Summary
Xcel Energy Inc.'s wholly-owned subsidiary, Southwestern Public Service Company (SPS), has filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC). The filing seeks a net increase in base electric rates of approximately $24.3 million for its New Mexico retail customers. This proposed increase is primarily driven by higher non-fuel base rates, which are projected to rise by $45.4 million, offset by a $21.1 million decrease in base fuel revenue that will be adjusted through the fuel and purchased power clause. Investors should note that the requested rate increase is based on a historic test year ending June 30, 2015, with adjustments for known and measurable changes. Key components of the requested increase include addressing the 2015 base period deficiency, capital expenditures, depreciation adjustments, transmission revenue and expenses, and an increase in the requested return on equity (ROE) from 9.96% to 10.25%. A final decision from the NMPRC is anticipated in the latter half of 2016.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed an electric rate case with the New Mexico Public Regulation Commission.
- 2The filing requests a net increase in base rates of approximately $24.3 million for the New Mexico retail jurisdiction.
- 3The net increase is composed of a $45.4 million rise in non-fuel base rates and a $21.1 million decrease in base fuel revenue.
- 4The rate case is based on a June 30, 2015 historic test year with adjustments for known and measurable changes.
- 5SPS is requesting a return on equity (ROE) of 10.25%, an increase from the current 9.96%.
- 6A decision on the rate case is expected in the second half of 2016.
- 7Major drivers for the requested increase include capital expenditures, depreciation adjustments, and transmission costs.