DOCKET NO. 43695 APPLICATION OF SOUTHWESTERN PUBLIC SERVICE COMPANY FOR AUTHORITY TO CHANGE RATES PUBLIC UTILITY COMMISSION OF TEXAS DIRECT TESTIMONY of DEBORAH A. BLAIR on behalf of SOUTHWESTERN PUBLIC SERVICE COMPANY (Filename: BlairRRDirect.doc) Table of Contents GLOSSARY OF ACRONYMS AND DEFINED TERMS... 4 LIST OF ATTACHMENTS... 6 I. WITNESS IDENTIFICATION AND QUALIFICATIONS... 7 II. ASSIGNMENT, TESTIMONY SUMMARY AND RECOMMENDATIONS... 10 III. SCHEDULES SPONSORED... 12 IV. STEPS TO ESTABLISH THE TEXAS RETAIL REVENUE REQUIREMENT... 16 A. DEVELOPMENT OF OVERALL REVENUE REQUIREMENT... 16 B. JURISDICTIONAL ALLOCATION... 18 C. REVENUE REQUIREMENT SUMMARY... 20 V. RATE BASE... 21 A. ADJUSTMENTS TO RATE BASE... 22 1. POST TEST YEAR ADJUSTMENTS... 22 2. TRANSFORMERS AND METERS... 23 3. TEXAS-SPECIFIC DEPRECIATION RESERVE BALANCE... 23 4. ELIMINATION OF CWIP... 24 5. FUEL INVENTORY... 24 6. ELIMINATION OF PREPAYMENT AMOUNTS... 25 7. ELIMINATION OF REGULATORY ASSETS... 26 8. ADJUSTMENTS TO ADIT BALANCE... 28 9. PENSION ASSETS AND LIABILITIES... 33 B. CASH WORKING CAPITAL... 33 C. JURISDICTIONAL ALLOCATION OF RATE BASE ITEMS... 37 Blair Direct Revenue Requirement Page 1 RR16 - Page 57 of 426 07472
D. TEXAS RETAIL RATE BASE... 41 VI. FUEL AND PURCHASED POWER EXPENSE... 42 VII. NON-FUEL EXPENSES... 44 A. LABOR O&M EXPENSES... 44 1. EMPLOYEE WAGES... 44 2. ANNUAL INCENTIVE COMPENSATION... 46 3. LONG-TERM INCENTIVE COMPENSATION... 47 4. NET LABOR ADJUSTMENTS... 47 B. PRODUCTION O&M EXPENSE... 48 1. ACCOUNTING CORRECTIONS... 48 2. FUEL-RELATED O&M EXPENSE... 49 3. ENVIRONMENTAL CONSUMABLES... 49 4. NO X AND SO 2 ALLOWANCE EXPENSES... 49 5. REC COSTS... 50 6. TRADING ORGANIZATION... 51 C. TRANSMISSION O&M EXPENSE... 51 1. SPP ADMINISTRATIVE FEES... 52 2. RECLASSIFICATION OF FUEL COSTS... 52 3. WHEELING EXPENSE... 53 4. SHARYLAND O&M EXPENSE... 53 D. REGIONAL MARKETS O&M EXPENSE... 53 E. DISTRIBUTION O&M EXPENSE... 53 F. CUSTOMER OPERATIONS EXPENSE... 54 1. CUSTOMER INTEREST EXPENSE... 54 2. ENERGY EFFICIENCY COSTS... 54 3. WHOLESALE ACCOUNT MANAGER COSTS... 57 4. INSTITUTIONAL AND INFORMATIONAL ADVERTISING... 58 G. A&G EXPENSE... 58 1. XCEL ENERGY FOUNDATION... 59 2. CORPORATE AVIATION... 59 3. ACCOUNTING CORRECTIONS... 60 4. SPP LETTER OF CREDIT FEE... 60 5. SELF-INSURED WORKERS COMPENSATION... 61 6. FAS 88... 61 7. PENSION AND BENEFITS EXPENSE... 61 8. DEFERRED PENSION AND OPEB... 62 9. 401(K) MATCH EXPENSE... 64 10. TEXAS COMMISSION ASSESSMENT FEES... 65 11. RATE CASE EXPENSE... 65 Blair Direct Revenue Requirement Page 2 RR16 - Page 58 of 426 07473
12. ADVERTISING, CONTRIBUTIONS, DONATIONS, AND MEMBERSHIP DUES... 67 13. OTHER ADJUSTMENTS... 68 H. DEPRECIATION AND AMORTIZATION EXPENSE... 68 I. TAXES OTHER THAN INCOME... 70 J. INCOME TAX EXPENSE... 73 K. GAIN ON THE SALE OF SO 2 ALLOWANCES, RECS, AND UTILITY PLANT... 75 VIII. REVENUE CREDITS... 76 IX. CAPITAL STRUCTURE... 80 X. JURISDICTIONAL REVENUE DEFICIENCY... 81 XI. CONCLUSION... 82 AFFIDAVIT... 83 Blair Direct Revenue Requirement Page 3 RR16 - Page 59 of 426 07474
GLOSSARY OF ACRONYMS AND DEFINED TERMS Acronym/Defined Term A&G ADIT Commission CRS CWIP EECRF FAS FERC ICO JOA NMPRC NOL NOx OATT O&M OPEB Operating Companies PSCo PURA REC RFP Meaning Administrative and General Accumulated Deferred Income Taxes Public Utility Commission of Texas Customer Resource System Construction Work in Progress Energy Efficiency Cost Recovery Factor Statement of Financial Accounting Standards Federal Energy Regulatory Commission Interruptible Credit Option Joint Operating Agreement New Mexico Public Regulation Commission Net Operating Loss Nitrogen Oxide Open Access Transmission Tariff Operation and Maintenance Other Post-Employment Benefit Northern States Power Company, a Minnesota corporation; Northern States Power Company, a Wisconsin corporation; PSCo; SPS Public Service Company of Colorado Public Utility Regulatory Act Renewable Energy Credit Rate Filing Package Blair Direct Revenue Requirement Page 4 RR16 - Page 60 of 426 07475
