Summary
Xcel Energy Inc. (XEL) announced on September 13, 2011, through its wholly-owned subsidiary Southwestern Public Service Company (SPS), that an agreement has been reached with parties before the New Mexico Public Regulation Commission (NMPRC) regarding a rate increase. Initially, SPS had sought an approximate $19.9 million increase in New Mexico electric rates. The settlement, however, proposes a base rate increase of $13.5 million. The agreement includes a "Settlement Period" during which SPS will not file another base rate case until December 3, 2012, with new rates not going into effect until January 1, 2014. This provides a period of rate stability, with rates expected to remain fixed apart from adjustments for fuel costs, energy efficiency programs, a renewable portfolio standard rider, and actual environmental regulation costs. The NMPRC is scheduled to hold a hearing on the settlement in early October 2011, with a final order anticipated by November or December 2011, and new rates expected to become effective on January 1, 2012.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, has reached a settlement on its New Mexico electric rate increase request.
- 2The agreed-upon base rate increase is $13.5 million, lower than the initially requested $19.9 million.
- 3A "Settlement Period" is established, preventing SPS from filing a new base rate case until December 3, 2012.
- 4New final rates resulting from the next case will not take effect until January 1, 2014.
- 5Rates will remain fixed during the Settlement Period, with exceptions for fuel costs, energy efficiency, renewable portfolio standards, and certain environmental costs.
- 6The New Mexico Public Regulation Commission (NMPRC) hearing for the settlement is set for October 5-6, 2011.
- 7Final order and new rates are expected in late 2011 and early 2012, respectively.