Surrebuttal Testimony and Schedules Charles R. Burdick Before the Minnesota Public Utilities Commission State of Minnesota In the Matter of the Application of Northern States Power Company for Authority to Increase Rates for Electric Service in Minnesota Exhibit (CRB-3) Multi-Year Rate Plan October 18, 2016
Table of Contents I. Introduction 1 II. Support for Settlement 1 III. Response to OAG 8 III. Conclusion 10 Schedules Capital and Property Tax True-Ups: Response to MPUC-502 Schedule 1 Summary Schedule 2 2016 Rate Base and Income Statement Bridge Schedule Schedule 3 2017 Rate Base and Income Statement Bridge Schedule Schedule 4 2018 Rate Base and Income Statement Bridge Schedule Schedule 5 2019 Rate Base and Income Statement Bridge Schedule Schedule 6 Summary of Revenue Requirements Schedule 7 Amortization Detail Schedule 8 TCR Rider CapX2020 Brookings and Fargo Detail Schedule 9 LED Street Lighting Detail Schedule 10 Riders: Response to MPUC-13, OAG-594.1, and OAG-175 Schedule 11 i Burdick Surrebuttal
1 I. INTRODUCTION 2 3 4 5 Q. PLEASE STATE YOUR NAME AND OCCUPATION. A. My name is Charles R. Burdick. I am Manager of Revenue Analysis in the Revenue Requirements North department for Xcel Energy Services Inc. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. HAVE YOU PREVIOUSLY PROVIDED TESTIMONY IN THIS PROCEEDING? A. Yes. I filed Direct Testimony on behalf of Northern States Power Company (Xcel Energy or the Company) presenting the Company s three-year multiyear rate plan (MYRP) proposal in this proceeding. I also filed Rebuttal Testimony supporting the Stipulation of Settlement (Settlement) entered into by the Company and eight other parties in this rate case (the Settling Parties), and responding to portions of the Direct Testimony of Office of the Attorney General (OAG) witness Mr. John Lindell. Q. WHAT IS THE PURPOSE OF YOUR SURREBUTTAL TESTIMONY? A. I provide information on compliance procedures under the Settlement including the capital and property tax true-ups and illustrative schedules quantifying the Settlement s impact for ratemaking. I also respond to assertions and correct portions of the information in OAG witness Mr. Lindell s Rebuttal Testimony comparing the results of the Company s prior rate cases to the Settlement revenue requirements. 23 24 II. SUPPORT FOR THE SETTLEMENT 25 26 27 Q. WHAT COMPLIANCE STEPS WILL BE NECESSARY TO IMPLEMENT THE SETTLEMENT? 1 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A. While the Settlement describes the Settling Parties agreement on revenue outcomes, it does not articulate all of the compliance procedures needed for implementation. These additional compliance steps are implementation of capital and property tax true-ups and development of illustrative schedules that quantify the Settlement s impact for ratemaking. I provide details on these matters below. Q. PLEASE DESCRIBE THE CAPITAL AND PROPERTY TAX TRUE-UPS THAT WILL BE IMPLEMENTED UNDER THE SETTLEMENT. A. As part of its ongoing compliance requirements, the Company will implement capital and property tax true-ups based on my Direct Testimony and modified for the Settlement as described in our response to Information Request MPUC-502 from Commission Staff. Our October 5, 2016 response provides details on the capital and property tax true-up compliance steps and is provided as Exhibit (CRB-3), Schedule 1. Q. PLEASE DESCRIBE THE ILLUSTRATIVE SCHEDULES MENTIONED ABOVE. A. Illustrative schedules are provided as Exhibit (CRB-3), Schedules 2 through 7. These provide the following information: Schedule 2 Summary Schedule 3 2016 Rate Base and Income Statement Bridge Schedule Schedule 4 2017 Rate Base and Income Statement Bridge Schedule Schedule 5 2018 Rate Base and Income Statement Bridge Schedule Schedule 6 2019 Rate Base and Income Statement Bridge Schedule Schedule 7 Summary of Revenue Requirements 2 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Q. HOW IS THE RATE CASE REVENUE REQUIREMENT ADJUSTED TO ARRIVE AT THE SETTLEMENT RESULT? A. The illustrative schedules start with the Company s as-filed request for 2016, 2017, and 2018, plus the Company s forecast for 2019. The schedules then summarize the Department s recommended adjustments from their Direct Testimony. First, the schedules itemize adjustments that are due to legislative changes or Commission orders. These adjustments are quantified in the Direct Testimony of Department witness Ms. Nancy Campbell and Company witness Ms. Anne Heuer: Bonus Tax Remaining Life Study NSPM Service Company Allocations Next, the schedules show amortization of expenses matched to the four-year term of the Settlement. The amortizations expense the same totals as indicated in the Department s Direct Testimony, but over four years instead of five. These adjustments are quantified in the Direct Testimony of Department witnesses Mr. Dale Lusti and Ms. Campbell, and Company witness Ms. Heuer, with four-year detail provided in Exhibit (CRB-3), Schedule 8: 4-Year Amortization of rate case expenses Transco 2015 Amortization Then, the schedules provide two bulk adjustments to represent the balance of the Department s recommendations: Rate Base 3 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Income Statement The schedules show a subtotal to tie to the Department s position in Direct Testimony. Q. PLEASE DESCRIBE THE RATE BASE ADJUSTMENT. A. The Rate Base adjustment ties to the total remaining rate base adjustments from the Department s Direct position. Q. PLEASE DESCRIBE THE INCOME STATEMENT ADJUSTMENT. A. The Income Statement adjustment represents the balance of the Department s adjustments. Rather than showing an adjustment to each expense category, the Income Statement adjustment provides a revenue offset to arrive at the same revenue deficiency in the Department s Direct Testimony. Q. WHAT ADJUSTMENTS ARE MADE SUBSEQUENT TO THE DEPARTMENT S POSITION? A. To illustrate the difference between the Department s position in Direct Testimony and the Settlement outcome, we show the following adjustments: CIP Commission Order CapX2020 Fargo and Brookings remain in the TCR Rider LED Street Lighting Settlement Rate Shape 2016 Sales True-Up Cash Working Capital Net Operating Loss 4 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. DO THE CIP AND TCR-RELATED ADJUSTMENT NOTED ABOVE IMPACT BASE RATE REVENUE REQUIREMENTS? A. No. As discussed in Ms. Heuer s Direct Testimony, the CIP and TCR-related adjustments set the rate base, revenues, and expenses in the base rate cost of service to reflect that certain costs will be recovered in riders. We adjust costs and offsetting revenues simultaneously so that the net revenue requirement impact on