Miller, Canfield, Paddock and Stone, P.L.C. One Michigan Avenue, Suite 900 Lansing, Michigan TEL (517) FAX (517)

Transcription

1 Founded in 1852 by Sidney Davy Miller SHERRI A. WELLMAN TEL ( FAX ( Miller, Canfield, Paddock and Stone, P.L.C. One Michigan Avenue, Suite 900 Lansing, Michigan TEL ( FAX ( MICHIGAN: Ann Arbor Detroit Grand Rapids Kalamazoo Lansing Troy FLORIDA: Tampa ILLINOIS: Chicago NEW YORK: New York OHIO: Cincinnati CANADA: Toronto Windsor CHINA: Shanghai MEXICO: Monterrey POLAND: Gdynia Warsaw Wrocław March 23, 2018 Ms. Kavita Kale Executive Secretary Michigan Public Service Commission 7109 W. Saginaw Hwy. 3 rd Floor Lansing, MI Re: Northern States Power Company a Wisconsin corporation 2017 Energy Waste Reduction Reconciliation (Electric & Gas MPSC Case No. U Dear Ms. Kale: Enclosed for electronic filing are the Application and Direct Testimony and Exhibits of Lori J. Drilling, together with the Appearance of Sherri A. Wellman. Please be advised that a marked-up Notice of Hearing has been ed to Angela Sanderson of your office. Should you have any questions, please kindly advise. Very truly yours, Miller, Canfield, Paddock and Stone, P.L.C. SAW/kld Enclosures cc: Lori Drilling Karl Hoesly John Ness Mara K. Ascheman By: Sherri A. Wellman \

2 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * In the matter of the application of NORTHERN STATES POWER COMPANY, Case No. U a Wisconsin corporation and wholly owned subsidiary of Xcel Energy Inc., for authority to reconcile its 2017 electric and gas energy waste reduction costs and revenues, and for related approvals. APPLICATION NORTHERN STATES POWER COMPANY, a Wisconsin corporation (hereafter NSP- W, respectfully requests the Michigan Public Service Commission ( Commission to approve NSP-W s reconciliation of its electric and gas Energy Waste Reduction ( EWR payments and revenues for the period ended December 31, 2017, and (ii authorize surcharges at the revised levels. In support of these requests, NSP-W represents as follows: 1. NSP-W is a public service corporation organized under the laws of the State of Wisconsin with principal offices located in Eau Claire, Wisconsin and Ironwood, Michigan. NSP-W is authorized to do business in the State of Michigan. 2. NSP-W is engaged, in part, in the generation, transmission, distribution and sale of electric energy in two counties in the Upper Peninsula of Michigan, and thirty-four counties in Wisconsin. NSP-W is engaged, in part, in the distribution and sale of natural gas in portions of two counties in the Upper Peninsula of Michigan and portions of ten counties in Wisconsin. 3. NSP-W's retail electric and gas business is subject to the jurisdiction of the Commission pursuant to 1909 PA 106, as amended, MCL et seq.; 1919 PA 419, as amended, MCL et seq.; and 1939 PA 3, as amended, MCL et seq. Pursuant to said

3 statutory provisions, the Commission has power and jurisdiction to regulate NSP-W's retail electric and gas rates for service rendered in the State of Michigan. 4. NSP-W participated in the alternative independent EWR administrator program and assesses EWR surcharges to recover payments made to the EWR administrator. Recently, NSP-W advised of its intention to continue with the EWR Program Administrator. 5. Pursuant to paragraph 6d of the Settlement Agreement issued in Case No. U-15892, and the Commission s February 5, 2018 Order docketing this case, NSP-W hereby files for, and requests approval of a reconciliation of the electric and gas EWR costs and revenues recovered pursuant to the authorized EWR surcharges for the period ending December 31, NSP-W is filing, as part of this Application, testimony and exhibits sufficient to allow reconciliation. The filing reflects the directive made in the MPSC s September 28, 2017 Order Approving Settlement Agreement issued in Case No. U-18334, to reflect the 2016 EWR underrecovery balance of $4, as the beginning balance for the Company s 2017 EWR reconciliation. 6. For 2017 NSP-W s electric and gas EWR surcharge revenues were more than the amount paid to the EWR Program Administrator, and when combined with the prior period reconciled under-collection and interest, a net cumulative over-collection of $11,058 was produced. 7. NSP-W requests authority to revise to roll-in the net cumulative over-recovery into its 2018 balance, and to revise electric and gas EWR surcharge amounts to be collected in NSP-W is concurrently filing testimony and exhibits of Lori J. Drilling in support of this Application. NSP-W represents that the proposals contained in this Application are just, reasonable and in the public interest. 2

