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XCEL ENERGY INC 8-K Report, Corporate Update (Feb 24, 2009)

Reports
Other Events
Filing Date
Filed February 24, 2009
Period End
February 20, 2009
Securities
XELXELLL
In the record · 2016–202610-K1110-Q328-K247

XEL filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 247 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed February 24, 2009. Cited figures are marked; the original filing is the authoritative source.

This 8-K filing from Xcel Energy Inc. (XEL) reports on a significant development regarding its wholly owned subsidiary, Southwestern Public Service Company (SPS), in Texas.

On February 20, 2009, SPS filed a unanimous settlement with the administrative law judges (ALJs) concerning its rate case. This settlement is a crucial step after SPS initially sought an annual rate increase of approximately $61.3 milliona in June 2008. The settlement, expected to be remanded to the Public Utility Commission of Texas (PUCT) for final approval later this spring, provides for a base rate increase of $57.4 million.

This figure is substantially higher than the interim rates initially approved and reflects a resolution of various components, including depreciation, renewable energy credits, and energy efficiency expenses. Importantly, the settlement prevents SPS from filing for any further base rate changes until February 15, 2010, offering a period of rate stability for customers.

02—Key points

Key Highlights

  1. Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed a unanimous settlement on its rate case with Texas regulators.
  2. The settlement provides for a base rate increase of $57.4 million annually, down from the initial request of $61.3 million.
  3. This settlement supersedes a previously authorized interim rate increase of $57.4 million that became effective February 1, 2009.
  4. The agreement includes adjustments to depreciation expense, a mechanism for tracking renewable energy credit expenses, and a resolution for energy efficiency expenses.
  5. SPS is prohibited from filing for any other base rate changes until February 15, 2010, providing a period of rate stability.
  6. The settlement resolves all fuel reconciliation issues for 2006-07 with a minor adjustment of $0.6 million.

03—Questions

Frequently Asked Questions

  1. What is the main purpose of this 8-K filing?

    This filing announces a significant development in a rate case initiated by Xcel Energy's subsidiary, Southwestern Public Service Company (SPS), in Texas. It details a unanimous settlement reached between SPS and administrative law judges regarding a requested rate increase.

  2. What is the financial impact of the settlement on SPS's rates?

    The settlement provides for an annual base rate increase of $57.4 million. This figure is lower than the initial request of $61.3 million but is substantial and has already been authorized as interim rates effective February 1, 2009, superseding a prior interim rate of $18 million.

  3. When can customers expect further rate changes from SPS?

    Under the terms of the settlement, SPS is precluded from filing to seek any other change in base rates until February 15, 2010. This provides customers with a period of rate stability.

  4. What are the key components of the settlement beyond the rate increase?

    The settlement also includes approved depreciation rates that reduce depreciation expense by $5.6 million, a mechanism to track and defer $2.6 million in renewable energy credit expenses, and a resolution regarding energy efficiency expenses. It also resolves fuel reconciliation issues for 2006-07.

04—Continue

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