base rates is near zero. Q. PLEASE DESCRIBE THE CIP COMMISSION ORDER ADJUSTMENT. A. As discussed in Ms. Heuer s Direct Testimony, this adjustment sets CIPrelated revenues and expenses to match the Commission s Order in Docket No. E,G002/CIP-12-447 issued October 12, 2015. As noted above, this adjustment has no revenue requirement impact for base rates. Q. PLEASE DESCRIBE THE ADJUSTMENT FOR CAPX2020 FARGO AND BROOKINGS PROJECT TO REMAIN IN THE TCR RIDER. A. This adjustment removes the capital costs and offsetting revenues related to the CapX2020 Fargo and Brookings lines from the cost of service so that the projects will continue to be recovered in the TCR per the Settlement. This Settlement term and adjustment remove the need to shift recovery of these costs to base rates at the conclusion of the rate case as was originally proposed by the Company in Ms. Heuer s Direct Testimony. Please see Exhibit (CRB-3), Schedule 9 for supporting detail. Q. PLEASE DESCRIBE THE LED STREET LIGHTING ADJUSTMENT. 5 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 A. Pages 9-11 of the Settlement address the issue of LED Street Lighting and its proposed treatment. Exhibit (CRB-3), Schedule 10, attached, provides supporting detail that informed the Settlement. Q. PLEASE DESCRIBE THE SALES TRUE-UP ADJUSTMENT. A. This adjustment is a placeholder for implementing the 2016 sales true-up according to the compliance filing proposed for February of 2017. Q. PLEASE DESCRIBE THE SETTLEMENT RATE SHAPE ADJUSTMENT. A. This adjustment affects the settlement rate shape and ties to the overall revenue requirement outcome in the Settlement. Q. PLEASE DESCRIBE THE SECONDARY CALCULATION ADJUSTMENTS. A. s to Cash Working Capital and Net Operating Loss are secondary calculations that are quantified once all other adjustments are determined. As generally accomplished in a rate case, these adjustments are calculated in the cost of service to determine the final revenue requirement based on all other adjustments. Q. WILL SOME ADJUSTMENTS NEED TO BE RECALCULATED AFTER THE 2016 SALES TRUE-UP? A. Yes. The Cash Working Capital (CWC) and Net Operating Loss (NOL) secondary calculations will need to be updated. For example, if the 2016 Sales True-Up has lower sales worth $10 million in revenues, we would include an adjustment to reduce retail revenues by $10 million. This would increase the revenue requirement by $10 million before 6 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 secondary calculations, and secondary calculations would recalculate accordingly. The total revenue result would be $85 million ($75 million + $10 million), plus the impact of incremental CWC and NOL secondary calculations. Similarly, if the 2016 Sales True-Up has higher sales worth $10 million in revenues, we would include an adjustment to increase retail revenues by $10 million. This would decrease the revenue requirement by $10 million before secondary calculations, and secondary calculations would recalculate accordingly. The revenue result would be $65 million ($75 million - $10 million), plus the impact of incremental CWC and NOL secondary calculations. The two examples above describe what would be included in the final Settlement illustrative schedules for 2016. Q. DO THE ILLUSTRATIVE SCHEDULES MEAN THAT THE COMPANY AGREES WITH THE SPECIFIC ADJUSTMENTS REFLECTED IN THEM? A. No. These schedules are being presented to illustrate a way of viewing the revenue outcome of the Settlement, but they do not represent Parties positions on each issue. As discussed by Company witness Mr. Chandarana in his Rebuttal Testimony, the Settlement allows the Settling Parties to recognize their respective positions on issues along with an overall revenue outcome. Additionally, the illustrative schedules demonstrate that the Settlement revenues are consistent with past Commission orders. 7 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Q. DO YOU PROVIDE ANY OTHER INFORMATION RELATED TO IMPLEMENTATION OF THE SETTLEMENT? A. Yes. Provided as Exhibit (CRB-3), Schedule 11 is our response to Information Request MPUC-13 related to use of existing riders during the term of the MYRP. Schedule 11 also includes our responses to Information Requests OAG-594.1 and OAG-175, which are referenced in MPUC-13. Mr. Chandarana discusses the use of riders further in his Surrebuttal Testimony. III. RESPONSE TO OAG Q. WHAT IS THE PURPOSE OF THIS SECTION OF YOUR TESTIMONY? A. I respond to assertions of OAG witness Mr. Lindell based on his comparison of the Settlement revenue requirements to the results of the Company s prior rate cases. Q. WHAT ARE YOUR CONCERNS WITH MR. LINDELL S ASSERTIONS? A. First, Mr. Lindell s Tables 1 and 2 did not provide an accurate comparison of the Settlement revenue requirements to the Company s initial request in this case. In Table 1, Mr. Lindell presented the Company s initial three-year request compared to the four-year Settlement. Due to the different time periods represented, these amounts are not comparable. As a result, Mr. Lindell s Table 2 provides an incorrect percentage of the Settlement revenue requirement compared to the Company s initial request. Q. WHAT CORRECTIONS TO MR. LINDELL S TABLE 1 ARE NECESSARY? A. To provide an accurate comparison for the four-year MYRP term, Table 1 should reflect an amount that is this representative of what the Company s 8 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 three year MYRP plus a 2019 revenue increase based on the Company s forecasts presented in our initial filing. In other words, and as noted in Mr. Chandarana s Rebuttal Testimony and in my Rebuttal Testimony, an appropriate comparison of the four-year Settlement revenue requirement to our initial request would include the amounts in our initial three-year plan (2016-2018) plus the Company s forecasted revenue requirement increase necessary for 2019. Table 1 below includes the forecasted amount for 2019 to ensure an accurate comparison of the Company s initial request to the four- year Settlement. Table 1 Incremental Revenue Requirements Q. GIVEN THE INFORMATION IN TABLE 1 ABOVE, HOW DOES THE SETTLEMENT REVENUE COMPARE TO THE COMPANY S INITIAL REQUEST. A. The Settlement revenue is approximately half of the Company s initial request (three-year plan + forecast). Mr. Lindell s calculation of 62 percent of the Company s initial request is not accurate. 2016 2017 2018 2019 Total Request/Forecast $195 $52 $50 $82* $380 Settlement $75 $60 $0 $50 $185 Cumulative Revenue Requirements 2016 2017 2018 2019 Request/Forecast $195 $247 $297 $380* Settlement $75 $135 $135 $185 * Company forecast included in initial application. 9 Burdick Surrebuttal
