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Rate Matters (Tables)
 6 Months Ended
Jun. 30, 2013
Public Utilities, General Disclosures [Abstract]  
Minnesota Department of Commerce and ALJ Recommendations from NSP-Minnesota's Original Request in Minnesota 2012 Electric Rate Case
The table below reconciles the final position of NSP-Minnesota, the DOC and the ALJ.
(Millions of Dollars)
 
NSP-Minnesota Request
 
DOC Recommendation
 
ALJ Recommendation
NSP-Minnesota original request
 
$
285

 
$
285

 
$
285

ROE
 
—

 
(43
)
 
(43
)
Sherco Unit 3
 
(35
)
 
(40
)
 
(38
)
Reduced recovery for the nuclear plants
 
(11
)
 
(9
)
 
(14
)
Incentive compensation
 
(3
)
 
(20
)
 
(4
)
Sales forecast
 
(1
)
 
(26
)
 
(26
)
Pension
 
(10
)
 
(25
)
 
(13
)
Employee benefits
 
(4
)
 
(6
)
 
(6
)
Black Dog remediation
 
(5
)
 
(5
)
 
(5
)
NSP-Wisconsin wholesale allocation
 
(7
)
 
(7
)
 
(7
)
Other, net
 
—

 
(5
)
 
(2
)
    Recommended rate increase
 
209

 
99

 
127

Preliminary estimated impact of cost deferrals
 
50

 
5

 
34

    Estimated impact on 2013 pre-tax income
 
$
259

 
$
104

 
$
161
Revenue requirements adjustments as filed by the NDPSC Advocacy Staff
Staff’s testimony recommended a 9.0 percent ROE and other revenue requirement adjustments, which resulted in an overall rate reduction of approximately $2.1 million. Primary revenue requirement adjustments include:
(Millions of Dollars)
 
Revenue requirement adjustments as filed by the Staff
NSP-Minnesota revised request
 
$
16.0

Use of a one month coincident peak demand allocator for certain
rate base and operation expenses
 
(20.0
)
ROE
 
(5.2
)
Incentive compensation
 
(0.8
)
Adjustment for various O&M expenses
 
(0.7
)
Calculation of federal income taxes
 
6.3

Modified cost of capital and increased capital structure
to 53.42 percent
 
1.4

Other, net
 
0.9

Recommended rate decrease
 
$
(2.1
)
Major Adjustments to PSCo's Test Year in Colorado 2013 Gas Rate Case Proposed by the Staff and OCC
The major adjustments to the test year proposed by the CPUC Staff and OCC are presented below.

(Millions of Dollars)
 
CPUC Staff
 
OCC
PSCo deficiency based on a HTY
 
$
28.3

 
$
28.3

ROE and capital structure adjustments
 
(20.8
)
 
(20.0
)
Move to a 13 month average from year end rate base
 
(5.7
)
 
(3.2
)
Remove pension asset
 
(5.9
)
 
—

Remove incentive compensation
 
(3.5
)
 
(0.2
)
Challenge known and measurable
 
—

 
(9.0
)
Eliminate depreciation annualization
 
—

 
(1.8
)
Revenue adjustments
 
(4.1
)
 
(1.4
)
Resulting tax impacts
 
1.5

 
4.7

Other adjustments
 
(4.2
)
 
3.1

Recommendation
 
$
(14.4
)
 
$
0.5