Acronym/Defined Term Sharyland SO 2 SPP SPS Meaning Sharyland Distribution and Transmission Services, LLC Sulfur Dioxide Southwest Power Pool, a New Mexico corporation Test Year July 1, 2013 through June 30, 2014 Total Company or total company TUCO WACC Xcel Energy XES Total SPS (before any jurisdictional allocation) TUCO Inc. Weighted Average Cost of Capital Xcel Energy Inc. Xcel Energy Services Inc. Blair Direct Revenue Requirement Page 5 RR16 - Page 61 of 426 07476
LIST OF ATTACHMENTS Attachment DAB-RR-1 DAB-RR-2 DAB-RR-3 DAB-RR-4(CD) DAB-RR-5(CD) Description List of Prior Testimony (Filename: DAB-RR-1.pdf) Cost of Service Study (Filenames: DAB-RR-2.1.xls, DAB-RR-2.2.xls, DAB-RR-2.3.xls, and DAB-RR-2.4.xls) Lead-Lag Study Summary (Filename: DAB-RR-3.doc) Safety, Conservation, and Customer Program Advertising (Filename: DAB-RR-4.pdf) (provided on CD and DVD) Workpapers of Deborah A. Blair (Filename: DAB-RR-5.pdf) (provided on CD) Blair Direct Revenue Requirement Page 6 RR16 - Page 62 of 426 07477
DIRECT TESTIMONY OF DEBORAH A. BLAIR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I. WITNESS IDENTIFICATION AND QUALIFICATIONS Q. Please state your name and business address. A. My name is Deborah A. Blair. My business address is 1800 Larimer St., Suite 1400, Denver, Colorado 80202. Q. On whose behalf are you testifying in this proceeding? A. I am filing testimony on behalf of, a New Mexico corporation ( SPS ) and wholly-owned electric utility subsidiary of Xcel Energy Inc. ( Xcel Energy ). Xcel Energy is a registered holding company that owns several electric and natural gas utility operating companies. 1 Q. By whom are you employed and in what position? A. I am employed by Xcel Energy Services Inc. ( XES ), the service company subsidiary of Xcel Energy, as Director, Revenue Analysis. Q. Please briefly outline your responsibilities as Director, Revenue Analysis. A. I am responsible for calculating the jurisdictional cost of service studies and revenue requirement determinations filed before the state regulatory authorities that regulate SPS and PSCo. I am also responsible for calculating wholesale production and transmission formula rates currently in place for SPS and PSCo, as approved by FERC. I prepare and file testimony supporting cost of service 1 Xcel Energy is the parent company of four wholly-owned electric utility operating companies: Northern States Power Company, a Minnesota corporation; Northern States Power Company, a Wisconsin corporation; Public Service Company of Colorado, a Colorado corporation ( PSCo ); and SPS (collectively, Operating Companies ). Xcel Energy s natural gas pipeline subsidiary is WestGas InterState, Inc. Xcel Energy also has two transmission-only operating companies, Xcel Energy Southwest Transmission Company, LLC and Xcel Energy Transmission Development Company, LLC, both of which are regulated by the Federal Energy Regulatory Commission ( FERC ). Blair Direct Revenue Requirement Page 7 RR16 - Page 63 of 426 07478
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 studies and formula rates before regulatory authorities with jurisdiction over these rates. Q. Please describe your educational background. A. I graduated from Colorado State University with a Bachelor of Science degree in Business Administration, with an emphasis in Accounting, in 1981. Q. Please describe your professional experience. A. I began my career with Xcel Energy in June 1981 in the PSCo Accounting Division. I held several positions in the Accounting Division. In 1982, I accepted a position as Rate Accountant in the Revenue Requirements department at PSCo. In 1989, I was promoted to Supervisor, Revenue Reporting and in 1994 was promoted to Unit Manager, Revenue Requirements. In May 1997, I was promoted to the position of Director, Regulatory Support Services for New Century Services Inc., a predecessor to XES. In August 2000, I accepted my current position of Director, Revenue Analysis for XES. Q. Have you testified