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Q. DO YOU HAVE OTHER CONCERNS WITH MR. LINDELL S COMPARISON OF THE COMMISSION-APPROVED AMOUNTS COMPARED TO THE COMPANY S REQUESTED AMOUNTS IN PRIOR RATE CASES? A. Yes. Looking only at percentages that compare Commission-approved amounts to requested amounts in the Company s prior rate cases is not particularly meaningful. These percentages do not consider any of the policy decisions, underlying context, operational objectives, or facts specific to those cases that were considered by the Commission during those proceedings. Rates are not set in a vacuum, nor are they based on how approved rates compare to a company s initial requests in past cases. Rather, the Commission makes rate case decisions based on the facts and record in a current case. IV. CONCLUSION Q. DOES THIS CONCLUDE YOUR REBUTTAL TESTIMONY? A. Yes, it does. 10 Burdick Surrebuttal
Northern States Power Company Exhibit (CRB-3), Schedule 1 Page 1 of 2 Non Public Document Contains Trade Secret Data Public Document Trade Secret Data Excised Public Document Xcel Energy Docket No.: E002/GR-15-826 Response To: MN Public Utilities Information Request No. 502 Commission Requestor: Jorge Alonso Date Received: 09/16/16 Question: 1. Is Xcel s annual capital projects true-up proposal included as part of the August 16, 2016 settlement? 2. If so, please provide the base line amount to be used for each of the four years, and, 3. Please explain if there are any changes in the true-up calculation methodology proposed by Xcel in its initial filing? Please file a copy of your response in the edocket system. Please forward a copy of your response to the Administrative Law Judge. Response: The Settlement describes the Settling Parties agreement on the revenue outcomes but does not articulate all of the compliance procedures needed for implementation. The Settling Parties recommend the following compliance steps to implement the Settlement: Capital True-Up The Company will implement the capital true-up set forth in Company witness Mr. Burdick s Direct Testimony on pages 42-43 and on the timeline set forth on pages 49-50 and Schedule 15, attached to this response. Given the Settlement, the base line amount to be used for each of the four years will be the total annual capital related 1
Northern States Power Company Exhibit (CRB-3), Schedule 1 Page 2 of 2 revenue requirements set forth in Department witness Mr. Lusti s second errata to Schedule DVL-9. Property Tax True-up The Company will implement the property tax true-up set forth in Mr. Burdick s Direct Testimony on pages 44-45 and on the timeline set forth on pages 49-50 and Schedule 15. Given the Settlement and the property tax deferral in 2016, there will be no true-up in 2016 and the Company will use the property tax expense amount for 2016 established by Department witness Mr. Lusti in his Direct Testimony as the baseline for the property tax true-up for 2017, 2018 and 2019 property tax expense. Witness: Charles R. Burdick Preparer: Charles R. Burdick Title: Manager of Revenue Analysis Department: Revenue Requirements North Telephone: 612-330-6646 Date: October 5, 2016 2
Northern States Power Company Minnesota Electric Jurisdiction Settlement Summary Amounts in $000s Exhibit (CRB-3), Schedule 2 Page 1 of 1 Line No. Item 2016 2017 2018 2019 Reference 1 Base 2 As Filed 194,612 246,667 297,133 379,622 Burdick Direct, Sch 13 3 DOC s 4 2015 PATH Act (4,439) 8,846 1,821 (9,425) DOC Campbell Direct, pgs 10-12 5 Remaining Life Study: NSPM (8,047) (7,621) (9,784) (13,738) DOC Campbell Direct, pgs 4-7 6 Service Company Allocations (256) (263) (271) (276) DOC Campbell Direct, pgs 46-48 7 4Yr Amortization (267) (267) (267) 800 Burdick Surrebuttal, Sch 8 8 Transco 2015 Amort (45) (45) (45) (45) Burdick Surrebuttal, Sch 8; DOC Campbell Direct pgs 45-46 9 Rate Base (10,212) (4,897) (14,858) (30,760) 10 Income Statement (125,788) (143,013) (179,366) (137,127) 11 DOC Position 45,558 99,406 94,363 189,049 Lusti Direct, Sch DVL-9, second errata 12 13 14 CIP Order Compliance - - - - Heuer Direct, pg 107 15 CapX2020 Fargo and Brookings stay in TCR 169 (125) (105) (75) Stipulation of Settlement, pg 7 16 LED Street Lighting (865) (1,683) (2,441) (3,144) Stipulation of Settlement, pgs 9-11 17 Settlement Rate Shape 24,613 27,493 29,180 (11,218) 18 2016 Sales True-Up TBD TBD TBD TBD Stipulation of Settlement, pg 6 19 Secondary Calculations 20 Cash Working Capital 836 840 826 841 21 Net Operating Loss 4,679 8,918 13,026 9,515 22 Total 74,990 134,849 134,849 184,971 Stipulation of Settlement, pg 5 23 24 incremental 74,990 59,859 0 50,122 184,971 Stipulation of Settlement, pg 5 25 percentage increase over present rates 2.47% 1.97% 0.00% 1.65% 6.10% Stipulation of Settlement, pg 5
Northern States Power Company Minnesota Electric Jurisdiction 2016 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 3 Page 1 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Line No. 1 Plant as booked Base As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amort Transco 2015 Amort Rate Base Income Statement 2016 DOC Position CIP Order CapX2020 Fargo and Brookings stay in TCR 2 Production 9,192,783 (14,552) 9,178,231 9,178,231 3 Transmission 2,690,961 (1,230) 2,689,732 (486,212) 2,203,520 4 Distribution 3,272,959 3,272,959 3,272,959 5 General 727,748 727,748 727,748 6 Common 540,996 540,996 540,996 7 Total Utility Plant in Service 16,425,447 (15,782) 16,409,666 (486,212) 15,923,454 8 9 Reserve for Depreciation 10 Production 4,947,590 (4,893) (1,388) 4,941,309 4,941,309 11 Transmission 551,324 6 551,331 (18,215) 533,116 12 Distribution 1,232,993 1,232,993 1,232,993 13 General 267,760 267,760 267,760 14 Common 268,091 268,091 268,091 15 Total Reserve for Depreciation 7,267,758 (4,893) (1,381) 7,261,484 (18,215) 7,243,269 16 17 Net Utility Plant 18 Production 4,245,193 4,893 (13,164) 4,236,922 4,236,922 19 Transmission 2,139,637 (1,236) 2,138,401 (467,997) 1,670,404 20 Distribution 2,039,966 2,039,966 2,039,966 21 General 459,988 459,988 459,988 22 Common 272,905 272,905 272,905 23 Net Utility Plant in Service 9,157,689 4,893 (14,400) 9,148,182 (467,997) 8,680,185 24 25 Utility Plant Held for Future Use 26 27 Construction Work in Progress 444,412 8,824 453,235 (125) 453,110 28 29 Less: Accumulated Deferred Income Taxes 1,979,773 15,292 1,997 55,351 2,052,413 (87,780) (36,190) 1,928,443 30 31 Other Rate Base Items 32 Cash Working Capital (108,129) 797 (107,332) 7,643 (99,689) 33 Materials and Supplies 135,797 135,797 135,797 34 Fuel Inventory 73,476 73,476 73,476 35 Non Plant Assets and Liabilities (3,716) (3,716) (3,716) 36 Customer Advances (5,562) (5,562) (5,562) 37 Customer Deposits (28,127) (28,127) (28,127) 38 Prepayments 89,307 89,307 89,307 39 Regulatory Amortizations 60,741 60,741 60,741 40 Total Other Rate Base 213,787 797 214,584 7,643 222,227 41 Bridge Report DOC s 42 Total Average Rate Base 7,836,115 (14,495) 2,896 (60,928) 7,763,587 (380,342) 7,643 36,190 7,427,079 LED Street Lighting Settlement Rate Shape 2016 Sales True Up Secondary Calculations Cash Working Capital Net Operating Loss 2016 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2016 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 3 Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Line No. 43 44 Operating Revenues Bridge Report Base As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations DOC s 4Yr Amort Transco 2015 Amort Rate Base Income Statement 2016 DOC Position CIP Order CapX2020 Fargo and Brookings stay in TCR LED Street Lighting Settlement Rate Shape 2016 Sales True Up Secondary Calculations 45 Retail Revenue 3,033,285 3,033,285 3,858 (59,066) TBD 2,978,076 46 Interdepartmental 809 809 (21) 788 47 Other Operating 586,984 (3,093) (1,516) (683) 72,583 654,275 865 (25,660) 629,481 48 Total Revenue 3,621,078 (3,093) (1,516) (683) 72,583 3,688,369 3,858 (59,087) 865 (25,660) 3,608,345 49 50 Expenses 51 Operating Expenses 52 Fuel & Purchased Energy 1,001,096 1,001,096 1,001,096 53 Power Production 681,521 (2,062) 679,459 679,459 54 Transmission 205,186 (263) 204,923 204,923 55 Distribution 108,023 108,023 108,023 56 Customer Accounting 49,315 49,315 49,315 57 Customer Service and Information 91,110 91,110 3,858 94,968 58 Sales, Econ Dev, & Other 69 69 69 59 Administrative and General 206,579 (256) 206,324 206,324 60 Total Operating Expenses 2,342,900 (2,062) (256) (263) 2,340,320 3,858 2,344,178 61 62 Depreciation 471,286 (9,787) (2,780) 458,719 (9,182) 449,537 63 Amortization 39,585 (267) (45) 39,273 86 39,359 64 65 Taxes 66 Property 186,751 186,751 (8,312) 178,439 67 Deferred Income Tax and ITC 186,991 (47,516) 3,994 (5,187) 138,283 (5,059) (30,741) 102,483 68 Federal and State Income Tax (73,527) 44,945 (654) 106 110 19 6,844 30,028 7,871 (8,604) 358 (10,615) (71) 30,827 19,766 69 Payroll and Other 27,550 27,550 27,550 70 Total Taxes 327,766 (2,570) 3,340 106 110 19 1,657 30,028 360,455 (21,975) 358 (10,615) (71) 87 328,239 71 72 Total Expenses 3,181,537 (4,632) (6,447) (150) (156) (27) (1,386) 30,028 3,198,767 3,858 (31,071) 358 (10,615) (71) 87 3,161,313 73 74 AFUDC 33,283 812 34,096 34,096 75 76 Total Operating Income 472,824 1,539 4,931 150 156 27 1,515 42,556 523,697 (28,016) 507 (15,044) 71 (87) 481,128 77 78 Calculation of Revenue Requirements 79 Rate Base 7,836,115 (14,495) 2,896 (60,928) 7,763,588 (380,342) 7,643 36,190 7,427,080 80 Required Operating Income 586,925 (1,064) 213 (4,472) (31,194) 550,408 (27,917) (614) 561 2,656 525,095 81 Operating Income 472,824 1,539 4,931 150 156 27 1,515 42,556 523,697 (28,016) 507 (15,044) 71 (87) 481,128 82 Income Deficiency 114,101 (2,603) (4,718) (150) (156) (27) (5,987) (73,749) 26,711 99 (507) 14,431 490 2,743 43,967 83 Revenue Deficiency 194,612 (4,439) (8,047) (256) (267) (45) (10,212) (125,788) 45,558 169 (865) 24,613 836 4,679 74,990 Cash Working Capital Net Operating Loss 2016 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2017 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 4 Page 1 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Line No. 1 Plant as booked Base As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2017 DOC Position CIP Order Compliance CapX2020 Fargo and Brookings stay in TCR 2 Production 9,476,488 (33,360) 9,443,128 9,443,128 3 Transmission 2,751,152 (1,898) 2,749,254 (487,182) 2,262,072 4 Distribution 3,391,796 3,391,796 3,391,796 5 General 777,297 777,297 777,297 6 Common 639,611 639,611 639,611 7 Total Utility Plant in Service 17,036,345 (35,258) 17,001,086 (487,182) 16,513,905 8 9 Reserve for Depreciation 10 Production 5,309,141 (14,745) (3,624) 5,290,771 5,290,771 11 Transmission 579,921 (11) 579,910 (27,397) 552,513 12 Distribution 1,277,293 1,277,293 1,277,293 13 General 328,863 328,863 328,863 14 Common 313,919 313,919 313,919 15 Total Reserve for Depreciation 7,809,137 (14,745) (3,635) 7,790,757 (27,397) 7,763,360 16 17 Net Utility Plant 18 Production 4,167,348 14,745 (29,736) 4,152,357 4,152,357 19 Transmission 2,171,231 (1,887) 2,169,343 (459,785) 1,709,559 20 Distribution 2,114,503 2,114,503 2,114,503 21 General 448,435 448,435 448,435 22 Common 325,691 325,691 325,691 23 Net Utility Plant in Service 9,227,208 14,745 (31,623) 9,210,329 (459,785) 8,750,545 24 25 Utility Plant Held for Future Use 26 27 Construction Work in Progress 473,950 8,838 482,787 (33) 482,754 28 29 Less: Accumulated Deferred Income Taxes 2,174,961 9,662 6,017 9,215 2,199,856 (92,407) (74,929) 2,032,519 30 31 Other Rate Base Items 32 Cash Working Capital (111,884) (3,398) (115,282) 7,667 (107,615) 33 Materials and Supplies 135,797 135,797 135,797 34 Fuel Inventory 73,476 73,476 73,476 35 Non Plant Assets and Liabilities 5,666 5,666 5,666 36 Customer Advances (5,562) (5,562) (5,562) 37 Customer Deposits (28,127) (28,127) (28,127) 38 Prepayments 86,772 86,772 86,772 39 Regulatory Amortizations 57,353 57,353 57,353 40 Total Other Rate Base 213,492 (3,398) 210,093 7,667 217,761 41 Bridge Report DOC s 42 Total Average Rate Base 7,739,688 (13,060) 8,727 (32,001) 7,703,357 (367,411) 7,667 74,929 7,418,543 LED Street Lighting Settlement Rate Shape 2016 Sales True Up Secondary Calculations Cash Working Capital Net Operating Loss 2017 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2017 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 4 Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Line No. 43 44 Operating Revenues Bridge Report Base As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations DOC s 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2017 DOC Position CIP Order Compliance CapX2020 Fargo and Brookings stay in TCR LED Street Lighting Settlement Rate Shape 2016 Sales True Up Secondary Calculations 45 Retail Revenue 3,031,800 3,031,800 3,858 (57,581) TBD 2,978,076 46 Interdepartmental 808 808 (20) 788 47 Other Operating 597,164 (3,447) (1,433) (532) 89,870 681,622 1,683 (28,315) 654,991 48 Total Revenue 3,629,772 (3,447) (1,433) (532) 89,870 3,714,230 3,858 (57,602) 1,683 (28,315) 3,633,855 49 50 Expenses 51 Operating Expenses 52 Fuel & Purchased Energy 1,001,136 1,001,136 1,001,136 53 Power Production 687,159 (2,075) 685,084 685,084 54 Transmission 209,793 (263) 209,530 209,530 55 Distribution 110,120 110,120 110,120 56 Customer Accounting 49,956 49,956 49,956 57 Customer Service and Information 91,125 91,125 3,858 94,983 58 Sales, Econ Dev, & Other 70 70 70 59 Administrative