Xcel Energy unit settles Minnesota gas rate case

Q: How does the allowed return and capital structure factor into XEL’s Minnesota gas rate case?

The filing uses a 10.65% return on equity and a 52.5% equity ratio applied to a $1.5 billion rate base. These parameters define how much profit and recovery of capital NSP-Minnesota can seek from gas customers during the 2026 forecast test year.

Q: What is the weighted average cost of capital in the NSP-Minnesota gas settlement?

The settlement references a 7.21% weighted average cost of capital, up from the previously authorized 7.16%. This blended rate reflects the overall cost of debt and equity financing that regulators may allow NSP-Minnesota to recover through its gas rates.

Q: When are key regulatory milestones for XEL’s 2025 Minnesota gas rate case?

An evidentiary hearing is scheduled for May 11‑12, 2026, followed by an administrative law judge report due September 1, 2026. A Minnesota Public Utilities Commission decision on the case is expected in November 2026, following review of evidence and recommendations.

Q: What interim rates are in effect for NSP-Minnesota’s gas customers in this case?

NSP-Minnesota implemented $51 million of interim natural gas rates effective January 1, 2026. These temporary rates were approved by the Minnesota Public Utilities Commission and remain in place while the commission evaluates the full case and considers the non-unanimous settlement.

Xcel Energy’s Minnesota gas utility reached a partial settlement in its 2025 Minnesota natural gas rate case.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Xcel Energy’s Minnesota gas utility reached a partial settlement in its 2025 Minnesota natural gas rate case. Northern States Power Company – Minnesota originally sought a total revenue increase of $62 million (a 8.2% hike) based on a 2026 forecast test year, including a 10.65% return on equity, a 52.5% equity ratio and $1.5 billion of rate base.

The non‑unanimous settlement instead reflects a smaller total revenue increase of $38 million and a weighted average cost of capital of 7.21%, up slightly from the previously authorized 7.16%. Interim rates of $51 million were already in effect from January 1, 2026. An evidentiary hearing is scheduled for May 11‑12, 2026, with an administrative law judge report due by September 1, 2026 and a Minnesota Public Utilities Commission decision expected in November 2026.

Insights

NSP-Minnesota moves from a larger requested gas rate increase to a smaller, partially settled outcome.

NSP-Minnesota initially aimed for a $62 million (8.2%) natural gas revenue increase tied to a 2026 forecast test year, with a 10.65% return on equity and $1.5 billion rate base. This would have meaningfully raised customer bills and boosted allowed earnings.

The non‑unanimous settlement instead supports a $38 million revenue increase and a weighted average cost of capital of 7.21%, modestly above the prior 7.16%. That suggests some regulatory support for higher capital costs, but at a smaller revenue level than requested. The impact ultimately depends on final Minnesota Public Utilities Commission decisions following the May 11‑12, 2026 evidentiary hearing and the September 1, 2026 administrative law judge report.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Requested revenue increase: $62 million Requested rate increase: 8.2% Return on equity: 10.65% +5 more

8 metrics

Requested revenue increase $62 million Original Minnesota natural gas rate case request (8.2%)

Requested rate increase 8.2% Natural gas rate hike tied to $62 million request

Return on equity 10.65% Assumed ROE in 2026 forecast test year

Equity ratio 52.5% Capital structure assumption in rate case

Rate base $1.5 billion Natural gas rate base in Minnesota case

Interim rates $51 million Interim revenue effective January 1, 2026

Settled revenue increase $38 million Total revenue increase in non-unanimous settlement

Weighted average cost of capital 7.21% Settlement WACC vs prior 7.16%

Key Terms

forecast test year, return on equity, rate base, interim rates, +2 more

6 terms

forecast test year financial

"The filing is based on a 2026 forecast test year and includes a return on equity..."

return on equity financial

"…includes a return on equity of 10.65%, a 52.5% equity ratio and rate base of $1.5 billion."

Return on equity shows how effectively a company uses its shareholders' money to generate profit. It is calculated by dividing the company's net profit by its shareholders' equity, indicating how much profit is earned for each dollar invested by owners. Higher return on equity suggests the company is good at turning investments into earnings, which can be an important factor for investors assessing its profitability and efficiency.

rate base financial

"…a 52.5% equity ratio and rate base of $1.5 billion."

