01—Abstract
Summary
Summary of the 8-K filed April 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Xcel Energy Inc.'s wholly-owned subsidiary, Northern States Power Company-Wisconsin (NSP-Wisconsin), has filed a significant rate increase request with the Public Service Commission of Wisconsin (PSCW).
The proposed increase aims to raise electric revenues by $94 milliona (11.8%) in 2026 and an additional $57 million (7.1%) in 2027, totaling $151 million over the two-year period. For natural gas, the request is for $20 million (12.7%) in 2026 and $4 million (1.5%) in 2027, amounting to $24 million (14.2%) over the same period. These rate adjustments are primarily driven by substantial investments in NSP-Wisconsin's electric and natural gas infrastructure, aimed at enhancing reliability, resiliency, and supporting clean energy initiatives, including the benefits from wind, solar, and nuclear tax credits.
The company is requesting a 10.0%b return on equity with an equity ratio of 53.5%. A decision from the PSCW is anticipated in the fourth quarter of 2025, which will be a key date for investors to monitor.
02—Key points
Key Highlights
- NSP-Wisconsin is seeking a total electric revenue increase of $151 million over 2026-2027.
- The proposed electric revenue increase represents an 11.8% rise in 2026 and a 7.1% rise in 2027.
- NSP-Wisconsin is also requesting a natural gas revenue increase of $24 million over 2026-2027.
- The natural gas revenue increase equates to 12.7% in 2026 and 1.5% in 2027.
- Rate increases are driven by investments in system reliability, resiliency, and clean energy infrastructure.
- The company is proposing a 10.0% return on equity.
- A decision from the Public Service Commission of Wisconsin (PSCW) is expected in Q4 2025.
03—Questions
Frequently Asked Questions
What is the total requested revenue increase for NSP-Wisconsin?
NSP-Wisconsin is requesting a total electric revenue increase of $151 million over 2026 and 2027, and a total natural gas revenue increase of $24 million over the same period.
What are the primary drivers behind this rate increase request?
The rate increase is primarily driven by investments in NSP-Wisconsin's electric and natural gas systems to enhance reliability and resiliency, ensure safe operations, and enable additional clean energy generation. The benefits of wind, solar, and nuclear tax credits are also incorporated.
When is a decision expected from the Public Service Commission of Wisconsin (PSCW)?
A decision from the PSCW is anticipated in the fourth quarter of 2025.
What return on equity is NSP-Wisconsin requesting?
NSP-Wisconsin is requesting a 10.0% return on equity with an equity ratio of 53.5%.
04—Continue