8-KOther Events

XCEL ENERGY INC 8-K Report, Corporate Update (Feb 8, 2023)

Filed February 8, 2023For Securities:XELXELLL

Summary

Xcel Energy's subsidiary, Southwestern Public Service Company (SPS), has filed an electric rate case with the Public Utility Commission of Texas (PUCT) seeking a base rate revenue increase of $149 million. This filing indicates that approximately 13% of customer bills could be affected. The request is supported by investments in clean energy transition, load growth, and an increase in the requested return on equity. SPS highlights that even with the proposed increase, Texas customer bills are expected to remain significantly below the national average, also benefiting from wind energy cost savings. Investors should note that a decision on this rate case is anticipated in the first quarter of 2024. The filing also includes a standard cautionary statement regarding forward-looking information and a comprehensive list of risks and uncertainties that could impact actual results. This includes factors such as regulatory changes, economic conditions, commodity risks, and the company's ability to execute its strategies.

Key Highlights

  • 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, filed a rate case seeking a $149 million increase in base rate revenue with the Public Utility Commission of Texas.
  • 2The proposed increase is expected to result in an approximate 13% impact on overall customer bills in Texas.
  • 3The rate increase request is driven by factors including capital investments for clean energy transition and load growth, as well as a proposed increase in the return on equity to 10.65%.
  • 4SPS asserts that Texas customer bills will remain about 30% lower than the national average even after the proposed rate adjustment.
  • 5The company is also seeking a surcharge to be applied from July 13, 2023, until new base rates become effective.
  • 6A decision from the PUCT regarding this rate case is anticipated in the first quarter of 2024.
  • 7The filing includes standard forward-looking statements and a detailed list of potential risks and uncertainties that could affect Xcel Energy's and SPS's future performance.

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