4 WHEREFORE, Northern States Power Company, a Wisconsin corporation, requests that the Commission: A. Establish an early time and place for hearing and give notice thereof; B. Approve the reconciliation of the EWR surcharge revenues for both electric and gas service for the period ending December 31, 2017, as presented by NSP-W; C. Find and determine that NSP-W s EWR surcharge revenues were properly recovered; D. Authorize NSP-W to roll-in the net cumulative over-recovery of $11,058 into its 2018 EWR costs and revise electric and gas EWR surcharge amounts to be collected in 2018; and E. Grant NSP-W such other and further authority as may be lawful and proper. Respectfully submitted, NORTHERN STATES POWER COMPANY, A WISCONSIN CORPORATION Dated: March 23, 2018 By: And by: Mara K. Ascheman Senior Attorney Xcel Energy 414 Nicollet Mall Minneapolis, MN ( Mara.K.Ascheman@xcelenergy.com \ Its Attorney Sherri A. Wellman (P38989 MILLER, CANFIELD, PADDOCK and STONE, P.L.C. One Michigan Avenue, Suite 900 Lansing, Michigan (

5 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * In the matter of the application of NORTHERN STATES POWER COMPANY, Case No. U a Wisconsin corporation and wholly owned subsidiary of Xcel Energy Inc., for authority to reconcile its 2017 electric and gas energy waste reduction costs and revenues, and for related approvals. DIRECT TESTIMONY OF LORI J. DRILLING ON BEHALF OF NORTHERN STATES POWER COMPANY

6 1 2 3 Q. PLEASE STATE YOUR FULL NAME, POSITION, AND BUSINESS ADDRESS. A. My name is Lori J. Drilling. My business address is 1414 West Hamilton Avenue, Eau Claire, Wisconsin Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT CAPACITY? A. I am employed as the DSM Resource Supervisor for the Customer and Community Services Department of Northern States Power Company, a Wisconsin corporation ( NSP-W or the Company and wholly owned subsidiary of Xcel Energy Inc. ( Xcel Energy Q. PLEASE DESCRIBE YOUR CURRENT JOB RESPONSIBILITIES. A. I am responsible for managing the development and execution of regulatory projects relating to Demand Side Management ( DSM and the statewide energy efficiency programs for Michigan and Wisconsin. This includes preparing testimony, exhibits, data requests, filings, comments, and reports for regulatory purposes. I am also responsible for compliance related to regulatory and legal requirements in regard to DSM in both Michigan and Wisconsin Q. PLEASE DESCRIBE YOUR BACKGROUND AND EXPERIENCE WITH NSP- W. A. I joined NSP-W in 1986 and held various positions within the Marketing Department until 1998 when I joined the Business Solutions Center. In 2011, I accepted a position as 2

