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Northern States Power Company Docket
No E002/GR-1 5-826
Volume Required Information
Section 111.4 Commission Policy Information
Research Expense Page
of
Summary
of Research Development Activities
MN Elecric Jurisdiction
net
of Interchange Billings
to NSPW
2016 2017 2018
Nuclear 1249818 1287312 1325932
NonNucIear 393792 393792 393792
Total 1643610 1681105 1719724
Xcel Energy
has contract with EPRI
for
$1 .3M annually
for non-nuclear related
RD
activities This contract expires
at
the
end
of 2016
The
Company expects
to
renew
the contract
for approximately
the same amount
in
future years Pleasesee Page
of this Schedule
for details
on
the
Companys 2015 non-nuclear
RD activities with EPRI This list
is
representative
of
the
types
of
RD we expect
to conduct
in the future with EPRI
Northern States Power CompanyDocket
No E002/GR-1 5-826
Votume Requeed tnformahon
Section ttt.4 Commission Poticy tnformation
Research Expense Page
of
2016
MN
2017
MN
2018
MN
Electric Electric Electric
Jurisdiction Jurisdiction Jurisdiction
2016
Net
of
Net
of Net
of
Business ResearchInteechange Interchange Interchange
MN
Area GroupBudget
Title Desi-ripetisu NSPM
2a
Pig
It SG
\lgint
NF
l
06
Structural Integeits ssscssmeni
and
ND
L Field Support
5Q
The
purpose
of
NF
l
06 is
to
hetp unities maintain steani generator opcrabthtv throughout
the
and $119
99a
Billings
to
NSPW
$88183
2017 BudgetNSPM
Billings
to
NSPW2018 Budget
NSPMBillings
to
NSPWJurisdictional
Allocator
Interchange
Allocator
Nu lear
FR
I
industry
a-s
oid forccd leaker outages cspecialt3 those
due
to tube rupture
3a
BV
R Materials \Igint RVIP The
Big
es
el
and Internals Prof
cci RYIP i
s
an
as ocianon
ot ssortdsvide unities diatoxun
and
operate boiling water reactors
B\T
Rs
rite programfocused primarily
on operating plants
BV matenal sucs related
to
essels
RP
V
$291
490 $214212
$12359a
$300
235
$90828
220
638
12
303
309242
93 aa3
22725
87.3481
3461
801349
84 1349
Nuclear
PR
I
pressurex pipinginternal including flucnce
and water chemi
try
l.4a
1S
s
Slateriats Reliability
QI Lncexoived qucs000s
or uncertainty about
die condition
of plant
niatenals can affect
die
opcrabiliqand reliabilip ofnucleacpowcr plants
The Materials Rehabilip
Progcam \IRP
has been established
to idencifs
and address
the issues that could affect
$294
06a $216
104 $302
887 $222
a87 3119 229
265 873461 84.1349
Nuclear FPRI
of
milor components
in
prcssunzed water reactor ty\XR plants
7d
BW
R
Chenustry Technical Strategr Group includes
Big
/int Resin iltec Group
The
Big
Resin Filter
and Linc Technical Scratcgs Group suppocts
the best pracnce application
of
chemistryfiltranon tectinologics
and zm
c addition
to maintam optimal control
of chemistcy parameters Theough
annual group meetings elcctronic reports newsletters
and indusery alere members gain acccss
to
indurnyexperience that can
be
tailored
to individual plant applications ldtlinonally
an extensixe data base
51081
t7 48 tlll59 $8186 $tl44 $8432 8.3861 b
4 1349
Nucleac
FR
I
is
maintained
foe mcmbecs to address condensate
and tractor water trcannent
and zinc addition challenges
2.la Fuel Releibilirt Ptogram
FR
P
The base membership funding teceised
by FIB addeesses many
of
thc
geneeic fuel rehiabthry
is
ues uicludnig failure root caue mx estigations
and other
$196
189 $1441 $2020 $148
a02 $208137 $1a295 3461 84.1349
Nuclear
PR
I
inspection programto
establish operating margins
of non failed
hid
and related
Nuclcar
components bounding conditions7.lm Lxtcmat Flinards Data Collection
$30900 $22708$31
827 $2389
82
Ia ND
E
Characteriaanon \ondesteucnvc esaluatioti
ND
E sen
cx three main functions
in
the nuclear
powet indusny
pie scrvmce
and periodic
itt sen
ice inspection
of componeitt
to satisfy regulatoryrequirements $179220 $131
06 $184597
$1 3567 $190
134
24
091 .3461 881349
Nuclear LPRI inspection
to
chiaractereze component condition
and
lb
Performance Demonstration Jnitialn
PD
C
rainingIlaint
The
PD
T
prusgrsmsi nsyld-u
os ersight
of
the
opetatuonal actis-ines
to
maintain
the
specimens
of nuclear plant components containing
defects
and demon trates tIme effecnveness
of
inspection procedures
and personnel
to
meet ISOLE Codeeequiremeitts Code
and
regulator3 interface ensurnig compliance with
NR
C
regulations support
of
the
PD
I program
QI mequirements
for conducting
die
PD
I program
an annaal work plan
in
725
567 7957 $5847 $819a $6023
873461
87.3461
84.1
349
841349
Nuclear LPRI accordance svitli
the
\DF enter
strategic plan
and regular reports
to
the
advisory tnieture
of FPRI
5.1 NOL\C Nuclear Mamtenance \pplicanons Centet N\LSC
The NsL\C was established
as part
of
die
general mdustry effort
to
improve plant mamtenance Through
die
ears \MAC has concentrated
on
producing material
and senices that support mamtenance supcrsisorscrafts persons planners
component engineers
sy stem engineers design enguteers
and
trainuig personnel N7eEAC materials
and
sen ices
are
prosided a
s maintenance guide workshops
and
crs
groupsPlant
of all
is
44848 40307 $56493
$41
516 48188 $42761 3461 84.1349
Nuclcar
FR
I
typestreated
ni
pectfic
and practical detail
2a
PS
E Cable Program This prof
cci offers improsed plant cable aging management
and condition
assessment practices
as oids costs
by
the
prex cotton
of
unneeessaaycable eeplaeements
and allows
identification
of cable detcnoratmon that could result in
plant trip
or reduction in safety Benefits
$7
210 4299 426
$5 8-i
$7
649 4621 3461 84.1349
Nuclear FItct
Nuclear
PR
I
through direct access
to
experts
in cable aging management
and cable condition monitoring
2c Nuclear Plan Performance Programs
PS
E heat Exchanger lerformance P2EP Plant thermal $17201 $12641performance emihancen
cut
and
SIX
SP
$17
17 13020 $18249
913
411 87.3461 841349
Northern States Power Company Docket
No EOO2IGR-1 5-826
Volume
3- Required Information
Section 8.4- Commission Policy Information
Research Expense Page
of
Business
Area
Research
Group Title Description
2016
Budget
NSPM
2016
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW2017 Budget
NSPM
2017
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW2018 Budget
NSPM
2018
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW
MN
Jurisdictional
Allocator
Interchange
Allocator
Nuclear
PR
J
Qualification Reporting
and Tcsnng tandardiaaoon SQURTS program
was initiated
to allosv members
to share seismic qualification
te nng costs
and associated data as well as
and
to
increase
the
efficiency
of
testing through
the use
of standardized procedures
and enhanced
testing methodologies
Ihe SQLRI
program operates using generic seismic testing response spectrum standard functional
and srisniac
testing procedures
and standard report format
$30900 $22708 $31827 $23389
$32
82
$24 091 873461 84.t349
Nuclear IPRI
Ic PR
I sf05 Performance Predinnon Medaodology
er Croup MPLG Qs
The lois cost
alternans
to
prototype
or
ni situ design basis differential pressure
DP
testing
of motor or
air operated
valses
is Llectric Power
Re raucli Institute EPRI Motor Operated False Performance Prediction
Methodology \1OS
PP
M MO\1P\i software
QS
prosides salidated capability
foe
assessing
the
thrust torque requiremseniswider design basis flow
and differential conditions
of
gate globe
and butteifls
saKe designs commonly found
in both motor
and
air iprrated
aR
e service
$0450 $11354
$15
914 $11095 $16391
$12
04 3461 84.1349
Nuclear LPRI
Sic Preventise slamtenance Basis Database compeehensis effort
by
the nuclear industry
to establish
credible preventive maintenance
P\f recommendations
and their supporting
basis
Its embedded
functions allow in
depthanals i
s
in many equipment
related area
and in management
of
PS
I tasks
Tbe
mission
of
the Presrnnve \laantenance information Repository PMIR is
the maintenance
and
enhancement
ot
tI ic FPRI Pres enims Maintenance Basis Database PMBD
$10300 $7D69
$10 609
96 $10927 $8030 87.3461 84.1349
Nuclear P101
oa CHECA ORls.S sees Group CHUG a
nd
The Steam Feedwater Spplmcanon
ISO 9001 1994
Il-TUG
is
an
ur group that deals with flow accelerated corro
ion
55 in
the steam feedsvater
and
heater drain systems
of
all
types
of nuclear powerpiants CHUG also addresses other degradation
mechanisms
for example cavitation flashinng liquid droplet impingement
and preferential weld attack
that
can affect
SC susceptible systems
$19 $14382
$20
157 $11813
$20
62 $1528 87.3461s 841349
Nuclear FPRI
.b
Buried Pipe Integrity Group BPIG
ihe BPIG pros
ides forum
for
exchanging plant experience
and
upporting
die implementation
of
ads anced buried pipe
ses merit
and mitigation technology
The
Group actempts
to assess
the bealth
of existing piping
and determine remaining service life
des elops
methods
to
repair buried piping
in
situ
and
elects qualifies alternate materials service environments
for
example high density polvedi1lenc water treatment cathodic protection
$20600 $15139 $21218 $0593 $2l85 $16061 87.3461 84.1349
Nuclear EPRT
6.lb
IC
Reliability Many nuclear plant operatorsliase eeque
ted EPRT sistance
in
desehoping
programs
for
managing
1C obsolescence focused
on
manitanaing existing components
The
lC
Reliability pros
ccl provides forum
to exchange plant experience best practices
and lessons teamed
$11845 $8705 $12200 $8966 $1266 $92M 87.3461 84.1349
Nuclear
PR
I
Ia Phoenix Techmuologs
Des dopment tlus prolect support
dcx
elopmrnt
of PHOLNIX an
all modes
and
all hazards
ads aneed risk tool that pros
ides an integrated risk profile
of
the
plant PFIOENI\ will
be
an adxances risk tool that enables user
to address multiple hazard
and modes
of operation effciently
obviating
the
nurrent need
for
multipletools Additional planned capabilities
include
die
abuty
to mnterthce
with inspection
and automated
log books remote equipment monitoring devices
and materials
elegradation matrices
$60000 $44093
$61
800
$li
416
$63
654
$46 778 .3461 841349
Nuclear
PR
I
Ig GOTI-IIC kdvi or Group loCh 1050 Sppendn GOlHIC i
s
an tRPI sponsored oftxare
bawd on
the Containment Anali
sis Package
OP
also known as
SI IOMS G
O 01111
can
be used
for
either lumped parameter computations
or
for niore detailed multidimensional analysis
lb HR
A
PR
A fool Users Group liar probabilistic risk assessment P10.5 fools Users group provides
technical support
on current
PR
A
issues includinghuman
reliability analysis
HR
remains
an area
that
contributes signiflcand1
to differences
in sessments
of risk
fo
r similarplants
$16
480 $12111 $16974 $12474
$1
484 $12848 873461 84.1349
Nuclear EPRI
$b40 $1l34 $15914 $ll69 $16391 $1204
87 3461
84 1349
Northern States Power Company Docket
No 8302/OR 15-825
Volume Required Information
Section 111.4- Commission Policy Information
Research Expense Page
of
Business
Area
Research
Group Title Description
2016
BudgetNSPM
2016
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW2017 Budget
NSPM
2017
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW2018 Budget
NSPM
2018
MN
Electric
Jurisdiction
Net
of
Interchange
Billings
to
NSPW
MN
Jurisdictional
Allocator
Interchange
Allocator
\uclcar FPRI
Ii
iP lOClRO Appendix
and
ISO 9001 Modular accident analysis program \LSAP
is
the only product
of its kind
in
the
industry tliatpredicts plant responses
to
sesere accidents insolving
core melt
and
dcx
etops
c-s
etc accident management guidance
an accident anaty tool that
ci abates
the condition
and status
of arious parts
and chemicals inside plant
$la45o
$11
34
$1
914
$11
695 $16391
$12
OT
t 87.3461 84.1349
Nuclear P113
ill Risk
and
Reliability Usc-es Gioup
QS
and 9001
The
Ri
and
Rehabthty
tR
Users Group
LG
suppolts l7leetric Power Research Institutes EPRI tools used
for probabilistic safety analyses
PS
$298
521
91
$30
766
$22
610
$31
689 $3288
87 3461 84.1349
Nuclear UPRI