and General 211,296 (263) 211,033 211,033 60 Total Operating Expenses 2,360,654 (2,075) (263) (263) 2,358,053 3,858 2,361,911 61 62 Depreciation 543,044 (9,916) (1,740) 531,388 (9,182) 522,206 63 Amortization 39,585 (267) (45) 39,273 39,273 64 65 Taxes 66 Property 195,116 195,116 (8,356) 186,760 67 Deferred Income Tax and ITC 118,701 36,255 4,047 (5,081) 153,922 (4,195) (30,173) 119,553 68 Federal and State Income Tax (51,514) (31,480) (674) 109 110 19 6,097 37,179 (40,153) (8,900) 696 (11,714) (72) 29,887 (30,256) 69 Payroll and Other 28,238 28,238 28,238 70 Total Taxes 290,541 4,776 3,372 109 110 19 1,016 37,179 337,123 (21,451) 696 (11,714) (72) (286) 304,296 71 72 Total Expenses 3,233,825 2,701 (6,544) (154) (156) (27) (987) 37,179 3,265,837 3,858 (30,634) 696 (11,714) (72) (286) 3,227,686 73 74 AFUDC 40,683 61 40,744 40,744 75 76 Total Operating Income 436,630 (6,148) 5,111 154 156 27 516 52,691 489,137 (26,968) 987 (16,601) 72 286 446,913 77 78 Calculation of Revenue Requirements 79 Rate Base 7,739,688 (13,060) 8,727 (32,001) 7,703,354 (367,411) 7,667 74,929 7,418,540 80 Required Operating Income 581,251 (961) 642 (2,355) (31,158) 547,419 (27,041) (482) 564 5,515 525,974 81 Operating Income 436,630 (6,148) 5,111 154 156 27 516 52,691 489,137 (26,968) 987 (16,601) 72 286 446,913 82 Income Deficiency 144,621 5,186 (4,468) (154) (156) (27) (2,871) (83,849) 58,282 (73) (987) 16,119 493 5,228 79,062 83 Revenue Deficiency 246,667 8,846 (7,621) (263) (267) (45) (4,897) (143,013) 99,406 (125) (1,683) 27,493 840 8,918 134,849 Cash Working Capital Net Operating Loss 2017 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2018 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 5 Page 1 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Base DOC s Secondary Calculations Line No. 1 Plant as booked 2018 As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2018 DOC Position CapX2020 CIP Order Fargo and Complianc Brookings stay e in TCR 2 Production 9,868,923 (119,569) 9,749,355 9,749,355 3 Transmission 2,789,625 (1,156) 2,788,469 (486,874) 2,301,595 4 Distribution 3,516,302 3,516,302 3,516,302 5 General 827,938 827,938 827,938 6 Common 725,535 725,535 725,535 7 Total Utility Plant in Service 17,728,323 (120,724) 17,607,598 (486,874) 17,120,725 8 9 Reserve for Depreciation 10 Production 5,678,024 (26,303) (7,710) 5,644,011 5,644,011 11 Transmission 622,464 (52) 622,412 (36,579) 585,833 12 Distribution 1,333,146 1,333,146 1,333,146 13 General 390,194 390,194 390,194 14 Common 362,619 362,619 362,619 15 Total Reserve for Depreciation 8,386,448 (26,303) (7,762) 8,352,382 (36,579) 8,315,803 16 17 Net Utility Plant 18 Production 4,190,899 26,303 (111,859) 4,105,344 4,105,344 19 Transmission 2,167,161 (1,103) 2,166,057 (450,295) 1,715,763 20 Distribution 2,183,156 2,183,156 2,183,156 21 General 437,744 437,744 437,744 22 Common 362,916 362,916 362,916 23 Net Utility Plant in Service 9,341,875 26,303 (112,962) 9,255,216 (450,295) 8,804,922 24 25 Utility Plant Held for Future Use 26 27 Construction Work in Progress 422,411 422,411 (0) 422,411 28 29 Less: Accumulated Deferred Income Taxes 2,299,240 33,760 10,734 (9,924) 2,333,811 (96,220) (85,286) 2,152,304 30 31 Other Rate Base Items 32 Cash Working Capital (115,714) (3,411) (119,125) 7,535 (111,590) 33 Materials and Supplies 135,797 135,797 135,797 34 Fuel Inventory 73,476 73,476 73,476 35 Non Plant Assets and Liabilities 15,903 15,903 15,903 36 Customer Advances (5,562) (5,562) (5,562) 37 Customer Deposits (28,127) (28,127) (28,127) 38 Prepayments 86,374 86,374 86,374 39 Regulatory Amortizations 53,966 53,966 53,966 40 Total Other Rate Base 216,113 (3,411) 212,702 7,535 220,237 41 Bridge Report 42 Total Average Rate Base 7,681,159 (37,171) 15,569 (103,039) 7,556,522 (354,074) 7,535 85,286 7,295,269 LED Street Lighting Settlement Rate Shape 2016 Sales True Up Cash Working Capital Net Operating Loss 2018 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2018 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 5 Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Base DOC s Secondary Calculations Line No. 43 44 Operating Revenues Bridge Report 2018 As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2018 DOC Position CapX2020 CIP Order Fargo and Complianc Brookings stay e in TCR 45 Retail Revenue 3,030,366 3,030,366 3,858 (56,147) TBD 2,978,076 46 Interdepartmental 808 808 (20) 788 47 Other Operating 606,928 (3,823) (1,837) (2,460) 127,106 725,913 2,441 (30,167) 698,187 48 Total Revenue 3,638,101 (3,823) (1,837) (2,460) 127,106 3,757,087 3,858 (56,167) 2,441 (30,167) 3,677,051 49 50 Expenses 51 Operating Expenses 52 Fuel & Purchased Energy 1,001,199 1,001,199 1,001,199 53 Power Production 692,660 (4,923) 687,737 687,737 54 Transmission 217,411 (263) 217,148 217,148 55 Distribution 112,784 112,784 112,784 56 Customer Accounting 50,820 50,820 50,820 57 Customer Service and Information 91,140 91,140 3,858 94,998 58 Sales, Econ Dev, & Other 71 71 71 59 Administrative and General 217,058 (271) 216,787 216,787 60 Total Operating Expenses 2,383,145 (4,923) (271) (263) 2,377,688 3,858 2,381,546 61 62 Depreciation 569,829 (13,201) (6,509) 550,118 (9,182) 540,936 63 Amortization 39,585 (267) (45) 39,273 39,273 64 65 Taxes 66 Property 200,621 200,621 (8,345) 192,275 67 Deferred Income Tax and ITC 125,692 11,941 5,387 (31,713) 111,308 (3,431) 5,841 113,718 68 Federal and State Income Tax (78,033) (7,038) (906) 112 110 19 34,901 52,584 1,750 (9,210) 1,010 (12,480) (70) (4,480) (23,482) 69 Payroll and Other 28,763 28,763 28,763 70 Total Taxes 277,043 4,903 4,482 112 110 19 3,188 52,584 342,441 (20,987) 1,010 (12,480) (70) 1,360 311,274 71 72 Total Expenses 3,269,602 (20) (8,720) (159) (156) (27) (3,584) 52,584 3,309,521 3,858 (30,169) 1,010 (12,480) (70) 1,360 3,273,029 73 74 AFUDC 34,147 3 34,150 34,150 75 76 Total Operating Income 402,646 (3,803) 6,882 159 156 27 1,128 74,522 481,716 (25,998) 1,431 (17,687) 70 (1,360) 438,172 77 78 Calculation of Revenue Requirements 79 Rate Base 7,681,159 (37,171) 15,569 (103,039) 7,556,519 (354,074) 7,535 85,286 7,295,266 80 Required Operating Income 576,855 (2,736) 1,146 (7,584) (30,640) 537,041 (26,060) (579) 555 6,277 517,234 81 Operating Income 402,646 (3,803) 6,882 159 156 27 1,128 74,522 481,716 (25,998) 1,431 (17,687) 70 (1,360) 438,172 82 Income Deficiency 174,209 1,068 (5,736) (159) (156) (27) (8,711) (105,162) 55,325 (62) (1,431) 17,108 484 7,637 79,062 83 Revenue Deficiency 297,133 1,821 (9,784) (271) (267) (45) (14,858) (179,366) 94,363 (105) (2,441) 29,180 826 13,026 134,849 LED Street Lighting Settlement Rate Shape 2016 Sales True Up Cash Working Capital Net Operating Loss 2018 Settlement
