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Xcel Energy (NASDAQ: XEL) unit faces intervenor pushback on $168M NM rate hike

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Southwestern Public Service Company, an Xcel Energy subsidiary, is pursuing a New Mexico electric rate case seeking a $168 million revenue increase, equal to 16.0%, based on a future test year ending Nov. 30, 2027. The request assumes a 10.5% return on equity, a 56% equity ratio and a $3.9 billion retail rate base. On May 1, 2026, key intervenors proposed substantially lower outcomes, with total revenue changes of $48 million (Staff), $105 million (NMDOJ), $28 million (NMLCG) and $113 million (LES-FEA), alongside recommended ROEs between 8.10% and 9.75%. Rebuttal testimony is scheduled for May 29, 2026, a hearing on July 7, 2026, and the end of the rate suspension on Nov. 30, 2026, with a final NMPRC decision and rate implementation anticipated in the fourth quarter of 2026.

Positive

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Negative

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Insights

Intervenors seek to cut SPS’s requested rate hike and allowed ROE.

Southwestern Public Service requested a $168 million, 16.0% New Mexico rate increase built on a $3.9 billion rate base and a 10.5% return on equity. Intervenor testimony proposes materially lower adjustments, especially on ROE, capital structure and certain cost items.

The Staff proposal would allow only $48 million in additional revenue, while other parties range from $28 million to $113 million. Recommended ROEs span 8.10% to 9.75%, all below the utility’s request, and some positions envision lower equity ratios.

Key milestones include rebuttal testimony on May 29, 2026, the hearing on July 7, 2026, and rate suspension ending Nov. 30, 2026. A final NMPRC decision and rate implementation are anticipated in the fourth quarter of 2026, which will determine SPS’s allowed earnings level in New Mexico.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Requested revenue increase $168 million New Mexico electric rate case, 16.0% increase
Requested ROE 10.5% Assumed return on equity for SPS filing
Retail rate base $3.9 billion Future test year ending Nov. 30, 2027
Staff proposed revenue change $48 million After $120 million total adjustments to SPS request
NMDOJ proposed revenue change $105 million Comprehensive intervenor testimony position
NMLCG proposed revenue change $28 million After $140 million in adjustments
LES-FEA proposed revenue change $113 million After $55 million in adjustments
Recommended ROE range 8.10%–9.75% Intervenor ROE proposals vs 10.5% request
rate case financial
"filed an electric rate case with the New Mexico Public Regulation Commission"
A rate case is a formal process where a company, like a utility, asks regulators to approve higher or lower prices for its services. It matters because the decision affects how much consumers pay and how much the company can earn, impacting everyone's financial interests.
future test year financial
"based on a future test year period ending Nov. 30, 2027"
return on equity (ROE) financial
"a return on equity (ROE) of 10.5%"
Return on equity (ROE) measures how effectively a company uses its shareholders' money to generate profit. It shows the percentage of profit earned for each dollar invested by shareholders, similar to how a garden’s yield reflects the effort put into planting and tending. Investors use ROE to assess how well a company is managing its resources to create value.
equity ratio financial
"an equity ratio of 56% and retail rate base of $3.9 billion"
Equity ratio measures how much of a company's assets are funded by owners rather than lenders, calculated as owners’ stake divided by total assets. It matters to investors because a higher equity ratio means the business relies less on debt and is generally safer in downturns; think of it like the portion of a house you own outright versus what’s still on the mortgage, which affects financial stability and risk.
retail rate base financial
"equity ratio of 56% and retail rate base of $3.9 billion"
forward-looking statements regulatory
"Certain information discussed in this on is forward-looking information"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Understanding 8-K Material Events →
FALSEXCEL ENERGY INC0000072903MNSOUTHWESTERN PUBLIC SERVICE COMPANY0000092521NM00000729032026-05-012026-05-010000072903xel:SOUTHWESTERNPUBLICSERVICECOMember2026-05-012026-05-010000072903us-gaap:CommonStockMember2026-05-012026-05-010000072903us-gaap:JuniorSubordinatedDebtMember2026-05-012026-05-01



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 1, 2026
Commission File NumberExact Name of Registrant as Specified in its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone NumberIRS Employer Identification Number
001-3034XCEL ENERGY INC.41-0448030
(a Minnesota corporation)
414 Nicollet Mall
MinneapolisMinnesota55401
(612)330-5500
001-03789SOUTHWESTERN PUBLIC SERVICE COMPANY75-0575400
(a New Mexico corporation)
790 South Buchanan Street
AmarilloTexas79101
(303)571-7511

