SOUTHWESTERN PUBLIC SERVICE CO
Southwestern Public Service Company (SPS), a wholly owned subsidiary of Xcel Energy, filed its Q3 2026 10-Q. Net income for the quarter was $216M, up from $160M in Q3 2025. Revenue rose to $738M from $655M. Nine-month net income reached $423M vs. $320M. The filing highlights a pending New Mexico rate case with a non-unanimous stipulation recommending a $90M rate increase and 9.5% ROE, with an NMPRC decision expected in Q4 2026.
- Q3 2026 net income rose 35% YoY to $216M, driven by sales growth, weather, and higher recovery of electric infrastructure investments.
- Nine-month net income reached $423M vs. $320M in the prior year, with operating income up 18% to $482M.
- Q3 revenue hit $738M, up 12.7% from $655M, led by residential revenue jumping to $204M from $153M.
- Capital contributions from parent Xcel Energy totaled $784M year-to-date, nearly double the $555M in the prior-year period.
- Long-term debt increased to $5.077B from $4.046B at year-end 2025, funding $1.538B in utility capital expenditures.
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SPS is delivering strong earnings growth but faces a pivotal regulatory decision that could cap its allowed return well below what it sought, directly affecting future profitability on its $11.8B asset base.
SPS, a wholly owned Xcel Energy subsidiary, operates as a regulated electric utility in New Mexico and Texas. The pending NMPRC rate case decision (expected Q4 2026) will set the allowed ROE and rate base, directly shaping SPS's earnings power amid heavy infrastructure investment.
Smokehouse Creek Fire Complex: remaining claims could exceed SPS's $525M annual insurance coverage, with $96M in insurance receivables recorded as of Sept. 30, 2026. The New Mexico rate case stipulation recommends only a $90M increase vs. the $168M requested, with a 9.5% ROE below the 10.5% sought.