filing its next electric rate case, Xcel shall make an affiliated interest filing that addresses issue of whether its general allocator should substitute full-time-
equivalent positions for number of employees and that analyzes each of the 99 work orders submitted in this rate case as follows: (a) identifies all uses of both general and cost-causative allocators; (b) explains methodology on which each cost-causative allocator is based; (c) explains its reasons in each case for
choosing a cost-causative or general allocator; and (d) justifies each use of general allocator.
The Company met this compliance
requirement in Docket E,G002/AI-10-690.
In future electric rate case filings, Company shall include testimony and schedules of short-term and long-term capacity costs by contract and shall show how the capacity amounts were calculated.
David Horneck, Exhibit___(DGH-1), Vol. 2B, Testimony and Schedules 2 and 3 In future electric rate case filings, Company shall
include information on steps it has taken to exclude from advertising expense costs related to branding and other promotional activities.
Anne Heuer,
Exhibit___(AEH-1), Vol. 2A, page 133-134
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Company shall initiate in a timely manner its Employee Expense Compliance Plan, described in Finding 134 of ALJ’s Report.
134. Xcel will provide OAG and any other interested parties a copy of revised employee expense and related policies. After receiving feedback from OAG and any other interested parties, Xcel will submit a filing to Commission to initiate a full review and comment process on the appropriateness of revised policies and proposed regulatory accounting treatment for employee expenses. Filing will outline how policy seeks to ensure that above-the-line expenses are reasonable and necessary for the provision of utility services for MN ratepayers. Xcel will provide, within a timeframe agreed upon by parties, a report to
Commission regarding effect changes have had on employee expenses.
The Company met this Compliance
requirement on January 19, 2010 in Docket No.
E002/GR-08-1065. Filing included here in Volume 3, Section IV on CD.
As recommended by ALJ, Company shall use
Renewable Energy Standard Rider to flow through to customers revenues from all sales of Renewable Energy Credits.
Anne Heuer,
Exhibit___(AEH-1), Vol. 2A, page 43
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In future rate case filings, Company shall include sales forecast information discussed in Findings 145-148 of ALJ’s Report. (See below.)
145. While Company maintains it cannot always meet a requirement to independently verify or duplicate all economic and demographic data obtained from third parties, it will work with OES toward greater data transparency and to respond to any OES concerns regarding its data sources.
146. Pursuant to Commission’s September 1, 2006, Order in prior electric rate case, Docket No. E002/GR-05-1428, Xcel submitted its data used in test year sales forecasts 30 days before it filed this rate case. Company will comply with a similar
requirement, if ordered in this rate case, and will work with OES to facilitate its consideration and discovery of test year forecasts in future rate cases.
147. Company will continue to maintain and monitor various resources such as the “Financial and Rate Revenue” report and “Tariff Analysis Report” discussed in the compliance report submitted on September 4, 2007 in Docket No. E002/GR-05-1428, and the “Graybar” report and “Active Service Count” report referenced in its response to OES Information Request No. 15 in this proceeding.
148. Company will continue working with OES on improving electronic linkage between CCOSS, forecasting and revenue models for its next rate case. Company believes future improvements are likely to focus less on improving linkages and more on documenting and automating the data development stages within individual models.
Jannell Marks, Exhibit___(JEM-1), Vol. 2A, page 25
Requirement satisfied by October 1, 2010 filing in this current proceeding
Requirement satisfied and provided in the forecast pre-filing materials in October 1, 2010 filing in this current proceeding. Phillip J. Zins Exhibit___(PJZ-1), Vol. 2B, page 33.
In future rate case filings, Company shall include analysis of nuclear plant outage costs shown in OES Information Request 140, Attachment A, included in Exhibit 86.
Anne Heuer,
Exhibit___(AEH-1), Vol. 2A, page 39, Schedule 17.
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Before filing its next electric rate case, Company shall develop a different method of assigning costs to its wholesale municipal customers or shall use a cost study that better captures costs of serving municipal wholesale customers.
Anne Heuer,
Exhibit___(AEH-1), Vol. 2A, page 63, Schedule 15. Regarding its interruptible service, Xcel shall do the
following:
A. File in this docket an Interruptible Service Study as outlined in Exhibit 56 prior to its next electric rate case.
B. Consider the Interruptible Rate Performance Factor, and its application, in the context of preparing that study.
C. File status reports regarding study beginning February 2, 2010, and every six months thereafter until study is complete.
Status reports filed February 2, 2010 and August 2, 2010. Study filed on November 2, 2010.
Company shall amend electric service quality tariffs to provide a $200 credit per outage to municipal
pumping customers. Requirement satisfied in January 27, 2010 compliance filing in Docket No. E002/GR-08-1065.
