Xcel Energy 2013 Annual Report Download - page 140

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122
The table below reconciles NSP-Minnesota’s original request to the final MPUC order:
(Millions of Dollars) MPUC Order
NSP-Minnesota original request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 285
ROE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (43)
Sherco Unit 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34)
Reduced recovery for nuclear plants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15)
Incentive compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4)
Sales forecast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26)
Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13)
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6)
Black Dog remediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5)
Estimated impact of the theoretical depreciation reserve . . . . . . . . . . . . . . (24)
NSP-Wisconsin wholesale allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7)
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5)
Recommended rate increase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Estimated impact of cost deferrals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Estimated impact of the theoretical depreciation reserve . . . . . . . . . . . . . . 24
Impact on pre-tax income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 147
NSP-Minnesota filed its final rate implementation and interim rate refund compliance filing on Sept. 19, 2013, requesting final rates
be implemented Dec. 1, 2013, with interim rate refunds of approximately $132.2 million, including interest, to begin by January 2014.
On Nov. 19, 2013, the MPUC approved the final rate implementation plan, new rates began Dec. 1, 2013 and interim rate refunds
were applied to customer accounts starting Dec. 16, 2013.
NSP-Minnesota Nuclear Project Prudence Investigation — The MPUC has initiated an investigation to determine whether the costs
in excess of those included in the CON for NSP-Minnesota’s Monticello LCM/EPU project were prudent. In October 2013, NSP-
Minnesota filed a summary report to further support the change and prudence of the incurred costs. The filing indicated the increase
in costs was primarily attributable to three factors: (1) the original estimate was based on a high level conceptual design and the
project scope increased as the actual conditions of the plant were incorporated into the design; (2) implementation difficulties,
including the amount of work that occurred in confined and radioactive or electrically sensitive spaces and NSP-Minnesota’s and its
vendors’ ability to attract and retain experienced workers; and (3) additional NRC licensing related requests over the five-plus year
application process. NSP-Minnesota has provided information that the cost deviation is in line with similar upgrade projects
undertaken by other utilities and the project remains economically beneficial to customers. The results and any recommendations
from the conclusion of this prudence proceeding are expected to be considered by the MPUC in NSP-Minnesota’s 2014 Minnesota
electric rate case.
The next steps in the procedural schedule are expected to be as follows:
• Direct Testimony — July 2, 2014;
• Rebuttal Testimony — Aug. 26, 2014;
• Surrebuttal Testimony — Sept. 19, 2014;
• Hearing — Sept. 29-Oct. 3, 2014;
• Reply Brief — Nov. 21, 2014; and
• ALJ report — Dec. 31, 2014.
A final MPUC decision is anticipated in the first quarter of 2015.
NSP-Minnesota - 2012 Transmission Cost Recovery Rate Filing — In January 2012, the 2012 NSP-Minnesota TCR filing was
submitted to the MPUC, requesting recovery of $29.6 million of transmission investment costs. As project costs have decreased and
certain transmission project costs have been removed and included in base rates, the anticipated revenue requirement for 2012 was
modified to approximately $22.9 million. In December 2013, the MPUC approved the 2012 TCR filing, with a few adjustments, for
approximately $22.7 million.
NSP-Minnesota - 2013/14 Transmission Cost Recovery Rate Filing — In December 2013, the 2013/14 NSP-Minnesota TCR filing
was filed with the MPUC, requesting recovery of $20.7 million of 2013 transmission investment costs and $37.3 million of 2014
transmission investment costs not previously included in electric base rates. An MPUC decision is anticipated in late 2014, with
implementation of new rates soon after approval.