Summary
This 8-K filing from Xcel Energy Inc. (XEL), dated May 28, 2009, provides updates on two significant rate case proceedings for its subsidiary, Southwestern Public Service Company (SPS). The most impactful news concerns the New Mexico retail electric rate case, where a comprehensive stipulation has been filed to resolve all issues. This stipulation is expected to result in a base rate increase of $14.2 million effective July 1, 2009, and crucially, it resolves prudence and approval issues related to the Power Purchase Agreement (PPA) with the Lea Power Partners, LLC (LPP) facility, allowing for cost recovery. The filing also establishes a mechanism for tracking renewable energy certificate (REC) costs and revenues, with net costs or revenues shared equally between SPS and its New Mexico customers.
Key Highlights
- 1Xcel Energy's subsidiary, Southwestern Public Service (SPS), reached a comprehensive stipulation resolving its New Mexico retail electric rate case.
- 2The stipulation allows for a base rate increase of $14.2 million for SPS in New Mexico, effective July 1, 2009.
- 3All prudence and approval issues concerning the Lea Power Partners, LLC (LPP) power purchase agreement have been resolved without disallowance.
- 4A tracking mechanism for renewable energy certificate (REC) costs and revenues in New Mexico has been established, with costs/revenues shared equally between SPS and its customers.
- 5SPS's Texas retail base rate case was approved by the Public Utility Commission of Texas (PUCT) based on a settlement.
- 6The Texas settlement provides SPS with a base rate increase of $57.4 million and prevents further base rate filings until February 15, 2010.
- 7Interim rates for LPP capacity costs are already in effect for SPS in both New Mexico and Texas.