LANSING – The PSC on Monday also approved a settlement agreement authorizing Northern States Power Company to increase its electric rates by a net $720,000 effective for service rendered beginning with the next billing month or $2.90 for customers using 500 kilowatt-hours of electricity per month for the first 12 months. Thereafter, the monthly increase will be an additional 98 cents, the PSC said in a statement.
Under the terms of the settlement (Case U-17710), the utility’s new authorized rate of return on common equity will be 10.1 percent, which results in a calculated overall rate of return of 6.23 percent, the PSC said. In addition, the company’s 2015 power supply cost recovery will be revised to a negative $0.00008 per kWh, effective for service rendered beginning with the next billing month.
Further, the parties to the settlement agreed the utility will not request an increase in its Michigan electric base rates to take effect prior to January 1, 2018. In its next rate case, the utility will sponsor a rate design proposal reflecting the cost of service allocation adopted by the final order in Case U-17688, the PSC said.
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