Xcel Energy 2008 Annual Report Download - page 129

The following table presents the changes in Level 3 recurring fair value measurements for the year ended Dec. 31,
2008:
Commodity Nuclear
Derivatives, Decommissioning
Net Fund
(Thousands of Dollars)
Balance Jan. 1, 2008 ........................................ $19,466 $108,656
Purchases, issuances, and settlements, net .......................... (5,981) 12,198
Transfers out of Level 3 ..................................... (3,962) —
Gains recognized in earnings .................................. 2,129 —
Gains (losses) recognized as regulatory assets and liabilities ............... 11,569 (11,431)
Balance Dec. 31, 2008 ....................................... $23,221 $109,423
Gains on Level 3 commodity derivatives recognized in earnings for the year ended Dec. 31, 2008, include $3.7 million
of net unrealized gains relating to commodity derivatives held at Dec. 31, 2008. Realized and unrealized gains and
losses on commodity trading activities are included in electric revenues. Realized and unrealized gains and losses on
short-term wholesale activities reflect the impact of regulatory recovery and are deferred as regulatory assets and
liabilities. Realized and unrealized gains and losses on nuclear decommissioning fund investments are deferred as a
component of a nuclear decommissioning regulatory asset.
16. Rate Matters
NSP-Minnesota
Pending and Recently Concluded Regulatory Proceedings — MPUC
Base Rate
NSP-Minnesota Electric Rate Case — On Nov. 3, 2008, NSP-Minnesota filed a request with the MPUC to increase
Minnesota electric rates by $156 million annually, or 6.05 percent. The request is based on a 2009 forecast test year, an
electric rate base of $4.1 billion, a requested ROE of 11.0 percent and an equity ratio of 52.5 percent.
In December 2008, the MPUC approved an interim rate increase of $132 million, or 5.12 percent, effective Jan. 2,
2009. The primary difference between interim rate levels approved and NSP-Minnesota’s request of $156 million is due
to a previously authorized ROE of 10.54 percent and NSP-Minnesota’s requested ROE of 11.0 percent.
A final decision from the MPUC is expected in the third quarter of 2009. The following procedural schedule has been
established:
• Staff and intervenor direct testimony on April 7, 2009;
• NSP-Minnesota rebuttal testimony on May 5, 2009;
• Staff and intervenor surrebuttal testimony on May 26, 2009; and
• Evidentiary hearings are scheduled for June 2-9, 2009.
Electric, Purchased Gas and Resource Adjustment Clauses
TCR Rider — In November 2006, the MPUC approved a TCR rider pursuant to legislation, which allows annual
adjustments to retail electric rates to provide recovery of incremental transmission investments between rate cases. In
December 2007, NSP-Minnesota filed adjustments to the TCR rate factors and implemented a rider to recover
$18.5 million beginning Jan. 1, 2008. In March 2008, the MPUC approved the 2008 rider, but required certain
procedural changes for future TCR filings if costs are disputed. On Oct. 30, 2008, NSP-Minnesota submitted its
proposed TCR rate factors for proposed recovery in 2009, seeking to recover $14 million beginning Jan. 1, 2009. A
portion of amounts previously collected through the TCR rider prior to 2009 has been included for recovery in the
electric rate case described above. MPUC approval is pending.
RES Rider — In March 2008, the MPUC approved an RES rider to recover the costs for utility-owned projects
implemented in compliance with the RES, and the RES rider was implemented on April 1, 2008. Under the rider,
NSP-Minnesota could recover up to approximately $14.5 million in 2008 attributable to the Grand Meadow wind
farm, a 100 MW wind project, subject to true-up. In 2008, NSP-Minnesota submitted the RES rider for recovery of
approximately $22 million in 2009 attributable to the Grand Meadow wind farm. On Feb. 12, 2009, the MPUC
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