7.1k Seismic Qualification utiiy Group
and Seismic Lxperience Based Qualificauon SQUG SFQU
SC
This oiganization upports continued dc-selopment
and application
of earthquake experience
based
seismic qualification
for
equipment
$21630 $15896
$22
279 $16372 $2294 $16864 87346100 841349
Nuclear FPRI
3a \VRIC 96
eld Repair
and Technology Cetiter Tlhe
56
elding Repair Technology Center
IX RIC
develops advanced materials omuig
and
repair technologies
for nuclear power plant contributing
to
reduced opcrauon
and maintenance costs
and
utipro-t
ed
plant asailabiluy
P1w program
aIm
supportstechnical interactions with code
and regulators entities
to reduce
die time
and cost associated ssitti
implementing
new technologies
and repair rule-
711 1RL\ llt.L\
is
mirently
the
fastest olution engine
for solsuig
PR
fault trees currentlyasailablr from ans sourer
It is
cspreiatls useful
fot large models
of
systems
and plants
It
typically reduces
the
solutic time from man5 hour
to
few
minutes
of
computer time
$63124 $46389
$6a
01 947780 $66968 $47214 3461 841349
Nuclear
PR
I
$6180
$4 42 $636a $4678 $6556 $4818 3461 841349
Nuclear EPRI
Radiation Management
and Source term Technical Strategy
The Radiation \laiiagement/Soucce
fern Strategy Group
is
designed
to enhance
die technology iran
fee between LPRI
and member utihue
through interacts forums workshop
and expert assi tance Such engagement helps plants take
the
research
off
die shelf
and
Pitt
it into
the plant Generic results
and
Ic
sons learned will
be used
in base
research
and
des elogment
RD ptogeam products
and reports
$30385
$22
329
$31
297
$22
999 $3223
$23
689 873461
84 1349
Nuclear
PR
O
3b
Groundwater technical Stratgey Group nderstanding
the extent
of groundwater conmninaataon
duruig operation
and in
the
earls
uha
of decommissioning impooetlnr
for
rIo evennith
decommissioning
and site release
of
the nuclear power plant
In
2007
the
nuclear mdustni committed
to
the
Groundwater Protection lnutiause
07
07 to
implement groundwater monitoring programs
at
all nuclear
p0-suer plant sites Intemational operating
and decommissioning nuclear power plant ites
al
are
implementing groundwater protection
and characterization programs
$28840
$21
194
$29 $21830 $30596
$22 48a 87.3461
84 1349
Nit lear FPRI
Ic dl
Pi
805
and lire
PR
Support Group
6e
Pi\
Il
henustri echniral Strategy Group includes
Ph
16 7uac Resin titer Group
he
P96
Resin filter
and Zinc Technical Strategy Group
is
the
combination
of die
P94 Zinc Users Gtoup
and
filter Resin
ers Group Sccess
to
die
groupwill enable plant chemist
to share
bes
pracuces
and
challenges associated svith application
of these technologies while building
on
die work
of
previous years
and effort
$30900
$22
708
$31
827 $23389 $32782
$4
091 3461 841349
Nuclear UPRI
$13081 $9613 $13473 $9901
$13
$10 198 3461
84 1349
Nuclear
PR
I TGI.JG turbine Generator rex Group$8240 $6055 $8487 $6237
$8
42 $6424
87 3461
84 1349
Nuclear
PR
I
la
Digital
IC
Implmmtauon 81184
$8
05 112200 $8966 $12566 8923 87346100
84 1349
Nuclear IIPRI
2k
Submergence Oualthcation
for Medium oliage
Cable
The effort snill estihhsli qualified
life
foe
the
subttiergence
of medium -soliage cable starting ssith l-.ente 11Th insulation Okonite Okoguard pink
PR insulation will
be added
to
thc
program
at later date
$30900
$22 708 $31827 $23389 $32782
$24
091 873461 841349
$1
700697
$1
249
818
$1
18 $1804270
Nuclear Total $1700697 $1249818 $1751718 $1287312 $1804270 $1325932
Northern lateu Power Comparry
Six
633 792
Si noon
Docket
No EOO2ICaR-15-826
Volume
3- Requ
red Intorroalcon
ReGIon
III 4- Conrrne
or Pohay lntormabon
Reoeercl Eopernoe Page 5038
Bnocneo Area
Research
Title Detceiptinu
SO
n
Eocegc
hc
ooteaet north
El
10 for
$1
331
acotoall foeaooooclrae
roUted
RD to-slur Than nor
rod
expire
at
the
rod
of 2016
The
omplecxpccto
to eeecwthecntccttoeippcvoomorel
the
acre
dr0000tm fotnee IcaciOelou S
oc proved detach
foe
the ompao3
15
PR
I
onro iereroneoeleaeRDactacctccxooirhLpRl
huh
to
ncpeeencerave
of
the pe
of no nuclear
RD w
e eepect
ro ooduct
the
funtoe roth
Rpm
and ocacued
to deco-c arepeen enraove level
of
RD
ropeor
foe
the
MN Elector Joudrctaoer
or
10 to 2018
2015 Xcel
Energy
Bodget
2016 BndgetXcrt Energy
2016 BudgetNSPM
2816
MN
Electnc
Junsd.ction
Net
of
Interchange
Bdhog
to
NSPW2017 BudgetXeet Energy
2017 BudgetNSPM
2017
MN
Electnc
Junodiction
Net
of
Interchange
Bsthngs
to
NSPW2018 BudgetXeet Energy
2018 BudgetNSPM
2018
MN
Etectnc
Jurisdiction
Net
of
Interchange
Bdlingo
to
NSPW
Corporate
Operating
CompanyAllocator
MN
Jortodtctional
Allocator
InterchangeAllocator
TOTAL
Non Nunleae
EPRI
RD
$1300
IF
583000.0 $518
26 $393
$1 30OOO 5192 $313
32 $13 0000 l822 $333
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81 3219 0104
348 $4151
$3
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64 48 03157
$3
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$10
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$4
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$33 81616 34381 33432 $81016
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381
36 $10
297
840
381
30
8101
97 $40
381
36 3986351 073461 841349
Tao on
88
.302 0183351 0482
o4
$189
$7
4Ro
54 1673
48 5471
3803
97 461 8413
let
St 70034
101 81821
533 717
St 30
010
101
IV
Oth
er
Required
Info
rmation
UO
I48W
JO
JU
4U
fl033y
qn
3J3J
Docket
No E09210R 55826
Page 9013
POWER PRODUCTION EXPENSES
Steam Power Generation
Opraborr
500 nalonS
rvi
036 ngie0109
Fl
O2rrEopore
lo to
Eop roes
Moon
Ian Power opores
57
OrG
tal poraSi
21
218
4907 4600
IS 45
48 44687
484 9735
481
70497 034224
24 83554
14 544119 1550818
0286
21 1953742
3436780 408481 3440918
9021 540466633 667858
0001
018
6429 560479
74
49 2937
42 79
80
198406 1924
21 60022
5696
124
12
18638
990
08 1917
37
2977
07
474 5616 4197 0111
Mantr
2Alowa no
510 Malrtrrarceupeilen
Er gieo
ng
11
arc trooturos
12 Martonar
001 Part
51 Maitenarn
En
trio
Pla
14 Mair ranGe nIaneous Stoar lart
Tota
Ma
tsr
Total Steam Power Generation
848 2060
09 211024
284
11
290 300913
042
184
141
048
31 82
55 3891
339
1532
365
Vs
4414 66937
81 72480448
1078
45 607464
13 60614838
83
799
747 42628
24
987
26
905 2602
22
34672811 3253766 3680
850
4306
38 4876289 0714
104 trca
908 1741304
172
44
99
918
40
40 29345
00
Nuolear Power Generation
Gpo
517 asnyupotrEngnoorg
10
Co
Ia teardW
nr
20 OrnEopore
52 loopers
nl
on lear won
op no
55 Or
Total Operator
MarIe
ice
Ma
ten
no oprrv
on
Ergi enrio
01 nar 5110 turn
53 terarco
Tea lart
ont
Mailer
II
art
Ma
ma 0111 elan osNu ear
an
rten
Total Nuclear Power Generation
Hydraulic Power GeneratIon
Surp
SE lO
g
In
iF
Pp
lar
HJdr
or
00
rt
ar
41 Ma itrr upearEgr 09
Ma trrao 0005
43 rn
arc
of
Ru
yr rrrdWarrw ye
44 Mart
In lant
45
Mw no
IMs iuydru
rt
rota Hydraulic Power Generation
Other Power Generation
Opora
546
II
nSuperu
rE
ginoorig
Furl
48 Our rasur Eopnr505
549
Ms
el ann006
00 rr 01/erG tior
cop
rS
55 to
Operator
755
51 7797
643
110
23 11770141 08850
19 0791
928
11
449 8948
51 831
98
545
24 216139
146
421 147059414
149
86
12
554 6404 12769
41 8764 4175548 428644
86
608300 6006
08 7341695
368
034011 53274440 53107421
135 2861
991
47 9988692
nIl
191 2367544
9411
77 99118964
94 6535
5105154
818
9760 1016 672658
19 4836
181 7131
16 5317
70989 7648654 72696
1629
608
715
III
398
852
1401
55 1441 144202
46080711 53104531 4072
08 81
868 6942
989
4122401
613
85
787
887 1780
44 4444 90 40272
18
50814 1924451
19
II
98837 184063 4620
111459 110494 111 3256
648 64696
13 37481
11
9992 6031 6411
341
8183
42
395 46244 46
754
11809217
86 60 2905
24 846
852
137 7738
2191 6987 8214
026
445
886
144
447 4565
1095 183551 58740
1686 00
15 911 14280869
0739 680801
49
14 34452 2071424 948086
6746 120946
701
41
331
46 8147 43436488
Mar m
ar
51
Mar
narc Super
ion
EnS
no
Northern States Power Minnesota corporation
Electric
OM
by FERC account
tJeadusted Forecast
472
49000
413
45
48
43
104212
47 2507
24
97
24
64 94
190
111
86
19
09
11149
31
509
91
22
4811
9216
46192
11
19
16
000
000 1926 1922 00
93912
974 79454
Ott
8814461
86 60
157
13
04089
17
178
239
48 48 4/
310
46 32283
30 71
75 281
98 329
Docket
No 5002CR
15 820
Page
200
En
ro
tTe
Dec
18
Northern States Power Minnesota corporation
Electric
OM
be FERC account
Unadiusted Forecast
552 MantuethIt urns
11 2470
61
51 03109 21646
219
40
Martenar Irnraogard
En
too
tI 22583 064408
255
347
04
15 08 200011
Mat bane Mt
an us thor w
et
rO
t
86
43 459
94 103
327
998
871
Mar
644 1892 77720
417 1401
24
Total Other power Generation
64
60 12
Othnt Power Supply Eopenses
ha w
et
4425
982
98 700113
43 19
yt
05 ardL
adO
pat
Org
11
94 1136I2
11
11 72
97
900
tOO
77 1481
81
14 4050 70 97
Total Other Power Supply Eope0905
97
99 5474144
153
85
704
909
TOTAL POWER PRODUCTION EXPENSES 2014929123 2075091501 2110375969 760361693 1015792479 049004793
TRANSMS5ION EXPENSES
090 prrrglrtg
41
714
49 40060
60 219 6244791 649011
561
pt 6115
40011
62 50
41 43029
444
tad Moor ate
torus 610365 68140
13
oad pior
rvh
25 15 26423
224
02
614
hI
olDcp
-v
9773 6499
19
561 5049
laO 10 dardc
02
05 06 9682
31
496
it
Sno odes
85
42 24
lerrterr bodes3817
893
121
17 1614
5619
-2 bardard DevServ 1478 46611 299898
289 2406404 2619
62 trOopers69916
90
821
94
39
211
914
699
223
Tooth
ad re Oup005
46
151 2491119 44777 2154
60
17
091
21 90
564
Ord go Looporr
no
827
027
722
SrarsrrssonotEe
It
OybyOthers
191 09414 209359734
200
059 1675 9308
99 966609 19221
290
66
Mt Trrr ton Eeperses
1171305 11044657 12399327
10 300973
10 450457
930
67 Oerbs
236
12 38433 2366450
05 496 2059
to Oper
ri
339 0040
02 76 30444
296
.475
094 3299
46
Mat tenar
598 narr005 pvsrrrrrrrrg
122
444
161
95
47 1110
59
rle trot to
lures
Mart
tor Equtpn
99
36
49 7959731
91
75 60 4295
71 Ma tertorroluethead
8544010 7505270
091 7463595 6544 629
049
57 Mat
berarton
tot turd
too
do 00
000 19130 195294 147599
573 Marrteoa
19 Iaoeoo Ttatt
01
21
699
627
19 01
Ia MOtrbera
166234
687
38 693 145190
70 950 13442
90
TOTALTRANSMISSION356412117 375100
943 391928
127 3t13t2433 327036048 342333934
REGIONAL MARKET
5751 heSo ut
on 20794
213
863
19 21 16 6901
19
918
52 DARTMklAdrrtt
86
392 3750
40 4259
553
55 Ar
try nruMklAdsrrn 18086
101
67 101
549 1595
MkIM tortg/ rrpl
39
50
61 8009 4115
682 3199
5757
Ma
kel
Ado traItor
30400
70 7526 2460
74
65 4010
5758 MakeIR
rIo
666
404
65 154 15200 1548
To 8090 Market
00 0338
021
54 037
357 4912 1710 15972
TOTAL REGIONAL MARKET7171854 7310072
DISTRIOOTION EXPENSES
Oporaltor
80
Opt troupntvct
on org
581 Load spat
502
tat ooopnon
Coon
Lo Eoperoc
04 dergru
tr
Lu er
58 10001 hIsg
aod gra SysI10r Eopnrceo
05 IoEopenc
Cu
Ire
051
to pooe
58 Mo
are
950 per
no
Matr rao
01 aeon pro
nsEroerrg
009 9994
124
40555
9440131
84872
0653
88416n4
15 589
926
83
205
10 617 1219108
13 4703
144
784
17
455
54 24 5511
540 6244074
093
94
941
858 1407 1469
991
10
68
159
69 67
43
320181785
42 03
142 3691
502 5364102
.440 941650 16002
36 24
1809
67 64610
115 3768
6468
53113
54
049
45 80
85
47 73
86
Docket
No 5802/OR 15826
Page 3013
Northern States Power Minnesota corporation
Electric
OM
by FERC account
Unadiusted Forecast
65 Ito
Mr
017
18
591
ntenan
00
So
toe
592
Ma tertar StaS qv ptre
Man aanc love
Cd
Iron
MaintnanefndtgtUfld
es
ntera
001 Trari
tr rs
595 Maatenar
Ito tLoht good Sgna
Sy te
to
897
Ma enan Meters
58 ar
IM el yr nOte
Ut Plort
to
Ma
ten
TOTAL DISTRISUTION
80180 79
84
41
288 4051212
121
69 1204
04
55 297
20 57 489
31035 0068
910 4772
615
70
70
60 88 48348 6421
124608
INS
127 578814 127050710
66 99480 6841
006
88 61
686
229
104824 101498 00
696
2419845 44472
252
62
44
74 448
195
1039 131249
30
55 74 519 6224
48
1U0823S11 110632392 IIU550
714
CUSTOMER ACCOUNTS EXPENSES
opera
rR
Eopercec
reel sa
CI
Sr
pro
let eACO to
905
coo Stor
er
Ac
IS
oper
06
TOTAL CUSTOMER ACCOUNTS EXPENSES
CUSTOMER SERVICE
AN
D INFORMATIONAL EXPENSES
907
percicon
908 ustomer 5110 opnoS
