MINNEAPOLIS--(BUSINESS WIRE)--
Citing changed circumstances since its November 2012 application, Xcel
Energy (NYSE:XEL) proposed a reduction to the electricity rate increase
request currently under review before the Minnesota Public Utilities
Commission. The company provided the revised request in testimony filed
today.
“This case is needed to support investments that will serve our
customers well over the long term,” said Judy Poferl, president and CEO
of Northern States Power Co.-Minnesota, an Xcel Energy company. “Our
revised request allows us to facilitate these investments while reducing
the size of our requested increase for customers.”
The proposals reduce Xcel Energy’s requested rate increase to
approximately $220 million, down from $285 million. The modified request
represents an overall rate increase of approximately 8.2 percent, down
from 10.7 percent originally.
“Our proposal takes a balanced approach, mitigating customer impacts now
while also meeting the company’s need to recover investments already
made,” Poferl said. “We offer these proposals in an effort to reach a
constructive outcome in this case.”
Key reductions proposed by the company include:
- $35 million for Sherburne County (Sherco) Generating Station Unit 3 by
lowering and deferring some 2012 and 2013 costs for later recovery, to
better match the cost of the unit with its return to service later
this year. The unit is currently unavailable as it undergoes extensive
repairs since a catastrophic event in late 2011.
-
About $8 million for Monticello Nuclear Generating Plant by deferring
some 2013 costs for later recovery, subject to a review by the
commission.
-
Approximately $9 million by smoothing the impacts of the 2008
recession on pension expenses.
“We hope to work with the participants to further narrow the issues in
this case,” Poferl said. “Rate requests are subject to extensive review
prior to approval, and customers can have confidence that the rate
increases granted are necessary for providing high-quality energy
service.”
“While our prices are below the national average, we understand that any
rate increase has an impact on our customers,” Poferl continued. “We
urge our customers to take advantage of our extensive suite of energy
efficiency programs to help manage and reduce their energy bills.”
More information can be found at www.xcelenergy.com.
Copies of the rate case filing and all other documents filed in the case
are 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.
Xcel Energy Electricity Rate Case Fact Sheet
Updated Request
- $220 million, an 8.2 percent increase in overall rates. If final rates
are higher than interim rates, customers will receive refunds with
interest.
-
A typical residential customer’s monthly bill would increase by
approximately 10 percent ($8).
-
10.6 percent rate of return on equity (same as original)
Timeline
- Nov. 2, 2012: Original filing
- Jan. 1, 2013: Interim rates take effect
- March 4-22, 2013: Seven public hearings
- April 18, 2013: Evidentiary hearings convene
- September 2013: Minnesota Public Utilities Commission consideration
and final action expected
-
First Quarter 2014: New rates take effect
Background
-
Extending the lives of the Prairie Island and Monticello nuclear
plants and expanding output at Monticello were previously approved by
the Minnesota commission and provide a low-cost, carbon-free resource
for the future. Investments are required now in order to extending the
lives of these plants for another 20 years.
-
Costs of the Monticello projects are similar to the experience of
other nuclear plant owners. The nuclear industry has changed
tremendously over the last few years. Even before the 2011 accident at
Fukushima Daiichi in Japan, the Nuclear Regulatory Commission was
increasing requirements for both life extension and capacity expansion
projects.
-
Restoration of Sherco 3 is the largest such project Xcel Energy has
ever performed, and there are no equivalent restoration projects
industry-wide. During the repair process, damage that was not evident
until repairs were under way was discovered, which has delayed
start-up from the first quarter of 2013 to September 2013.
Xcel Energy
Xcel Energy Media Relations, 612-215-5300
www.xcelenergy.com
Source: Xcel Energy