before any regulatory authorities? A. Yes. I have testified before the Colorado Public Utilities Commission, the Wyoming Public Service Commission, and FERC regarding overall revenue 18 requirements. I have submitted written testimony before the Public Utility 19 20 21 22 23 Commission of Texas ( Commission ) regarding the Transmission Cost Recovery Factor. I also submitted written testimony before this Commission and the New Mexico Public Regulation Commission ( NMPRC ) regarding the merger between New Century Energies, Inc. and Northern States Power Company, which created Xcel Energy. I also testified before the NMPRC in a rate case proceeding Blair Direct Revenue Requirement Page 8 RR16 - Page 64 of 426 07479
1 2 3 supporting the cost of service adjustments and the lead-lag study. A list of proceedings in which I have provided testimony is Attachment DAB-RR-1 to my testimony. Blair Direct Revenue Requirement Page 9 RR16 - Page 65 of 426 07480
1 2 II. ASSIGNMENT, TESTIMONY SUMMARY AND RECOMMENDATIONS 3 4 5 6 7 8 9 10 11 12 Q. What are your assignments in this proceeding? A. I will first address the process SPS uses to calculate its revenue requirement, including the allocation of costs among jurisdictions and the adjustments to total per-book costs. I will then discuss the specific adjustments to the per-book amounts of various components of the revenue requirement, such as rate base, fuel expense, operation and maintenance ( O&M ) expense, administrative and general ( A&G ) expense, depreciation and amortization expense, taxes other than income, income tax expense, revenue credits, and capital structure. Finally, I sponsor or co-sponsor a number of schedules in SPS s Rate Filing Package ( RFP ) and the portions of the Executive Summary that contain 13 14 information from those schedules. Section III of this testimony. I discuss the schedules that I sponsor in 15 16 17 18 19 20 21 22 23 24 Q. Please summarize the recommendations and conclusions in your testimony. A. I recommend that the Commission approve SPS s request to set rates at a level sufficient to recover an overall revenue requirement for the Texas retail jurisdiction of $577,633,008. That revenue requirement reflects an increase in base rates of $64,746,197, which is necessary for SPS to recover its reasonable and necessary costs of providing service to SPS s Texas retail customers. The portion of the overall revenue requirement attributable to the return on rate base is reasonable because both the rate base and the weighted average cost of capital ( WACC ) that is multiplied by that rate base are reasonable. As I explain in Section IV of this testimony, SPS adjusted the per-book amounts of Blair Direct Revenue Requirement Page 10 RR16 - Page 66 of 426 07481
1 2 3 4 5 6 7 8 9 10 11 12 numerous rate base items to eliminate amounts that should not be in rate base or to reflect known and measurable adjustments to rate base. SPS also included in rate base the plant that will be placed in service between July 1, 2014 and December 31, 2014, and it is reasonable for SPS to earn a return of and on those assets for the reasons discussed by SPS witness Evan D. Evans. And as I explain in Section IX of this testimony, SPS s WACC is reasonable because it is based on the actual capital structure that SPS plans to maintain during the rate year, on SPS s actual embedded cost of debt, and on a reasonable return on equity. The portion of the revenue requirement attributable to expenses is also reasonable and should be approved by the Commission. I explain in Sections V through VII of this testimony that I have made numerous adjustments to the pro forma expense amounts to reflect actual Test Year costs, as adjusted for known 13 and measurable events. 2 I have also correctly recorded and adjusted the revenue 14 15 16 17 18 credits to ensure that Texas retail customers are given credit for amounts received by SPS for services it performs. Finally, SPS has correctly allocated the expenses and revenues to the proper jurisdictions, which ensures that Texas retail customers pay no more than their fair share of SPS s overall revenue requirement. ( Test Year ). 2 The Test Year in this case is the twelve-month period from July 1, 2013 through June 30, 2014 Blair Direct Revenue Requirement Page 11 RR16 - Page 67 of 426 07482
