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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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FPR Feogroto88

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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