Summary
This 8-K filing from Xcel Energy Inc. (XEL) reports on the progress of a rate case initiated by its subsidiary, Southwestern Public Service Company (SPS), in Texas. On June 12, 2008, SPS filed for an approximate $61.3 million annual rate increase. A key development is the motion filed on January 30, 2009, to implement interim base rates, effectively an increase of $57.4 million, starting as early as February 1, 2009. This interim rate increase is a result of nearing a settlement agreement with parties involved in the rate case. Investors should note that while an interim rate increase has been approved, the final settlement is still under negotiation and is expected to be filed with the Public Utility Commission of Texas (PUCT) in early February 2009. A final ruling on the settlement is anticipated in late first quarter or early second quarter of 2009. The requested ROE in the original filing was 11.25%, with a proposed electric rate base of $989.4 million.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed a motion on January 30, 2009, to implement interim base rate increases.
- 2The proposed interim rate increase is approximately $57.4 million annually, intended to take effect for consumption on or after February 1, 2009.
- 3This interim rate increase is a step towards a potential settlement in the rate case originally filed in June 2008 for a $61.3 million increase.
- 4The Administrative Law Judge approved the motion for interim rates on January 30, 2009.
- 5SPS is nearing a settlement agreement with parties involved in the rate case.
- 6A settlement agreement is expected to be filed with the Public Utility Commission of Texas (PUCT) in early February 2009.
- 7A final ruling on the settlement from the PUCT is anticipated in late Q1 or early Q2 2009.