1 2 3 4 III. SCHEDULES SPONSORED Q. What RFP schedules do you sponsor? A. I sponsor or co-sponsor the schedules listed in Table DAB-RR-1: Table DAB-RR-1 Schedule A A, 1, 2, 3, 4, and 5 Schedule B 1, 1.1, 1.2, 1.3, 1.4, 2, and 2.1 Schedule C 4.2 Schedule E 1, 1.1, 1.2, 2.1, 4, 5, and 6 Schedule G 5.3, 5.4, 5.5, 7.4d, 7.7, 7.11, 7.13, 10, 11, 12, 13, 14, 14.1, 14.2, and 15 Schedule H 2 Schedule K 1 5 6 Q. What information is contained within the A schedules? A. The A Schedule Series contains the following information: 7 8 9 10 11 12 13 14 15 Schedule A contains the overall cost of service; Schedule A-1 contains the overall cost of service on a Texas retail basis; Schedule A-2 contains the cost of service detail by account; Schedule A-3 contains the adjustments to the Test Year information, including references to testimony and supporting workpapers; Schedule A-4 provides a detailed Test Year trial balance by FERC account; and Schedule A-5 provides a detailed listing by FERC account of amounts included in unadjusted O&M. 16 17 Q. What information is included in the B schedules that you sponsor? A. The B schedules include the following information: 18 19 20 Schedule B-1 contains the original cost of SPS s rate base on a total SPS basis before any jurisdictional allocation ( total company ), the requested adjustments to rate base, and the requested rate of return; Blair Direct Revenue Requirement Page 12 RR16 - Page 68 of 426 07483
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Schedule B-1.1 contains the same information as Schedule B-1, except that it is on a Texas retail basis; Schedule B-1.2 requires the utility to provide a schedule showing the original prudent cost if the requested plant in service is less than 100% of original prudent cost. This schedule is not applicable to SPS because it is requesting 100% of original prudent plant placed in service; Schedule B-1.3 provides a schedule with all penalties and fines requested in the plant in service. This schedule is not applicable to SPS, which had no fines or penalties; Schedule B-1.4 provides a schedule of all attendant impacts of any post- Test Year adjustments to rate base; Schedule B-2 lists the monthly balance of each accumulated provision account such as injuries and damages, property insurance, etc. It also includes the amount accrued each month and the amount charged off each month. In addition, it contains the same information on an annual basis for the prior three years, and it contains the nature of major charges to the account; and Schedule B-2.1 details SPS s policies regarding accumulated provision accounts and explains how the accounts benefit customers. 20 21 22 23 24 25 26 Q. What information is included in Schedule C-4.2? A. That schedule describes the amount of construction work in progress ( CWIP ) included in rate base for the two most recent rate requests. SPS is not proposing to include any CWIP rate base and has not requested CWIP in rate base in recent rate cases. Q. Please explain what information is included in the E schedules. A. The E schedules contain information regarding short-term assets and inventories: 27 28 29 30 31 32 Schedule E-1 is a schedule with each short-term asset requested in rate base, such as materials and supplies, fuel inventories, prepayments, and other types of assets. The schedule includes the monthly book balances and the thirteen-month average; Schedule E-1.1 lists the category types for each short-term asset included in Schedule E-1; Blair Direct Revenue Requirement Page 13 RR16 - Page 69 of 426 07484
