Xcel Energy 2009 Annual Report Download - page 133

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revenue deficiency by approximately $40 million, while at the same time reducing expense accruals by a corresponding
amount. A summary of the key terms is listed below:
Revised Request Approved
Rate increase ............................................ $ 136 million $ 91 million
Return on equity ......................................... 11.0% 10.88%
Equity ratio ............................................. 52.5% 52.5%
Electric rate base .......................................... $ 4.1 billion $ 4.1 billion
Depreciation life extension for Prairie Island nuclear plant ................ 0 years 10 years
The written order was issued Oct. 23, 2009. As of December 2009, NSP-Minnesota recorded a customer refund of
approximately $39.7 million to reflect the difference between interim rates that were implemented Jan. 2, 2009 and the
amount approved by the MPUC.
NSP-Minnesota Gas Rate Case — In November 2009, NSP-Minnesota filed a request with the MPUC to increase
Minnesota gas rates by $16.2 million for 2010, which represents a 2.8 percent overall increase in customer bills. This
request is based on a ROE of 11 percent, an equity ratio of 52.46 percent and a rate base of $441 million.
NSP-Minnesota also requested an additional increase of $3.45 million, for recovery of pension funding costs effective
Jan. 1, 2011 to comply with federal law. In December 2009, the MPUC voted to approve an interim rate increase of
$11.1 million, subject to refund. These rates went into effect on Jan. 11, 2010. The procedural schedule is listed below
and a decision is expected in the fall of 2010.
• Intervenor direct testimony on May 3, 2010;
• NSP-Minnesota rebuttal testimony on June 2, 2010;
• Surrebuttal testimony on June 15, 2010;
• Evidentiary hearings on June 21-25, 2010;
• Initial briefs on July 27, 2010;
• Reply briefs and proposed findings on Aug. 19, 2010; and
• ALJ report on Oct. 1, 2010.
Electric, Purchased Gas and Resource Adjustment Clauses
TCR Rider — The MPUC has approved a TCR rider, which allows annual adjustments to retail electric rates to
provide recovery of incremental transmission investments between rate cases. The MPUC approved a rider request to
recover approximately $14 million in 2009. NSP-Minnesota has a request pending seeking recovery of $12.1 million in
2010. The OES recommended disallowance of $1.7 million of plant costs because one project was over budget and also
recommended that the Brookings line, which is subject to dispute at the FERC on cost allocation, not be recovered
through the rider at this time. The request is pending MPUC action.
RES Rider — The MPUC has approved a rider to recover the costs for utility-owned projects implemented in
compliance with the RES. In 2009, the MPUC approved the RES rider request to recover approximately $22 million
in 2009. In September 2009, NSP-Minnesota submitted its proposed RES rider, seeking to recover $45.6 million in
2010. The OES expressed concerns because some of the projected costs were slightly higher than the levels included in
NSP-Minnesota’s certificate filings and requested additional information, which has been provided. The request is
pending MPUC action.
MERP Rider — The MPUC authorized NSP-Minnesota to recover costs related to environmental improvement
projects amounting to approximately $113.7 million in 2009 through the MERP rider. In December 2009, the MPUC
authorized a new rate adjustment, which will recover approximately $116.7 million in 2010.
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