Summary
Xcel Energy Inc.'s wholly owned subsidiary, Southwestern Public Service Company (SPS), filed an electric rate case in New Mexico on March 4, 2011. The filing seeks an annual base rate increase of approximately $19.9 million, based on a 2011 test year adjusted for 2012 known changes. The request includes a proposed return on equity (ROE) of 11.25 percent, an electric rate base of $390.3 million, and an equity ratio of 51.11 percent. These rate adjustments are anticipated to go into effect at the beginning of 2012, subject to regulatory approval. Investors should monitor the regulatory process closely, as the outcome of this rate case could impact SPS's revenue and profitability, and consequently Xcel Energy's consolidated financial performance. The company also noted that actual results may differ materially from forward-looking statements due to various risks and uncertainties.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed an electric rate case in New Mexico.
- 2The filing seeks an annual base rate increase of approximately $19.9 million.
- 3The proposed rate increase is based on a 2011 test year with adjustments for 2012.
- 4SPS is requesting an ROE of 11.25 percent.
- 5The requested electric rate base is $390.3 million.
- 6The proposed equity ratio is 51.11 percent.
- 7New rates are expected to become effective at the beginning of 2012, pending regulatory approval.