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Xcel Energy-Wisconsin 2010 Rate Case

Xcel Energy-Wisconsin 2010 Rate Case. Don Reck Director, Government and Regulatory Affairs NSP-Wisconsin. Wisconsin Rate Case Process . Regularly scheduled biennial rate cases Base rates normally set for upcoming two years Forward looking “test year” budget

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Xcel Energy-Wisconsin 2010 Rate Case

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  1. Xcel Energy-Wisconsin 2010 Rate Case Don Reck Director, Government and Regulatory AffairsNSP-Wisconsin

  2. Wisconsin Rate Case Process • Regularly scheduled biennial rate cases • Base rates normally set for upcoming two years • Forward looking “test year” budget • Adjustments for fuel and purchased power can occur between rate cases

  3. Recent Rate History • 2008 Base Rate Case +8.1% Electric +3.3% Gas • 2008 Fuel Surcharge +3.7% Electric • 2009 Limited Reopener no change • 2009 Fuel Credit? TBD

  4. Wisconsin Utilities Rate Comparison 2 MW load, 70% LF, 40% on peak – rates as of 1/1/09

  5. 2010 Rate Case • Regularly scheduled biennial rate case • Electric and natural gas utility • File June 1, 2009 • New rates effective ~ Jan. 1, 2010 • What can you expect?

  6. Revenue Requirements Amount required from customers to recover cost of service and earn a fair return for investors • Capital cost recovery (depreciation) • O&M expenses • Taxes • Return on investment (debt and equity)

  7. 2010 Rate Case Drivers + Continuing P&T investment (I/A) + Distribution system investment + Declining sales + Increasing O&M expense - Decreasing fuel costs - Company mitigation efforts

  8. Integrated NSP Electric System

  9. “Interchange Agreement” • FERC-approved tariff that prescribes cost sharing formulae between NSPW and NSPM • Applies to all P&T costs • Fixed Costs – allocated on demand ratio • Fixed Charges – allocated on demand ratio • Variable Charges – allocated on energy ratio • Practical effect is P&T costs for customers in all five “NSP” states are equalized

  10. Rate Design Process to fairly allocate and collect revenue requirements from customers • Customer Classes • Residential • Commercial • Industrial • Rate Components • Customer charge • Energy charge • Demand charge

  11. Cost of Service / Rate Design • No major changes planned • Typical issues: • Cost allocation methodology (12 cp vs. 4 cp) • Demand vs. energy charge levels • Interruptible credit • On-peak / off-peak energy charges

  12. What’s Next? • File: June 1, 2009 • PSCW staff audit: June – August • Pre-filed testimony: October • Hearings: November • PSCW decision: December • New rates effective: Jan. 1, 2010

  13. Questions?

  14. Appendix

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