Item 8.01. Other Events

2008 New Mexico Retail Electric Rate Case - On Dec. 18, 2008, Southwestern Public Service Company (SPS), a New Mexico corporation, and a wholly owned subsidiary of Xcel Energy Inc., filed with the New Mexico Public Regulation Commission (NMPRC) a request to increase electric rates in New Mexico by approximately $24.6 million, or 6.2 percent. The request is based on a historic test year (split year based on year-ending June 30, 2008), an electric rate base of $321 million, and an equity ratio of 50 percent and a requested return on equity (ROE) of 12 percent. SPS also requested interim rates to allow it to begin recovering the cost of the Lea Power Partners (LPP) facility of approximately $7.6 million per year.

On March 26, 2009, the NMPRC approved a partial stipulated settlement (settlement) between the parties that allows the Company to recover 75% of its interim rate request, approximately $5.7 million of its requested $7.6 million interim rates, through an LPP cost rider until the final rates from the remainder of the case are effective. The LPP cost rider begins May 1, 2009, and is subject to true-up.

In addition, the NMPRC has appointed a mediator to assist the parties in reaching a settlement of some or all issues in the case. The mediator has scheduled a mandatory settlement conference for April 14 and 15, 2009.

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