1 2 3 4 5 6 7 8 9 10 11 12 13 14 Schedule E-1.2 explains all of SPS s obsolete, damaged, or no longer used inventory policies, including discussions of how categories are determined to be obsolete, when items are written off, etc.; Schedule E-1.3 details all changes in policy of accounting for the book balances of items listed in Schedule E-1; Schedule E-2.1 presents SPS s fuel inventory policies in effect during the Test Year; Schedule E-4 presents the working capital allowance included in rate base, along with the lead-lag information; Schedule E-5 presents the amount of prepayments and materials and supplies charged to O&M expense by month for the Test Year; and Schedule E-6 explains SPS s policy for determining when a customer s deposit becomes inactive, and it contains the balance of customer deposits at year end. 15 16 Q. What information is included in the G schedules that you sponsor? A. The G schedules include the following information: 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Schedule G-5.3 contains a summary of other exclusions related to political organizations. It does not apply to SPS; Schedule G-5.4 contains a summary of exclusions from prior cases. It does not apply to SPS, which has not had any exclusions in prior cases; Schedule G-5.5 also addresses exclusions from prior cases. It does not apply to SPS, which has not had any exclusions in prior cases; Schedule G-7.4d provides detail related to the accumulated deferred income taxes ( ADIT ) associated with rate case expenses; Schedule G-7.7 contains a calculation of adjustments to return for additional depreciation; Schedule G-7.11 lists and explains all effects on federal income tax expense and on ADIT from the requested post-test Year adjustments to plant; Schedule G-7.13 contains a list of all witnesses providing testimony on federal income taxes and ADIT; 32 33 Schedule G-10 addresses factoring expense. This schedule is not applicable because SPS does not factor expense; Blair Direct Revenue Requirement Page 14 RR16 - Page 70 of 426 07485
1 2 3 4 5 6 7 Schedule G-11 contains information about deferred expenses from prior dockets; Schedule G-12 contains a detailed analysis of below the line expenses incurred during the Test Year; Schedule G-13 presents an analysis of nonrecurring or extraordinary expenses occurring during the Test Year and included in the cost of service; 8 9 Schedule G-14 contains the expenses charged to FERC Account 928 during the Test Year, along with adjustments to those expenses; 10 11 12 13 14 15 Schedule G-14.1 presents information about rate case expenses that SPS seeks to recover in this docket; Schedule G-14.2 presents information on rate case expenses from prior dockets; and Schedule G-15 includes O&M expense by FERC account and by month, including any adjustments to O&M expense. 16 17 18 19 20 21 22 23 24 Q. What information is included in Schedule H-2? A. That schedule summarizes Production O&M expense data by FERC account. Q. What information is included in Schedule K-1? A. Schedule K-1 contains the WACC that SPS is asking the Commission to approve in this case. It contains the embedded cost of debt, the proposed cost of equity, the proposed capital structure, and the resulting cost of capital. Additionally, Schedule K-1 presents the overall rate of return claimed on the original cost rate base and the resulting total claimed return expressed in dollars. I sponsor the original cost rate base contained in this schedule. Blair Direct Revenue Requirement Page 15 RR16 - Page 71 of 426 07486
