Summary
Xcel Energy Inc. subsidiary Southwestern Public Service Company (SPS) has reached a non-unanimous stipulation with various parties regarding its electric rate case filed in New Mexico. The stipulation proposes a base rate revenue increase of $90 million, a reduction from the originally requested $168 million. Key terms include a return on equity (ROE) of 9.5% and an equity ratio of 54.70%, which are lower than initially sought. While NMPRC Staff opposes certain aspects of the stipulation, a hearing is scheduled for July 2026, with a decision anticipated in the fourth quarter of 2026 and rate implementation expected in December 2026. Despite the ongoing regulatory process, Xcel Energy reaffirms its 2026 ongoing earnings per share (EPS) guidance of $4.04 to $4.16. Investors should monitor the upcoming hearing and the final NMPRC decision, as it will impact SPS's revenue and profitability. The reduced revenue increase suggests a potentially more moderate impact on customer rates than initially proposed.
Key Highlights
- 1Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, has entered into a non-unanimous stipulation concerning its New Mexico electric rate case.
- 2The proposed base rate revenue increase is $90 million, significantly lower than the $168 million originally requested by SPS.
- 3The stipulation includes a return on equity (ROE) of 9.5%, down from the initial request of 10.5%.
- 4The equity ratio proposed in the stipulation is 54.70%, a decrease from the 56% initially requested.
- 5A hearing on the stipulation is scheduled for July 2026, with a decision expected in Q4 2026 and rate implementation in December 2026.
- 6Xcel Energy has reaffirmed its 2026 ongoing earnings per share (EPS) guidance of $4.04 to $4.16.