Southwestern Public Service Co. on Aug. 8 filed a $141 million retail electric base rate increase case with each of its Texas municipalities and the Public Utility Commission of Texas.
The proposed rate increase is based on the 12-month period ended June 30, with the final three months based on estimates, a requested rate of return on equity of 10.35%, an equity ratio of 54.65% and a Texas retail electric rate base of approximately $2.6 billion, according to a company filing.
If approved, the request would result to an overall increase in revenue of 6.5%, net of $85 million in fuel savings, allowing the Xcel Energy Inc. subsidiary to recover investments and additional operating costs since its previous rate case in 2017.
The rate case incorporates more than $940 million in investment on a Texas retail basis for new and upgraded electric facilities and equipment, including the utility's 478-MW Hale Community Energy wind project.
Southwestern Public Service also requested the commission to set current rates as temporary on Sept. 12 and to collect a surcharge for usage from Sept. 12 through the effective date of new base rates, according to the filing. The commission is expected to make a decision on the case in the second quarter of 2020.