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SPS
Pending and Recently Concluded Regulatory Proceedings — PUCT
SPS – Texas 2015 Electric Rate Case — In December 2014, SPS filed a retail electric, non-fuel rate case in Texas with each of its
Texas municipalities and the PUCT seeking an overall increase in annual revenue of approximately $64.75 million, or 6.7 percent.
The filing is based on an HTY ended June 2014, adjusted for known and measurable changes, an ROE of 10.25 percent, an electric
rate base of approximately $1.56 billion and an equity ratio of 53.97 percent.
As part of its request, SPS is seeking a waiver of the PUCT post-test year adjustment rule which would allow for inclusion of $442
million (SPS total company) additional capital investment for the period July 1, 2014 through Dec. 31, 2014.
The following table summarizes the net request:
(Millions of Dollars) Request
Investment for capital expenditures — post-test year adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29.60
Depreciation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.90
Wholesale load reductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00
Purchased power capacity costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.20
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.05
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64.75
The next steps in the procedural schedule are expected to be as follows:
• Intervenor Direct Testimony — April 1, 2015;
• Staff Direct Testimony — April 8, 2015;
• Staff and Intervenor Cross-Rebuttal Testimony — April 22, 2015;
• Rebuttal Testimony — April 24, 2015; and
• Evidentiary Hearing — May 11, 2015.
The parties have agreed the rates will be effective June 11, 2015. A PUCT decision is anticipated in the second half of 2015.
SPS – Texas 2014 Electric Rate Case — In January 2014, SPS filed a retail electric rate case in Texas seeking a net increase in annual
revenue of approximately $52.7 million, or 5.8 percent. The net increase reflected a base rate increase, revenue credits transferred
from base rates to rate riders or the fuel clause, and resetting the TCRF to zero when the final base rates become effective. In April
2014, SPS revised its request to a net increase of $48.1 million.
The rate filing was based on an HTY ending June 2013, a requested ROE of 10.40 percent, an electric rate base of approximately
$1.27 billion and an equity ratio of 53.89 percent. The requested rate increase reflected an increase in depreciation expense of
approximately $16 million.
In September 2014, SPS, PUCT staff, and intervenors filed a non-unanimous settlement agreement which would increase SPS’ rates
by $37 million, or 3.5 percent, retroactive to June 1, 2014. Starting Oct. 1, 2014, SPS began collecting the rate increase through
interim rates subject to refund. SPS expects to recover the rate increase for June through September 2014 through a separate
surcharge, for which it has recognized approximately $15.4 million of revenue in 2014.
The settlement includes an ROE of 9.7 percent solely for the purpose of calculating the AFUDC and determining baselines in future
filings for the TCRF. In October 2014, the ALJs approved the stipulation and recommended that SPS file to implement the surcharge
following the PUCT’s final order.