FARGO - Xcel Energy today asked the North Dakota Public Service Commission to authorize an increase in base electricity rates, citing investments to operate, maintain and expand its nuclear plants and electricity grid as key drivers in the case. Xcel Energy serves nearly 90,000 customers in North Dakota.

"Our customers expect safe and reliable electricity service, and we have been investing more than $1 billion a year in our Upper Midwest system to meet those expectations," said Laura McCarten, Xcel Energy regional vice president. "Almost 90 percent of this request is to recover investments in our nuclear plants and our regional and local electric grid system, needed to assure reliable cost-effective service now and into the future. The balance of the request is for costs associated with investments in other power plants and business cost increases."

Nearly half of the company's $16.9 million request is related directly to continued operation of the Monticello and Prairie Island nuclear plants and to expand the output of the Monticello plant. The two nuclear plants produce 30 percent of the energy on Xcel Energy's system in the Upper Midwest.

"Our nuclear plants provide some of the most reliable, lowest-cost, environmentally sound electricity on our system," McCarten said. "We obtained approval to continue operation of our nuclear plants and, as a condition of that approval, we need to invest now to keep them operating safely and reliably over the next 20 years."

Transmission system upgrades that benefit all of Xcel Energy's Upper Midwest customers and distribution system improvements in North Dakota are other significant reasons for the proposed rate increase. Among investments included in the case are the CapX 2020 transmission project, substation upgrades benefiting several North Dakota communities and investments to restore and improve our flood-damaged system in Minot. The request represents a 9.25 percent increase in customer rates overall. As part of the filing, Xcel Energy seeks implementation of interim rates effective Feb. 16. Under the interim rate proposal, a typical residential customer's monthly bill would increase by approximately 8.6 percent, or about $7. If the commission approves final rates that are lower than the interim level, Xcel Energy will refund the difference plus interest.

"While we have worked to manage costs and increase our efficiency, we are not able to avoid this rate request," McCarten said. "We understand the impact of this proposed increase on our customers and while all customers pay the costs of keeping our system robust, customers can reduce their individual costs by participating in programs we offer to help manage and lower bills."

The North Dakota commission is expected to hold public hearings in the spring of 2013. Following review by the commission, final rates could take effect in the fall of 2013. The rate case filing will be available on the commission's website at www.psc.nd.gov. 
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Xcel Energy North Dakota Electricity Rate Case Filing Fact Sheet
Request
• $16.9 million, a 9.25 percent increase in overall rates
• A typical (850 kilowatt-hours) residential customer's monthly bill would increase by approximately 9.1 percent, or about $7.
• A typical small business customer's monthly bill would increase by approximately
8.2 percent, or about $9, based on use of 1,214 kilowatt-hours.

Case Drivers
• Investments and costs to extend the lives of and operate the Prairie Island and
Monticello nuclear plants and to expand power output at the Monticello plant $8.4
million (nearly 50 percent of total increase)
• Investments and costs to refresh, upgrade and operate the electricity grid $6.4
million (38 percent of total increase)
o CapX 2020 transmission project and other transmission improvements
o North Dakota substation improvements
o Distribution reliability projects
• Operating and maintaining non-nuclear generation $1.7 million (10 percent of
total increase)
• Other business costs $0.4 million (2 percent of total increase)

Key Points
• Our customers expect safe, reliable and clean electricity service - and we deliver.
We've been investing more than $1 billion/year in our power plants, poles and
wires to meet these expectations. And we'll continue to make significant
investments over the next several years to ensure we can provide that great service
to our customers over the long term.
• Extending the lives of the Prairie Island and Monticello nuclear plants and expanding output at Monticello keeps these low-cost, environmentally sound resources available for customers for the future. Investments are required now as a condition for extending the lives of these plants for another 20 years.
• Electricity is an essential service and needs to be available 24/7.
• Our rates in North Dakota are competitive with other regional utilities and lower than the national average.

Timeline
• Feb. 16, 2013: Interim rates take effect
• Spring 2013: Public hearings
• Summer 2013: North Dakota Public Service Commission review and formal hearing
• Fall 2013: New rates take effect

Interim Request
• Xcel Energy is requesting an interim increase during the time the case is under review, as allowed under North Dakota statute:
• $14.7 million, an 8 percent increase in overall rates, effective Feb. 16
• A typical residential customer's monthly bill would increase by approximately 8.6 percent, or about $7.
• A typical small business customer's monthly bill would increase by approximately 8.5 percent, or about $9, based on use of 1,214 kilowatt-hours.

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