Rate base is the dollar value of the physical assets and capital a regulated utility uses to deliver its service — things like power plants, pipes, or equipment. Regulators use that value as the starting point to set prices the utility can charge by allowing a specific percentage return on that base, so a larger or higher-valued rate base usually means higher permitted revenues and therefore directly affects investor earnings and the company's ability to raise capital.

interim rates financial

"NSP-Minnesota requested interim rates of $51 million effective January 1, 2026…"

weighted average cost of capital financial

"…based on a total revenue increase of $38 million and a weighted average cost of capital of 7.21%…"

Weighted average cost of capital (WACC) is the average annual price a company pays for the money it uses, combining the cost of borrowed funds (debt) and the cost of owners’ funds (equity), with each source weighted by its share of the company’s financing. Investors use it as a benchmark to judge whether projects or a stock are likely to earn more than that blended price—think of it as a household’s combined interest rate on a mortgage and credit cards; a lower WACC usually makes future cash flows and valuation more attractive.

evidentiary hearing regulatory

"The next steps in the procedural schedule are as follows •Evidentiary hearing: May 11-12, 2026…"

A hearing where a judge or administrative official allows parties to present evidence, call witnesses, and make factual arguments before making a decision. Think of it as a short, focused trial used to resolve disputed facts or decide whether certain legal or regulatory steps should proceed. Outcomes can change a company’s legal exposure, compliance status, or the timing of regulatory actions, which can affect investor expectations.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What rate increase did NSP-Minnesota originally request in the 2025 Minnesota gas case for XEL?

NSP-Minnesota initially requested a total natural gas revenue increase of $62 million, equal to an 8.2% rate hike, based on a 2026 forecast test year. The request included a 10.65% return on equity and a 52.5% equity ratio on a $1.5 billion rate base.

What is the revenue increase in the non-unanimous gas rate settlement for NSP-Minnesota (XEL)?

The non-unanimous settlement is based on a smaller total revenue increase of $38 million. This figure is lower than the original $62 million request and reflects negotiated terms between NSP-Minnesota and certain intervenors, subject to further regulatory review and a final commission decision.

How does the allowed return and capital structure factor into XEL’s Minnesota gas rate case?

The filing uses a 10.65% return on equity and a 52.5% equity ratio applied to a $1.5 billion rate base. These parameters define how much profit and recovery of capital NSP-Minnesota can seek from gas customers during the 2026 forecast test year.

What is the weighted average cost of capital in the NSP-Minnesota gas settlement?

The settlement references a 7.21% weighted average cost of capital, up from the previously authorized 7.16%. This blended rate reflects the overall cost of debt and equity financing that regulators may allow NSP-Minnesota to recover through its gas rates.

When are key regulatory milestones for XEL’s 2025 Minnesota gas rate case?

An evidentiary hearing is scheduled for May 11‑12, 2026, followed by an administrative law judge report due September 1, 2026. A Minnesota Public Utilities Commission decision on the case is expected in November 2026, following review of evidence and recommendations.

What interim rates are in effect for NSP-Minnesota’s gas customers in this case?

NSP-Minnesota implemented $51 million of interim natural gas rates effective January 1, 2026. These temporary rates were approved by the Minnesota Public Utilities Commission and remain in place while the commission evaluates the full case and considers the non-unanimous settlement.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 05/11/2026 - 04:43 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 8, 2026


Commission File Number	Exact Name of Registrant as Specified in its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number				IRS Employer Identification Number
001-3034	XCEL ENERGY INC.				41-0448030
	(a Minnesota corporation)
	414 Nicollet Mall
	Minneapolis	Minnesota		55401
	(612)		330-5500

001-31387	NORTHERN STATES POWER COMPANY				41-1967505
	(a Minnesota corporation)
	414 Nicollet Mall
	Minneapolis	Minnesota		55401
	(612)		330-5500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $2.50 par value per share

XEL

Nasdaq Stock Market LLC

6.25% Junior Subordinated Notes due 2085

XELLL

Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Item 8.01. Other Events

2025 Minnesota Natural Gas Rate Case Settlement

In October 2025, Northern States Power Company, a Minnesota corporation and a wholly owned subsidiary of Xcel Energy, Inc. (NSP-Minnesota) filed a natural gas rate case in Minnesota, seeking a total revenue increase of $62 million (8.2%) as updated in April 2026. The filing is based on a 2026 forecast test year and includes a return on equity of 10.65%, a 52.5% equity ratio and rate base of $1.5 billion. NSP-Minnesota requested interim rates of $51 million effective January 1, 2026, which were approved by the MPUC.

On May 8, 2026, NSP-Minnesota and certain intervenors reached a non-unanimous settlement, based on a total revenue increase of $38 million and a weighted average cost of capital of 7.21% (an increase from the previously authorized 7.16%). A detailed settlement agreement will be filed later this month.

The next steps in the procedural schedule are as follows:

•Evidentiary hearing: May 11-12, 2026

•ALJ Report: September 1, 2026

A MPUC decision is expected in November 2026.

Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including those relating to our expectations regarding regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in NSP-Minnesota’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025, and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of NSP-Minnesota to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


May 11, 2026		Xcel Energy Inc. (a Minnesota corporation)
		Northern States Power Company (a Minnesota corporation)

	By:	/s/ BRIAN J. VAN ABEL
		Brian J. Van Abel
		Executive Vice President, Chief Financial Officer

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

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Xcel Energy unit settles Minnesota gas rate case

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