Xcel Energy 2015 Annual Report Download - page 144
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In December 2015, the PUCT made the following decisions:
• Disallowed SPS’ proposed adjustment to jurisdictional allocation factors to reflect Golden Spread Electric Cooperative, Inc.’s
(Golden Spread’s) wholesale load reductions from 500 MW to 300 MW, effective June 1, 2015;
• Disallowed incentive compensation;
• Approved an equity ratio of 51.00 percent instead of the actual 53.97 percent; and
• A ROE of 9.70 percent.
The following table reflects the ALJs’ position and PUCT’s decision.
ALJs’ Proposal PUCT
(Millions of Dollars) for Decision Decision
SPS’ revised rate request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42.1 $ 42.1
Investment for capital expenditures — post-test year adjustments. . . . . . . . . . . . . . . . . . . . . . . . . (8.9) (8.9)
Lower ROE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.3) (6.3)
Lower capital structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (3.7)
Annual incentive compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2) (0.3)
O&M expense adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.6) (4.6)
Depreciation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.7) (2.7)
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9) (0.9)
Revenue adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.1) (1.6)
Wholesale load reductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (11.5)
SPP transmission expansion plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.2) (4.2)
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 (1.2)
Total, gross of rate case expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14.6 $ (3.8)
Adjustment to move rate case expenses to a separate docket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2) (0.2)
Total, net of rate case expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14.4 $ (4.0)
New depreciation rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11.2) (11.2)
Earnings impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.2 $ (15.2)
In January 2016, SPS filed its motion for rehearing on capital structure, incentive compensation and known and measurable
adjustments, including wholesale load reductions and post test-year capital additions. On Feb. 11, 2016, the PUCT orally denied
requests for rehearing. SPS plans to file a second motion for rehearing within 20 days of the date of the PUCT’s written order.
SPS – Texas 2016 Electric Rate Case — On Feb. 16, 2016, SPS filed a retail electric, non-fuel rate case in Texas with each of its
Texas municipalities and the PUCT requesting an overall increase in annual base rate revenue of approximately $71.9 million, or 14.4
percent. The filing is based on a HTY ended Sept. 30, 2015, a requested ROE of 10.25 percent, an electric rate base of approximately
$1.7 billion, and an equity ratio of 53.97 percent.
As part of its request, SPS included estimated information regarding increases and decreases in SPS’ cost of service, including certain
expenses, capital investments, cost of capital and sales for the period of Oct. 1, 2015 through Dec. 31, 2015. Subsequent to the filing,
(i.e., 45 days), the estimated information will be updated to reflect actual results.
The following table summarizes the net request:
(Millions of Dollars) Request
Capital expenditure investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38.6
Change in jurisdictional allocation factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.9
Changes in ROE and capital structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7
Estimated rate case expenses (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 71.9
(a) SPS anticipates rate case expenses, for this proceeding, to be separated from the request for consideration in a separate docket.
The final rates established at the end of the case will be made effective retroactive to July 20, 2016 and SPS will be entitled to collect a
surcharge for usage from July 20, 2016 through the date SPS implements final rates. A PUCT decision is anticipated in the first
quarter of 2017.