Southwestern Public Service Company Seeks Expedited Approval for Deferred Accounting Treatment

Strategic Insights -

Southwestern Public Service Company, a provider of electricity to the state of Texas, has filed an application with the Public Utility Commission of Texas (Commission) seeking expedited approval for a deferred accounting treatment for excess liability insurance expenses. The application aims to enable the company to recover increasing costs driven by wildfire- and storm-related risks. The Commission has referred the matter to the State Office of Administrative Hearings, and the hearing process is currently underway.

Key Takeaways:

  • The application was filed by Southwestern Public Service Company on March 19, 2025, and seeks authorization for the use of an accounting mechanism to recover excess liability insurance expenses.
  • The application affects all retail customers of Southwestern Public Service Company in the state of Texas.
  • The Public Utility Regulatory Act (PURA) grants the Commission jurisdiction over the application under sections 14.001 and 14.151.
  • The State Office of Administrative Hearings (SOAH) has jurisdiction over the matter under Texas Government Code section 2003.049 and PURA section 14.053.
  • The Commission will issue a preliminary order listing issues to be addressed in this proceeding.
  • The hearing process is currently underway, with a Administrative Law Judge (ALJ) assigned to conduct the hearing and issue a proposal for decision, if necessary.
  • The application is related to the increasing excess liability insurance premiums primarily driven by wildfire- and storm-related risks.

Statistics:

  • The application was filed on March 19, 2025.
  • The Commission issued its Order of Referral on September 9, 2025.
  • The application affects all retail customers of Southwestern Public Service Company in the state of Texas.
  • The Public Utility Regulatory Act (PURA) grants the Commission jurisdiction over the application under sections 14.001 and 14.151.
  • The State Office of Administrative Hearings (SOAH) has jurisdiction over the matter under Texas Government Code section 2003.049 and PURA section 14.053.

Sources:

  • APPLICATION OF SOUTHWESTERN PUBLIC SERVICE COMPANY FOR EXPEDITED APPROVAL OF DEFERRED ACCOUNTING TREATMENT FOR EXCESS LIABILITY INSURANCE EXPENSE BEFORE THE STATE OFFICE OF ADMINISTRATIVE HEARINGS
  • SOAH ORDER No. 1
  • FILING DESCRIPTION; JURISDICTION; ADOPTING PROCEDURAL SCHEDULE; SETTING HEARING; AND PRE- AND POST-HEARING REQUIREMENTS
  • Public Utility Regulatory Act (PURA) sections 14.001 and 14.151
  • Texas Government Code section 2003.049 and PURA section 14.053