Summary
Xcel Energy Inc.'s wholly owned subsidiary, Southwestern Public Service Company (SPS), has filed a $141 million retail electric, non-fuel base rate increase case in Texas. This filing seeks to recover increased operating costs and significant investments, totaling over $940 million, in new and upgraded electric facilities and equipment, including the 478 MW Hale Wind Project. The net proposed increase in overall revenues, after accounting for $85 million in estimated fuel savings, stands at 6.5%. SPS is requesting a rate of return on equity of 10.35% and has presented a Texas retail electric rate base of approximately $2.6 billion. The company is also seeking to have current rates set as temporary starting September 12, 2019, and to collect a surcharge for usage during the interim period. A decision from the Public Utility Commission of Texas (PUCT) is anticipated in the second quarter of 2020. This rate case also addresses changes in depreciation for generation assets and reflects a decline in demand from certain wholesale customers.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed for a $141 million retail electric rate increase in Texas.
- 2The proposed increase aims to recover over $940 million in capital investments, including the Hale Wind Project.
- 3The net requested revenue increase is 6.5%, after factoring in $85 million in estimated fuel savings.
- 4SPS is requesting a rate of return on equity of 10.35% and a Texas retail electric rate base of $2.6 billion.
- 5The company seeks to implement temporary rates and a surcharge effective September 12, 2019.
- 6A PUCT decision on the rate case is expected in the second quarter of 2020.
- 7The filing includes adjustments for changes in depreciation lives of generation assets and a decline in wholesale customer demand.