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In New Mexico, our operating utility Southwestern Public Service Company is primarily engaged in the generation, purchase, transmission, distribution and sale of electricity. The New Mexico Public Regulation Commission regulates the company for state issues, and federal regulatory agencies oversee other aspects of its operations.
On Feb. 28, 2011, SPS filed with the New Mexico Public Regulation Commission (NMPRC) its 2011 Electric Rate Case. In its request, SPS is seeking a 6.9 percent overall increase in revenue it collects from New Mexico retail customers to help fund new infrastructure that will improve reliability and strengthen the region's economic competitiveness. The 6.9 percent increase translates into a revenue increase of $19.9 million over current annual New Mexico revenue.
The Commission has up to a year to act on the request. If approved, a typical residential customer using 1,000 kilowatt-hours of electricity per month will see a monthly increase of $9.32, or about 10.7 percent more per month. Impact on residential bills will be higher than the overall percentage increase as the company continues an effort begun in 2006 to assign the true costs of serving each customer class.
Riley Hill, president and CEO of Southwestern Public Service Company, an Xcel Energy company, said the increase in rates is needed because the regional economy is changing and growing, and requires greater investment in the power grid. He emphasized that the growth of the power grid must keep pace as industries expand and new businesses come into the region.
Over the next five years, Xcel Energy plans to invest about $2 billion to retrofit generation plants to make them more efficient and to reduce emissions, improve capacity and reliability on its transmission and distribution grid, and develop the future workforce in New Mexico and Texas.
"Our rates must generate enough revenue to maintain strong credit ratings and raise capital to fund the improvements that will make our system more efficient, more reliable, and more cost effective," Hill said. "A robust power grid is vitally important to the region's economic success and our ability to meet growing customer needs."
Current base rates are based on 2008 costs. Since that time, the company has absorbed higher costs for materials to expand and maintain its system of transmission and distribution facilities, as well as costs to make its generating fleet cleaner and more efficient.
Our products and services differ based on state. Please select your state (or the state you're interested in) from the list to the left.
Why do our products and services differ based on state? Because our business is regulated by state. We have regulated operations in eight Western and Midwestern states. The different regulatory body for each state we serve determines what products and services we deliver in that state.