Xcel Energy 2015 Annual Report Download - page 139
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The following table outlines the impact of the MPUC’s July decision:
(Millions of Dollars) MPUC July
Decision
2014 and 2015 step increase - based on MPUC May order. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 166.1
Reconsideration/clarification adjustments:
2015 Monticello EPU used-and-useful adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13.8)
2014 property tax final true-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.1)
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2
Total 2014 and 2015 step increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 149.4
Impact of interim rate effective March 3, 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6)
Estimated revenue impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 145.8
NSP-Minnesota – Minnesota 2016 Multi-Year Electric Rate Case — In November 2015, NSP-Minnesota filed a three-year electric
rate case with the MPUC. The rate case is based on a requested ROE of 10.0 percent and a 52.50 percent equity ratio. The request is
detailed in the table below.
Request (Millions of Dollars) 2016 2017 2018
Rate request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 194.6 $ 52.1 $ 50.4
Increase percentage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4% 1.7% 1.7%
Interim request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 163.7 $ 44.9 N/A
Rate base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,800 $ 7,700 $ 7,700
NSP-Minnesota also proposed a five-year alternative plan that would extend the rate plan two additional years.
In addition, NSP-Minnesota has requested the MPUC encourage parties to engage in a formal mediation type procedure as outlined by
Minnesota’s rate case statute which may streamline the settlement process.
In December 2015, the MPUC approved interim rates for 2016. The MPUC deferred making a decision on incremental interim rates
for 2017 and indicated that NSP-Minnesota could bring back its request in the fourth quarter of 2016. The MPUC also required NSP-
Minnesota to file supplemental direct testimony addressing costs associated with the LCM at the PI nuclear plant. NSP-Minnesota
filed supplemental testimony in January 2016 demonstrating that the capital work at PI, including the LCM, is required during the rate
case period, higher costs associated with the LCM are necessary to operate the plant through the end of its licensed life and recovery
of these costs will result in reasonably priced energy for customers.
The major components of the requested rate increase are summarized below:
(Millions of Dollars) 2016 2017 2018 Total
2014 multi-year rate case items:
Excess depreciation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26.0 $ 51.0 $ — $ 77.0
DOE settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.7 — — 25.7
Monticello LCM/EPU. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 (1.6)(1.5) 8.1
62.9 49.4 (1.5) 110.8
Additional items:
Capital investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128.7 12.8 44.6 186.1
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.2 7.6 5.2 43.0
NOL carryforwards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.3)(24.5)(6.5) (37.3)
Other costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20.9) 6.8 8.6 (5.5)
131.7 2.7 51.9 186.3
Total rate request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 194.6 $ 52.1 $ 50.4 $ 297.1
The next steps in the procedural schedule are expected to be as follows:
• Intervenors’ direct testimony — June 14, 2016;
• Rebuttal testimony — Aug. 9, 2016;
• Surrebuttal testimony — Sept. 16, 2016;
• Settlement conference — Sept. 26, 2016;