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128
Next steps in the procedural schedule are as follows:
• Intervenor testimony — April 17, 2014;
• Rebuttal testimony — May 6, 2014; and
• Evidentiary hearings — May 15 - May 16, 2014.
Pending Regulatory Proceedings — NMPRC
SPS – New Mexico 2014 Electric Rate Case — In December 2012, SPS filed an electric rate case in New Mexico with the NMPRC
for an increase in annual revenue of approximately $45.9 million effective in 2014. The rate filing is based on a 2014 FTY, a
requested ROE of 10.65 percent, an electric rate base of $479.8 million and an equity ratio of 53.89 percent. In June 2013, SPS
revised its requested rate increase to $43.3 million.
In August 2013, the NMPRC Staff (Staff), the NMAG, the Federal Executive Agencies, the Coalition of Clean Affordable Energy,
Occidental Permian, Ltd. and New Mexico Gas Company filed testimony.
The following table summarizes certain parties’ recommendations from SPS’ revised request:
(Millions of Dollars)
Staff
Testimony
August 2013
NMAG
Testimony
August 2013
SPS revised request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43.3 $ 43.3
Rate rider for renewable energy costs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5)(8.5)
Present revenues (sales growth and weather) . . . . . . . . . . . . . . . . . . . . . . . (4.4)(6.4)
ROE (9.8 percent and 8.63 percent, respectively). . . . . . . . . . . . . . . . . . . . (3.2)(8.1)
Capital structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.5)(1.1)
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.8)(1.8)
Reduced recovery for payroll expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1)(0.1)
Gain on sale of transmission assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1.7)
Fuel clause revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.0 —
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.0)(6.6)
Recommended rate increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17.8 $ 9.0
Means of recovery:
Base revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8.8 $ (6.0)
Rider revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 13.3
Fuel cost adjustment revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.7
$ 17.8 $ 9.0
(a) Adjustments represent recommended deferrals, extended amortizations and moving costs from rider to fuel in base rates.
In September 2013, SPS filed rebuttal testimony, revising its requested rate increase to $32.5 million, based on updated information
and an ROE of 10.25 percent. This reflects a base and fuel increase of $20.9 million, an increase of rider revenue of $12.1 million and
a decrease to other of $0.5 million.
In January 2014, the hearing examiner released her recommended decision. SPS estimates the recommendation reduces the requested
rate increase by approximately $6.2 million, resulting in a base revenue increase of $14.7 million. The recommendation proposes an
ROE of 9.73 percent, an equity ratio of 53.89 percent, an FTY with certain adjustments and excludes certain employee benefits and
other costs. In February 2014, the hearing examiner released a supplemental recommended decision proposing the approval of the
requested $12.1 million renewable energy rider revenue recovery. Parties have filed exceptions to the hearing examiner’s
recommendations. An NMPRC decision and final rates are expected to be effective in the second quarter of 2014.
Pending and Recently Concluded Regulatory Proceedings — FERC
SPS 2004 FERC Complaint Case Orders — In August 2013, the FERC issued an order on rehearing related to a 2004 Complaint case
brought by Golden Spread Electric Cooperative, Inc. (Golden Spread), a wholesale cooperative customer, and PNM and an Order on
Initial Decision in a subsequent 2006 rate case filed by SPS.