09 tortratoial
end rctru
Eop
en
SIX
MS ucctmer Setv card terra SnalEop
Sec
Total
TOTAL CUSTOMER SERVICE
AN
D INFORMATIONAL EXPENSES
13 13
10491 598
681 164865
612 2887 21 08752
706643 584440
22
76399 464591 9840759
80676389 59464801 59840750
87886254
61
065
476
684
89
04
765
765
03 414
88934059 2113241
64 400
00934018 32113241 60474UU3
18416
477
46 02
15
61 94564 15192
88
73428
22 607
45 00
11 64825 12148768
12
50 7208 4802
90043021 N0720070 N1U24002
86 07587 59458409
69 974
86910 86110 863715
58369
50 34598
67
690
07583686 30334510 67707690
SALES EXPENSES
pe00500
911
Sup 5
t
00
Oetnon
It
Sr
ard
oIl UEOP
913 AdvetS OP000
916
Ian SacS
Eop
ro
ADMINISTRATIVE
AN
D OENERAL EXPENSES
OperaS
20 01 Italve
and octal or
921
15 cSuppl sand 00001
cc
92 5dm
055
toe op rses tarot CredO
Is deetvestrplyed
924 1008/ care
925 ute tdoamaU
92
Employ lard
Sen
Its
FtanoliS Sequor
015
928 ReXo atoy Comm coon operses
829
opt
ate
Cha Ctod
01 Advertes
05 Eyer
OS
302 M50e aneoo Genera
Erp
931 RentS
Va oar 0010 retal Part
69 83272 7195
556
746 4055
42
565
821 72900
242477 269214 199294
1024
60 10 80
83 11390
ISU4
72 8758
8665701
64
77 93 009
6150
09
61 294 61580
32673 330259 3431
71
3565
02 3515
15 3.319
924
34 0247 8220
57 39 16212
8116
004 013505
59 48 24 5081 6143
2N9564835 264526001 272631431
08
08 62323233
646
979
48343693
49
64 57
499
319
21 59199
195
749 17435446
8946
02
41 49317
44401 14698432
15 84094
tO 543 5540
07 58 3709
532679
385
40 7314
91 542 4077
.9 4841
09284 303403 29945
314 35538
340
no 18403485455
.8 347
220485455
229 055060
236 983347
TI
TOTAL SALES EXPENSES
7179
7S 7561
52 646
605
179
367
51
7178 7367 7561
71
436
05
3271 6436 6605
Total
TOTAL ASMINISTATIVE
AN
D GENERAL EXPENSES
2010904160 2972685135 3042434517 2SSO065806 2602175861 2665010037GRAND TOTAL
All Eopeeces
Min
nS
tat
216B
.16
subd
17
Ente
rtain
ment
Rela
ted
Em
plo
yee
Expenses
Employee Expense Report Index
Minn Stat 216B.16 subd 17
EER Schedule
EER Schedule 1A
EER Schedule
EER Schedule
EER Schedule
EER Schedule
EER Schedule 5A
EER Schedule 5B
EER Schedule SC
EER Schedule 5D
EER Schedule 5E
EER Schedule SF
EER Schedule 5G
EER Schedule 5H
EER Schedule SI
EER Schedule 5J
EER Schedule
EER Schedule
EER Schedule
EER Schedule
EER Schedule 10
EER Schedule 11
EER Schedule 12
EER Summary Report
Gifts
Aviation
Lobbying
PassPort Application Transactions
PassPort-Nuclear Application Transactions
TIME Application Transactions
2016 Test Year
All EER Schedules are included in pdf format on the disc enclosed with Volume In addition paper copy of EER
Summary Report is included in Volume
Docket No E002/GR-15-826
November 2015
Travel Expenses
VP and Above
Meal Expenses
Entertainment Expenses
Board of Directors Compensation and Expenses
Top Ten Compensation
Top Ten Expenses Benjamin Fowke III
Top Ten Expenses Teresa Madden
Top Ten Expenses Kent Larson
Top Ten Expenses David Sparby
Top Ten Expenses Marvin McDaniel
Top Ten Expenses Scott Wilensky
Top Ten Expenses TimothyJ OConnor
Top Ten Expenses Judy Poferl
Top Ten Expenses Robert Palmer
Top Ten Expenses Darla Figoi
Dues
Legislated Minnesota Expense Reporting Requirements
2016 Budget Expenditures
for
NS
P Minnesota Company
Categories
to do
not include
the
expenses that
are included
in either Board
of Directors
or Lobbying
Travel
and Lodging Expenses
Travel Expense
Lodging Expense
Miscellaneous Travel Expense
Food
and Beverage Expenses
Meal Expenses
Recreational
and Entertainment Expenses
Tickets
and Other Entertainment
Exp
Board
of Director Expenses
Director Fees
Director Expenses
Dues
and Memberships
Professional Social Dues
Gifts
Subtotal
Recognition
and Rewards
Owned Leased or Chartered Aircraft
Corporate Aviation Expenses
Lobbying Expenses
Civic Politcal Expense -426.4
Totals
for
All Categories
5984212
2678234
6493847
2124457 1992297
412387
1008932
112104
750655 687097
1439623 1321000
21004451 19368756
22896
2448
2448
1236390
1681849
Xcel Energy
All Other
Corporation Affiliates
Docket
No EOO2IGR-15-826
November 2015
EE
R Summary Report
2016 Test Year
NSPMTotal NSPM Electric
11675501
6560217
10938079
NS
P Minnesota Comoanv
State
of
MN
5691289
3881983
4444233
Electric
5569896
2484301
6280159
Adjusted State
of NSPM N
on
Utility
5204255 3079798
1453777 1041390
2493660
277074
1484728
164970
930606
103401
1512744 762088
3286913 1847290
5904441 3515509
2573838 1337448
3060
412387
2220
445459
2388932 2204266
1236390
24629773 21573022
Regula
tory
Assets
Lia
bilitie
sD
efe
rred
Debits
Cre
dits
Docket No E002/GR-1 5-826
Volume Required Information
Section IV.3 Other Required Information
Northern States Power Company Regulatory Assets Liabilities etc Page of 12
Regulatory Assets Liabilities Deferred Debits Deferred Credits
The attached schedules include all of the Companys Regulatory Assets Regulatory
Liabilities Deferred Debits and Deferred Credits Also included are descriptions of
each asset liability deferred debit and credit along with the related Object AccountsFERC Accounts and Balances for December 31 2013 December 31 2014 and
September 30 2015 The schedules also include discussion of the regulatory guidance
relating to each asset liability deferred debit and credit
These schedules are provided in accordance with The Findings of Fact Conclusions
of Law and Order in Docket G002/GR-09-1 153 December 2010 Ordering
Paragraph which states
In all future rate case filings Xcel shall disclose if the utility has elected rate
recovery method alternative to Federal Accounting Standards Board
pronouncement in reliance on Statement of Financial Accounting Standards
No 71
Each of these Accounts results from the application of ASC 980 Regulated Operations
formerly FAS 71 for accounting purposes These Accounts have been applied for
financial and reporting purposes as described in the attached schedules The effect of
the application of ASC 980 Regulated Operations to the books and records of the
Company results in recognized expense in the income statement being equal to the
amounts that are recovered for those specific items in rates for the same period In
general to the extent that more expense is deferred in period than is currently
recognized it reflects situation in which less is being recovered in rates than what
would have otherwise been recognized in expense without the application of ASC 980
Regulated Operations The result is regulatory asset which will be recovered from
ratepayers in the future Conversely to the extent that less expense is deferred in
period than is currently recognized it reflects situation in which more is being
recovered in rates The result is regulatory liability which will be returned to
ratepayers in the future The specific ratemaking treatment of number of the
regulatory assets and liabilities is addressed in specific regulatory Orders that provide
regulatory guidance that the Company has relied on in establishing the regulatory
assets and liabilities The schedules also include references to the guidance the
Company has relied on in the establishment of the deferred balances
Docket
No E002/GR-15-826
Volume
3- Required Information
Section
V.3
Other Required Information
Northern States Power Company Regulatory Assets Liabilities
etc Page
of
12
NSP-Mtnnesota
Regulatory Assets Schedule
ID
Oblect Account Object Description Docket number FERC Account
Balance
as
of
12131113
Balance
as
of
12131114
Balaace
as
of
9130115 Description
of RegulatoryAsset
and Evidence
of RegulatoxyApproval GAAP Classificutior
RA-Ola d31300.241900
e3130s.241955 8888
631300.150051
Consemation Energy
Management Prograrris
Minnessta Electric
DS
M
14-2e7 15320 1823 30460172
Per
MN Docket 14-287 NSPM is
reqsired
ts spend percentage
of gross
gas
and electric operating
revenues
on energy conservalian prsgrams that result
in
net reduction
of energy
use
The
expenditures
to run
the
electric
CIP
programs
are deferred
to
this accsunt
The espenditures
are
amortized monthly
as recovery
is made from customers
The balance
in
the account reflects
the
amount
of
CIP
expenditures that have
nut
yet been recovered from customers
RegulatsryAssets
RA-Sic b31400.24t900
831440 241900
e31400.241900.9999
e3f440.241 900.9999
631400.150051
631440 150051
Coosemabon Energy
Managerveot Programs North
Dakota Electric
DS
M
PU f2-8t3 182.3 112324 04243 52652
he
North Dakota
DS
M
program
was initially setup through grant from
the American Recovery
and
Reinvestment
act Originally NSPM w
as able
to
recooer$2
2M in DS
M spend
for electdc
and
gas
customers
The
company would submit
the
expensesto th
e
State
of North Dakota
and then receive
payment
for
the
approved programs
In 2009
and 2010
NS
P was allowed
to
deter
DS
M
spend
tsr
recovery through base rates which started February
tO 2011 four year amortization
of
the
year
end 2012 balance w
as approved
in
the 2013 North Dakota electric rate case settlement agreement
ND Docket PU-i 2-81
ff501d 52419052555
tO
150051 3000
Conservation Exeroy
Management Programs Sooth
Dakota Electric
DS
M
ELI4-S40 182.3 5607 27096 NSPM implemented
DS
M
programin South Dakota
SD Docket ELI4-040 ELIS-515 that
is
similar
to
the
DS
M
program
in Minvesota Covservatiov programs
are
approved
by
the SDPUC
The
SDPUC
has
set program limits
at $7756 NSPM i
s
required
to submit fling annually beginning
May
2013
The
enpenditures
are deferred
to this account
and
are recovered through
an annual cost
adlustment rider
The expenditures
are expensed monthly
as recovery
is made from customers
The
balance in
the account reflects
the
CIP Expenditures
not recovered from customers
RA-02 242770 Cleanup North Dakota
MO
P
sites
PU-i 5-514 1823 220272t ihis account represents regulatory asset related
to
the
Pargo
MO
P environmental cleanup project
NSPM has requested approval
to defer
but
has
not received an nrder on
the request Activity
-epresents
the
ND state iunsdicboval share
of amounts bushed
to date
Regulatory Assets
RA-03 2dtlOO
FAS
109 AFDC in
Plant
N/A
182.3
t99 697596 200524
9t6 203274450 This account represents
the amount required
by
FAS
109 associated with
the calculation
of deferred
income taxes
and
the amouxt
of rate recovery
of those taxes
br AFUDC Alluwance
for Ponds Used
During Cunslrucliun equity
The balance writ increase when more APUDC equity
is
incurred
vs
AFUDC equity reversing through book depreciation
The balance
mdl decrease
if the opposite should
occur
RegolatoryAssets
RA-05 243100
SD AFUDC Dockets 3362
and
3422
192 4278250 4150250 3880255 South Dakota allows additional APUDC
at gross-of
tax
level
for short-term CWIP
The amount
is
added
In
Plant
in Semice
to ensure that South Dakota ralepayors
pay
for
the
cost
of capital related
to
charges
on short term CWIP
and
is amortized over
the
remaining lives
of
the
plant
The amount
of
APUDC on short-tero CWIP is determined
by
multiplying
the
gross-of-tan AFUDC rate
by
the
average short term CWIP These evtnes
are booked quarterly South Dakota t962 Rate Case
1362
and 3422
Regulatory Assets
RA-07 241210 Asset Retirement Obligation-
Electnc
RMO/ 1-000 Urger
031
TAO
102.3 1.54011
4b5 1.720538
314 1815979973 Chis account
is used
to
recognize
the
differences Detweeo period costs associated wrth asset
retirement obligations
fur foanciat reporting under
AS
C
360
and
the
cost recovery allowed
by
the
venous commissions RMO7-7-050 Drder63t
TAO
The balance consists
of
the accumulated
accretion
and
depreciation calculated
at
the
implementation
of
AS
C
360
and
the
monthly accretion
tnd
depreciation from implemevtauuv
to
the
current month Note that object account 244820
Nuclear Decommissioning Deferred Taxes
and account 422700 Nuclear Decommissioning
Unrealized
Dam
are vetted together
iv
thih account
due
to the
act that
the
regulators
are expected
ts consider
the recovery
of these amounts tonether
as
one cost
Iv
the 2013
MN
