Summary
Xcel Energy Inc. (XEL) reported through its wholly-owned subsidiary, Southwestern Public Service Company (SPS), the filing of an electric rate case in New Mexico on December 12, 2012. This filing seeks an increase in annual revenues by approximately $45.9 million, based on a 2014 forecast test year. The request includes a proposed return on equity of 10.65%, a jurisdictional electric rate base of $365.5 million, and an equity ratio of 53.89%. Investors should note that a decision from the New Mexico Public Regulation Commission (NMPRC) is not expected until the fourth quarter of 2013, with the implementation of any approved rate changes anticipated in the first quarter of 2014. This filing is a routine regulatory event, but the outcome could impact SPS's future revenue and profitability, and by extension, Xcel Energy's consolidated financial performance. The company has included forward-looking statements regarding the potential impact of this rate case, alongside a comprehensive list of risks and uncertainties that could affect actual results.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed an electric rate case in New Mexico on December 12, 2012.
- 2The filing requests an overall increase in annual revenues of approximately $45.9 million for SPS.
- 3The rate case is based on a 2014 forecast test year.
- 4SPS is requesting a return on equity of 10.65%.
- 5The jurisdictional electric rate base is proposed at $365.5 million.
- 6A decision from the New Mexico Public Regulation Commission (NMPRC) is anticipated in Q4 2013.
- 7Implementation of final rates is expected in Q1 2014.