Rate Matters Rate Matters (Tables)

12 Months Ended

Dec. 31, 2013

Public Utilities, General Disclosures [Abstract]

SPS' Texas 2014 Electric Rate Case

Texas 2014 Electric Rate Case — On Jan. 7, 2014, SPS filed a retail electric rate case in Texas with each of its Texas municipalities and the PUCT for a net increase in annual revenue of approximately $52.7 million, or 5.8 percent. The net increase reflects 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, as shown in the following table:

(Millions of Dollars)	SPS Request
Base rate increase	$	81.5
Resetting TCRF	(12.9		)
Credit to customers for gain on sale to Lubbock moved to a rider	(4.9		)
Net increase in base revenue	63.7
Fuel clause offsets	(11.0		)
Retail customer net bill impact	$	52.7

New Mexico Public Regulation Commission (NMPRC) and New Mexico Attorney General (NMAG) recommendations to SPS' New Mexico 2014 Electric Rate Case

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.