8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Sep 13, 2011)

Filed September 13, 2011For Securities:XELXELLL

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.

Frequently Asked Questions

The primary event is the announcement of an unopposed black box settlement reached by Xcel Energy's subsidiary, Southwestern Public Service Company (SPS), with parties before the New Mexico Public Regulation Commission (NMPRC) regarding an electric rate increase.

The settlement proposes a base rate increase of $13.5 million. This is a reduction from the $19.9 million that SPS initially requested.

The "Settlement Period" means that SPS has agreed not to file another base rate case until December 3, 2012. Furthermore, any new rates from that future case will not become effective until January 1, 2014. This provides a period of rate stability for customers.

The NMPRC is expected to issue a final order on the settlement in November or December 2011, with the new rates going into effect on January 1, 2012.