RegulatoryMay 5, 2026, 04:19 PM
Xcel Energy's SPS faces up to $140M cut in NM rate case request
AI Summary
Southwestern Public Service Company (SPS), a wholly owned subsidiary of Xcel Energy Inc., filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC) seeking a $168 million (16.0%) revenue increase. Intervenors, including NMPRC Staff and the New Mexico Department of Justice, have filed testimony proposing significant adjustments to SPS's request. The proposed revenue changes from intervenors range from $28 million to $113 million, substantially lower than the original request. A NMPRC decision and implementation of final rates are anticipated in the fourth quarter of 2026.
Key Highlights
- Southwestern Public Service Company (SPS) initially sought a $168 million (16.0%) electric revenue increase.
- The request was based on a 10.5% return on equity and a $3.9 billion retail rate base.
- NMPRC Staff proposed a $120 million reduction, leading to a $48 million total proposed revenue change.
- New Mexico Large Customer Group (NMLCG) proposed the largest reduction of $140 million, resulting in a $28 million revenue change.
- Intervenors' recommended ROE positions range from 8.10% (NMLCG) to 9.75% (Staff).
- A NMPRC decision and implementation of final rates are anticipated in the fourth quarter of 2026.