7 1 2 the Program Coordinator in Customer and Community Services and assumed my present position as the DSM Resource Supervisor in Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS PROCEEDING? A. In compliance with the Michigan Public Service Commission s February 5, 2018 Order, and paragraph 6d of the Settlement Agreement in Case No U-15892, requiring the Company to file an Energy Waste Reduction ( EWR reconciliation each year, I am providing the following information with respect to both electric and gas service: Reconciliation for the period January 1 through December 31, 2017 of revenues billed with; a. actual costs, i.e. payments made to the EWR Program Administrator, for purposes of determining interest on any over and under recoveries; and b. levelized revenue requirements for purposes of determining EWR surcharges. 2. Calculations of the total revenue over or under recovery by major customer class; 3. Calculation of interest at the Company s short-term borrowing rate on over or under recoveries and; 4. Calculation of revised EWR surcharges, including an amount designed to true-up such reconciliation amounts Q. PLEASE IDENTIFY THE EXHIBITS THAT YOU ARE SPONSORING WITH YOUR DIRECT TESTIMONY. 3

8 1 2 A. I am sponsoring the following exhibits, all of which were prepared by me or under my direction and supervision: Exhibit Exhibit A-1 (LJD-1 Exhibit A-2 (LJD-2 Exhibit A-3 (LJD-3 Content EWR Surcharge Revenues Collected in 2017, Compared to the Levelized Revenue Requirement; Calculation of Interest on Over/Under Collection Amounts; and Calculation of the Revised EWR Surcharges with True-up Adjustment Q. PLEASE BRIEFLY DESCRIBE THE EXHIBITS THAT YOU ARE SPONSORING. A. Exhibit A-1 (LJD-1 details the electric and gas EWR surcharge revenues collected during 2017 for each major rate class and customer type. It also reflects a comparison of those revenues to the levelized revenue requirement for 2017 based on 2.00% of the Company s 2015 revenues Exhibit A-2 (LJD-2 compares the electric and gas EWR surcharge revenues collected in 2017 to the actual payments made to the Program Administrator during 2017 and calculates interest applicable on the over-recovery A utility that commits to using the Independent Energy Waste Reduction Program Administrator collects from its customers for remittance to the Commission payments to the following schedule: In 2009, 0.75% of Michigan retail gas and electric sales revenues for In 2010, 1.0% of Michigan retail gas and electric sales revenues for In 2011, 1.5% of Michigan retail gas and electric sales revenues for In 2012 and each year thereafter, 2.0% of Michigan retail gas and electric sales revenues for the preceding year. 4

9 1 2 3 Exhibit A-3 (LJD-3 determines the electric and gas EWR surcharges by major rate classes designed to recover the true-up adjustment and reflecting the payment schedule to be made to the Program Administrator in 2018 based upon 2.00% of revenues for Q. DURING 2017, DID THE COMPANY OVER-RECOVER ITS EWR REVENUES COMPARED TO AMOUNTS ACTUALLY PAID TO THE ADMINISTRATOR? A. Yes. The 2017 EWR revenues actually collected, compared to the amount paid to the Program Administrator resulted in a net cumulative over collection of $11,058 inclusive of the under recovery of $4,097 associated with the 2016 reconciliation for the combination electric and gas utilities, and including ($207 accrued interest. Supporting detail is provided in Exhibit A-1 (LJD-1 and Exhibit A-2 (LJD Q. HOW DOES THE COMPANY PLAN TO RECOVER OR TRUE-UP THE NET CUMULATIVE OVER COLLECTION FROM 2017? A. The Company is proposing changes to the electric and gas EWR surcharges in order to true-up the net cumulative over-collection Q. HOW DID THE COMPANY CALCULATE ITS EWR REVENUES FOR 2017? A. As specified in PA 295, the Company implemented electric and gas volumetric surcharges for its Residential customers and per meter surcharges for each of its other rate classes. The Company then applied the appropriate surcharge rate to the electric and gas volumes that were sold during 2017 and on the number of meters operating during the year, based upon the requirements of each surcharge component. 5

10 Q. WHAT WILL BE THE AMOUNTS OF THE COMPANY S EWR OBLIGATION FOR 2018? A. EWR payments for 2018 will be 2.00% of actual 2016 revenues. As shown in Exhibit A-3 (LJD-3, the payments will be $274,498 based on 2016 electric revenue and $97,096 based on 2016 gas revenue Q. DOES THIS COMPLETE YOUR DIRECT TESTIMONY? A. Yes, it does \

