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Xcel Energy Requests Rate Increase

“Combined, these efforts help us strike a reasonable balance between the need to invest in our system and the need to ensure competitive rates and bills.”

As part of the process, rates will be reset to reflect customers’ current usage levels. While growth typically reduces the size of a rate increase, the company’s filing notes that’s not the case now. Poferl pointed out that in this filing, Xcel Energy is also proposing ways to help encourage efficient business growth and jobs to benefit all customers over the long term.

The Minnesota commission is expected to hold public hearings in spring, and a decision is expected in fall, with final rates effective in the first quarter of 2014. More information can be found online at www.xcelenergy.com. A copy of the rate case filing will be available on the commission’s website at www.puc.state.mn.us.

“As always, we plan to work throughout the proceeding with our stakeholders and customers,” Poferl said.

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.

2013 Xcel Energy Electricity Rate Case Filing Fact Sheet

Request

  • $285 million, a 10.7 percent increase in overall rates
  • A typical residential customer’s monthly bill would increase by approximately 12 percent, or about $9, based on use of 675 kilowatt-hours.
  • A typical small business customer’s monthly bill would increase by approximately 10.6 percent, or $11.30, based on use of 976 kilowatt-hours.
  • A typical large business customer’s monthly bill would increase by approximately 9.5 percent, or $309, based on use of 40,000 kilowatt-hours.
  • 10.6 percent rate of return on equity (currently 10.37 percent)

Case Drivers

  • Investments and costs to extend the lives of and operate the Prairie Island and Monticello nuclear plants and to expand power output at the Monticello plant ($114 million or 40 percent of total increase and nearly 60 percent of new investment)
  • Investments and costs to refresh, upgrade and operate the electricity grid and other power plants ($56 million or 20 percent of total increase and about 40 percent of new investment)
  • Increases in property taxes due primarily to increased investments ($40 million or 14 percent of the total increase)
  • Rates will also be reset to reflect current customer usage and wholesale sales, which are lower than the level in Xcel Energy’s last rate case ($75 million or 26 percent of total increase)

Key Points

  • Extending the lives of the Prairie Island and Monticello nuclear plants and expanding output at Monticello offer the low-cost options for customers and a resource for the future that produces no greenhouse gases or emissions associated with acid raid or smog. Investments are required now as a condition for extending the lives of these plants for another 20 years.
  • Electricity is an essential service and needs to be available 24/7. Unlike other companies, Xcel Energy cannot eliminate a third shift or parts of our operations in response to changed demand.
  • While all customers share in the costs of keeping the electricity system dependable and safe, Xcel Energy can help manage the impact of this increase through its extensive suite of programs to manage and reduce bills.

Timeline

  • Jan. 1, 2013: Interim rates take effect (see below)
  • Spring-Summer 2013: Public hearings
  • Fall-Winter 2013: Minnesota Public Utilities Commission consideration and final action
  • First Quarter 2014: New rates take effect

Interim RequestXcel Energy is requesting an interim increase during the time the case is under review, as allowed under Minnesota statute:

  • $251 million, a 9.4 percent increase in overall rates, effective Jan. 1, 2013
  • A typical residential customer’s monthly bill would increase by approximately 10 percent, or about $8, based on use of 675 kilowatt-hours.
  • A typical small business customer’s monthly bill would increase by approximately 10.2 percent, or $10.80, based on use of 976 kilowatt-hours.
  • A typical large business customer’s monthly bill would increase by approximately 9 percent, or $262, based on use of 40,000 kilowatt-hours.




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