MINNEAPOLIS--(BUSINESS WIRE)--
Northern States Power Company-Minnesota, an Xcel
Energy company, today asked the Minnesota Public Utilities
Commission to approve a base electric rate increase for 2011 and 2012.
The company provides electric service to 1.2 million customers in
Minnesota.
“This case is needed to fund important infrastructure improvements,
ensure compliance with increasing regulatory requirements, and respond
to changes in the economy,” said Judy
Poferl, president and CEO of NSP-Minnesota. “While we have worked to
manage costs and increase our efficiency, we are not able to avoid this
rate request. The increase will support our ability to provide our
customers high quality, reliable electric service at a good value, both
now and over the long term.”
The company requests an increase of approximately $150 million (5.6
percent) in base electric rates in 2011, and an additional $48 million
(1.8 percent) in 2012, for a total of $198 million (7.4 percent)
effective Jan. 1, 2012. The majority of the 2012 increase is necessary
for expected costs in the coming year for the previously approved
Monticello Nuclear Generating Plant power increase and life extension
projects. “The request for 2012 will help delay a subsequent rate case
as we will continue to make significant investments in our system,
including the important projects at our Monticello nuclear plant,” said
Poferl.
As part of this filing, Xcel Energy seeks implementation of interim
rates effective Jan. 2, 2011. Under the company’s interim rate proposal,
a typical residential customer’s monthly bill would increase by
approximately 5.5 percent, or $4.09, based on use of 675 kilowatt-hours.
A typical small business customer’s monthly bill would increase by
approximately 5.4 percent, or $6, based on use of 1,035 kilowatt-hours.
Approximately half of the company’s 2011 request is related to costs
associated with infrastructure investments, primarily at the utility’s
two nuclear plants, but also investments to improve reliability of its
transmission and distribution systems. Compliance with new regulatory
measures, such as security, emissions controls and reliability, account
for more than 10 percent of the request. The large majority of remaining
costs are due to various economic trends, such as reduced sales, higher
health care costs, and a loss in value of the employee pension fund that
requires the company to fund the plan for the first time since 1994.
In addition, Xcel Energy requests to modify customers’ bills by moving
some costs now being recovered as separate surcharges into base rates.
Since those costs are already included on customers’ bills, the move
will result in no change in overall bills. This includes costs for the
Metropolitan Emissions Reduction Program, which included upgrading or
repowering three major Twin Cities-area coal plants, as well as
construction costs for the Grand Meadow Wind Farm in southeastern
Minnesota and Nobles Wind Farm in southwestern Minnesota.
Poferl emphasized that Xcel Energy is a national leader in efforts to
help customers use energy more wisely, and she encouraged customers to
take advantage of the company’s energy
efficiency programs to save money and lower their energy bills.
Xcel Energy offers several
free online resources available to customers to help them conserve
electricity and reduce their energy bills. They include the Home Energy
Analyzer, Energy Calculator, information about rebates and incentives,
and the ENERGYsmart Library.
The Minnesota commission will hold public hearings in the spring of
2011. More information can be found online at www.xcelenergy.com/itsyourenergy.
A copy of the rate case filing will be available on the commission’s
website at www.puc.state.mn.us.
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas
company with regulated operations in eight Western and Midwestern
states. Xcel Energy provides a comprehensive portfolio of energy-related
products and services to 3.4 million electricity customers and 1.9
million natural gas customers through its regulated operating companies.
Company headquarters are located in Minneapolis. More information is
available at www.xcelenergy.com.
Source: Xcel Energy
Contact:
Xcel
Energy Media Relations
612-215-5300
www.xcelenergy.com