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Regarding street lighting, Xcel shall:
A. Discuss with the SRA and all other interested street lighting customers the following issues, among others: • Whether street lighting services should be governed exclusively by tariffed terms, or whether there are benefits to Xcel or customers having both a filed tariff and individual contracts;
• The type of standard or credit that should apply to outages and restorations;
• Whether long-term maintenance contracts should be required and whether an exit fee or other arrangement should be allowed; and
• The appropriate means to inform customers about energy efficiency, new lighting options, and new technology.
B. File an initial status report on these discussions by February 1, 2010, and every six months thereafter until:
• Xcel files a new street lighting tariff,
• another party petitions for a tariff change, or • all parties agree that no changes are needed.
Discussions are ongoing.
Status reports filed February 2, 2010, and August 2, 2010 in Docket No. E002/GR-08-1065. Settlement Agreement – Fuel Clause Adjustment
Company to provide FCA incentive proposal to workgroup formed in docket E999/CI-03-802. Include positive/negative financial consequences for
Xcel Energy. Company will not argue that filed rate
doctrine or federal preemption prevents implementation of FCA incentive mechanism.
Requirement met. Proposal provided to workgroup March 18, 2010.
Company to continue providing current reporting in monthly FCA filings and 09/01 Annual Automatic Adjustment (AAA) of Charges reports. (Per
E002/GR-05-1428 MN electric rate case settlement.) Work with OES if agency requires additional
reporting.
Addressed in monthly FCA and AAA filings.
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Company to contribute to collaborative process including all Minnesota utilities to develop a FCA incentive mechanism to maintain and keep generation plants operating at peak performance. To occur in existing FCA investigation docket E999/CI-03-802.
The Company has met this requirement.
Settlement
Agreement – Non- Asset Based Margins
Company to provide fully-allocated and incremental cost study regarding generating non-asset based margins.
Anne Heuer,
Exhibit___(AEH-1), Vol 2A, Page 116-118, Schedule 16.
Settlement
Agreement – Power Voltage Quality
Company to request that the Commission establish a proceeding, including all electric utilities, which addresses the issue of power voltage quality. Purpose of the proceeding would be to consider whether there is a need for new quality standards or incentives.
Requirement being met in utility service quality dockets.
Settlement Agreement –
Calendar-Based Meter Read Dates
Company will perform study of giving customers the option of establishing monthly calendar-based meter read dates. The study would include an analysis of the most cost-effective way to implement this potential service offering as well as any barriers or additional costs associated with its implementation and working with the Chamber following conclusion of the study towards cost-effective and reasonable implementation of this proposal.
Study completed; discussions ongoing.
Settlement
Agreement – Interval Load Data Services
Company will add to its Rules & Regulations section of the tariff a description of the interval load data services offered to large C&I customers.
Requirement met in January 27, 2010 compliance filing. Settlement
Agreement – Short Notice Rider Tariff
Company will modify Short Notice Rider Tariff; Modification provision concerning certification of interruptible load. Requirement met in January 27, 2010 compliance filing Settlement Agreement – Small Wind DG Purchase Tariff
Company will remove language indicating that customer must own the generator in order to qualify for the tariff. Company agrees to review the entirety of Section 10 and make changes consistent with those changes referenced in compliance filing.
Requirement met in January 27, 2010 compliance filing.
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Settlement
Agreement – Fuel Clause Tariff Rider (Section 5, Sheet No. 91.1)
Company will revise the Fuel Clause Tariff Rider, provision 3, regarding recovery of MISO Day 2 expenses. Requirement met in January 27, 2010 compliance filing. Settlement Agreement – Standby and Supplemental Service Tariffs
Company will revise the Standby and Supplemental Service Tariffs to replace the OATT rate with the Test Year 2009 MN jurisdiction transmission cost
component. Requirement met in January 27, 2010 compliance filing. Settlement Agreement – City Listing for SRA
At request of SRA, Company will provide a list of cities where it provides outdoor lighting service and note the last day each city was relamped.
Requests addressed as made. Settlement Agreement – Rider Provision Regarding 24-Month Forecast
Company proposes adding a provision to each rider tariff which will provide 24-month forecasts to customers who sign a protective agreement with the Company. The affected Riders are: FCR,
EIR/MERP, TCR, RDF, RES , SEP and CIP.
The Company has met this requirement. Evidentiary Hearing Commitment - Hearing Transcript Vol. 2A p 73 (Zins); (Proposed Finding of Fact #371);
Company agrees to continue discussions with the University of Minnesota regarding Retail Wheeling (I.e. rates and a new tariff) after the current
proceeding. Phillip Zins, Exhibit___(PJZ-1), Vol. 2B, page 34. Evidentiary Hearing Commitment - Hearing Transcript Vol. 2B p 45 (Huso);
Company will make a change to its Street Lighting Tariff: agree to change response time from 72 hours to 2 business days.