Northern States Power Company Minnesota Electric Jurisdiction 2019 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 6 Page 1 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Base DOC s Secondary Calculations Line No. 1 Plant as booked As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2019 DOC Position CapX2020 CIP Order Fargo and Complianc Brookings stay e in TCR LED Street Lighting Settlement Rate Shape 2016 Sales True Up Cash Working Capital Net Operating Loss 2019 Settlement 2 Production 10,301,622 (241,014) 10,060,608 10,060,608 3 Transmission 2,885,573 (974) 2,884,599 (486,874) 2,397,725 4 Distribution 3,658,370 3,658,370 3,658,370 5 General 888,530 888,530 888,530 6 Common 781,187 781,187 781,187 7 Total Utility Plant in Service 18,515,282 (241,988) 18,273,294 (486,874) 17,786,420 8 9 Reserve for Depreciation 10 Production 6,077,157 (42,344) (19,023) 6,015,790 6,015,790 11 Transmission 664,908 (84) 664,824 (45,762) 619,062 12 Distribution 1,391,483 1,391,483 1,391,483 13 General 451,746 451,746 451,746 14 Common 412,713 412,713 412,713 15 Total Reserve for Depreciation 8,998,007 (42,344) (19,107) 8,936,556 (45,762) 8,890,795 16 17 Net Utility Plant 18 Production 4,224,465 42,344 (221,991) 4,044,818 4,044,818 19 Transmission 2,220,665 (890) 2,219,775 (441,112) 1,778,663 20 Distribution 2,266,887 2,266,887 2,266,887 21 General 436,784 436,784 436,784 22 Common 368,473 368,473 368,473 23 Net Utility Plant in Service 9,517,275 42,344 (222,881) 9,336,738 (441,112) 8,895,625 24 25 Utility Plant Held for Future Use 26 27 Construction Work in Progress 380,350 380,350 (0) 380,350 28 29 Less: Accumulated Deferred Income Taxes 2,412,087 59,904 17,280 (37,490) 2,451,781 (99,308) (59,441) 2,293,033 30 31 Other Rate Base Items 32 Cash Working Capital (118,076) (575) (118,651) 7,678 (110,973) 33 Materials and Supplies 135,797 135,797 135,797 34 Fuel Inventory 73,476 73,476 73,476 35 Non Plant Assets and Liabilities 27,456 27,456 27,456 36 Customer Advances (5,562) (5,562) (5,562) 37 Customer Deposits (28,127) (28,127) (28,127) 38 Prepayments 85,941 85,941 85,941 39 Regulatory Amortizations 50,579 50,579 50,579 40 Total Other Rate Base 221,485 (575) 220,910 7,678 228,587 41 Bridge Report 42 Total Average Rate Base 7,707,023 (60,479) 25,064 (185,391) 7,486,217 (341,804) 7,678 59,441 7,211,531
Northern States Power Company Minnesota Electric Jurisdiction 2019 Settlement Bridge Schedule Exhibit (CRB-3), Schedule 6 Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) Base DOC s Secondary Calculations Line No. 43 44 Operating Revenues Bridge Report As Filed 2015 PATH Act Remaining Life Study: NSPM Service Company Allocations 4Yr Amortization Transco 2015 Amort Rate Base Income Statement 2019 DOC Position CapX2020 CIP Order Fargo and Complianc Brookings stay e in TCR LED Street Lighting Settlement Rate Shape 2016 Sales True Up Cash Working Capital Net Operating Loss 2019 Settlement 45 Retail Revenue 3,125,156 3,125,156 3,858 (54,835) TBD 3,074,179 46 Interdepartmental 816 816 816 47 Other Operating 639,428 (3,922) (2,578) (5,584) 85,467 712,810 3,144 9,951 725,905 48 Total Revenue 3,765,400 (3,922) (2,578) (5,584) 85,467 3,838,782 3,858 (54,835) 3,144 9,951 3,800,900 49 50 Expenses 51 Operating Expenses 52 Fuel & Purchased Energy 1,125,206 1,125,206 1,125,206 53 Power Production 697,048 (5,515) 691,533 691,533 54 Transmission 243,960 (263) 243,697 243,697 55 Distribution 111,186 111,186 111,186 56 Customer Accounting 50,555 50,555 50,555 57 Customer Service and Information 91,209 91,209 3,858 95,067 58 Sales, Econ Dev, & Other 69 69 69 59 Administrative and General 224,709 (276) 224,433 224,433 60 Total Operating Expenses 2,543,941 (5,515) (276) (263) 2,537,886 3,858 2,541,744 61 62 Depreciation 612,765 (18,880) (16,181) 577,704 (9,182) 568,522 63 Amortization 21,117 800 (45) 21,871 21,871 64 65 Taxes 66 Property 207,141 207,141 (8,345) 198,796 67 Deferred Income Tax and ITC 89,250 40,346 7,705 (15,306) 121,995 (2,744) (16,275) 102,976 68 Federal and State Income Tax (66,271) (39,834) (1,300) 114 (331) 19 21,758 35,358 (50,487) (9,484) 1,301 4,117 (71) 17,485 (37,141) 69 Payroll and Other 29,896 29,896 29,896 70 Total Taxes 260,017 513 6,405 114 (331) 19 6,452 35,358 308,546 (20,574) 1,301 4,117 (71) 1,210 294,527 71 72 Total Expenses 3,437,839 (5,003) (12,475) (162) 469 (27) (9,992) 35,358 3,446,007 3,858 (29,756) 1,301 4,117 (71) 1,210 3,426,664 73 74 AFUDC 27,894 27,894 27,894 75 76 Total Operating Income 355,455 1,081 9,897 162 (469) 27 4,408 50,109 420,669 (25,079) 1,843 5,834 71 (1,210) 402,129 77 78 Calculation of Revenue Requirements 79 Rate Base 7,707,023 (60,479) 25,064 (185,391) 7,486,217 (341,804) 7,678 59,441 7,211,531 80 Required Operating Income 578,027 (4,445) 1,842 (13,626) (30,288) 531,509 (25,123) (743) 564 4,369 510,576 81 Operating Income 355,455 1,081 9,897 162 (469) 27 4,408 50,109 420,669 (25,079) 1,843 5,834 71 (1,210) 402,129 82 Income Deficiency 222,572 (5,526) (8,055) (162) 469 (27) (18,034) (80,398) 110,840 (44) (1,843) (6,577) 493 5,578 108,447 83 Revenue Deficiency 379,622 (9,425) (13,738) (276) 800 (45) (30,760) (137,127) 189,049 (75) (3,144) (11,218) 841 9,515 184,971
Northern States Power Company Electric Utility - State of Minnesota Exhibit (CRB-3), Schedule 7 JURISDICTIONAL FINANCIAL SUMMARY SCHEDULES Page 1 of 1 ($000's) Line Settlement Settlement Settlement Settlement No. Description 2016 2017 2018 2019 1 Average Rate Base $7,427,079 $7,418,543 $7,295,269 $7,211,531 2 Operating Income $447,032 $406,169 $404,022 $374,236 3 Allowance for funds used during construction $34,096 $40,744 $34,150 $27,894 4 Total Available for Return $481,128 $446,913 $438,172 $402,129 5 Overall Rate of Return (Line 4 / Line 1) 6.48% 6.02% 6.01% 5.58% 6 Required Rate of Return 7.07% 7.09% 7.09% 7.08% 7 Required Operating Income (Line 1 x Line 6) $525,094 $525,975 $517,235 $510,576 8 Income Deficiency (Line 7 - Line 4) $43,967 $79,062 $79,062 $108,447 9 Gross Revenue Conversion Factor 1.705611 1.705611 1.705611 1.705611 10 Revenue Deficiency (Line 8 x Line 9) $74,990 $134,849 $134,849 $184,971 11 Retail Related Revenues Under Present Rates $2,978,864 $2,978,864 $2,978,864 $3,074,995 12 Percentage Increase Needed in Overall Revenue (Line 10 / Line 11) 2.52% 4.53% 4.53% 6.02% Notes: - Percentage increases on this schedule are based on the present revenues for each year. - Percentages provided in the Settlement were calculated on as-filed present revenues for 2016. - The Company acknowledges that the Settlement revenue requirements were informed by the Department's Direct Testimony and Mr. Lusti's Second Errata to DVL-9, which he developed using the Department's recommended ROE.
