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Southwestern Public Service Company, a wholly owned subsidiary of Xcel Energy Inc. (NASDAQ:XEL), filed an electric rate case with the New Mexico Public Regulation Commission on Wednesday, seeking an increase in base rate revenue of $175 million, or 16.7%. The request is based on a projected test year ending November 30, 2027, and includes a proposed return on equity of 10.5%, an equity ratio of 56%, and a retail rate base of $3.9 billion.
The filing outlines several factors supporting the rate increase, including growth in retail revenue, continued capital investment to support clean energy initiatives and load growth, and the planned roll-off of 100 megawatts of wholesale load in 2026.
The breakdown of the requested rate increase includes:
- Retail revenue growth: -$204 million
- Increased allocation of assets and costs to New Mexico retail, including the impact of wholesale load roll-off: $148 million
- Capital investment: $133 million
- Operations and maintenance expenses: $36 million
- Depreciation rate changes and amortization: $34 million
- Increase in requested return on equity: $28 million
The company anticipates that the New Mexico Public Regulation Commission will make a decision and implement final rates in the fourth quarter of 2026.
This information is based on a statement made in a press release included with the company’s SEC filing.
In other recent news, Xcel Energy Inc. reported its third-quarter 2025 earnings, which showed a slight miss in earnings per share (EPS) compared to forecasts. The company posted an EPS of $1.24, falling short of the expected $1.32. However, Xcel’s revenue slightly exceeded expectations, reaching $3.92 billion against a forecast of $3.89 billion. Additionally, Southwestern Public Service Company, a subsidiary of Xcel Energy, filed for a $175 million rate increase in New Mexico, representing a 16.7% rise in base rate revenue. Meanwhile, another subsidiary, Northern States Power Company-Wisconsin, received verbal approval for multi-year electric and natural gas rate increases in Wisconsin, totaling $126 million for electric rates over two years and $22 million for natural gas rates. Furthermore, Jefferies raised its price target for Xcel Energy to $94 from $92, maintaining a Buy rating due to the company’s promising growth outlook through 2030. These developments reflect Xcel Energy’s ongoing efforts to adjust rates and expand its financial performance.
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