11 NORTHERN STATES POWER COMPANY - WISCONSIN Energy Waste Reduction Surcharges Collected in 2017 Compared to the Levelized Revenue Requirement Case No. U Elec & Gas Exhibit: A-1 (LJD-1 Witness: Lori Drilling Payment to Administrator Amount 2.00% Of Amount Basis Of EO Surcharge Revenues Recovered 2013 Over/(Under Electric Rate Class (U Surcharge Surcharge Jan - 15 Feb - 15 Mar - 15 Apr - 15 May - 15 Jun - 15 Jul - 15 Aug - 15 Sep - 15 Oct - 15 Nov - 15 Dec - 15 In 2015 Revenue Collected Cumulative Total Residential - C01, C02 $ kwh $13,053 $11,008 $11,720 $8,657 $7,647 $7,200 $7,706 $8,295 $9,637 $16,002 $9,390 $16,501 $126,817 $ 123,400 $3,417 $ 22,109 Small Commercial - C09, C10, C11, C31, C32 $2.20 meter-mo. $2,274 $2,227 $2,358 $2,302 $2,262 $2,317 $2,317 $2,257 $2,368 $2,987 $2,188 $2,596 $28,453 $ 30,137 ($1,684 $ 26,393 Commercial - C12, C21 $25.75 meter-mo. $3,373 $3,226 $3,519 $3,399 $3,279 $3,399 $3,451 $3,257 $3,348 $3,476 $3,166 $3,399 $40,291 $ 44,297 ($4,006 $ (9,623 Industrial - C13, C20 (sec. $ meter-mo. $2,080 $1,950 $1,820 $2,080 $1,820 $2,080 $1,950 $1,950 $1,950 $2,080 $1,820 $1,950 $23,530 $ 27,842 ($4,312 $ (6,832 Industrial - C20 (trans. $1, meter-mo. $3,400 $3,400 $3,400 $3,400 $3,400 $3,400 $5,100 $1,700 $5,327 $3,173 $3,400 $3,400 $42,500 $ 38,858 $3,642 $ (892 Lighting - C04, C30 $0.13 lamp per month $173 $165 $181 $174 $174 $174 $174 $175 $181 $230 $218 $228 $2,247 $ 3,877 ($1,630 $ 6,822 Totals $24,353 $21,976 $22,999 $20,012 $18,582 $18,570 $20,698 $17,634 $22,811 $27,950 $20,183 $28,073 $263,839 $268,411 ($4,572 $ 37,976 Payment to Administrator Amount 2.00% Of Amount Basis Of EO Surcharge Revenues Recovered 2013 Over/(Under Gas Rate Class (U Surcharge Surcharge Jan - 15 Feb - 15 Mar - 15 Apr - 15 May - 15 Jun - 15 Jul - 15 Aug - 15 Sep - 15 Oct - 15 Nov - 15 Dec - 15 In 2015 Revenue Collected Residential $ therm $11,971 $10,697 $12,060 $6,523 $3,848 $1,848 $765 $558 $659 $2,058 $2,054 $5,662 $58,703 $67,847 ($9,144 $ (4,696 Commercial $3.50 per mo. $2,637 $2,581 $2,726 $2,650 $2,640 $2,664 $2,708 $2,616 $2,562 $2,795 $1,846 $2,344 $30,770 $34,544 ($3,774 $ (849 Interruptible $55.00 per mo. $275 $220 $330 $275 $220 $330 $275 $266 $275 $275 $275 $275 $3,291 $3,282 $9 $ 8,063 Industrial $ per mo. $830 $830 $830 $830 $830 $830 $830 $830 $830 $830 $830 $830 $9,960 $9,538 $422 $ 7,946 Totals $15,713 $14,327 $15,946 $10,278 $7,538 $5,673 $4,578 $4,270 $4,326 $5,959 $5,005 $9,111 $102,723 $115,211 ($12,488 $ 10,464 Totals - Electric and Gas $366,562 $383,622 ($17,060 $ 48,440 Payment to Administrator Amount 2.00% Of Amount Basis Of EO Surcharge Revenues Recovered 2014 Over/(Under Electric Rate Class (U Surcharge Surcharge Jan - 16 Feb - 16 Mar - 16 Apr - 16 May - 16 Jun - 16 Jul - 16 Aug - 16 Sep - 16 Oct - 16 Nov - 16 Dec - 16 In 2016 Revenue Collected Cumulative Total Residential - C01, C kwh $19,915 $17,710 $17,063 $14,419 $12,378 $12,511 $13,400 $16,314 $11,758 $8,428 $7,470 $11,381 $162,747 $ 139,934 $22,813 $44,922 Small Commercial - C09, C10, C11, C31, C meter-mo. $2,566 $2,612 $2,632 $2,583 $2,613 $2,597 $2,580 $2,908 $1,832 $789 $612 $680 $25,004 $ 34,331 ($9,327 $17,066 Commercial - C12, C meter-mo. $3,270 $3,348 $3,348 $3,296 $3,347 $3,348 $3,262 $3,494 $3,777 $5,178 $4,299 $5,338 $45,305 $ 48,603 ($3,298 ($12,921 Industrial - C13, C20 (sec meter-mo. $1,950 $1,950 $1,820 $1,950 $1,950 $1,985 $2,080 $2,080 $2,629 $3,622 $3,045 $3,310 $28,371 $ 33,056 ($4,685 ($11,517 Industrial - C20 (trans. 2, meter-mo. $1,700 $3,400 $5,100 $3,400 $3,400 $3,400 $3,400 $3,400 $3,758 $4,142 $2,071 $4,142 $41,313 $ 48,664 ($7,351 ($8,243 Lighting - C04, C30 ( lamp per month $228 $228 $229 $228 $228 $228 $229 $234 $193 $0 $0 $0 $2,025 $ 4,421 ($2,396 $4,426 Totals $29,629 $29,248 $30,192 $25,876 $23,916 $24,069 $24,951 $28,430 $23,947 $22,159 $17,497 $24,851 $304,765 $309,009 ($4,244 $33,732 Payment to Administrator Amount 2.00% Of Amount Basis Of EO Surcharge Revenues Recovered 2014 Over/(Under Gas Rate Class (U Surcharge Surcharge Jan - 16 Feb - 16 Mar - 16 Apr - 16 May - 16 Jun - 16 Jul - 16 Aug - 16 Sep - 16 Oct - 16 Nov - 16 Dec - 16 In 2016 Revenue Collected Residential therm $8,345 $8,366 $7,480 $5,520 $3,176 $1,409 $587 $493 $832 $2,775 $4,395 $11,542 $54,920 $86,514 ($31,594 ($36,290 Commercial per mo. $2,334 $2,348 $2,389 $2,347 $2,350 $2,358 $2,338 $2,722 $2,985 $3,831 $3,149 $3,883 $33,034 $43,207 ($10,173 ($11,022 Interruptible ( per mo. $220 $275 $330 $220 $330 $275 $220 $330 $133 $38 $0 $0 $2,371 $4,208 ($1,837 $6,226 Industrial per mo. $830 $830 $830 $830 $830 $830 $830 $830 $817 $214 $201 $201 $8,073 $12,762 ($4,689 $3,257 Totals $11,729 $11,819 $11,029 $8,917 $6,686 $4,872 $3,975 $4,375 $4,767 $6,858 $7,745 $15,626 $98,398 $146,691 ($48,293 ($37,829 Totals - Electric and Gas $403,163 $455,700 ($52,537 ($4,097 Payment to Administrator Amount 2.00% Of Amount Basis Of EWR Surcharge Revenues Recovered 2015 Over/(Under Electric Rate Class (U Surcharge Surcharge Jan - 17 Feb - 17 Mar - 17 Apr - 17 May - 17 Jun - 17 Jul - 17 Aug - 17 Sep - 17 Oct - 17 Nov - 17 Dec - 17 In 2017 Revenue Collected Cumulative Total Residential - C01, C kwh $14,290 $11,901 $11,580 $9,632 $8,778 $8,971 $8,829 $9,887 $7,651 $8,663 $6,684 $9,272 $116,138 $ 133,648 ($17,510 $27,412 Small Commercial - C09, C10, C11, C31, C meter-mo. $681 $664 $715 $688 $703 $676 $678 $751 $601 $1,021 $1,135 $1,287 $9,600 $ 33,480 ($23,880 ($6,814 Commercial - C12, C meter-mo. $4,954 $4,846 $5,064 $4,888 $5,219 $4,831 $4,877 $4,992 $4,769 $5,121 $4,795 $4,655 $59,011 $ 49,325 $9,686 ($3,235 Industrial - C13, C20 (sec meter-mo. $3,751 $3,089 $3,530 $3,089 $3,552 $3,310 $3,530 $3,530 $3,530 $3,935 $3,828 $4,144 $42,818 $ 35,428 $7,390 ($4,127 Industrial - C20 (trans. 2, meter-mo. $4,142 $4,142 $4,142 $4,142 $4,142 $4,142 $4,142 $4,142 $4,142 $4,134 $4,045 $4,045 $49,502 $ 40,801 $8,701 $458 Lighting - C04, C lamp per month $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 4,330 ($4,330 $96 Totals $27,818 $24,642 $25,031 $22,439 $22,394 $21,930 $22,056 $23,302 $20,693 $22,874 $20,487 $23,403 $277,069 $297,012 ($19,943 $13,789 Payment to Administrator Amount 2.00% Of Amount Basis Of EWR Surcharge Revenues Recovered 2015 Over/(Under Gas Rate Class (U Surcharge Surcharge Jan - 17 Feb - 17 Mar - 17 Apr - 17 May - 17 Jun - 17 Jul - 17 Aug - 17 Sep - 17 Oct - 17 Nov - 17 Dec - 17 In 2017 Revenue Collected Residential therm $19,601 $15,609 $14,390 $10,130 $7,056 $3,412 $1,228 $1,162 $1,259 $3,727 $8,862 $17,943 $104,379 $72,858 $31,521 ($4,769 Commercial per mo. $3,834 $3,747 $3,969 $3,760 $4,058 $3,760 $3,837 $4,459 $3,186 $4,528 $3,315 $3,880 $46,333 $37,020 $9,313 ($1,709 Interruptible per mo. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,498 ($3,498 $2,728 Industrial per mo. $1,004 $402 $402 $402 $402 $402 $402 $402 $402 $372 $342 $342 $5,276 $7,309 ($2,033 $1,224 Totals $24,439 $19,758 $18,761 $14,292 $11,516 $7,574 $5,467 $6,023 $4,847 $8,627 $12,519 $22,165 $155,988 $120,685 $35,303 ($2,526 Totals - Electric and Gas $433,057 $417,697 $15,360 $11,263

