Item 8.01. Other Events

In 2021, Southwestern Public Service Company (SPS), a New Mexico corporation, and a wholly owned subsidiary of Xcel Energy Inc., filed an electric rate case with the Public Utilities Commission of Texas (PUCT) and its municipalities seeking an increase in base rates of approximately $140 million. The request was based on a return on equity (ROE) of 10.35%, an equity ratio of 54.60%, a rate base of approximately $3.3 billion and a historic test year based on the 12-months ended Dec. 31, 2020.

In January 2022, SPS and intervenors filed a blackbox settlement. Key terms include:

•Base rate increase of $89 million effective back to March 15, 2021. •A 9.35% ROE and 7.01% weighted average cost of capital for allowance for funds used during construction purposes only. •Depreciation lives for Tolk moved up to 2034 and Harrington coal assets moved up to 2024.

In February 2022, the administrative law judge issued an order approving interim rates effective March 1, 2022. On May 12, 2022, the PUCT unanimously approved the blackbox settlement without modification.

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