Summary
This 8-K filing by Xcel Energy Inc. (XEL) concerns a significant event for its subsidiary, Southwestern Public Service Company (SPS), in New Mexico. SPS had filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC) seeking a net increase in base rates of $1.4 million, primarily driven by an increase in non-fuel rates offset by a decrease in fuel costs. The filing was based on a forecasted test year and proposed a specific return on equity and rate base. However, on June 24, 2015, the NMPRC verbally dismissed SPS's rate case application during an open meeting. The dismissal was based on a new interpretation of statutory requirements concerning forecasted test year periods and the timing of rate case submissions. A formal written order is still pending. SPS intends to refile the rate case later this year after reviewing the written dismissal order and will consider other strategic options.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed an electric rate case in New Mexico on June 8, 2015.
- 2The rate case sought a net increase in base rates of $1.4 million for the New Mexico retail jurisdiction.
- 3The filing proposed a $31.5 million increase in non-fuel base rates and a $30.1 million decrease in fuel costs.
- 4The New Mexico Public Regulation Commission (NMPRC) verbally dismissed the rate case application on June 24, 2015.
- 5The dismissal was due to a new interpretation of statute regarding forecasted test year periods and rate case submission timing.
- 6SPS plans to refile the rate case later in 2015 after reviewing the written dismissal order.
- 7Xcel Energy will consider other options following the review of the written order.