8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Jan 7, 2014)

Filed January 7, 2014For Securities:XELXELLL

Summary

Xcel Energy Inc.'s wholly-owned subsidiary, Southwestern Public Service Company (SPS), filed a retail electric rate case in Texas on January 7, 2014. The filing seeks a net increase in annual jurisdictional revenue of approximately $52.7 million, representing a 5.8% increase. This request includes a base rate increase, adjustments for revenue credits and the Transmission Cost Recovery Factor (TCRF), and is based on a historic test year ending June 2013. The company is requesting a return on equity of 10.40% and an electric rate base of approximately $1.27 billion.

Key Highlights

  • 1Southwestern Public Service Company (SPS), an Xcel Energy subsidiary, filed a Texas retail electric rate case on January 7, 2014.
  • 2The proposed rate increase seeks a net annual revenue gain of approximately $52.7 million, a 5.8% increase.
  • 3The filing is based on a historic test year ending June 2013.
  • 4SPS is requesting a return on equity of 10.40% and an electric rate base of $1.27 billion.
  • 5A decision from the Public Utility Commission of Texas (PUCT) and implementation of final rates are expected in Q3 2014.
  • 6SPS has requested interim rates of $32.6 million (40% of the proposed base rate increase) effective March 1, 2014, though interim rates are typically not granted without a settlement.

Frequently Asked Questions

This 8-K filing announces that Xcel Energy's subsidiary, Southwestern Public Service Company (SPS), has filed a retail electric rate case in Texas, seeking to increase its annual jurisdictional revenue.

SPS is requesting a net increase in annual jurisdictional revenue of approximately $52.7 million, which represents a 5.8% increase.

A decision from the Public Utility Commission of Texas (PUCT) and the implementation of final rates are anticipated in the third quarter of 2014. However, Texas law allows for the suspension of the proposed increase until July 11, 2014, and parties may negotiate a different effective date.

Yes, SPS has requested interim rates amounting to $32.6 million (40% of the proposed base rate increase) to be effective March 1, 2014. However, the filing notes that the PUCT typically does not grant interim rates unless there is a settlement in the case.