1 2 IV. STEPS TO ESTABLISH THE TEXAS RETAIL REVENUE REQUIREMENT 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Q. What is the general process SPS uses to establish its Texas retail revenue requirement? A. At a very general level, setting utility rates is a three-step process. The first step involves a revenue requirement study, which is sometimes referred to as a cost of service study or pro forma rate of return study. The second step involves the allocation of costs among the jurisdictions that the utility serves. I will discuss each of those steps in more detail in the remainder of this section of my testimony. The third step entails the separation of the costs for the Texas retail jurisdiction into various functions (e.g., production, transmission, distribution). SPS witness Richard M. Luth discusses the functionalization of the Texas retail revenue requirement into the various functions. A. Development of Overall Revenue Requirement Q. What is a revenue requirement study? A. A revenue requirement study is a model that examines all of a company s investments, revenues, and expenses associated with providing electric utility service over a specific 12-month period, with the goal of determining the company s cost of providing service to its customers. The revenue requirement study indicates the overall level of revenues necessary for the company to earn its authorized return, which is used in setting the company s base rates for service. In effect, the revenue requirement establishes a proxy for what the utility s cost of service will be in future periods when the new rates will be in effect, although the Blair Direct Revenue Requirement Page 16 RR16 - Page 72 of 426 07487
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 use of a historical test year in Texas causes the revenue requirement to understate the utility s true cost of service in a rising-cost environment. Q. What is the starting point for a revenue requirement study? A. The starting point in developing a revenue requirement study is total company per-book accounting information. Adjustments are then made to the per-book data to derive the Test Year costs. There are three types of adjustments that can be made to the per-book data: (1) accounting adjustments; (2) Commissionrequired adjustments; and (3) pro forma adjustments. Q. The first type of adjustment you mentioned is accounting adjustments. What are those? A. Accounting adjustments include both out-of-period adjustments and adjustments to eliminate or add certain accounts or expenses or revenues. Out-of-period adjustments eliminate transactions that were recorded in the Test Year, but that apply to periods outside the Test Year. The intent of these adjustments is to remove the effect of transactions occurring outside of the Test Year from the study. Conversely, transactions that were recorded outside the Test Year but that are applicable to the Test Year are added, and thus reflected in the study. Adjustments also are made to eliminate certain amounts that are included in the per-book accounts, but that should not be included in the base rate calculation. Q. The second type of adjustment you mentioned is a Commission-required adjustment. What is that? A. Commission-required adjustments are made to comply with rate recovery policies and principles established by the Commission in its substantive rules and in orders Blair Direct Revenue Requirement Page 17 RR16 - Page 73 of 426 07488
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 issued in prior SPS proceedings. For example, promotional and image advertising expenses are costs that the Commission has specifically required to be eliminated from the cost of service, as are costs incurred for political purposes. In isolating the effects on the cost of service for Texas, when these expenses are excluded, so are the tax deductions associated with them. Q. The third type of adjustment is a pro forma adjustment. What is that? A. Pro forma adjustments are made to Test Year per-book results so that the Test Year will be representative of conditions during the rate year. Adjustments are made for known and measurable changes occurring both in the Test Year (in-period adjustments) and outside the Test Year (out-of-period adjustments). Q. Do you discuss these types of adjustments in your testimony? A. Yes. In Sections V through VIII of this testimony, I discuss all of the adjustments that I made to the per-book information. B. Jurisdictional Allocation Q. Please turn to the second step in the ratemaking process - jurisdictional allocation. Why