8-KOther EventsExhibits & Filings

XCEL ENERGY INC 8-K Report, Corporate Update (Jun 1, 2006)

Filed June 1, 2006For Securities:XELXELLL

Summary

Xcel Energy Inc. (XEL) filed an 8-K on June 1, 2006, to report two significant events. First, its wholly-owned subsidiary, Southwestern Public Service Company (SPS), is seeking a general rate increase from the Public Utility Commission of Texas. This filing, the first since 1986, requests an approximately $47 million annual increase in revenues, which represents a 6.0% rise, and proposes a rate of return on equity of 11.6%. A decision is anticipated in January 2007. Second, the report details an initial decision from a Federal Energy Regulatory Commission (FERC) Administrative Law Judge (ALJ) concerning a rate complaint filed by several wholesale customers of SPS. The ALJ's decision addresses cost of service issues and orders SPS to potentially refund previously collected revenues and recalculate fuel cost adjustment billings. SPS disputes the ALJ's findings on past billings and intends to seek review from the FERC, noting that the impact of this decision could be material if upheld.

Key Highlights

  • 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, has filed for a general rate increase with the Public Utility Commission of Texas, seeking an annual revenue increase of approximately $47 million (6.0%).
  • 2This marks the first general rate case for SPS in Texas since 1986, with a decision expected in January 2007.
  • 3SPS is requesting a rate of return on equity of 11.6% and is basing its filing on a net rate base of $942.8 million for its Texas retail jurisdiction.
  • 4An Administrative Law Judge (ALJ) at the FERC has issued an initial decision regarding a rate complaint filed by wholesale customers of SPS.
  • 5The ALJ's decision involves a compliance filing to determine potential refunds to wholesale customers and orders a recalculation of SPS's fuel cost adjustment billings dating back to 1999.
  • 6SPS strongly disagrees with the ALJ's findings on past fuel cost billings and plans to appeal the decision to the full FERC.
  • 7Xcel Energy acknowledges that the FERC ALJ's decision, if upheld, could have a material impact on its results of operations.

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