Elextvc rate case
12
961
the MPUC approved deferred accounting
br Sherco
Uvf
3s 2013 depreciation enpevse NSPM began amortizing
the amounts deterred over
21
years
beninnivu
iv 2014
Regulatory Assets
RA-07 241220 Asset Retirement Obligation
Gas Docket RMO7-7-050
Order 63iTAE182.3 1318185 1350846 2310660
RA-Og 24t240 Asset Retirement Obligation
Common
Liocket RMO7 7-000
Order 631.TAB
1823 1252007 1175372 1120474
RA
59 t5044i.7505
248t 10.7000
Sherco Deterred Deprecianon 12961 102.3
to sos
723 10062594 9706371 Regulatory Assets
RA
iS 244701
PA
S
109-Prior FlowThru Contra
N/A
182.3 .216
379 This account shall
be used
to record
the
FAS
109
AS
C 740-10 required amount associated with
the
calculation
of excess accumulated deterred ocume
tax Excess accumulated deferred income taxes
are result
of
the
lowering
of income
tax rates over time
and
the
IRS requirement
to maintain
historical
lax rates on previously provided
for
deterred tanes Reduction
to Ihe balance
isa functinn
turn around
of these historical differences
and will
be reduced over time
Regulatory Assets
Docket
No E002/GR-15-826
Volume
3- Required Information
Northern States Power CompanySection
V.3 Other Required Informal
on
Regulatory Assets Liabilities
etc Page
of
12
NSP-Minnesota
Regulatory Assets Schedule
ID
Object Account Object Description Docket number FERC Account
Balance
as
of
12/31113
Balance as
of
12/31114
Balance as
of
9130/IS Descnption
of
and Evidence
ofR
A 11 249445 24e44n lOSS
P1
CP
U
Cancellation
13 eog t83.3
08 667
990
70 884
203 easel
355
RegulatoryAppreval
In 2009
the MPUC granted NSPM C
ON
for
Cpu
the
Prairie Island
GAAP Classification
project generatingplant
The total estimated cost
of
the
EP
U was $294 million
of which
Regulatory
appronimatelybeen incurred including AFUDC
of
$13 million Subsequently resource
plan update
and change
of circumstances
the MPUC thatnotitying were changes
the
size bming
and cost eshmates
for this prolect revisions economicpro
ect design
analysis
and changes
due
to the estimated
01
revisedimpact outages information
ndicated further reductiun
to
the estimated benefit
of
the
As
result NSPMuprate project
concluded that further investment
in
this would
vol benefitproject 2012
MPUC voted thatunanimously
no party cause
to
prevent termination
ot
the
EP
U
CO
N
The MPUC issued order
the
CP
U
CO
N
terivinahvg
in
early Minnesota retail
electric rate Docket
s1N 13868 requested recovery
of
P1
CP
U
costs suer
12 years sn/h
return
The Department
of Commerce recommended recovery over years wdhout return in
its
direct testimony
lv its
rebuttal NSPM
12
e.rthoutrecovery years
ev devhary hearings NSPM
the recommendation
of only return
RA
t2 171150 Theoretical Reseme 12-961 182.3 35989
t39 tetese
911
219
494
574
34% veer
20 fl vourv
As result
of
the
order
the 2013
MN
Electnc Rate Case Docket
MN 12-961
was required
to amvmze theoretical
of
Accumulated
appruvimately over years customerbills accordingly Since this
is
deviation fromth
e
life method
of
Depreciatiun
remaining depreciation eupense
the FERC and is
solely ratemaking tool
is
required
to
record
it as
regulatory asset amortizasnnof
the remaining balance Dec.31 2013 ublizing
50/30/20 method
was approved
as part
of
the 2014
MN
electric rate case
RA
t3
244010 Nuclear Decommissicning
N/A
182.3 50625034 6530995k 58388090 rhis accnuntwrll
be
debited
to
Roternal Qualified
FA
S
109 change
in
the
unrealized gain
for
the gjj$$ed decommissioning balance
RegulatoryAssets
RA-14 244e1t tjuclear Decommissioning-
N/A
182.3 50625
034 65309957
58 388090
troternal Qualined Contra
I/A
t5a 242300 Renewable Resource-Cosls 14-814 182.3
226 200000 250850
500
278
450
055 Minnesota Statute 16C.779 NSPM
to
fund
lhe Renewable
/RDFrequires Development
RD
F This Regulatury Assets
RA
15b 242300.0100 Renewable Resource Drawduwn r4-et4 92.3 186039496 208204174 227631
178
account contains
the annual funding requirement
MN Docket 14-014
his account represents
RO
F grantsthathave been Docket Grants
RD
P
14814 are
as power production
RD
legislative mandates
and REPI Renewable Energy Product
on Incentive
RegulaturyAssets
RA
Sc 242300 0400 levemable Resource
MN RDF1 4-514 -i83 4356971
The MPUC
the
RD
F nder242300.1111
in
August receioen Junsdictioval allocation
of
production
and adminislraboe costs
Regulatory Assets
t5557epower MNNOrSD th
e
RD
legislatiue
mandates
and REPI Docket Addibons
RD
Frepresent costs
to
RA
16 243150
MN State Energy Policy Electnc 13-959
13
ees 182.3 214972 213941
Minnesota
and awurtZations represent vder recovenes
rho electric Slate rider
155433Energy Policy
MN
13-959
is designed
to recover costs associatedwrfh
the Praine lslavd Tubal
the State
Regulatory Assets
Retability Administrator
the Wind
Integration Study
and
the Minnesota Sustainable Building Program recovery
in
fverrresuta began 2004
The balance
the
Iv iv account represents
rye costs
vur recovered rrum
customers
The
elimination
01
this
was
in
the 2014 Minnesota electric rate case
The
rider rate
was sells zero
in
January 2014
The balance
was wvften
off
iv 2015
RA 17 243450
MN Transmission Cost Recovery 14-8ti2 1823 9553611 11385541
The
RC
R
MN Docket 13-1179 allowed
of
the
costs
of transmissionrecovery prolecto
sn/h renewable
wh
le the
TCR
allows
the
of
the
Regulatory Assets
energy recoverybroader
of transmission Rates basedtypically annually upon costs
and sales Over recovered balances
are classified as current
and under-
recovered balances
are classified as current regulatory asset
on monthly basis
RA
18 243415
MN Tranynassiun Cost Recooery 10-1064 1823 298509 290509 298509
ihe balance NSPMsshare
of
the
Deferred Transmission Prolectn
study
MN 10-1064 Amortization
of this amount sell begin once
CO
N is issued
for prolect included
in
the study
RegulatoryAssets
The
RE
S
study concluded that transmission addibons neededwere more renewableadditions
Is
the
system
and that
the
Corridor
and Badger Coslee
Thewere necessaryCorvdor between
the Dakotas
and
the Twrn Cities Badger-Cuulee
Iwo
is betweenMadisos
and
La Crosse
It is
currently anticipated project sell
vol
be needed until
at
NA
21 243402 North Dakota
TCR Rider
PU 14-644 182.3 2137036
621
969
east 2025
The amurhzahun Period
is
TBD
Regulatory fled
for
ND
TCR
150081request
on
ND Docket
PU 14-644
The NDPSCapproved
the
yetihon
on
Dec
17 2014
The included
Regulatory Assets
revenue requirements
orc On/er
Docket
No EOO2IGR-l5-826
Volume
3- Required Information
Section
V.3 Other Required Information
Northern States Power Company Regulatory Assets Liabilities
etc Page
of
12
NSP-Mnnesota
Regulatory Assets Schedule
ID
Object Account Object Descriphun Docket number FERC Account
Balance
as
of
12131113
Balance
as
of
12131114
Balance
as
of
9130115 Description
of RegulatoryAsset
and Evrdence
of RegulatoryApproval GAAP ClassAca6or-
RA
22 243476
SD Infrastructure Rider 6512-546 1823
562
789
in As
part
of
the 2012 South Dakota retail electric rate case NSPM was allowed
to
implementlheInfrastructure nder
to recover specifically evaluated
and discrete costsfor capital projects
and
incremental property lanes that are
not included in
the rate case revenue deficiency
The revenue
requirements were rolled into intenm rates effective
Jan 12015
The
rider rate
was
set
to
zero
effective
Jon 12015
Per
the terms
of
the Settlement Agreement
for
the 2014 electric rate case
SD Docket
ELi 4..S58
the
Infrastructure Rider
was refreshed
to
recover specifically evaluated
and discrete costs
for
capital
rrroiects
for 2015
Regulatory Assets
RA-23 343473 3ewer/Gas Line Confl
ct 10.42214
336 182.3 14748821
51
0/ Costs were mooned
to the GUIC Rider
RA 25in
the fourth goarter
of 2S14
Costs were moved
to the GUIC Rider
IRA 2810
the fourth goarter
nf 2014
The
Gas
Ublity Infrastructure Cost GUIC Rider petibon
MN Docket 14.336
was approved
by
the
MPUC on
Dec
18 2014
The
rider includes recovery
on incremental
OM is
and
capitul-related
revenue renuimements
for pmoiect costs incorred
to
comply with
aas pipetne safety programs
in
addition
to
five-year amortizat
on
for
previously deferred sewer/gas cvnfl stand
gas oafety costs
3ates went into effect
Feb 12015
The gas
Stole Energy Policy rider
MN Docket
14
185
is designed
to
recover costs associated with
the
State
of Minnesota ReliabilityAdministrator
the Sustainable Building Goidetives Program
and
cast iron pipe replacement Rider recovery began
iv
July 2004
The balance
in
the account
errresevts
the
costs
not recovered from customers
Xcet Energy enters intoderivative instruments
to
manage variability
of
future cash flowsfrom
changes
in commodity prices
in
its
electric
and natural
gas operahons wInch mitigates commodity
price risk
on behalf
of electric
and natural
gas customers Changes
in
fair value
of derivative
instrumentsare reflected
as
regulatory asset
or
liability
it
there
is commission approved regulatory
recovery mechanism
in
place This balance represents
the
regulatory offset
for commodity
gas
hedging derivatives that are
iv
liability position
and have approved future recovery
regolatory Assets
RA-24
RA-25
/43474
243477
15nS92
tao
Safety Deferral
Gas
Utility Infrastructure Cost
Rider
122481433614-338
182.3
1823
41 S7309
22822458 18978128
Regulatory Assets
RegutatoryAsseto
RA
26 243200
150431
MN
State Eneray Policy-Gas 14-185 1823 387977 85166 RegotatoryAssets
RA
27 249SSS100 150301
FAS
133 Retail
Gas
N/A
823 2713285
746
601 RegutatoryAssets
RA-29 249000155150301
Miscellaneous
C20
Amortized
Contracts
N/A
823
138
918
017
136
919
017
134
730
941 IO2SS3 Xcet calculated transition adjustment
iv accordance wrth
the
requirements
of Derivative
Implementation Guidance
DIG
C2S
The
resufi
of
the
transition
to C20 w
as
33 power purchase
agreements were marked
to fair value as derivative instruments Since recovery
was eopected
the
offset
Iv the fair value adjustment
was regulatory asset or liability
In December 2005 XceI
established that these contracts qualified
for Normal Purchase Normal Sale NPNS eccepfion under
AS
C
815 lyre codification
FAS
133 Therefore
no future MTtvl calculations were considered
necessary
and
the denvutive asset
and liability accounts were
to be amortized over
the remaining
term
of
the
contracts using straight live method This balance represents
the outstanding long-term
C20 balance which
is
vet derivative liability that requires regulatory asset offset
Regulatory Assets
RA
30 149124 Deferred Fuel Costs
N/A
823 15002
39b Represents
the over/under collection offset costs allocated
to the NSPM retail jurisdiction When one
01
the
retail jurisdictions
is
over collected
the amounts are recorded as reduction iv revenue
and
as
regulatory liability
on
the balance sheet
RegulatoryAssels
RA-31 244505
150202
Pension Costs
N/A t8
2
295
944 47ti 267763
655 245498
924 jhio account is used
to track
the costs associated wrth SPAS 158
AS
C
715I 0-05 Smplvyers
Accounting
for Defined Benefit Pension
and Other Postretirement Plans
The
costs include qualified
pension nvvqualified pension
and refiree medical ecpenses calculated
in accordance with SFAS
87ASC 71510
S5
and SPAS
106
AS
C 715-10 which
are recveered
iv
rates
iv each
uf
the
applicable juosdictions
for these legal ensties There
is
no evidence that regulatory treatment would
change
and
no evidence that there wrIt
be SPAS
88
AS
C
715
30
curtailment/settlement
Therefore under SFAS
71 AS
C
960 15-55 paragraph
911
is
probable that
an asset enists related
to
these costs
Regulatory Assets
RA-32 244510
150201
FAS
158
N/A 1923
611 413541 643965
476 609877
444
RA
33 248450
155437
Uvdergrvvvd Surcharge CRFS 9979912961 1823 857613
777
130 373348 This accvovtcovtainsthe unpaid balance
due onderthe Minnesota retail electricjurisdicson City
Requested Facility Surcharge CRFS program
MN Ouckets 99-799 12-961 Cities that request
facilities
