Item 8.01. Other Events
NSP-Minnesota 2020 Electric Rate Case
On Nov. 2, 2020, NSP-Minnesota filed a three-year electric rate case with the Minnesota Public Utilities Commission (MPUC). The request is driven by ongoing investments in carbon free electrical generation, distribution and transmission infrastructure. The rate case is based on a requested return on equity of 10.2% and a 52.5% equity ratio. The request is detailed in the table below:
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(Amounts in Millions, Except Increase Percentage)
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2021
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2022
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2023
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Total
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Rate request
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$
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406
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$
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98
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$
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93
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$
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597
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Increase percentage
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13.2
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%
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3.3
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%
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3.2
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%
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19.7
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%
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Rate base
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$
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10,000
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$
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10,300
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$
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10,700
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N/A
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In addition, NSP-Minnesota requested interim rates, subject to refund, of $309 million to be implemented in January 2021 and an incremental $96 million to be implemented in January 2022.
NSP-Minnesota also filed a stay-out alternative in which we would withdraw our rate case filing if the MPUC extends sales true-up, property tax and capital trackers and deferral of certain nuclear decommissioning cost increases. The MPUC's decision on whether to approve the stay-out alternative or proceed with the rate case is expected in December 2020.
If the MPUC decides to proceed with the rate case alternative, NSP-Minnesota intends to engage parties in settlement discussions in order to streamline the process. A final MPUC decision on the rate case is anticipated in the first quarter of 2022.
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," “believe,” “could,” “estimate,” “expect,” "intend," "may," "objective," "outlook," "plan," "project," "possible," “potential,” "should," "will," "would," and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy's and NSP-Minnesota's Annual Report on Form 10-K for the year ended Dec. 31, 2019, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs, changes in regulation and subsidiaries’ ability to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.