Summary
Xcel Energy Inc. (XEL) reported via an 8-K filing on August 11, 2025, on the progress of its subsidiary, Northern States Power Company-Wisconsin (NSP-Wisconsin), regarding its rate increase request. NSP-Wisconsin initially filed for a combined two-year (2026-2027) electric and natural gas revenue increase of $175 million. However, the Public Service Commission of Wisconsin (PSCW) Staff has recommended a lower combined increase of $136 million, reflecting adjustments in capital investments, return on equity (ROE), and operating and maintenance (O&M) expenses. A key detail is that the PSCW Staff's recommendation is based on a slightly lower ROE of 9.7% compared to NSP-Wisconsin's requested 10.0%.
Key Highlights
- 1NSP-Wisconsin, a subsidiary of Xcel Energy, filed for a multi-year electric and natural gas rate increase totaling $175 million for 2026-2027.
- 2PSCW Staff recommended a lower combined rate increase of $136 million ($115 million electric, $21 million natural gas) over the same period.
- 3The PSCW Staff's recommendation is based on a 9.7% ROE, slightly lower than the 10.0% requested by NSP-Wisconsin.
- 4Adjustments in the PSCW Staff's recommendation include reductions in proposed capital investments and O&M expenses.
- 5The filing mentions that two MISO Long Range Transmission Plan (LRTP) projects are pending PSCW approval and may be subject to adjustments until approved.
- 6A procedural schedule is in place, with rebuttal testimony due August 28, 2025, and a hearing on September 16, 2025.
- 7A final PSCW decision on the rate request is anticipated in late fourth quarter 2025.
Frequently Asked Questions
This 8-K filing provides an update on the regulatory proceedings for NSP-Wisconsin's rate increase request. It details the initial filing, the recommendations from PSCW Staff, and the procedural timeline leading to a decision.
NSP-Wisconsin requested a total of $175 million in revenue increases over two years (2026-2027). The PSCW Staff, however, recommended a lower total increase of $136 million, citing adjustments to capital investments, O&M expenses, and a slightly lower authorized Return on Equity (ROE).
A final decision from the Public Service Commission of Wisconsin (PSCW) on the rate increase request is anticipated in late fourth quarter 2025.
The PSCW Staff has historically made adjustments for projects pending PSCW approval. While two LRTP projects are pending, their approval is anticipated in Q4 2025, and the PSCW Staff's recommendation included adjustments related to these projects until formal approval is received.