Summary
This 8-K filing by Xcel Energy Inc. on August 29, 2013, provides an update on the electric rate case initiated by its subsidiary, Southwestern Public Service Company (SPS), in New Mexico. SPS initially sought an approximately $45.9 million annual revenue increase, which was later revised to $43.3 million. The filing details the recommendations of various parties, including the New Mexico Public Regulation Commission (NMPRC) Staff and the New Mexico Attorney General, which suggest significantly lower rate increases than SPS's revised request.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, revised its requested annual revenue increase in New Mexico from $45.9 million to $43.3 million.
- 2Various parties, including the NMPRC Staff and New Mexico Attorney General, have filed testimony recommending rate increases substantially lower than SPS's revised request.
- 3The NMPRC Staff recommended a rate increase of $17.8 million, while the New Mexico Attorney General recommended $9.0 million.
- 4Key areas of disagreement in the rate case include recovery for renewable energy costs, present revenues (sales growth and weather), return on equity (ROE), and capital structure.
- 5The NMPRC Staff proposed a significant reduction of $14.5 million related to a rate rider for renewable energy costs, suggesting deferrals, extended amortizations, and moving costs.
- 6The procedural schedule indicates that rebuttal testimony is due September 9, 2013, evidentiary hearings will occur from September 16-27, 2013, and a decision from the NMPRC is anticipated in the fourth quarter of 2013.
- 7Final rates are expected to become effective in the first quarter of 2014, but the actual outcome remains subject to regulatory approval and potential adjustments.