in encess
of NSPMo standard installation most vtlen underground rather than overhead
facilities must
pay
the incremental cost
of
the
special installation
as Contribution
iv
Aid
of
Construction
The CRFS program allows after
the fact collecson
of
the incremental cost
and
it
collects
it
directly from customers rather than from
the
city Recovery periods
are generally
36
lmOrlhs or less
RegulatoryAssets
Docket
No EOO2IGR-15-826
Volume
3- Required Information
Section IV.3 Other Required Information
Nodhorn States Power Company
Regulatory Assets Liabilities
etc Page
5sf
12
NSP-Minnesota
Regulatory Assets Schedule
Balance
as
of Balance
as
of
Balance
as
of
LiP ObjectAccount Object Description Docket number FERC Account 12131113 12/31/14 9/30/15 Description
of RegutatoryAssetand Evidence
of RegulatoryApproval GAAP Classification
RA 34
248250.1000
ND
Private Fuel Storage PU-121 130359 104047 80029 This account holds
the costs
of
the
Independent Spent Fuel Storage Installation project Private Regulatory Assets
150251
Fuel Storage
or
PFS that
has been approved
fur recovery
by
regulators/or
the North Dakota
electdcjurisdrction
ND Docket
PU
12013
As
pad
at
the 2007
ND electric rate case NSPM
received approval
to amortize $1140000 over
72 months
As
part of/he 2010N
Delectric rate case
NSPM received approval
to
continue
the
amortization
at
the same level
As
pad s/the 2013
ND
_______________ electric rate case NSPM received approval
to amoSze
the
remaining balance over year periodending
Dec 2016
RA-34 248250 2000
SD
Private Fuel Storage EL1248 344
3e1 179028
132
892 This account holds
the python
of
the
costs
of NSPMs rnvestmect
in
the lodepeodent Spent Fuel Regulatory Assets
150201
Storage Installation project Private Fuel Storage
or
PFS that
has keen approved
for recovery
by
regulators
for
the South Dakota electnc jurisdiction parson
SD Docket
EL 12-04e
As
part u/the2009
SD
electric rate case NSFM received approval
to amortize $1010
SO
S ooer
72 months
In the
2011
and 2012 electric rate cases NSPM received approval/u continue
the amothzatioo
at
the same
level
__________________________
In the 20t4
SD
electnc rate case
EL
14-058 NSPM was permitted
to amortize
the
averageunamo twtunce
of .167 over three years endiss
Dec 31.2510
RA
35
248255 Lease Normalization N/A
182.3 381
t2 812 40312448
41 34/
297 This account
is used
to track
the
straight lining 0/lease payments
for PPAs required under GAAP RegolatoryAssetsF
TB 85-3 versus what we actually
pay
in
capacity paymeots
The Maokato Energy Center
and
Caonsc F0110 are currently included
in
the
normalization DC-27
is
the
corresponding liability
RA 3k 243010 Deterred Nuclear Outage Costs
MN 07-1489
ND
07
1823 122810782 82244327 74037420
The Minnesota North Dakota
aod Sooth Dakota retail jurisdictional share
MN Docket 07-1489
ND
ReguletoryAssels
150178 774
SD 07-035
Docket
07
774
SD Docket 07-035
at
the
costs u/routine nuclear refueling outages
is
being deterred
__________________
and amortized over
the enpected period between outages generally
18
24 monthsRA37 248215 Traosssion Formula
As N
/A
182.3 499
941 7107294 Represents
the amounts that will
be received from customers
in
the
true op/actor OOder transssron Regulatory Assets
149150 True-up
formula rates
ffA
38 248360.1000
Low Income Discounts Elec
See
Description tg2.3 2809680 883
384 940839 Under Minnesota
law
the Company must provide eligible customers with bill payment assistance Regulatory Assets
150432
aod/ardibcounts an their electric semice
MN Dockets 5024401-10878-0024494-9206
552/M 10-8546 052/14-54 1956
and E-002/GR 12961 Whenever
the amount disbursed from
the
program evceeds
the amount billed
to fund
the
program
so that
the fund
is
in
net asset positionth
e balance will
be booked
to these accounts
If the
program
is
in
net
liability position
Irs bookedto
resotatory liability
RL
2f
RA-39 243475 Windsvurce Tracker 01-1479 12-861 1823 108335 114.983
In the 2010 Minnesota retail electric rate case
the MPUC authorized
the establishment
of
RegulaloryAssets______________
Windsource tracker retroactive
to
January 2011
MN Dockets
01 1479
12 961
The balancerepresents
the
difference between Windsource revenues
and enpenses
RA
I 150094 243404
SD
Prope
Tao EL1458 182.3 493
724
As
pa0 of/he settlement agreement
in NSPMs 2014 retail rate case
in South Dakota
SD Docket RegulatoryAssetsEL14-058
the
language
in
the Poet Clause Rider
was modified
to
allow
for
the
calleckoo a/advatorem laoes
as permreed
by SDCL 49-34A
25 NSPM will annually calculate
the
differencebetween
the amornot
or
proporty laces tvrecast
tsr
curr0n/ atnndar pear arrd
the amount iocludea
in
base rates plus true-up
for pnor year actual propeM
tan recorded compared/a that years forecasta
nd include 1/12/ha/this difference with
the
monthly fuel clause calculations
The amount/Or eachyear would reflect that years propeM
lax
accrual which includes
the
true up/or
the
prior yearsproperly
tao
invoices receroed
and
paid
in
the
spring
of
that year
RA
2
150093 243403 Electric Vehicle Tariff 15-111
182
5055 NORM offers
an electric vehicle semice tariff
to
ossers
of electric vehicles
The tariff offeru discounts Regulatory Assetsf
or
off peak battery charging
The deferral 0/marketing
aud
promotion costs was approved
as
part
atth
e
tariff Docket
MN 15-111
Irs
anticipated that
the
casts wilt
be recovered through future
MN
electric rate case2677373856 2899263886 3534502105
Docket
No E002/GR-15
826
Volume Required Information
Section tV.3 Other Required tnformation
Northern Staten Power Company Regulatory Assets Liabitities
etc Page
of
12
NSP-Minnesota
Regulatory Liabilities Schedule
ID
Object Account Object Descnption FERC Account
Balance
as
of
12/31/13
Balance
as
of
12/31/14
Balance
as
of
9/30/15 Description
of Regulatory Liability GAAP Classification
RL
Ola /31300 3704 Conservation
and
DS
M
Programs Minnesota Electric
Conservation
and
DS
M
Programs Minnesota Natural
Gas
254
56
291
007 29527
804 Over-collection
of
the Minnesota
CIP Electric Rider
MN Docket 14-287 15-320 Regulatory Liabilities
RL
Sib 631500.3704
254 4703555 12398883 3811073 Over-collection
of
the Minnesota
CIP
Gas Rider
MN Docket 14-288 15-321 Regulatory Liabilities
RL-Oid 10.370426.3000 Conservation
and
DS
M
Programs South Dakota Electric
254
152
018 Over-collection of/he South Dakota
CIP Electric Rider
SD Docket EL14-040 Regulatory Liabilities
RL-02 421500
ITC Gross
Up
to Pretax Rate
Levels-FAS
109
AS
C
740
254 21897
621
20 613748 19615
155 ibis account is used
to record
the
FAS
109
AS
C
740 required amount associated ruth
the
deferred investment
Tax Credit
ITC balance Reduction
of this balance
is function
of
the
emorlization
of
the
ITC
and follows
the reversal
of those amounts over time
Regulatory Liabilities
RL
03 421100 Deferred
Tax Collected in Rates-
hAS
ice tAst
40
254
26
883
159
28 262162
29
082
753 This accounl shalt
be used
to record
the
FAS
109
AB
C
740 required amount associated ruth
re calculation
of excess accumulated deferrea income
lax ixxcess accumulated deferred
ncome taxes area result
of
the towering
of income
tax rates over time
and
the
IRS
requirement
to maintain historicalta
x rates
on previously provided
for deferred taxes
Reduction
to the balance
is function
of turn-around
of these historical differences
and
wit
be
reduced over time
Regulatory Liabilities
RL
04 421101 Deferred
Tax Collected
in Rates-
FAS 109- Contra
AS
C
740
254 216379
RL-05 424371
ND
ITC Reserve
254 6281116 This account
is used
to book
the reserve
for potential refunds
to customers
of deferred
tan
asset related
to North Dakota Wind Farm proiects
ihe
purposeof this account
is tonal
the
nucleardecommissioning
tax
regulatory asset with
the nuclear decommissioning unrealized gain/loss
in order
to properly present
the
AR
O asset
vs
the balance sheet
for GAAP purooses RMO7-7
000 Order
631
TAB
Regulatory Liabilities
RL
06 241202 Asset Retirement Obligation
Contra
254 131217762 172650
763 153740
571 Regulatory Liabilities
RL
07 424537
Nuc
Acc
Depr Pre-ARO
Accumulated Deprecialion-Pre
AR
O Nuclear
254 403704963 438393
906 441422
778 This account
was established
to record
the difference
in penod costs associated ruth
decommissioning
as recorded
for rate-making purposes
and
as recorded
for financial reporting
under Statement
of Financial Accounting Standard
No
143 Accounting
for Asset Retirement
Obligations SPAS No
143
AS
C
410
The balance
in
ihe accounl consists
of
the regulatory
approved nuclear decommissioning costs accumulated poor
to the implementation
0/ SFAS
Ia 143
and
the ongoing monthly regulatory accrual
Regulatory Liabilities
RL-08a 423500370450
Settlements
DO
E Nuclear
Weute Settlement
254 17375418 41790
678 8312543
The balance
in
this accounl represents settlement ruth
the
Department
of Energy
The
rnooy
is deposild
in special interest 54aring account
at Wlls Fargo pnding refund
T54
majority
of this balance represenls
Ihe excess
MN
jurisdictional portion
of
the refund that
is
being utilized
as
part
of
the
rate mitigation plan
in
the 2014
MN
electric rate case
MN Docket
13-868
The fifth payment totaling $32.8M w
as received
in December 2014 This money nell
be used
for rate mitigation
in
the 2012 North Dakota
and 2013 Minnesota electnc rate coons
and refunded
to costumers
in
the South Dakota electric jurisdiction Applicable dochets are
MN Dockels 11-807 4220-GF-116 13-868
and
ND Docket
PU
11577
Regulatory Liabilities
RL-08b 370451
424565
DO
E Settlement
Decommissioning
254 15320.575 1131439 1131435 Represents
the
transfer
of
the Minnesota retail jurisdictional share
of the
3rd
4th
and
5th
DO
E
settlement payment These settlements ware placed
in
the nuclear decommissioning fund
based upon
the MPUCs approval
of NSPMs triennial nuclear decommission filing
The
amount will
be used
to fund
the
decommissioning accrual thus eliminating
the need
to charge
customers Applicable dockets
are
MN Dockelsil-939
and 11-807
Regulatory Liabilities
RL
09 422710 Nuclear Decommisoioning-Adjust
Market Qualihed
254
181
842
795
234 $90360 209840307 Record unrealized gains
on investments
in
the external qualified funds held
in
trust ruth
BN
Y
Mellon BankRegulatory Liabilities
RL
10 422711 Nuclear Decommissioning-Adjust
to Market Qualified Contra
254
181 842796
234 590362
209
840
309
RL
Ii 422720 Nuclear Decommissioning Adjust
to Market
Non
Qualified
254 3370357 2319803 Record unrealized gains
on investments
in
the external non-qualified funds held
in
trust ruth
AN
Y Mellon Bank
Regulatory Liabilities
RL-i2 422721 Nuclear Decommissioning-Adjust
to Market
Non
Qualified Contra
254 3370357 2319803
Northern States Power Company
Docket
No EOO2IGR-15-826
Volume
3- Required Information
Section
V.3 Other Required Information
Regulatory Assets Liabilities
etc Page
of
12
NSP-Minnesota
Regulatory Liabilities Schedule
ID
Object Account Object Description EERCBalance
as
of Balance as
of Balance as
of
424560.155
370326
RL-Misc
20 Amort
Account
254
12131/13 12/31114
92578269/30/15 Description
of Regulatory Liability
In 2003 Xcel calculated transition adjustment
in accordance with
the requirements
of
Denvasve Implementation Guidance
DIG
20 The result
of
the
transition
to 20 was
33
power purchase agreements were marked
to fair value
as derivative instrumentsin 2003
Since recovery
was expected
the
offset
to the
fair value adjustment
was regulatory asset
or
liability
In December 2005 XceI established that these contracts qualihedfor Normal
Purchase Normal Sale NPNS exception under
AS
C
816 pre-codification
FAS
133
Therefore
no future
MTM calculations were Considered necessary
and
the
derivative asset
and liability accounts were lobe amortized over
the
remaining termof
the
contracts usingstraight-tine method This balance represents
the
outstanding short-term
C20 balance which
