1. Southwestern Public Service Company
Attachment O - Transmission Formula Rate 2016 True-Up
Customer Meeting
July 13, 2017

2. Table of Contents - Notebook
Tab 1 – 2016 True-Up
Tab 2 – Variance Analyses and Capital Additions
Tab 3 – Disclosure of Material Changes
Tab 4 – Supporting Documentation
Tab 5 – Radial Line Study (RLS)

3. Purpose of Meeting Review Attachment O 2016 True-Up Adjustment
Primary Drivers of 2016 Estimated vs. Actual
Review Schedule 1 True-Up Adjustment
Material Changes, Supporting Documentation, RLS
Customer Questions

4. Southwestern Public Service Company Summary of Attachment O True-Up Adjustment January 1, 2016 – December 31, 2016
Actual 2016 ATRR
$ 264,109,742
Projected 2016 ATRR
$ 266,501,009
ATRR Adjustment
($ 2,391,268)
2016 Actual BPU Revenue Adjustment
($ 9,612,361)
2016 Actual ATRR Volume Adjustment
$ 9,189,612
Net True-Up – Over recovery without interest
($ 2,814,017)

5. Projected Zonal Rate per kW-yr $ 27.1080
Southwestern Public Service Company Summary of Attachment O True-Up – Divisor January 1, 2016 – December 31, 2016
Projected 2016 Divisor
4,808,000 kW
Actual 2016 Divisor
4,469,000 kW
Volume Adjustment
339,000 kW
Projected Zonal Rate per kW-yr $
Volume Revenue Adjustment1
$9,189,612
1 (339,000) * $ = $9,189,612

6. Southwestern Public Service Company Cost Drivers – Decrease in Actual 2016 ATRR from the Estimated 2016 ATRR
Projected 2016 ATRR $266.5M
2016 Actual Cost Drivers:
Rate Base and Cost of Capital ($ 6.3)
Revenue Credits $ 7.3
O&M Expense ($ .4)
Depreciation Expense ($ 1.4)
Taxes ($ 1.5)
2016 Actual ATRR $264.1M

7. Southwestern Public Service Company Rate Base Change Actual vs
Southwestern Public Service Company Rate Base Change Actual vs. Projected
Transmission Net Plant In Service – Decrease ($ M)
General & Intangible Net Plant in Service – Decrease ($ 1.9M)
Total Net Plant In Service Decrease ($ 35.8M)
Adjustments to Rate Base
Increase in ADIT Credit Adjustment to Rate Base ($ 38.3M)
Working Capital & Land Held for Future Use ($ 0.2M)
Actual Net Decrease in Rate Base from Projected ($ 74.3M)

8. Southwestern Public Service Company Cost of Capital Changes – Actual vs. Projected
Ratios Actual Projected Difference
Long Term Debt % % (0.45%)
Equity % % %
Cost
Long Term Debt % % (0.08%)
Equity % % %
Weighted Cost
Long Term Debt 2.53% 2.59% (0.06%)
Equity % 5.63% %
Total % 8.22% (0.01%)
Rate Base $1,575.3M $1,649.6M $( 74.3M)
Return on Rate Base $ M $ M $( 6.3M)

9. Southwestern Public Service Company Base Plan Upgrade Projects Revenue Requirements
Projected BPU Revenue Requirement $134,110,705
Change in Carrying Charge (11.34% vs %) $ 1,285,166
Change in Plant In Service $ 8,327,195
Actual BPU Revenue Requirement $143,723,066
*WsP BPU – Table 36 of template

10. Southwestern Public Service Company Radial Line Study 2016 Update
Radial Line Gross Plant Investment in 2016 Estimate $ 71.4M
Changes in Gross Plant Balances for Existing Radial Lines $ 10.8M
New Radial Lines $ 3.5M
Radial Line Investment in 2016 Actual $ 85.7M

11. Projected 2016 Schedule 1 ARR $ 4,511,876
Southwestern Public Service Company Summary of Schedule 1 True-Up Adjustment January 1, 2016 – December 31, 2016
Actual 2016 Schedule 1 ARR
$ 3,956,899
Projected 2016 Schedule 1 ARR
$ 4,511,876
ARR Adjustment
($ ,977)
2016 Actual Schedule 1 Volume Adjustment1
$ ,121
Net True-Up – Over recovery without interest
($ ,856)
1 339,000 * $ = $318,121