On about February 8, 2023, Southwestern Public Service Company (SPS) filed with the City and the Public Utility Commission of Texas (“PUCT”) an application to increase its base revenues by approximately $148.5 million, which represents an increase in base revenue of about 20.6% compared to its current base revenue. Including fuel factor and energy efficiency cost recovery factor, charges for advanced meters, and prior rate-case expenses SPS’s proposal is an overall increase of about 13.9%. SPS’s application to increase rates is based a test year of October 1, 2021, through September 30, 2022 (“Test Year”), which includes estimated data for an “update period” of October 1, 2022, through December 31, 2022 (“Update Period”), as allowed by state law. SPS proposes to replace the estimated data with actual data for the “update period,” which will effectively result in a historical test year of January 1, 2022, through December 31, 2022. This rate increase request has a minimal impact on the City since SPS only has two customers within the City. Therefore, SPS requests that the City, as well as all other municipalities in this region deny the request so that SPS can file a single case at the PUC. SPS requests an effective date of March 15, 2023, for its proposed increase in rates. The City, however, has the authority to suspend the effective date by a total of 135 days (90 days in the ordinary course, and an additional 45 days when a utility files estimated data as SPS has done in this case). In addition, pursuant to statute, the final rates set in this proceeding will relate back to usage occurring 155 days after the filing of the application, or July 13, 2023. The City must take action by no later than March 15, 2023, SPS’s proposed effective date for its requested increase in rates. If the City does not take action by March 15, 2023, SPS’s proposed increase in rates as filed will be deemed approved by operation of law. |