Xcel Energy 2010 Rate Case Status and Overview

Transcription

1 Xcel Energy 2010 Rate Case Status and Overview Prepared for: Metropolitan Energy Policy Coalition May 3, 2012 Prepared by: Larry Schedin P.E. Kavita Maini, Rate Economist Rich Savelkoul, Attorney

2 Key Intervenors Mn. Chamber of Commerce Extra-Large Industrial Customer (XLI) Gerdau- AmeriSteel, Etc. Commercial Intervenors (Walmart. Etc.) MN Attorney General s Office DOC Division of Energy Resources (DER) Major issues were resolved via Xcel settlement with Chamber, XLI, and Commercial Group (Walmart, etc.). Settlement not approved by DOC/DER and AG's office 2

3 Timetable of Key Events Action Date Amount Petition Filed 11/03/2010 $150,1 million (5.62%)* Interim Rates Effective 01/02/ % on base rates (excluding Riders, Fuel) Step-in Request 01/02/ % ($48.3 million)* Gov t Shutdown** 07/01/11-07/20/11 - Settlement 11/14/ % ($72.8 million) ALJ Order 02/22/ % ($72.8 million) Commission Oral Order 03/29/ % ($72.8 million) Reduced Interim Rates 05/01/ % on base rates (excluding Riders, Fuel) Commission Written Order Forthcoming 2.73% ($72.8 million) Final Compliance Filing Forthcoming Reconsiderations Forthcoming * Total requested =$198.5 million =7.43% ** Substantially disrupted schedule 3

4 Major Revenue Requirement Issues 1. ROE Reduced from 11.25% requested to 10.37% 2. Monticello Life Cycle Management (LCM) and Extended Power Uprate (EPU) Combined (and inseparable costs in both 2011 and 2012) 20-year Life Extension granted by NRC 3. Pensions and Benefits 4. Book and Tax Depreciation 5. Nobles Wind Farm Cost Overruns 6. Cash Working Capital 7. Non-asset-Based Trading Margins 4

5 Major Rate Design and Service Rule Issues 1. Interruptible Rate Credits 2. Energy Charge Credits 3. Solar Standby Rate 4. Interconnection Costs 5. Wind Energy Cost Allocations 6. FCA Management Control Incentive 5

6 Proposed Interruptible Rate Demand Charges and Interruptible Credits During prior rate case, Xcel agreed to study interruptible discounts and include stakeholder involvement. However, the study on the credits was filed without stakeholder input. Xcel s initial filing proposed a slight decrease in the credit amounts. As a result of the Chamber s involvement, the Final Settlement included over 11%-13% increase in credits for all Levels except Tier 2 Level A 6

7 Interruptible Secondary Service Voltage level ($/KW-month) Final Settlement 7

8 Energy Charge Credits At present, the Energy Charge Credit is $0.009/KWh for all KWh in excess of 400 hours multiplied by billing demand As a result of the Chamber s involvement, this credit has been increased by 22% to $0.011/kWh for all kwh in excess of 400 hours multiplied by billing demand 8

9 Solar Photvoltaic Installations: Billing Factors Determine Savings Net Standby TOD Demand Customer Size Billed Demand Metering Required Required Savings 0-25 KW No Yes None Optional Yes 25 KW-40 KW Yes Yes None Optional None 40 KW-1000 KW Yes No Yes Optional None 1000 KW and above Yes No Yes Mandatory None Important Note: For solar installations on customer premises with peak demands greater than 25 KW, demand charge saving are nearly impossible to attain. Current tariff s demand charges and standby charges cannot both apply at the same time 9

10 General Service Rate Less than 1MW (999 KW) with 65% load factor Demand elements comprise about 25% to 35% of a typical commercial non- TOD electric bill depending on customer load factor as shown in foregoing calculation. 10

11 Other Settlement Provisions Solar Installation Xcel agreed to study the output profile of solar installations with the potential to show that demand charge savings should be realized by solar customers on the basis that solar is a reliable peak-load resource especially compared to wind. The study results are due by August 15 th DG Interconnection Study Costs Because chamber testimony presenting customer concern that Xcel has inadequate cost control on DG interconnection studies, Xcel agreed in Settlement to modifying tariff language. New language will show that Xcel must provide firm cost estimates to perform interconnection cost studies and to complete studies within a reasonable time period. FCA Management Cost Control Under the settlement Xcel must submit a management incentive plan for controlling FCA costs which could possibly include SO2 and NOx emission and other charges in the future. 11

12 Next Steps Commission Written Order Requests for Reconsideration Final Compliance Filing Xcel expected to file next rate case on or around November 1, 2012 with interim rates effective around Jan 1, Consider participation as part of the Chamber s intervenor group 12