is
derivative asset that requires regulatory liability offset
GAAP Classification
Regulatory Liabilities
424560.101
370326
hAS
133 Electric
AS
C
815
254
30 374670 35539506 20994611 Xcet Energy enters into derivative instruments
to
manage variability
of future cash flows from
changes
in
commodity pnces
in
its
electric
and natural
gas operations which mitigates
commodity pnce risk
on behalf
of electric
and natural
gas customers Changes
in
fair value
of
denvasve instruments
are reflected
as regulatory asset
or liability
if
there
is
commissionapproved regulatory recovery mechanism
in
place This balance represents
the
regulatoryoffset
for commodity electric hedging denvatives that
are
in
an asset position
and have
Regulatory Liabilities
373150 Geferred Fuel
254 4411294 8350204 9308621
be refunded
to
customers
Represents
the over collected deferred unbilled electric costs
for
MN
ND
and
SD Under Regulatory Liabilities.._...-
373154
SD
FC
A Carrying Charge
254 5771 5.036 7151
collected balances
are recorded
as current regulatory asset RA-30
South Dakota allows carrying charge
on
the
over/under collected
FC
A balance
SD Docket Regulatory Liabilities
422592370081
NSPM SD
TCR Rider
254
426
937
734
740 788
658
ELI4-058Over-collection
of
the
SD
TCR Rider
SD Dockets EL14-016 EL14-080 ELI5-030 Regulatory Liabilities
422594370077
RE
S Rider Over Recoveries
254 1431669 5071
200 4203399 Over-collection
of
the
RE
S Rider
MN Docket 14-733 15-304 Regulatory Liabilities
422596370379
TCR Rider Over-Recoveries
254
716096 Over-collection
of the
MN
TCR Rider
MN Dockets 13-1179 14-852 Regulatory Liabilities
422599370079
RD
F Rider Over-Recoveries
54
1066890 2048132 Over collection
of
the
RD
F Rider
MN Docket 14-814 Regulatory Liabilities
422602___________________________S
D
Infrastructure Rider
254
422597
370380
SE
P
Gas Rider Over Recoveries
254
867.934 19405301009623
ver collection
of
the
SD
Infrastructure rider
SD
Docket EL14-05aOver-collection
of
the
SE
P Gas Rider
MN Docket 14-185
tegulatory Liabilities
Regulatory Liabilities
424410
370176
MN Emission Allowance
254 2864 3209 3308 T
he
portion
of emission allowances sates proceeds applicable
to the Minnesota jurisdictionMN Docket 12-961 Additions
to this account represent proceeds received from
the annual
Regulatory Liabilities
424490
370178
ND Emission Allowance
254 62027 49301
FPA auction
30835 The portion
of emission allowances sales proceeds applicable
to the North Dakota jurisdictionN
D Docket PU-12
813 Additions
to this account represent proceeds received from
the
annual
EP
A aucson
and amortizations return
of those proceeds
to customers four yearamortization 2013-2016 w
as included
in the 2013
ND
electric rate case settlementagreement Additions
to
this account represent proceeds received from
the annual
EP
A
auction
Regulatory Liabilities
424520370179
423900
1370101
SD Emission Allowance
ow Income Discounts Electric
254
54
46411
105
779
2028
215589
Ike
portion 0/emission allowances sates proceeds applicable
to the South Dakota jurisdictionS
D Docket EL12-046 Additions
to this account represent proceeds received from
the annual
EP
A auction
and amortizations return 0/those proceeds
to customers Current proceeds
are
retumed through
the South Dakota Fuel Clause Adjustment
63667 Under Minnesota lawthe Company must provide eligible customers with bitt paymentassistance and/or discounts
on their electnc sersice Dockets E-002/M-01 1087 002/M-94
925 E-002/M-10-554 002/M-04-1956
and E-002/GR-12
961
In the 2013
MN electnc rate
case
the MPUC approved
an
additional
$32 million
of funding
for
the PowerON program
effective
Dec 2013
The balance here represents
the over recovered balance under that
Regulatory Liabilities
Regulatory Liabilities
Docket
No EOO2IGR-15-826
Volume Required Information
Section IV.3 Other Required Information
Northern States Power Company Regulatory Assets Liabilities
etc Page
of
12
NSF-Minnesota
Regulatory Liabilities Schedule
ID
Obtect Account Object Description FERC Account
Balance
as
of
12/31113
Balance
as
of
12131114
Balance
as
of
9/30/15 Description
of Regulatory Liability GAAP Classification
RL-27 423910370102
Low Income Discounts
Gas
254 0399901
458
854
881
039 NSPM offers
low income discounts
on
gas utility service
MN Dockets06 1429 09-1153
All
customers receiving assistance from
the
Low Income Home Energy Assistance program
LIHEAP are eligible
for
the discount
The discount
has affordability
and arrearage
forgiveness components
The affordability component
isa bill credit calculated based
on
the
difference between
the estimated annual bill
and percent
of
the customers income
The
arrearage forgiveness component involves forgiving
50
percent
of
the
past
due balance
if the
other
50
percent
is paid within
an agreed time period Costs
of
the
program
are recovered from
other
gas customers Additions represent customer collections
and amortizations represent
isr.nunts niven
is
cinsinniers unri nrgaram costs
The balance
in
this account results from
the contract between NSPM
and
Lao Courle Oreittes
Band
of Lake Superior Chippewa Indians dated February 1984
30 year agreement
In
December 2011
an agreement
was reached with
Lac Courte
in Amendment to
the
powersales contract
for
10
year repayment plan Payments received will
be returned
to customers
lhrouah
the
FCA Offset
by DO-OS
Regulatory Liabilities
RL-28 422345 370377 North American Hydro Payback
Account
254 927807
893
709
880
129 Regulatory Liabilities
RL-29 370341
MN Asset Based Margin Sharing
254 483230
645
151 841060
The balance
in
this account represents asset based margin sharing
in
the State
of Minnesota
MN Dockets 10-971
12
961 Margins
are shared through
the
FCA
The balance
in
this account represents asset based
and non-asset based margin sharing
in
the State
of North Dakota
ND Docket PLJ-10-657 Margins
are shared through
the
FCA
Regulatory Liabilities
RL-30 370342
ND Asset
and
Non Asset Based
Margin Sharing
2S
4 412259
749
419 47776 Regulatory Liabilities
RL-31 370343
SD Asset
and
Non Asset Based
Margin Sharing
254
540
618 780811
372
053
The balance
in
this account represents asset based
and non-asset based margin sharing
in
the State
of South Dakota
SD Dockels
ELi 1-019 ELI2-046 Margins
are shared through
the
FC
A
Regulatory Liabilities
RL-32a 370395
MN Service Duality
254 1086
850
419
668 1005100
The MPUC
has established required service quality standards
for various customer services
MN Dockets 02-2034 13-255 13-371 145PM
is
required
to
compensate
the customers
mpacted when these standards
are
not satisfied
Regulatory Liabilities
RL-32b 370398
ND Service Quality
254 81.100
100
000
56
250
The NDPSC
has established required service quality standards
for various customer services
ND Dockets PU-11-557
PU 12813 NSPM is required
to compensate
the cuatomers
myacted when these standards
are
not satisfied
Regulatory Liabilities
RL
33 370390
422601
Windsource Tracker
254 548343
in
the 2011 Minnesota retail electric rate case
MN Docket 12-961
the MPUC authorized
the
establishment
of Windsource tracker
MN Docket 01-1479 retroactive
to January 2011
The
balance represents
the difference between Windsource revenues
and expenses
Regulatory Liabilities
RL-34 422410
373190
Transmission Formula
Alt True
up
254 136390 5620483 2418
099 Represents
the amount that wilt
be returned
to customers in
the true-up factor under
ransmission formula rates
Regulatory Liabilities
RL-35 370392
NO
L Tracker
254 076252
The
NO
L Agreement reflects an agreement between NSPM
and
the Department
for
the
treatment
of net operating tosses
MN Docket 10-971 Under
the
NO
L Agreement NSPM is
required
to
track
and return
to customers
the revenue requirement reduction associated with
the
utilization
of
the deferred
tax asset which occurs
as
the Minnesota retail electric
jurisdiction
has posilive taxable income Additions represent carrying charge
on
the
rutstandina balance Amortizations reoresenl customer refunds
Regulatory Liabilities
TOTAL REGULATORY LIAB ILITIES 1683548960 1835011488 11319289541
Northern States Power Company
NSP-Minnesota
Deferred Debits Schedule
Docket
No E002/GR-15-826
Volume Required Information
Section
V.3
Other Required Information
Regulatory Assets Liabilities
etc Page
of
12
eosts related
to 2012
SD
electric rate case filing
SD Docket uL12-o46 Total approved rate case
years
is axxxx be---- ---
ID
Object Account Object Description FERCBalance
as
of Balance
as of Balance
as
of
DD-Ola 241900.6300
150051
DD-NSPMN Elect Incentive
186
12/31/13
39288515
12/31/14
79213019
9/30/15
61
372
260
Description
of Deferred Debit
This account contains earned
but unapproved
CIP incensvea
MN Docket 14287 15-320
The
balance will
be transferred
to RA-Ol once
the amount
has been approved
by the
Regulators
GAAP Classification
Regulatory Assets
DD-Olb 241900.6500
150052
DD-NSPMN
Gas Incentive
186 5088
055 11138930 7814112 This account contains earned
but
unapproved
CIP incentives
MN Docket 14-288 15-321
The
balance will
be transferred
to RA-Olb once
the amount
has been approved
by
the
Regulators
Regulatory Assets
DD-02 225101 Long Term Federal Income
Tax Receivable
186
34
328
519 19868 Long term income
tax audit reserves
Long Term Accounts
ReceivableDD-03 225300
FIN
48-LT Interest
Rec
186
5353 Interest receivable on disputed income
tax
items This account
was sot-up
to comply with
FIN
48
These amounts
had
previously been included with
the
tax accruals
Long Term Accounts
ReceivableDO
04
241050
Def
Tax Credit Interest 186 49146 573701 2895925 This account
is used
to record NSPMs asset
on interest related
to
prior year federal
and state income
tax refunds These adjustments have
not
yei been approved
by
194 Comviivsiuii
The
Regulatory Liabilit es
DD
05 226300 Contracts Receivable
186
927
807
893
709
880
128
eriod
is
TBD
In December 2011 an agreement
was reached
wth
Lao Courte Dreilles Band
Of Lake Superior
Chippewa Indians in Amendment
to the
power sales contract
for
10
year repayment plan
Long Term Accounts
ReceivableDO-OS 268214 Debt Issuance Expense
185 14272 1091 96161 This account
is
used
as clearing account
for debt issuance cost payments
The payments remain
in
this account until
an invoice
is received that identifies
the debt issue associated with
the cost Once
identified
the costs
are
transferred
to the
appropriate account
and amortized Balances
are
Other Assets
DD-07a 248404
150427
Rate Case Expenses
MN Monscello
Prudence Review
186
949
999
474
999
118
749
reclassified
to vanous debt issuances
The balance
in
this account represents
the deferred costs associated with
the Monticello Nuclear
Plant Prudence Review Regulators have requested that we conduct prudence review
of
the
Monticello LCM/EPU project
The prudence Sling
was submitted
to the MPUC on
Oct
18 2013
NSPM requested
two
year amortization January 2014 through December 2015
for 6950k
of
prudence costs
The MPUC approved this amortization period
in
their written order
on
May 2015
Regulatory Assets
DD-07b 248404 2014 Rate Case Expenses
MN
2014 Electric
186 2097643 357000
339
250
MN Docket 13-868
Costs related
to the 2014
MN
electric rate case
MN Docket 13-868 NSPM has requested
two
year amortization January 2014 through December 2015
for $2.7M
of rate case costs
The MPUC
approved this amortization period
in their written order on
May 2015
MN Docket
Regulatory Assets
DD-07c 248404
20i
ase
Expenses
MN 701C Electr
13-868
DD-08 248405 2009150428
Rate Case Expenses
MN 2010
Gas
186 10733
22204 Costs associated with
the Future
MN
Electric Rate Case no docket
Incremental costs associated with
the 2010
MN
Gas Rate Case Recovery sf51597000
has been
approved
by
the Commission
and
is
being amortized over four year period Adjustments columnrepresents
the
write-off
of rate case costs
in
excess
