Xcel Energy 2013 Annual Report Download - page 142

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Recently Concluded Regulatory Proceedings — SDPUC
NSP-Minnesota – South Dakota 2012 Electric Rate Case — In March 2013, NSP-Minnesota and the SDPUC Staff reached a
settlement agreement that provides for a base rate increase of approximately $11.6 million and the implementation of a new rider. On
Oct. 1, 2013, NSP-Minnesota filed its compliance report consistent with the settlement to recover the revenue requirement on the
specific major capital additions and incremental property tax resulting in recovery of $8.7 million for 2014. In December 2013, the
SDPUC approved recovery of $8.5 million, reflecting updates made during review of the compliance filing.
Electric, Purchased Gas and Resource Adjustment Clauses
CIP and CIP Rider — In December 2012, the MPUC approved reductions to the CIP financial incentive mechanisms effective for the
2013 through 2015 program years. Based on the approved savings goals, the estimated average annual electric and natural gas
incentives are $30.6 million and $3.6 million, respectively.
CIP expenses are recovered through base rates and a rider that is adjusted annually. In November 2013, the MPUC approved NSP-
Minnesota’s 2012 CIP electric financial incentives totaling $54.0 million, as well as NSP-Minnesota’s proposed 2013 to 2014 electric
CIP rider. In October 2013, the MPUC approved NSP-Minnesota’s 2012 CIP natural gas financial incentive of $2.7 million, as well as
NSP-Minnesota’s proposed 2013 to 2014 natural gas CIP rider. NSP-Minnesota estimates 2014 recovery of $83.9 million of electric
CIP expenses and $11.7 million of natural gas CIP expenses. This proposed recovery through the riders is in addition to an estimated
$87.2 million and $3.1 million through electric and gas base rates, respectively.
NSP-Wisconsin
Recently Concluded Regulatory Proceedings — PSCW
NSP-Wisconsin – Wisconsin 2014 Electric and Gas Rate Case — In May 2013, NSP-Wisconsin filed a request with the PSCW to
increase rates for electric and natural gas service effective Jan. 1, 2014. NSP-Wisconsin requested an overall increase in annual
electric rates of $40.0 million, or 6.5 percent, and an increase in natural gas rates of $4.7 million, or 3.8 percent. The electric rate
increase included a $4.5 million adjustment related to proceeds from a nuclear settlement agreement with the DOE.
The rate filing was based on a 2014 FTY, an ROE of 10.4 percent, an equity ratio of 52.5 percent, and a forecasted average rate base of
approximately $895.3 million for the electric utility and $89.8 million for the natural gas utility.
In October 2013, NSP-Wisconsin filed rebuttal testimony revising the requested electric rate increase to $34.3 million and natural gas
rate increase to zero, based on a 10.4 percent ROE and other adjustments.
In December 2013, the PSCW approved an electric rate increase of approximately $19.5 million or 3.1 percent based on a 10.2 percent
ROE and an equity ratio of 52.5 percent. The PSCW also approved cost deferrals of $4.1 million for interchange agreement amounts
from NSP-Minnesota related to the Monticello EPU project until the MPUC completes its prudence review. The PSCW did not
change rates for NSP-Wisconsin’s natural gas utility. New electric rates went into effect on Jan. 1, 2014.
PSCo
Pending and Recently Concluded Regulatory Proceedings — CPUC
PSCo – Colorado 2013 Gas Rate Case — In December 2012, PSCo filed a multi-year request with the CPUC to increase Colorado
retail natural gas rates by $48.5 million in 2013 with subsequent step increases of $9.9 million in 2014 and $12.1 million in 2015. The
request was based on a 2013 FTY, a 10.5 percent ROE, a rate base of $1.3 billion and an equity ratio of 56 percent. PSCo requested
an extension of its PSIA rider mechanism to collect the costs associated with its pipeline integrity efforts, including accelerated system
renewal projects. PSCo estimated that the PSIA would increase by $26.8 million in 2014 with a subsequent step increase of $24.7
million in 2015 in addition to the proposed changes in base rate revenue. Interim rates, subject to refund, went into effect in August
2013.
In April 2013, several parties filed testimony. PSCo filed rebuttal testimony and revised its requested annual rate increase to $44.8
million for 2013, with subsequent step increases of $9.0 million for 2014 and $10.9 million for 2015, based on an ROE of 10.3
percent. This requested increase includes amounts to be transferred from the PSIA rider mechanism. The deficiency, based on an
FTY, was $30.6 million.