Rate Matters (Tables)

12 Months Ended

Dec. 31, 2016

Public Utilities, General Disclosures [Abstract]

SPS' Texas 2016 Electric Rate Case

In December 2016, SPS reached an unopposed settlement that resolves all issues in the rate case. The following table reflects the total estimated impact:

(Millions of Dollars)	Settlement
Base rate increase, retroactive to July 20, 2016	$	35.2
Power factor revenues (a)	12.6
Rate case expenses to be addressed in a separate proceeding	4.0
Total estimated impact	$	51.8

^(a)  SPS’ request assumed customers would adjust their power factors, which would reduce revenue. To the extent power factor revenues are less than $12.6 million, a mechanism will be established to ensure SPS recovers this amount and effectively offset lower anticipated power factor charges.

SPS' New Mexico 2016 Electric Rate Case

The major components of the requested rate increase are summarized below:

(Millions of Dollars)	Request
Capital expenditures	$	20.1
Allocator changes, including wholesale load reductions	11.5
Transmission expense, net of revenue, including charges paid to SPP for construction of regionally shared transmission projects	4.7
Depreciation, including adjustment of service life for the Tolk generating station	3.6
Rate case expenses	1.1
Other, net	0.4
Requested rate increase	$	41.4