of authorized amount
The amortization period
is
Regulatory Assets
RegulaloryAssets
DO
08
DO
09a
248405 2014 Rate Case Expenses
MN
Future
Gas
248417.2010 Rate Case Expenses
NO 2011 Electric
150435
186
186
133
671
39.810
106211
2010 through January 201439810 oats associated with
the Future
MN
Gas Rate Case
no
docket66382 Incremental costs associated with
the 2011
ND
Electric Rate Case
ND Docket PU-10-657 four
year amortization January 2013 through December 2016
of the year-end 2010 balance
was allowed
ReajlatorsssRegulatory Assets
DD-09b 248417 2013 Rate Case Expenses
ND 2013 Electric
186
150435
438
363 309000
in
ND
electric rate case settlement agreement
ND Docket PU-12
813
193
125 Costs related
to 2013
ND electnc rate case
ND Docket
PU
12-813 four year amortizationJanuary 2013 through December 2016
of
the
year
end 2012 balance
was allowed
in
the 2013
ND
RegulatoryAssets
DD-09c 248417.11 Rate Case Expenses
ND
Electric Sethement
186
168637-_______________
electric rate case settlement agreement
351
785 Costs associated with
the sethement
of
the 2013 North Dakota
ND Docket P0-12-813 electric rate
case restack demand allocator study These costs will
be deferred until
the
ned North Dakota
Regulatory Assets
Rate Case Expenses
SD 2012 Electric
186
electric rate caseDO-iso 248418 2013150436
347
950
Regulatory Assets
--
Docket
No EOO2IGR-15-826
Votume
3- Required tnformatiori
Section
IV Other Required Information
Northern States Power Company Regulatory Assets Liabilities
etc Page
10
of
12
NSP-Minnesota
Deferred Debits Schedule
ID
Object Account Object Description EERC Account
Balance
as
of
12131/13
Balance
as
of
12/31114
Balance
as
of
9/30/15 Description
of Deferred Debit GAAP Classthcatiop
bD-lOc 248418 2014 Rate Case Expenses
SD 2014 Electric
186 316891 268184 Costs retated
to 2014
SD
etectric rate case fiting
SD Docket EL14.-058
Per
the terms
of
the
Settlement Agreement NSPM received authorization
to amortize rate case expenses
of $357579
over three years
Regutatory Assets
DD-lOd 248418.2015 Rate Case Expenses
SD 2015 Etectnc
186 113169 Costs related
to
future
SD electnc rote case filing
no docket Additions represent costs
for
the
2014 rate case
in excess
of
the recoverable amount which could
be deferred
and used towards future
rate case filings
per
the terms 0/the Settlement Agreement
in
the 2014 rate case
Regulatory Assets
TOTAL DEFERRED DEBITS 83680027 96612406 74821244
Northern States Power Company
Docket
No EcIO2IGR 15-826
Volume Required Information
Section
V.3 Other Required Information
Regulatory Assets Liabilities
etc Page
11
of
12
NSP-Munnesota
Deferred Credits Schedule
Object Account Object Description FERC Account Balance431440
Nun
Qualified Pension
253
as 12/31/13 Balance
as
of 12/311th Balance a
s
of 913e/15 Descaption
of Deferred Credit GAAP Classificutior
4762003 5297727/ 4e7te47 Nen-qaulihod plan that provides benehls above
and beyond these
in
ether retirement plans Benefit Obligations
431410 Deferred Compensation
253 3969000 5.153700 5598.038
The
total company liability rotated
to the
regular nouquulihed deferred compensation plan
The balance
Other Liabilities
B000rit Obligations
n31420 Deferred Cumpensatiun Wealth
Op
z53 3117
124 3021
729 2664499
epresents
the no/st payments contributions
and accrued interest
rho total company liability related
to the Wealth-Op 000qaulified deferred cumponsubun plan
The balance
Other Liabilities
eenefd Obligations
431350
FAS 112
AbC
712
203
21 40b646 19150584
18 824871
-epresents
the ne/of payments can/nba/ions
and accrued interest
P05/employment benefits proorded
tu
turmeror inactive employees at/er employment
but posits
Other Liabilities
Benetit Obligations
431500
NM
C
LT
I Unds/Exec
PS
P LT 253
94.030
407
788
retirement
773
500 Lung-term incentive obligation
for
NM
C
employees
The
liability Irunsterreit
to NSPM during 032006 The
liability
was transferred
to NSPM in
non/unction with
the
transfer
of
the
plant operating licenses
tu NSPM
Dthor Liab totes
Beneht Obligations
Other Liabilities
422626 Pro-Funded AFUDC CWIP 253 29075
238
20
936
6/0 7222403
As result s/the PuwerPlant
102 Upgrade there was change/u
the
structure u/the
pro t000ed AFUDC
accounts Previously separate accaunts euis/ed
for each rider
The
upgrade combined each
of those
180
066
903
accounts into accounts common
tsr
all nders
The
new accuun/s are based upon
the
phase
ot
the
projectPro-/united AFUDC wills/ad
in
object 422626 when
the
pru/ect
is
in CWIP Once
the
project
is
placed
in
ernice
the
dollars will muve /0422628 Object 422632
is
for
the
amoitizaliun
of pro-funded AFUDC over29059
953 th
e
life
uf
the associated asset
Regulatory Liabilities
422520 Pre-Fundecl AFUDC Plant
253
129
686
051 158389.494
422632
Pro Funded AFUDC Amortization
253
21 739594 25806817
422420 Lone
Tn in
Eiivronrnental
253 65
344 216394 216394 Long term environmental rowediution
The
portion u/the estimated cost/u remediate sites where past
activities
of
NS
F Minnesota or u/her parties bane caused environmental contamination that
is
expected/n
Benefit Obligations
Other Liabilities
432140 Renewable Resource Fund Obligation
373400
253
40211498
42 645022
ie
paid mure than one eear from
the date of/he hoencial statements
48 818817
he balance
in
this account
is in/ended
to
unset
the
difference between
the renewable resource costs
and
ire
renewable resources drawdown account
MN Docket
14 514
9641504 This account
is used/u track permanent
F/N 48
tan ud/ustments
an lung-term federal income
tao
to enable
Benefit Obligations
433481 4900
FIN
48
LT Fed Income
Tax Payable
AS
C
740
253 3.212
174 9921729Other Liabilities
Benetit Obligations
433482.4904
FIN
48
LT
State Income
Tax
MN Perm
A5C
740
253
261023 435380Compliance with FERC letter/s
all utilities dated
May
25 2007
579370 This account
is used/u truck permanent
FIN
46
tax adjustments
on lung-term Minnesota s/ate income/an
Other Liabilities
433482 4906
IN 48
LT State Income
Tuc
ND Perm
AO
C
740
rt53
562
898 1321enable compliarco wi/h FERC letter
10 all utilities dated
May
25 2007
This account
is used truck permanent
FIN
48
tax
ud/ustments
on long-term North Dakota state income
433485
F/N
48 LT
Interest Payable
AS
C
740
253
94503
197
05/
tao/u enable conoliance
wth FERC leffer
to alt utilities dated
May
25 2007
his accaunl is used/n track
the
interest accrual
on
the calculated unrecognized
Ian b000hls associated
en/h
the
LT Federal Incume
Tao Permanent Account 433481
DC
08
and State Account 433402
DC
10
LT Tax
Pup
MN RE
Credit
353 456546 209021
fiC-Il based
on
FIN
48
r000iroment effective
Jan 12007
209
021 rhis account
is used/u track deferred /aues associated with
RD
activities
for
the S/ate
of Minnesota Benefit Obligations
Deferred Revenue
ITC Grant
253 2498436 2325432 195678 This account
is used
to record Income
Tao
Credits related to/he American Reinvestment
and RecoveryA
ct Because ut/he nature
of
the
ITO
it was
reffaired/hal
we follow Grant Accounting which included
Other Liabilities
B0000t Obligat
sos
0/her Liabilities
LT Federal Income
Tao
Payable
053
8940
638 6776497
setting
up deterred revenue accountrhis account used/n record
the
long term federal mrnwe /zon puyablo rnsuoing from mown federal
and Bone/it Obliatisns433477.04
LT
0/ate Income
Tao
Payable
MN
253
1271170 2935
431 2602
072
state audit adios/moorsThis accouot i
s used
to
record
the
long term onesota state income taxes payable resulting from known
0/her Liabilities
Benefit Obligations
433477.06
LT
State Income
Tax Payable
ND 253 i45b 85709 82295
Oderal units/ate audit adios/won/sThis account
is used
to record
the
long term North Dakota state income taxes payable resulting from known
0/her Liabilities
Benefit Obligations
Income
Tao
LT
Interest Payable
253 15784 347.307/ 525710
ederul
and s/ale audit adiustrrents
his acc000/
is used/u record
the
bog term stale income taxes payable rosul/ing from known federal
and
Other Liabilities
B000ht Obligations
Long Term Payroll
Tao
Liability
203 820160 1230
240 1537800
v/ate audit adiustwentsThis account
is
used/n record
the
long term portion
of
payroll
tax
liability
ass result of/ho 2008 2009
IRS
Other Liab lilies
Benefit Oblige/ions
Legal Regulatory Contingencies
253
54982
rer dieri audit
57866 43596 RaIds
the
receipts
and eopenses related
to
the Nuclear Waste Strategy Coalition
The Coalition was sot-upto
lobby
for
the Nuclear Waste Otorage Facility Xcel Enemy munaoos
the fund
295
303 295663 This uccouot wftects
the
liability that
NS
P must hold
on
its books relating
to Power Purchase Agreement
PP
A between
NS
F
and Landfill Power
LLC
In
lieu
ala
Lot/er
of Credit cash was placed
on deposit
as
security
in case
of default on
the
contract These funds are/u
be held in
an escrow account until either
completion
of
the protector security
is
again established with
the
parent Completion date
of
the
PP
A
is
in
effect un/il
the
end
of
the
twenty-fish contract year following
the Commerciat Opera/ion Date
but
in n
o
event beyond December31 2020
US Bunk holds
the funds
in
an escrow account number
170235141705
io
the name
ot Lu000ll Power EscrowAccuan/ These funds will
be
repaid with interest
upon meeting
the
conditions Of/ho contract
At
the lime
the funds
are
returned this liability will
be
Other Liabilities
Benoht Obligations
Landfill Power Escrow 253 294940
Other Liabilities
Benefit Obligations
Other Liabilities
Docket
No E002/GR-15-826
Volume Required Information
Section
V.3 Other Required Information
Northern States Power Company Regulatory Assets Liabitities
etc Page
12
of
12
NSP-Minneeota
Deferred Credits Schedule
ID
Object Accourr Object Descriptien FERC Acceunt Balance
as
of 12131/13 Batance
as
of 12/31/14 Balance
as
of 9/3t/IS Description
of Deferred Credit GAAP Classification
DC
23
371
4th Customer Prepayments
253 1183000
550
SC
his account represents various customer yrepayments Other Current
Liabilities
DC-24e 37155n
433400.200
Deferred Revenue
203 731791 810476
935
200 This account
is used
to
defer prepaid revenues that
are emorhzed acrossth
e term
of
the contracts Other Current
LiabititieslBeneht
Obligations Other
Liabilities
DC-24b
371 b50.t
130 Oeferred Revenue Facility Attachment
Revenue
253
ttl
b47
his account
is used
to record deferred revenue
fur
facility attachments
wnt
use contracts
The
preyoid
revenues
are amortized over
the
period
of
the contracts as revenues
ore recognized
The amortization
schedule
is updated each month with contract payments
Other Current
Liabilities/eeoeht
Obligations Other
.iabitities
OC-25a 433230 Settlements
203
t2
702 92702 e2752
As
pan
of
the
merger settlement NSPM agreed
to set aside
SI lion
fur bitt payment assistance
for
tow
iecnme hnnsehntds
in Minnesuf
beneht Obligations
Other Liabilities
DC
25b 433230.2000 Shercu Insurance Settlement
253 5705
457
The balance represents
the
hnal insurance settlement related
to the 2011 Shercu turbine incident
The
remaining work
wit
be camptefed during
the
syring
207
Unit turbine outage
These Companies with forward
MTM
position
in
the Prop Bank
NS
F
and PSCO record gains
or
tosses
related
to
the
change
in
natue
of those yssitiuns
an their hnanciat statements However since
the margins
wilt
be allocated among
alt companies pursuant
tn the
IDA once they
ore realized
we need
to
accrue
the
IDA allocation on/he unrealized margins This allocation wilt make each company financial statements
more accurate
and
not leone
the
gains
or losses solely
on
the Companies with forward
MTM
position until
fhev
are realized
Beneht Obligations
Other ahititios
DC-2b 433400
JOA
RP Share
MTM
253
It t57b2S 13e23eal 9878
447
Benefit Obligatiuns
Other Liabilities
DC
27 43318 Long-Term Lease Obligation
253 30112812 40312448 41.341
297 This account
is used
tn
truck
the
straight lining
of tease payments
fur PPA5 required under GAAP
