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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. The filing seeks an increase in base rate revenue of $175 million, representing a 16.7% rise.
According to the press release statement, the request is based on a future test year ending November 30, 2027. Southwestern Public Service Company is seeking a return on equity of 10.5%, an equity ratio of 56%, and a retail rate base of $3.9 billion.
The rate case reflects several factors, including retail revenue growth, continued capital investment primarily to support clean energy transition and load growth, and the planned roll-off of 100 megawatts of wholesale load in 2026.
A breakdown of the base rate request includes the following changes (in millions of dollars):
- Retail revenue growth: -$204
- Increase in allocation of assets and costs to New Mexico retail, including impact of wholesale load roll-off: $148
- Capital investment: $133
- Operation and maintenance expenses: $36
- Depreciation rate changes and amortization: $34
- Increase in requested return on equity: $28
- Total rate request: $175
A decision from the New Mexico Public Regulation Commission and implementation of final rates is anticipated in the fourth quarter of 2026.
This information is based on a press release statement included in a recent SEC filing.
In other recent news, Xcel Energy reported its third-quarter 2025 earnings, revealing 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, Xcel Energy’s subsidiary, Northern States Power Company-Wisconsin, received verbal approval for electric and natural gas rate increases from the Public Service Commission of Wisconsin. The decision is expected to result in a total electric utility rate increase of approximately $126 million over two years and a natural gas utility rate increase of about $22 million. In analyst coverage, Jefferies raised its price target for Xcel Energy to $94 from $92, maintaining a Buy rating. The firm cited Xcel Energy’s growth outlook through 2030 as among the best of large-cap utilities. These developments highlight Xcel Energy’s ongoing financial and strategic activities.
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