Case No. 24-00270-UT, Fuel and Purchased Power Cost Adjustment Clause (FPPCAC)

On November 21, 2024, SPS filed an application and supporting testimony requesting that the Commission:

(1) approve and authorize SPS’s continued use of its fuel and purchased power cost adjustment clause (“FPPCAC”) using a monthly adjustment factor;

(2) approve SPS requests related to the treatment through the FPPCAC of certain revenues and costs associated with previously approved (a) the Plant X Solar Project, (b) the Cunningham 1 Solar Project, (c) the Cunningham 2 Solar Project (collectively “SPS Solar Projects”); and (d) a battery project (“SPS Battery Project,” collectively with the SPS Solar Projects, the “New SPS Resources”) – in particular, to refund customers the New Mexico portion of the grossed-up federal Production Tax Credits and Investment Tax Credits earned by the New SPS Resources, to recover transfer costs for the sale of unused tax credits through the FPPCAC, and to recover any unused tax credits in a deferred tax asset that SPS will include in its FPPCAC; and

(3) authorize a reduction in sharing of off-system sales margins whereby customers will be credited with 90% of the margins and SPS will retain 10% of the margins associated with resources approved subsequent to Commission Case No. 17-00255-UT, upon the commencement of cost recovery for such resources.