Ff8
85-
versas what
we actually
pay
in
capacity payments
The Mankatu Energy Center
and Cannon Falls
are
rarrentty includedin th
e
normalization RA-35
is
the cnrrespnniting asset
benefit Obligations
Other Liabilities
DC-20 433185 Rail
Car Lease Residual Value Dehcit
253 1975007 1410532
11 btb3e Residual value guaranttt
an
the NSPM rail
car leases
The bataocn represents
the accumulated liability
on
rail car tease euyinng
in 2019
The estimated amount
of
the
residual payment
is
being acco.ed monthly
rver
the life
of
the tease
Benefit Obligations
Other Liabilities
OC-29 433150 Non-Gun Nuclear Fuel Service Liability
203
004
334 3873648 259.5Sf
The balance in this account represents
the
long term liability
for fuel transitian costs
to date
for AREVA
project nuclear fuef AREVA company that supplies sntatiuns
fur power generation
has signed
unique integrated-fuel
and
related-services contract with Xcet Energy
to
supply Monticello Nuclear
Generating Plant
The
approurmately $500 miltino integrated contract covers uranium conversioneonchment fuel design
and tabncatiae
and related engineenng services Under
the agreement
AR
E
VA
will provide
sor fuel reloads including decade u/fuel supply with deliveries beginning
in 2015 Payments
wilt commence
in January 20t5
benefit Obligations
Other Liabilities
TOTAL DEFERRE REDlTS 282859749 3155692381 326275StOl
CON
Com
parison
Do
cke
t
No
E002/G
R-1
2-9
61
IR
DO
C-1
60
Northern States Power Company Docket No E002/GR-15-826
Volume Required Information Section IV
Page lof5
Docket No E002/GR-12-961
Information Request No DOC-160
Question
Subject Certificate of Need Projects
Reference No specific reference
Please provide list of all NSP-MN certificates of need since 2005 brief description
of the project the proposed in-service date the actual in-service date the proposed
costs for the project the actual total costs of the project by in-service date Please
provide an explanation for why cost recovery should be allowed for any project costs
that exceed the certification of need proposed costs Please provide where costs are
included in the 2016 test year
Response
Certificates of Need Project Details
Attachment to this response provides the following requested information
list of all NSPM certificates of need CON filings since 2005
brief description of each project
the proposed in-service date
the actual in-service date if applicable
the proposed costs for the project
the actual total costs of the project by in-service date if applicable and
reference indicating where these costs are included in the rate case
Attachment to this response groups the CON projects into four categories
projects which are partially in-service for which we are seeking recovery
in the 2016 test year
projects fully in-service for which we are seeking full recovery in the
2016 test year
projects included in our Transmission Cost Recovery ICR Rider and
projects not yet in-service and for which we are not seeking recovery in
the 2016 test year
In this response we discuss projects that are included in the revenue requirement for
the 2016 test year
Northern States Power Company Docket No E002/GR-15-826
Volume Required Information Section IV
Page of
CON Projects
Monticello Spent Fuel Storage Docket No E002/ CN-05- 123
The certificate of need cost estimates for the Monticello independent spent fuel
storage installation ISFSI included costs for construction of the facility and loading
of 10 casks each year 2008 2014 and 2022 Table shows the certificate of need cost
estimates compared to actual costs incurred in 2008 already in base rates and the
costs included in the 2016 test year for loading casks 11-15
Table
Project Schedule as CON Actual Cost or
Described in the 2005 Cost Estimate Revised Estimate
CON Proceeding without AFUD without AFUDCConstruction at
10 Casks 2008S.1 Sl0.6 \I actual
Casks 11 thru 15 and
Horizontal Storage
Modules HSM 11 thru
20 placed in-service in
2013 $21.1 actual
Cask 16 to be placed in-
service in 2016
lOCasks2Ol4 $12M $17.6Mestimated
Casks 17 thru 20 in-
service held for future
use in 2014-$5.1
actual with $2.9 in
loading costs to be placed
in-service in 2018
____________________________ estimated
10 Casks 2022 $12 $41.8 estimated
Total $55 $129.1
The cost increase over the initial certificate of need estimate is largely due to general
upward pressure on costs as more nuclear plants compete for dry fuel storage
equipment and services The certificate of need cost estimate in 2004 dollars was
developed when Monticello was part of the Nuclear Management Company NMCAt that time other NMC plants were using the same dry cask storage technology and
had dedicated NMC personnel and equipment to support all aspects of dry fuel
storage The costs of maintaining that specialized team among the NMC plants
including Monticello were included in these estimates Currendy outside vendors are
Docket No E002/GR-15-826
Volume Required Information Section IV
Page of
now supporting dry fuel storage which has resulted in increased costs In addition as
discussed in the Direct Testimony of Mr Timothy OConnor in the current rate
case additional amounts have been incurred in association with resolving the dye
penetrant exam issue on lid welds which was not included in the original Certificate
of Need cost estimate The $13.5 is included in the $17.6 without AFUDC for
Cask 16 in Table above
Northern States Power Company
Prairie Island Spent Fuel Storage Docket No E002/ N-08-5 10
The certificate of need cost estimates for the Prairie Island independent spent fuel
storage installation ISFST included all costs related to dry storagefor 35 additional
casks such as licensing construction materials and cask loading Table shows the
certificate of need costs estimates compared to our currently estimated costs for
completion of this project
Table
Casks 39-47 2015-2021 $36.8 $67.0 estimate
Casks 48-64 2022-2031 $69.6 $176.6 estimate
TN-4OHT Cask Design$6.6 $5.5 actual
and Licensing 2010ISFSI License Renewal
$2.8 $6.3 estimate2015ISFSI Construction
Expansion and Licensing $3.0 $19.6 estimate
2019Total $155.7 $322.9
As with the Monticello Spent Fuel Storage project there is general upward pressure
on costs as more nuclear plants are competing for dry fuel storage equipment and
services In addition the original certificate of need estimate of $155.7 million was
provided in 2008 but the first six casks were not being loaded until 2013 and the final
cask that has been authorized will not be placed in service until 2031 Given the
amount of time over which this project will be completed costs drivers do change
and we expect costs for placing the casks to increase Our current estimate of total
costs for the projectis $322.9 million
Casks 30-38 2013-2014 $36.8 $47.9 actual
Northern States Power Company Docket No E002/GR-15-826
Volume Required Information Section IV
Page4of5We note that the costs of dry cask
storage at Monticello and Prairie Island through
2016 are the subject of settlement with the DOE Future dry caskstorage costs may
also be subject to recovery from the DOE
Recovery of Cost Variances Over or Under CON Estimates
The standard for recovery of costs for the construction of utility facilities is whether
those costs are prudent and in the public interest see Minn Stat 216B.16 subd
In this response we discuss why costs exceeded or differed from the initial certificate
of need estimates Because these costs have been prudently incurred for projects that
are necessary to provide safe and reliable service to our customers we believe it is
reasonable and appropriate to recover these costs
As evidenced by our discussion of specific projects actual project costs can exceed
certificate of need planning level costs for number of reasons including project
scope changes requirements of the regulatory approval process refining cost
estimates once detailed engineering and design is completed or siting and routing is
fmalized or determining additional work is necessary once construction begins Such
changes are understandable particularly since the estimates provided in certificate of
need applications are our best approximation of the likely costs of particular project
at the time the project is proposed usually in current year dollars While estimates
may include escalation factors and contingency amounts detailed project information
is not known when the certificate of need estimate is developed Because of the
significant up-front cost the Company does not begin to perform the detailed work
to engineer site or procure materials until after the Comi-nission grants certificate of
need This approach reduces exposure to our customers should the Commission
deny certificate of need We then refine project cost estimates after detailed
engineering and design process is completed
Actual project costs can also change simply due to the length of time required to
implement the project as large-scale projects can require up to decade to place into
service We takesteps to consider potential changes such as to the scope of the
project the regulatory process and route options when developing project estimates
for certificate of need application However predicting variations and estimating
their effect on project costs is not always exact This is especially true of transmission
projects where the need for transmission line is determined in certificate of need
proceeding but the route is not determined until later which can result unexpected
project differences that cause actual project costs to increase
Finally the purpose of providing project costs in certificate of need application is
different than the analysis of actual costs undertaken in ratemaking proceedings
Through the certificate of need process proposed projects are evaluated to confirm
Northern States Power Company Docket No E002/GR-15-826
Volume Required Information Section IV
Page of
the project is needed to provide safe reliable service to our customers The estimated
cost of the proposed project in comparison to alternatives is factor that is
considered This rate case and the TCR Rider proceeding on the other hand are
concerned with the prudence and reasonableness of the projects actual costs
We note that neither Minnesota Statute or Commission Rules provides any limitation
to recovery of prudently incurred costs associated with CON such as cost cap
calculated from the project estimate in certificate of need application however the
Company does bear the burden of demonstrating that its implementation of the
project was reasonable and prudent as it managed through the changes and additional
detail that occurred post-CON approval As identified by the project detail provided
in this response we believe that we have prudently executed these projects and
recovery of actual costs is appropriate
We appreciate there may be circumstances where using cost caps or incentive
mechanisms such as was used in our settlement of the Metropolitan Emissions
Reduction Project Docket No E002/M-02-633 could be appropriate for example
projects which are developed and selected through competitive bid process where
costs heavily affect the selection of one project over another We do not believe
however the same rationale is applicable to the projects we are currently seeking rate
recovery for in this case transmission and generation projects proposed by the
Company to meet specified needs and thus we believe it is appropriate to include
these cost in our rate case
Preparer Terry Pickens
Title Director Regulatory Policy
Department FT Nuclear Policy and Planning
Preparer Christopher Buboltz
Title Manager Project Transmission
Department Project Management North XS
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