Xcel Energy 2014 Annual Report Download - page 42

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In January 2015, XETD and XEST submitted compliance filings to the orders. Golden Spread Electric Cooperative, Inc. (Golden
Spread) filed a protest to the XEST compliance filing in February 2015. The first settlement conference for the XEST ROE issue was
held Jan. 6, 2015. The next settlement conference is scheduled for March 10, 2015.
WestConnect
XEWT executed the WestConnect planning participation agreement in January 2015, and is participating in the WestConnect regional
planning process as an independent transmission developer or owner.
NERC Critical Infrastructure Protection Requirements — The FERC has approved version 5 of NERC’s critical infrastructure
protection standards. Requirements must be applied to high and medium impact assets by April 1, 2016 and to low impact assets by
April 1, 2017. Xcel Energy is currently in the process of evaluating the new requirements and identifying initiatives needed to meet
the compliance deadlines.
NERC Physical Security Requirements — In November 2014, the FERC approved NERC’s proposed critical infrastructure
protection standard related to physical security for bulk electric system facilities. The new standard will become enforceable in
October 2015 with staggered milestone deliverable dates through 2016. Xcel Energy is currently in the process of developing and
performing the initial risk assessment in accordance with the requirements of the standard, which will provide a basis to estimate the
cost of protections necessary to meet the standard. The additional cost for compliance is anticipated to be recoverable through rates.
SPP and MISO Complaints Regarding RTO Joint Operating Agreement (JOA) — SPP and MISO have a longstanding dispute
regarding the interpretation of their JOA, which is intended to coordinate RTO operations along the MISO/SPP system boundary. SPP
and MISO disagree over MISO’s authority to transmit power over SPP transmission facilities between the traditional MISO region in
the Midwest and the Entergy system. Several cases have been filed with the FERC by MISO and SPP. In June 2014, the FERC
accepted a proposed tariff change by MISO to recover transmission charges imposed by SPP retroactive to January 2014, and set the
issues for settlement judge and hearing procedures. If SPP is successful in charging MISO for use of the SPP system, the NSP System
would experience higher costs from MISO, which could be material, but SPS would collect revenues from SPP. The outcome of the
JOA disputes, and the potential impact on Xcel Energy, are uncertain at this time.
Xcel Energy Services Inc. and NSP-Wisconsin vs. ATC (La Crosse, Wis. to Madison, Wis. Transmission Line) — In February 2012,
Xcel Energy Services Inc. and NSP-Wisconsin filed a complaint with the FERC concerning ownership of the proposed La Crosse,
Wis. to Madison, Wis. 345 KV transmission line. In July 2012, the FERC ruled favorably on Xcel Energy Services Inc.’s and NSP-
Wisconsin’s complaint, ruling that the responsibilities to construct the La Crosse, Wis. to Madison, Wis. transmission line, also known
as the Badger Coulee line, belong equally to NSP-Wisconsin and ATC. In August 2012, ATC requested rehearing and requested that
the FERC grant a stay of the ruling. ATC and NSP-Wisconsin jointly filed a CPCN application with the PSCW for the project in
October 2013. In May 2014, the FERC issued an order denying the ATC request for rehearing and motion for stay. The 60 day period
for ATC to appeal the FERC order lapsed, making the FERC ruling final.
MISO Transmission Pricing — The MISO Tariff presently provides for different allocation methods for the costs of new transmission
investments depending on whether the project is primarily local or regional in nature. If a project qualifies as a MVP, the costs would
be fully allocated to all loads in the MISO region. MVP eligibility is generally obtained for higher voltage (345 KV and higher)
projects expected to serve multiple purposes, such as improved reliability, reduced congestion, transmission for renewable energy, and
load serving.