Item 8.01. Other Events

On Nov. 18, 2022, 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 New Mexico Public Regulation Commission (NMPRC) seeking an increase in base rate revenue of $78 million. The impact to overall customer bills is expected to be approximately 10%. The request is based on a future test year period ending June 30, 2024, a return on equity (ROE) of 10.75%, an equity ratio of 54.70% and retail rate base of $2.4 billion.

SPS' New Mexico customers will continue to benefit from fuel cost savings and production tax credits (PTCs) attributable to wind energy provided by the Sagamore and Hale wind projects. PTCs are being credited to customers through the fuel clause. We anticipate the value of PTCs credited to our New Mexico customers to increase approximately $30 million due primarily to various allocation changes.



Additionally, the request reflects:
•Significant retail revenue growth.
•Continued capital investment primarily to support the clean energy transition
and load growth.
•Planned roll-off of 225 megawatts (MW) of wholesale load in 2022 and 2024.
•Further acceleration of the Tolk coal plant depreciation life from 2032 to
2028.

SPS' base rate request (millions of dollars):
Retail revenue growth                                                            $       (88)

Increase in allocation of assets and costs to New Mexico retail, including impact of wholesale load roll-off

                                                         69

Capital investment primarily to support the clean energy transition and load growth

                                                                               35
Increase in requested ROE                                                                 22
Non-labor O&M                                                                             18
Depreciation rate changes, excluding Tolk plant                                           10
Change in Tolk plant depreciation life                                                     6
Other                                                                                      6
Total rate request                                                               $        78

A NMPRC decision and implementation of final rates is anticipated in the fourth quarter of 2023.

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Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings and the effective date of the rates, as well as assumptions and other statements are intended to be identified in this document by the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will," "would," and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy's and SPS' Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic, including potential workforce impacts resulting from vaccination requirements, quarantine policies or government restrictions, and sales volatility; operational safety; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; violations of our Codes of Conduct; ability to recover costs, changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations; supply chain constraints and their impact on capital expenditures and/or the ability of SPS to obtain financing on favorable terms; availability or cost of capital; our customers' and counterparties' ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties; regulatory changes and/or limitations related to the use of natural gas as an energy source; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters, including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.

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