Xcel’s SPS seeks $175M New Mexico electric rate hike, 16.7% increase

Xcel Energy Inc., through its subsidiary Southwestern Public Service Company (SPS), has filed an electric rate case with the New Mexico Public Regulation Commission seeking a $175 million increase in base rate revenue, described as 16.7%.

Rhea-AI Filing Summary

Xcel Energy Inc., through its subsidiary Southwestern Public Service Company (SPS), has filed an electric rate case with the New Mexico Public Regulation Commission seeking a $175 million increase in base rate revenue, described as 16.7%. The request uses a future test year ending November 30, 2027 and is based on a proposed return on equity of 10.5%, an equity ratio of 56% and a New Mexico retail rate base of $3.9 billion.

The filing reflects significant retail revenue growth, continued capital investment to support the clean energy transition and load growth, and the planned roll-off of 100 megawatts of wholesale load in 2026. Key drivers of the request include capital investment of $133 million, a $148 million increase in allocation of assets and costs to New Mexico retail, $36 million of higher O&M expenses, $34 million from depreciation and amortization changes, and $28 million from a higher requested return on equity, partly offset by a $204 million impact from retail revenue growth. A commission decision and implementation of final rates are anticipated in the fourth quarter of 2026.

Insights

Regulated utilities and rate-case analyst

SPS seeks a sizeable New Mexico rate increase driven by growth and capital spending.

Southwestern Public Service Company is requesting a $175 million base rate increase, labeled as 16.7%, built on a future test year ending November 30, 2027. The proposal assumes a 10.5% return on equity, a 56% equity ratio and a New Mexico retail rate base of $3.9 billion, which frames the utility’s targeted earnings and capital structure in that jurisdiction.

The rate request is shaped by several quantified elements: a $204 million impact from retail revenue growth, a $148 million increase in asset and cost allocation to New Mexico retail including wholesale load roll-off, $133 million of capital investment, $36 million of higher O&M costs, $34 million from depreciation and amortization changes, and $28 million tied to the higher requested ROE. These figures illustrate how growth, investment in clean energy and load support, and cost shifts interact within the regulatory framework.

The company notes that the New Mexico Public Regulation Commission decision and implementation of final rates are anticipated in fourth quarter 2026. Actual outcomes will depend on the commission’s rulings on revenue, rate base, capital structure and allowed ROE, as well as on broader risk factors such as economic conditions, regulatory changes, environmental and climate requirements, and operational and cybersecurity considerations referenced in the risk discussion.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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

Southwestern Public Service Company has filed for a $175 million increase in base rate revenue in New Mexico, which is described as a 16.7% change in electric rates.

What return on equity and capital structure did SPS propose in this XEL 8-K filing?

The request is based on a proposed 10.5% return on equity (ROE) and an equity ratio of 56%, applied to a New Mexico retail rate base of $3.9 billion.

What are the main drivers of SPS’s $175 million New Mexico rate request?

Key drivers include a $204 million impact from retail revenue growth, a $148 million increase in allocated assets and costs to New Mexico retail, $133 million of capital investment, $36 million higher O&M expenses, $34 million from depreciation and amortization changes, and $28 million from the higher requested ROE.

How does the planned wholesale load roll-off affect SPS’s New Mexico rate case?

The filing notes the planned roll-off of 100 megawatts of wholesale load in 2026, which contributes to an increased allocation of assets and costs to New Mexico retail customers and is reflected in the $148 million line item in the rate request table.

When does Xcel Energy expect a decision on the SPS New Mexico rate case?

A decision by the New Mexico Public Regulation Commission and implementation of final rates are anticipated in the fourth quarter of 2026.

What risks and uncertainties could affect the outcome of SPS’s rate request for XEL?

The company cites numerous risks, including changes in regulation, general economic conditions, energy prices and fuel costs, environmental and climate-related requirements, cybersecurity threats, and the ability to recover costs and maintain credit quality, any of which could lead to actual results differing from expectations.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 11/20/2025 - 06:45 PM Learn about SEC filing dates

FALSEXCEL ENERGY INC0000072903MNSOUTHWESTERN PUBLIC SERVICE COMPANY0000092521NM00000729032025-11-202025-11-200000072903xel:SouthwesternPublicServiceCompanyMember2025-11-202025-11-200000072903us-gaap:CommonStockMember2025-11-202025-11-200000072903xel:A6.25JuniorSubordinatedNotesDue2085Member2025-11-202025-11-200000072903xel:PublicServiceCompanyOfColoradoMember2025-11-202025-11-20

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) November 20, 2025

Commission File Number						Exact Name of Registrant as Specified in its Charter; State of Incorporation; Address of Principal Executive Offices; and Telephone Number															IRS Employer Identification Number
001-3034						XCEL ENERGY INC.															41-0448030
						(a Minnesota corporation)
						414 Nicollet Mall
						Minneapolis,			Minnesota						55401
						(612)						330-5500
001-03789						SOUTHWESTERN PUBLIC SERVICE COMPANY															75-0575400
						(a New Mexico corporation)
						790 South Buchanan Street
						Amarillo,			Texas						79101
						(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 class

Trading Symbol

Name of each exchange on which registered

Common Stock, $2.50 par value per share

XEL

Nasdaq Stock Market LLC

6.25% Junior Subordinated Notes due 2085

XELLL

Nasdaq 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

On Nov. 20, 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 an increase in base rate revenue of $175 million (16.7%). The request is based on a future test year period ending November 30, 2027, a return on equity (ROE) of 10.5%, an equity ratio of 56% and retail rate base of $3.9 billion.

The request reflects:

•Significant retail revenue growth.

•Continued capital investment primarily to support the clean energy transition and load growth.

•Planned roll-off of 100 megawatts (MW) of wholesale load in 2026.

SPS’ base rate request (millions of dollars):

Retail revenue growth						$	(204)
Increase in allocation of assets and costs to New Mexico retail, including impact of wholesale load roll-off						148
Capital investment						133
O&M expenses						36
Depreciation rate changes and amortization						34
Increase in requested ROE						28
Total rate request						$	175

A NMPRC decision and implementation of final rates is anticipated in the fourth quarter of 2026.

Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to expected rate increases to customers and expectations regarding the regulatory proceedings and the effective date of the rates, 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, 2024 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; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs; 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.

November 21, 2025						Xcel Energy Inc. (a Minnesota corporation)
						Southwestern Public Service Company (a New Mexico corporation)
			By:			/s/ BRIAN J. VAN ABEL
						Brian J. Van Abel
						Executive Vice President, Chief Financial Officer