Summary
Xcel Energy Inc.'s subsidiary, Northern States Power Company (NSP-Minnesota), has filed an electric rate case with the South Dakota Public Utilities Commission seeking an approximate $44 million (17.9%) increase in electric revenues. This filing, the first since 2014, is driven by significant investments made in the reliability and modernization of its distribution systems, generation resources, and IT infrastructure. The request is based on a 2021 historic test year, adjusted for future known changes, and includes a proposed return on equity of 10.75% and a rate base of $947 million.
Key Highlights
- 1NSP-Minnesota is requesting a 17.9% increase in electric revenues in South Dakota, totaling approximately $44 million.
- 2This is the first electric rate case filed in South Dakota by NSP-Minnesota since 2014, indicating a significant adjustment period.
- 3The rate increase is attributed to substantial investments in distribution system reliability, generation resources, and information technology systems.
- 4The filing utilizes a 2021 historic test year with adjustments for known future changes (2022-2023).
- 5NSP-Minnesota is seeking a return on equity of 10.75%, reflecting its cost of capital and investment returns.
- 6The requested rate increase is expected to be effective in the first quarter of 2023, subject to regulatory approval.
- 7The filing includes forward-looking statements with associated risks and uncertainties, typical for regulatory filings.