Addressed in ongoing discussions with SRA on Street Lighting tariffs.
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E002/M-08-1201 2009 Nuclear Plant Decommissioning Accrual
Order Approving Decommissioning Plan, as Modified, and Requiring Refund Proposal
06/12/2009
Commission approved Monticello and PI decommissioning plan based on:
a. 2.89% cost escalation rate
b. 6.3% earnings rate on external accounts c. Assumed 2030 end-of-life date for Monticello d. Assumed 2023 end-of life date for PI unit 1 and 2024 end-of-life date for PI unit 2
Within 60 days of present Order, file a proposal for refunding surplus from the escrow account for the Monticello unit.
The Company complied with this requirement. Filing made on 08/11/2009 in Docket E002/M-08- 1201.
Commission approved end-of-life fuel accrual of approximately $2M from MN ratepayers based on end-of-life dates mentioned above. Figure is subject to updating to reflect the rate of return approved in current rate case, Docket E002/GR-08-1065. Within 30 days of this Order, Company shall file updated schedules of calculations reflecting the Commission’s decisions in present Order
The Company complied with this requirement. Filing made on 07/09/2009 in Docket E002/M-08- 1201.
E002/M-08-1201 2009 Nuclear Plant Decommissioning Accrual
Approving Order: Proposed Refund Plan of Monticello Decommissioning Escrow Surplus 11/30/2009
Commission approved Company’s refund proposal, but with modification to first allocate the refund amount to customer classes according to the CCOSS as recommended by OES.
Company to file compliance report within 30 days of completion of refund process, including proposal to resolve remaining material unrefunded balance and final bank statement of liquidated escrow fund verifying that all amounts have either been refunded or included in the Qualified Decommissioning Fund.
The Company complied with this requirement. Filing made on 05/05/2010 in Docket E002/M-08- 1201.
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E002/MR-08-1316 Approval of a New Base Cost of Energy
Order Setting New Base Cost of Energy 12/23/2008
New base electric costs filing will be required at end of general rate case to reflect changes in cost of fuel that might result from that proceeding.
The language in Company’s fuel clause rider may be addressed in the general rate case.
Any adjustments in the treatment of non-asset-based margins approved in the general rate case will be reflected in final rates set in case.
Requirement met by January 27, 2010 compliance filing.
E002/M-09-1083
Order Approving 2010 RES Rider and 2009 RES Tracker Report, Establishing 2010 RES Charge, and Requiring Revised Tariff 04/22/2010
2010 RES Cost Recovery Rider and 2009 RES Tracker Report
RES project costs will be limited to amounts of initial estimates at time projects are approved as eligible for Nobles and Wind2Battery. Company can seek recovery of excluded costs on prospective basis (no deferred accounting) in subsequent rate case.
Pamela Graika, Exhibit___(PKG-1), Vol. 2B, page 27; Anne Heuer,
Exhibit___(AEH-1), Vol 2A, starting at page 109.
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G002/GR-09-1153
Testimony of Mark. P. Moeller Supporting Resolution of
Pension Issues With OAG and
Withdrawing 2011 Pension Proposal. July 2, 2010.
2009 Gas Case Pension Settlement
The Company agrees to file as part of its compliance filing in this case or in its next general rate case; (i) an explanation of Financial Accounting Standards Board (“FASB”) Statements; (ii) an explanation of whether the Company has adopted them for financial and regulatory purposes and (iii) the effect on ratepayers, if any.
Mark Moeller, Exhibit___(MPM-1), Vol 2B page 5; Schedule 3.
Additionally, the Company shall include a discussion of instances when it is relying on Statement of Financial Accounting Standards (“SFAS”) 71, similar to its use of Aggregate Cost Method for pension accounting.
Mark Moeller, Exhibit___(MPM-1), Vol 2B, page 7; Schedule 3a. NSP MN will continue to use the Aggregate Cost
Method for ratemaking and financial purposes for pension expense. To the extent the Company is required to fund pursuant to the Pension Protection Act (“PPA”), the Company proposes that the treatment will be consistent with the Company’s handling of SFAS 106.
Mark Moeller, Exhibit___(MPM-1), Vol 2B, page 8; Schedule 4.
In its next general rate case, the Company shall provide information updating its pension funding requirements including any changes to funding resulting from amendments to the PPA and comparing pension expenses determined under continued use of the Aggregate Cost Method of pension expense to a normalized method over a period of years. This information will identify any rate base effect arising from the use of either method.
Mark Moeller, Exhibit___(MPM-1), Vol 2B, page 20, Schedule 8.