The company is seeking a 4.6% hike in the average customer rates, effective 3 January 2014, followed by another 5.6% increase in 2015.
Northern States Power Co.-Minnesota president and CEO Dave Sparby said the proposal provides more manageable and predictable bills while enabling the company to provide high-quality service and customer value.
”Our objective is to moderate our request and keep the annual rate increase between 4 and 6 percent as we complete major improvements to our electric system,” Sparby added.
”Post-2016, we believe our costs will be at or below the rate of inflation, and customers will have the benefit of a healthy, diverse system for well into the future.”
Approximately 45% of the increase will be invested to continue operation and increase output at the company’s nuclear plants for an additional 20 years, and new wind resources.
Around 25% of the increase will be used to strengthen and modernize the electricity grid and implement technology improvements, while the remaining will be spent on other power plants, including the return to service of Sherco 3 after an extended outage.
The public hearings will be held in the spring or summer of 2014, and the decision is expected in early 2015.