12 NORTHERN STATES POWER COMPANY - WISCONSIN Calculation of Interest on 2017 Over/Under Collection Amounts Case No. U Elec & Gas Exhibit: A-2 (LJD-2 Witness: Lori Drilling Line Description Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Totals 1 Electric Surcharge Revenues Collected $ 27,818 $ 24,642 $ 25,031 $ 22,439 $ 22,394 $ 21,930 $ 22,056 $ 23,302 $ 20,693 $ 22,874 $ 20,487 $ 23,403 $ 277,069 2 Payments to Administrator $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 24,751 $ 297, Electric Over/(Under-Recovery $ 3,067 $ (109 $ 280 $ (2,312 $ (2,357 $ (2,821 $ (2,695 $ (1,449 $ (4,058 $ (1,877 $ (4,264 $ (1,348 $ (19,943 4 Payment Date 03/31/17 04/30/17 05/31/17 06/01/17 07/01/17 08/01/17 09/01/17 10/01/17 11/01/17 12/01/17 5 Short-term Interest Rate % % % % % % % % % % % % 6 Number of days in the month Over-Collection Amount Carried Forward $ 33,732 $ 33,732 8 Current Month Over/(Under-Recovery $ 3,067 $ (109 $ 280 $ (2,312 $ (2,357 $ (2,821 $ (2,695 $ (1,449 $ (4,058 $ (1,877 $ (4,264 $ (1,348 9 Cumulative Over/(Under-Recovery $ 36,799 $ 36,690 $ 36,970 $ 34,658 $ 32,301 $ 29,480 $ 26,785 $ 25,336 $ 21,278 $ 19,401 $ 15,137 $ 13, Cumulative Over/(Under-Recovery (Ave balance $ 35,266 $ 36,745 $ 36,830 $ 35,814 $ 33,480 $ 30,891 $ 28,133 $ 26,061 $ 23,307 $ 20,340 $ 17,269 $ 14, Current month Cumulative Balance Interest Rate % % % % % % % % % % % % (Intereste Rate x No. Of Days Current Month Interest Expense/(Revenue ($27 ($26 ($32 ($33 ($32 ($32 ($32 ($30 ($26 ($24 ($20 ($18 13 Cumulative Interest Expense ($ Electric Over-Recovery Balance and Accrued Interest to Carry Forward to 2018 Surcharge Calculation $ 13,458 Line Description Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Totals 15 Gas Surcharge Revenues Collected $ 24,439 $ 19,758 $ 18,761 $ 14,292 $ 11,516 $ 7,574 $ 5,467 $ 6,023 $ 4,847 $ 8,627 $ 12,519 $ 22,165 $ 155, Payments to Administrator $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 10,057 $ 120, Gas Over/(Under-Recovery $ 14,382 $ 9,701 $ 8,704 $ 4,235 $ 1,459 $ (2,483 $ (4,590 $ (4,034 $ (5,210 $ (1,430 $ 2,462 $ 12,108 $ 35, Payment Date 03/31/17 04/30/17 05/31/17 06/01/17 07/01/17 08/01/17 09/01/17 10/01/17 11/01/17 12/01/17 19 Short-term Interest Rate % % % % % % % % % % % % 20 Number of days in the month Over-Collection Amount Carried Forward $ (37,829 $ (37, Current Month Over/(Under-Recovery $ 14,382 $ 9,701 $ 8,704 $ 4,235 $ 1,459 $ (2,483 $ (4,590 $ (4,034 $ (5,210 $ (1,430 $ 2,462 $ 12, Cumulative Over/(Under-Recovery $ (23,447 $ (13,746 $ (5,042 $ (807 $ 652 $ (1,831 $ (6,421 $ (10,455 $ (15,665 $ (17,095 $ (14,633 $ (2, Cumulative Over/(Under-Recovery (Ave balance $ (30,638 $ (18,597 $ (9,394 $ (2,925 $ (78 $ (590 $ (4,126 $ (8,438 $ (13,060 $ (16,380 $ (15,864 $ (8, Current month Cumulative Balance Interest Rate % % % % % % % % % % % % (Intereste Rate x No. Of Days Current Month Interest Expense/(Revenue $24 $13 $8 $3 $0 $1 $5 $10 $15 $19 $18 $11 27 Cumulative Interest Expense $ Gas Over-Recovery Balance and Accrued Interest to Carry Forward to 2018 Surcharge Calculation $ (2, Total Current Month Interest Expense/(Revenue ($4 ($13 ($24 ($30 ($32 ($31 ($28 ($20 ($11 ($5 ($2 ($7

