Xcel Energy Inc.

08/25/2025 | Press release | Distributed by Public on 08/25/2025 12:37

Material Event (Form 8-K)

Item 8.01. Other Events
2024 Minnesota Electric Rate Case
In November 2024, Northern States Power Company, a Minnesota corporation (NSP-Minnesota), and a wholly owned subsidiary of Xcel Energy Inc.filed an electric rate case in Minnesota, seeking a total revenue increase of $491 million (13.2%) over two years, based on a return on equity (ROE) of 10.3%, a 52.5% equity ratio and rate base of $13.2 billion in 2025 and $14 billion in 2026. NSP-Minnesota also requested interim rates of $224 million for 2025. In December 2024, the Minnesota Public Utilities Commission (MPUC) reduced the interim rate request for wildfire mitigation costs (as these costs were deemed as new costs not previously approved in a rate case) and approved interim rates of $192 million, effective January 1, 2025.
In March 2025, NSP-Minnesota filed supplemental direct testimony, updating its total revenue request to $473 million.
On August 22, 2025, eight parties filed testimony. The Minnesota Department of Commerce (DOC), Office of Attorney General (OAG), Xcel Large Industrial Customers (XLI), the Citizens Utility Board of Minnesota (CUB), Walmart and Joint Intervenors were the only parties to quantify recommended financial adjustments. XLI recommended $190 million in proposed adjustments, based on a reduced ROE and a reduction in certain O&M expenses. CUB recommended proposed adjustments based on a reduced ROE and elimination of reconnection and late fee revenues. Walmart recommended an adjustment based on a reduced ROE. Other parties provided issue specific recommendations.
Proposed DOC modifications to NSP-Minnesota's request are summarized below:
(Millions of Dollars) 2025 2026
NSP-Minnesota's filed base revenue request $ 344 $ 473
Recommended adjustments:
Rate of return (101) (107)
O&M expenses (62) (56)
Generation capacity revenue (a)
(39) (40)
Depreciation (29) (32)
Federal production tax credits (a)
(22) (10)
Riverside Generating Plant outage (b)
(18) (13)
Prepaid pension assets and liability (11) (11)
Property tax (a)
(4) (12)
Other, net (9) (25)
Total adjustments (295) (306)
Total proposed revenue change $ 49 $ 167
(a) Adjustments largely offset in trackers.
(b)Riverside Generating Plant experienced a mechanical failure in April 2025 that resulted in an extended outage.
Positions on NSP-Minnesota's filed rate request:
Recommended Position DOC XLI CUB Walmart
ROE 9.25 % 8.96 % 9.00 % 9.25 %
Equity 52.5 % N/A N/A N/A
Next steps in the procedural schedule are as follows:
•Rebuttal testimony: Oct. 10, 2025
•ALJ Report: April 30, 2026
A MPUC decision is expected in the third quarter of 2026.
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 those relating toexpected base rate and revenue increases, expectations and intentions regarding 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 NSP-Minnesota's Annual Report on Form 10-Kfor the fiscal year ended Dec. 31, 2024, and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Minnesota 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; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.
Xcel Energy Inc. published this content on August 25, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on August 25, 2025 at 18:37 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]