requested $288 million, subject to refund.
- 3A natural gas rate increase of approximately $36 million annually has been filed, with $25 million in interim rates approved for 2022.
- 4Winter Storm Uri cost recovery for residential customers will be extended from 27 to 63 months.
- 5Xcel Energy reaffirms its 2022 GAAP earnings per share guidance of $3.10 to $3.20.
- 6Final decisions on the electric rate case are anticipated in the second quarter of 2023.