Xcel Energy 2013 Annual Report Download - page 139

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121
The rate request, moderation plan, interim rate adjustments, customer bill impacts and certain impacts on expenses are detailed in the
table below:
(Millions of Dollars) 2014 Percentage
Increase 2015 Percentage
Increase
Pre-moderation deficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 274 $ 81
Moderation change compared to prior year:
Excess theoretical depreciation reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . (81) 53
DOE settlement proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (36)
Filed rate request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 6.9% 98 3.5%
Interim rate adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (66) 66
Impact on customer bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 4.6% 164 5.6%
Potential expense deferral (Monticello/Prairie Island EPU projects) . . . . . 16 —
Depreciation expense - reduction/(increase) . . . . . . . . . . . . . . . . . . . . . . . . 81 (46)
Recognition of DOE settlement proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . — 36
Pre-tax impact on operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 224 $ 154
On Dec. 12, 2013, the MPUC approved interim rates of $127 million as requested, effective Jan. 3, 2014, subject to refund. The
MPUC determined that the costs of Sherco Unit 3 would be allowed in interim rates, and that NSP-Minnesota’s request to accelerate
the theoretical depreciation reserve amortization was a permissible adjustment to its interim rate request even though it differed from
the MPUC’s 2013 Minnesota rate case order.
The next steps in the procedural schedule are expected to be as follows:
• Direct Testimony — June 5, 2014;
• Rebuttal Testimony — July 7, 2014;
• Surrebuttal Testimony — Aug. 4, 2014;
• Evidentiary Hearing — Aug. 11-18, 2014;
• Reply Brief — Oct. 14, 2014; and
• ALJ Report — Dec. 22, 2014.
A final MPUC decision is anticipated in March 2015.
NSP-Minnesota – Minnesota 2013 Electric Rate Case — In November 2012, NSP-Minnesota filed a request with the MPUC for an
increase in annual revenues of approximately $285 million, or 10.7 percent. The rate filing was based on a 2013 FTY, a requested
ROE of 10.6 percent, an average electric rate base of approximately $6.3 billion and an equity ratio of 52.56 percent. In January 2013,
interim rates of approximately $251 million became effective, subject to refund.
In May 2013, NSP-Minnesota subsequently revised the requested annual revenue increase to approximately $209 million, or 7.8
percent, based on an ROE of 10.6 percent, a rate base of approximately $6.3 billion an equity ratio of 52.56 percent. The revenue
requirement reflected a requested deficiency of $259 million combined with $50 million of rate mitigation through deferral
mechanisms.
In September 2013, the MPUC issued an order approving a rate increase of approximately $103 million, or 3.8 percent, based on a
9.83 percent ROE and 52.56 percent equity ratio. In addition, the MPUC authorized approximately $20 million in deferrals, as well as
a $24 million reduction in revenue and depreciation expense.