13 NORTHERN STATES POWER COMPANY - WISCONSIN Computation of the 2017 Revised Energy Waste Reduction Surcharges With True-Up Adjustment Case No. U Elec & Gas Exhibit: A-3 (LJD-3 Witness: Lori Drilling Prior Year EWR Revenue Carried Forward EWR Revenue 2016 Total 2.00% Of Revenue Projected Over/(Under Over/(Under Historical 2016 Requirement Volumes (kwh Current PROPOSED 2018 Estimated Electric Rate Class Collection Collection Revenues Revenues w/ Interest 2017 Actual 2018 Forecast Electric Surcharge Electric Surcharge Recovery Residential - C01, C02 $ 44,922 $ (17,510 $ 6,635,106 $ 132,702 $ 104,999 55,375,325 55,206,538 kwh $ $ $ 104,999 Small Commercial - C09, C10, C11, C32 $ 17,066 $ (23,880 $ 1,608,283 $ 32,166 $ 38,583 1,194 1,178 meter/mo. $ 1.10 $ 2.73 $ 38,583 Commercial - C12, C21 $ (12,921 $ 9,686 $ 2,460,929 $ 49,219 $ 52, meter/mo. $ $ $ 52,615 Industrial - C13, C20 (sec. $ (11,517 $ 7,390 $ 1,684,484 $ 33,690 $ 37, meter/mo. $ $ $ 37,940 Industrial - C20 (trans. $ (8,243 $ 8,701 $ 1,998,998 $ 39,980 $ 39, meter/mo. $ 2, $ 1, $ 39,666 Lighting - C04, C30 $ 4,426 $ (4,330 $ 43,101 $ 862 $ 695 1,752 1,678 lamp/mo. $ - $ 0.03 $ 695 Total $ 33,732 $ (19,943 $ 14,430,901 $ 288,618 $ 274, $ 274, Revenue Requirement + Carryover + Interest from 2017 $ 274,498 Total Electric Over/(Under Recovery $0.00 Prior Year EWR Revenue Carried Forward EWR Revenue 2016 Total 2.00% Of Revenue Projected Over/(Under Over/(Under Historical 2016 Requirement Volumes (Therms Current PROPOSED 2018 Estimated Gas Rate Class Collection Collection Revenues Revenues w/ Interest 2017 Actual 2018 Forecast Gas Surcharge Gas Surcharge Recovery Residential $ (36,290 $ 31,521 $ 2,826,105 $ 56,522 $ 61,403 4,671,976 4,704,280 therms $ $ $ 61,403 Commercial $ (11,022 $ 9,313 $ 1,410,378 $ 28,208 $ 29, cust/mo. $ 5.83 $ 3.73 $ 29,950 Interruptible $ 6,226 $ (3,498 $ 121,786 $ 2,436 $ ( cust/mo. $ - $ (6.36 $ (305 Industrial $ 3,257 $ (2,033 $ 363,966 $ 7,279 $ 6, cust/mo. $ $ $ 6,048 Total $ (37,829 $ 35,303 $ 4,722,235 $ 94,445 $ 97, Recovery $ 97,096 Total Electric and Gas $ (4,097 $ 15,360 $ 19,153,136 $ 383,063 $ 371, Revenue Requirement + Carryover + Interest from 2017 $ 97,096 Total Gas Over/(Under Recovery $0.00 Total Electric and Gas Over Recovery $0.00

14 MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS PUBLIC SERVICE COMMISSION ENTRY OF APPEARANCE IN AN ADMINISTRATIVE HEARING This form is issued as provided for by 1939 PA 3, as amended, and by 1933 PA 254, as amended. The filing of this form, or an acceptable alternative, is necessary to ensure subsequent service of any hearing notices, Commission orders, and related hearing documents. General Instructions: Type or print legibly in ink. For assistance or clarification, please contact the Public Service Commission at ( Please Note: The Commission will provide electronic service of documents to all parties in this proceeding. THIS APPEARANCE TO BE ENTERED IN ASSOCIATION WITH THE ADMINISTRATIVE HEARING: Case / Company Name: Docket No. Please enter my appearance in the above-entitled matter on behalf of: 1. (Name 2. (Name 3. (Name 4. (Name 5. (Name 6. (Name 7. (Name Name Address City State Zip Phone ( I am not an attorney I am an attorney whose: Michigan Bar # is P- Bar # is: ( state Date Signature: Save Form EAHR1-09/29/2016