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $2.50 par value per shareXELNasdaq Stock Market LLC
6.25% Junior Subordinated Notes due 2085XELLLNasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £




Item 8.01. Other Events
In November 2025, Southwestern Public Service Company (SPS), a New Mexico corporation, and a wholly owned subsidiary of Xcel Energy Inc. filed an electric rate case with the New Mexico Public Regulation Commission (NMPRC) seeking a revenue increase of $168 million (16.0%) as updated in March 2026. The request is based on a future test year period ending Nov. 30, 2027, a return on equity (ROE) of 10.5%, an equity ratio of 56% and retail rate base of $3.9 billion.
On May 1, 2026, eight intervenors filed testimony, with the NMPRC Staff (Staff), the New Mexico Department of Justice (NMDOJ), New Mexico Large Customer Group (NMLCG), and Louisiana Energy Services & Federal Executive Agencies (LES-FEA) filing comprehensive testimony.
SPS estimates the impact of proposed modifications to SPS’ request below:
(Millions of Dollars)StaffNMDOJNMLCGLES-FEA
SPS direct testimony$168 $168 $168 $168 
Recommended base rate adjustments:
Jurisdictional allocators(57)— (2)— 
ROE and capital structure(25)(63)(92)(29)
Purchased power capacity costs(20)— (15)(5)
Regulatory amortizations(13)— (10)(8)
Depreciation expense— — (13)(7)
Other, net(5)— (8)(6)
Total adjustments(120)(63)(140)(55)
Total proposed revenue change$48 $105 $28 $113 
Recommended PositionStaffNMDOJNMLCGLES-FEA
ROE9.75 %8.77 %8.10 %9.45 %
Equity ratio54.76 50.00 43.00 N/A
The next steps in the procedural schedule are expected to be as follows:
•Rebuttal testimony: May 29, 2026
•Hearing: July 7, 2026
•End of rate suspension: Nov. 30, 2026
A NMPRC decision and implementation of final rates is anticipated in the fourth quarter of 2026.




Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including those relating to our expectations and intentions regarding regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in SPS’ Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025 and subsequent filings with the SEC, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety; successful long-term operational planning; risks associated with wildfires; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; reputational impacts of actions by employees, directors or third-parties; our ability to recover costs; risks associated with the growth in large load customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of SPS to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; uncertainty regarding epidemics; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

May 5, 2026
Xcel Energy Inc. (a Minnesota corporation)
Southwestern Public Service Company (a New Mexico corporation)
/s/ BRIAN J. VAN ABEL
Brian J. Van Abel
Executive Vice President, Chief Financial Officer


Source: View Original Filing on SEC EDGAR

FAQ

What rate increase is Southwestern Public Service seeking in New Mexico?

Southwestern Public Service is seeking a $168 million revenue increase, equal to 16.0%. The request is based on a future test year ending November 30, 2027, with a 10.5% return on equity and a $3.9 billion retail rate base.

How do intervenor proposals compare to SPS’s $168 million rate request for XEL?

Intervenors propose significantly lower revenue increases than the $168 million request. Staff recommends $48 million, the New Mexico Department of Justice $105 million, the Large Customer Group $28 million, and LES-FEA $113 million, reflecting differing views on costs, ROE, and capital structure.

What return on equity is SPS requesting and what do others recommend for XEL’s SPS?

SPS is requesting a 10.5% return on equity. Intervenor recommendations are lower: Staff at 9.75%, the New Mexico Department of Justice at 8.77%, the New Mexico Large Customer Group at 8.10%, and LES-FEA at 9.45%, indicating pressure on allowed earnings levels.

What capital structure assumptions are in the SPS New Mexico rate case?

SPS’s request assumes a 56% equity ratio. Intervenor recommendations include a 54.76% equity ratio from Staff, 50.00% from the New Mexico Department of Justice, and 43.00% from the New Mexico Large Customer Group, while LES-FEA does not specify an equity ratio in the excerpt.

What are the key dates in XEL subsidiary SPS’s New Mexico rate case?

Key dates include rebuttal testimony on May 29, 2026, a hearing starting July 7, 2026, and the end of the rate suspension on November 30, 2026. A New Mexico Public Regulation Commission decision and final rate implementation are anticipated in the fourth quarter of 2026.

Which cost components are most disputed in the SPS rate proceeding?

Disputed components include jurisdictional allocators, ROE and capital structure, purchased power capacity costs, regulatory amortizations, depreciation expense, and other net items. Intervenor adjustments across these areas drive total recommended revenue changes far below SPS’s $168 million request.

Filing Exhibits & Attachments

4 documents

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