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