Northern States Power Company Electric Utility - State of Minnesota Exhibit (CRB-3), Schedule 8 AMORTIZATION EXPENSE Page 1 of 1 ($'s) Annual Amount 1 Item Total Amount to Amortize with 4 Yr Amortization 2 Rate Case Expenses 3,339,545 834,886 3 Transco 2014 (138,450) (34,613) 4 Transco 2015 (181,975) (45,494) 5 Total 3,019,120 754,780 6 a b = a / 4 7 8 Included in Filing (3 Yr Amortization) 9 2016 TY 2017 PY 2018 PY 2019 Fcst Total 10 Rate Case Expenses 1,113,182 1,113,182 1,113,182-3,339,545 11 Transco 2014 (46,150) (46,150) (46,150) - (138,450) 12 Transco 2015 - - - - - 13 Total 1,067,032 1,067,032 1,067,032-3,201,095 14 15 16 Proposed 4 Yr Amortization 17 2016 TY 2017 PY 2018 PY 2019 Fcst Total 18 Rate Case Expenses 834,886 834,886 834,886 834,886 3,339,545 19 Transco 2014 (34,613) (34,613) (34,613) (34,613) (138,450) 20 Transco 2015 (45,494) (45,494) (45,494) (45,494) (181,975) 21 Total 754,780 754,780 754,780 754,780 3,019,120 22 23 24 Net s to Filed Amortizations 25 (Proposed 4 Yr Amortization less As Filed) 26 2016 TY 2017 PY 2018 PY 2019 Fcst Total 27 Rate Case Expenses line 18 - line 10 (278,295) (278,295) (278,295) 834,886 - CRB-3 Sch 3-6, col. 7 28 Transco 2014 line 19 - line 11 11,538 11,538 11,538 (34,613) - CRB-3 Sch 3-6, col. 7 29 Transco 2015 line 20 - line 12 (45,494) (45,494) (45,494) (45,494) (181,975) CRB-3 Sch 3-6, col. 8 30 Total by Year (312,252) (312,252) (312,252) 754,780 (181,975)
Northern States Power Company State of Minnesota, Electric Jurisdiction Exhibit (CRB-3), Schedule 9 to remove costs and revenues related to Page 1 of 2 TCR projects from base rate COSS to Rider Amounts in $000s Brookings - Total NSPM Fargo - Total NSPM Rate Analysis 2016 2017 2018 2019 2016 2017 2018 2019 1 Average Balances (from Interim Petition Part 1 of Sch B): 2 Plant Investment (450,265) (451,584) (451,165) (451,165) (211,351) (211,351) (211,351) (211,351) 3 Depreciation Reserve (16,568) (25,092) (33,616) (42,140) (8,218) (12,189) (16,160) (20,131) 4 CWIP (170) (46) (0) (0) 0 0 0 0 5 Accumulated Deferred Taxes (81,238) (85,527) (89,042) (91,862) (38,209) (40,217) (41,890) (43,272) 6 Average Rate Base = line 2 - line 3 + line 4 - line 5 (352,629) (341,011) (328,507) (317,164) (164,923) (158,945) (153,301) (147,949) 7 8 Revenues (from Sec IV. Tab R2-1. R2-1A to R2-1C): 9 Retail Revenues 10 11 Expenses: 12 Book Depreciation (8,524) (8,524) (8,524) (8,524) (3,971) (3,971) (3,971) (3,971) 13 Annual Deferred Tax (4,695) (3,882) (3,149) (2,490) (2,189) (1,826) (1,520) (1,244) 14 Amortization 117 - - - - - - - 15 Property Taxes (7,688) (7,748) (7,733) (7,733) (3,623) (3,623) (3,623) (3,623) 16 subtotal expense = lines 12 thru 15 (20,790) (20,154) (19,406) (18,748) (9,782) (9,420) (9,113) (8,837) 17 18 Tax Preference Items: 19 Tax Depreciation & Removal Expense (19,985) (17,994) (16,198) (14,584) (9,331) (8,444) (7,692) (7,016) 20 Avoided Tax Interest - - - - - - - - 21 22 AFUDC - - - - - - - - 23 24 Returns: 25 Debt Return = line 6 x (line 41 + line 42) (7,899) (7,707) (7,424) (7,136) (3,694) (3,592) (3,465) (3,329) 26 Equity Return = line 6 x (line 43 + line 44) (17,984) (17,392) (16,754) (16,175) (8,411) (8,106) (7,818) (7,545) 27 28 Tax Calculations: 29 Equity Return = line 26 (17,984) (17,392) (16,754) (16,175) (8,411) (8,106) (7,818) (7,545) 30 Taxable Expenses = lines 12 thru 13 (13,219) (12,406) (11,673) (11,014) (6,159) (5,797) (5,490) (5,214) 31 plus Tax Additions = line 20 - - - - - - - - 32 less Tax Deductions = (line 19 + line 22) 19,985 17,994 16,198 14,584 9,331 8,444 7,692 7,016 33 subtotal (11,218) (11,804) (12,229) (12,606) (5,239) (5,460) (5,617) (5,744) 34 Tax gross-up factor = t / (1-t) from line 47 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 35 Current Income Tax Requirement = line 33 x line 34 (7,915) (8,329) (8,629) (8,895) (3,697) (3,853) (3,963) (4,053) 36 37 Total Capital Revenue Requirements (54,588) (53,581) (52,214) (50,954) (25,585) (24,971) (24,359) (23,765) 38 = line 16 + line 25 + line 26 + line 35 - line 22 - line 9 39 O&M Expense - - - - - - - - 40 Total Revenue Requirements (54,588) (53,581) (52,214) (50,954) (25,585) (24,971) (24,359) (23,765)
Northern States Power Company State of Minnesota, Electric Jurisdiction to remove costs and revenues related to TCR projects from base rate COSS to Rider Amounts in $000s Rate Analysis 1 Average Balances (from Interim Petition Part 1 of Sch B): 2 Plant Investment 3 Depreciation Reserve 4 CWIP 5 Accumulated Deferred Taxes 6 Average Rate Base = line 2 - line 3 + line 4 - line 5 7 8 Revenues (from Sec IV. Tab R2-1. R2-1A to R2-1C): 9 Retail Revenues 10 11 Expenses: 12 Book Depreciation 13 Annual Deferred Tax 14 Amortization 15 Property Taxes 16 subtotal expense = lines 12 thru 15 17 18 Tax Preference Items: 19 Tax Depreciation & Removal Expense 20 Avoided Tax Interest 21 22 AFUDC 23 24 Returns: 25 Debt Return = line 6 x (line 41 + line 42) 26 Equity Return = line 6 x (line 43 + line 44) 27 28 Tax Calculations: 29 Equity Return = line 26 30 Taxable Expenses = lines 12 thru 13 31 plus Tax Additions = line 20 32 less Tax Deductions = (line 19 + line 22) 33 subtotal 34 Tax gross-up factor = t / (1-t) from line 47 35 Current Income Tax Requirement = line 33 x line 34 36 37 Total Capital Revenue Requirements 38 = line 16 + line 25 + line 26 + line 35 - line 22 - line 9 39 O&M Expense 40 Total Revenue Requirements Exhibit (CRB-3), Schedule 9 Page 2 of 2 Brookings - MN Electric Jursidiction Fargo - MN Electric Jursidiction Total - MN Electric Jurisdiction 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 (330,893) (331,863) (331,555) (331,555) (155,319) (155,319) (155,319) (155,319) (486,212) (487,182) (486,874) (486,874) (12,175) (18,439) (24,704) (30,968) (6,040) (8,958) (11,876) (14,794) (18,215) (27,397) (36,579) (45,762) (125) (33) (0) (0) 0 0 0 0 (125) (33) (0) (0) (59,701) (62,852) (65,436) (67,508) (28,080) (29,555) (30,784) (31,800) (87,780) (92,407) (96,220) (99,308) (259,142) (250,604) (241,415) (233,079) (121,200) (116,806) (112,659) (108,725) (380,342) (367,411) (354,074) (341,804) (40,475) (39,461) (38,472) (37,563) (18,612) (18,140) (17,695) (17,272) (59,087) (57,602) (56,167) (54,835) (6,264) (6,264) (6,264) (6,264) (2,918) (2,918) (2,918) (2,918) (9,182) (9,182) (9,182) (9,182) (3,450) (2,853) (2,314) (1,830) (1,608) (1,342) (1,117) (914) (5,059) (4,195) (3,431) (2,744) 86 - - - - - - - 86 - - - (5,650) (5,694) (5,683) (5,683) (2,662) (2,662) (2,662) (2,662) (8,312) (8,356) (8,345) (8,345) (15,278) (14,811) (14,262) (13,777) (7,189) (6,923) (6,697) (6,494) (22,467) (21,733) (20,959) (20,272) (14,687) (13,224) (11,904) (10,717) (6,857) (6,205) (5,653) (5,156) (21,544) (19,429) (17,556) (15,873) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (5,805) (5,664) (5,456) (5,244) (2,715) (2,640) (2,546) (2,446) (8,520) (8,303) (8,002) (7,691) (13,216) (12,781) (12,312) (11,887) (6,181) (5,957) (5,746) (5,545) (19,397) (18,738) (18,058) (17,432) (13,216) (12,781) (12,312) (11,887) (6,181) (5,957) (5,746) (5,545) (19,397) (18,738) (18,058) (17,432) (9,714) (9,117) (8,578) (8,094) (4,527) (4,260) (4,035) (3,832) (14,241) (13,377) (12,613) (11,926) - - - - - - - - - - - - 14,687 13,224 11,904 10,717 6,857 6,205 5,653 5,156 21,544 19,429 17,556 15,873 (8,244) (8,674) (8,987) (9,264) (3,850) (4,012) (4,128) (4,221) (12,094) (12,687) (13,115) (13,485) 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 (5,817) (6,121) (6,341) (6,537) (2,717) (2,831) (2,913) (2,979) (8,534) (8,952) (9,254) (9,515) 359 85 101 118 (190) (210) (207) (192) 169 (125) (105) (75) - - - - - - - - - - - - 359 85 101 118 (190) (210) (207) (192) 169 (125) (105) (75)
Northern States Power Company State of Minnesota, Electric Jurisdiction Exhibit (CRB-3), Schedule 10 LED Street Lighting Page 1 of 1 Amounts in $000s Total NSPM MN Electric Jurisdiction Rate Analysis 2016 2017 2018 2019 2016 2017 2018 2019 1 Average Balances: 2 Plant Investment 5,280 11,071 16,995 22,912 5,280 11,071 16,995 22,912 3 Depreciation Reserve 46 327 884 1,716 46 327 884 1,716 4 CWIP 982 1,149 1,141 1,141 982 1,149 1,141 1,141 5 Accumulated Deferred Taxes 406 1,114 2,156 3,415 406 1,114 2,156 3,415 6 Average Rate Base = line 2 - line 3 + line 4 - line 5 5,810 10,779 15,097 18,923 5,810 10,779 15,097 18,923 7 8 Revenues: 9 Interchange Agreement offset = -line 40 x line 52 x line 53 - - - - 10 11 Expenses: 12 Book Depreciation 242 517 792 1,068 242 517 792 1,068 13 Annual Deferred Tax 509 907 1,178 1,338 509 907 1,178 1,338 14 ITC Flow Thru - - - - - - - - 15 Property Taxes - - - - - - - - 16 subtotal expense = lines 12 thru 15 750 1,424 1,970 2,406 750 1,424 1,970 2,406 17 18 Tax Preference Items: 19 Tax Depreciation & Removal Expense 1,404 2,653 3,588 4,253 1,404 2,653 3,588 4,253 20 Tax Credits ( enter as negative) - - - - - - - - 21 Avoided Tax Interest 36 37 37 37 36 37 37 37 22 - - - - 23 AFUDC 58 64 63 62 58 64 63 62 24 25 Returns: 26 Debt Return = line 6 x (line 44 + line 45) 130 244 341 428 130 244 341 428 27 Equity Return = line 6 x (line 46 + line 47) 305 566 793 993 305 566 793 993 28 29 Tax Calculations: 30 Equity Return = line 27 305 566 793 993 305 566 793 993 31 Taxable Expenses = lines 12 thru 14 750 1,424 1,970 2,406 750 1,424 1,970 2,406 32 plus Tax Additions = line 21 36 37 37 37 36 37 37 37 33 less Tax Deductions = (line 19 + line 23) (1,462) (2,717) (3,651) (4,316) (1,462) (2,717) (3,651) (4,316) 34 subtotal (371) (689) (851) (879) (371) (689) (851) (879) 35 Tax gross-up factor = t / (1-t) from line 50 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 0.705611 36 Current Income Tax Requirement = line 34 x line 35 (262) (486) (600) (621) (262) (486) (600) (621) 37 Tax Credit Revenue Requirement = line 20 x line 35 + line 20 - - - - - - - - 38 Total Current Tax Revenue Requirement = line 36+ line 37 (262) (486) (600) (621) (262) (486) (600) (621) 39 40 Total Capital Revenue Requirements 865 1,683 2,441 3,144 865 1,683 2,441 3,144 41 = line 16 + line 26 + line 27 + line 38 - line 23 + line 9 42 O&M Expense - - - - - - - - 43 Total Revenue Requirements 865 1,683 2,441 3,144 865 1,683 2,441 3,144 Weighted Weighted Weighted Weighted Weighted Weighted Weighted Capital Structure Cost Cost Cost Cost Cost Cost Cost 44 Long Term Debt 2.2200% 2.2100% 2.2100% 2.2100% 2.2200% 2.2100% 2.2100% 2.2100% 45 Short Term Debt 0.0200% 0.0500% 0.0500% 0.0500% 0.0200% 0.0500% 0.0500% 0.0500% 46 Preferred Stock 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 47 Common Equity 5.2500% 5.2500% 5.2500% 5.2500% 5.2500% 5.2500% 5.2500% 5.2500% 48 Required Rate of Return 7.4900% 7.5100% 7.5100% 7.5100% 7.4900% 7.5100% 7.5100% 7.5100% 49 PT Rate 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 50 Tax Rate (MN) 41.3700% 41.3700% 41.3700% 41.3700% 41.3700% 41.3700% 41.3700% 41.3700% 51 MN JUR Energy 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 52 MN JUR Demand 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 53 IA Demand 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% Note: Revenue requirement had been calculated using 10.00% ROE during Settlement discussions. Therefore the credit for this item is represented as revenue offset using line 43.