Investor Relations Earnings Release

Business Wire, May 1, 2008

-- Recommend decision  >  >  >  >  >                 >




June 30, 2008










-- Final order         >  >  >  >  >                 >




Aug. 29, 2008

NSP - Minnesota - North Dakota electric rate case filing - On Dec. 7, 2007, NSP-Minnesota filed with the North Dakota Public Service Commission (NDPSC), a request to increase electric rates by $20.5 million, representing an overall increase of 14 percent. The request is based on a common equity ratio of 51.77 percent, a ROE of 11.5 percent and a rate base of approximately $242 million. Interim rates of $17.2 million were effective on Feb. 5, 2008.

NSP-Minnesota and the NDPSC staff reached a stipulation in which both parties recommended an ROE of 10.75 percent, with a sharing mechanism for earnings above 10.75 percent. This stipulation is subject to approval by the NDPSC. Final rates are expected to be effective in the fall of 2008. The procedural schedule is as follows:

-- Intervenor testimony  >  >  >  >  >                   >




May 9, 2008










-- Rebuttal testimony    >  >  >  >  >                   >




June 13, 2008










-- Hearings              >  >  >  >  >                   >




June-July, 2008










-- Order issued          >  >  >  >  >                   >




Aug. 13, 2008

PSCo wholesale rate case - In February 2008, PSCo requested a $12.5 million increase, or a 5.88 percent in wholesale rates, based on 11.5 percent requested ROE. The $12.5 million total increase was composed of $8.8 million of traditional base rate recovery and $3.7 million of construction work in progress (CWIP) recovery for the Comanche 3 and Fort St. Vrain projects. The increase is applicable to all wholesale firm service customers with the exception of Intermountain Rural Electric Cooperative, which is under a rate moratorium until January 2009.

In March 2008, PSCo reached an agreement with Holy Cross, Yampa Valley and Grand Valley (REA's), which will resolve all issues based on a "black box" settlement with an implied ROE of 10.4 percent. Parties filed the settlement with the Federal Energy Regulatory Commission (FERC) on April 17, 2008, with rates effective May 1, 2008. PSCo has reached an agreement with the cities of Burlington and Center, as well as Aquila under the same substantive terms and conditions as the REA settlement, which was filed with FERC on April 25, 2008. The settlements provide for:

* A traditional annual rate base rate increase of $6.6 million with allowance for funds used during construction (AFDC) continuing for Comanche and Fort St. Vrain.

* Implementation of new rates several months earlier than is typical in a disputed filing.

* The ability to implement rates in our next general rate case that will involve Comanche 3 costs upon a nominal suspension.

SPS wholesale complaint case - On April 21, 2008, the FERC issued an order approving the settlement agreement with Golden Spread Electric Cooperative filed in December 2007 and a separate order that resolved base rate issues for the period Jan 1, 2005 through June 30, 2006 as well as certain fuel clause adjustment (FCAC) issues. Related to the base rate issues, the FERC established new rates that were approximately $6.9 million less for this 18-month period, than the then currently effective rates based upon a 9.33 percent ROE. Regarding the fuel clause, the FERC determined that the method for calculating fuel and purchased energy cost charges to the complaining customers is to deduct from such costs incremental fuel and purchased energy costs, which it is attributing to SPS' market-based intersystem sales on the basis that these are "opportunity" sales under its precedent. The FERC ordered that refunds of fuel cost charges based on this method of determining the FCAC should begin as of Jan. 1, 2005 (the refund effective date in the case). The FERC ordered SPS to file a compliance filing calculating its refund obligation within 30 days of the date of the order and implement the instructions in the order in calculating its FCAC charges going forward from that date. While the order is subject to interpretation with respect to aspects of the calculation of the refund obligation, SPS does not expect its refund obligation to its full requirements customers from Jan. 1, 2005 through March 31, 2008, to exceed $11 million. SPS is reviewing the order and has not yet determined whether to seek rehearing. SPS has accrued an amount, sufficient to cover the refund obligation as of March 31, 2008.