is it necessary to perform a jurisdictional allocation? A. Well-established principles of cost causation require that customers in a particular jurisdiction should pay only the costs associated with providing service to that jurisdiction. Thus, in this case, the revenue requirement ultimately determined for Texas retail customers should include only costs related to the provision of retail utility service in Texas. This process creates a stand-alone financial look at the revenue requirement for the cost of serving SPS s Texas retail jurisdiction, which is then compared to the pro forma present revenues to determine any deficiency or Blair Direct Revenue Requirement Page 18 RR16 - Page 74 of 426 07489
1 2 3 4 5 6 7 8 excess. Any excess indicates the need for a rate decrease, whereas a deficiency indicates that SPS is not recovering the cost of providing service to its customers and, thus, a rate increase is warranted. Q. Please explain the allocations that are made to jurisdictionalize the cost of service amounts. A. Each account or line item in the cost of service is assigned or allocated among SPS s Texas retail, New Mexico retail, and wholesale jurisdictions. When a cost is incurred on behalf of only one jurisdiction, it is assigned only to that 9 jurisdiction (i.e., direct assigned). When a cost benefits more than one 10 11 12 13 14 15 16 17 18 19 20 21 22 jurisdiction, SPS uses an allocator based on a cost-causative factor. Q. What jurisdictional allocation factors did SPS use in the cost of service presented in this case? A. The SPS model uses two types of allocators fundamental and derived. The fundamental allocators were developed by Mr. Luth in the Rate Design phase and include the demand, energy, and customer allocation factors. The other allocators are derived within the cost of service model based on the use of the fundamental allocators. For example, transmission plant in service is allocated for the most part using the transmission demand allocator, but there are certain plant accounts that are production-related, and those are allocated using the production demand allocator. The jurisdictional totals for transmission plant in service are then used to derive the plant in service transmission allocator, which is used to allocate other line items such as accumulated reserve for depreciation and amortization - Blair Direct Revenue Requirement Page 19 RR16 - Page 75 of 426 07490
1 2 3 4 5 6 7 8 9 10 transmission. The jurisdictional allocation factors are shown on pages 269-270 of Attachment DAB-RR-2. C. Revenue Requirement Summary Q. Please summarize the results of the revenue requirement study after you completed the jurisdictional allocation to Texas retail. A. The study shows a Texas retail revenue requirement of $577,633,008 based on the proposed return on equity of 10.25% as recommended by SPS witness Robert B. Hevert, and a capital structure composed of 53.97% equity and 46.03% debt, as discussed by SPS witness Mary P. Schell. When compared with adjusted Test Year revenue of $512,886,811, as discussed by Mr. Luth in his Rate Design 11 testimony, it results in a base rate revenue deficiency of $64,746,197. The 12 13 14 revenue requirement study is provided as Attachment DAB-RR-2 to my direct testimony. In the following sections of my testimony, I discuss the adjustments I made to support the Texas retail revenue requirement. Blair Direct Revenue Requirement Page 20 RR16 - Page 76 of 426 07491
1 2 3 4 5 6 7 8 V. RATE BASE Q. What is SPS s per-book rate base before making any adjustments or jurisdictional allocations? A. SPS s per-book rate base before adjustments and before allocation to the Texas retail jurisdiction is $2,926,555,561, as reflected on page 11, line 329 of Attachment DAB-RR-2. Q. What method did you use to measure rate base? A. For the majority of items, I measured rate base using the original cost balances at 9 June 30, 2014, the end of the Test Year. However, I used a different 10 11 12 13 14 15 16 17 measurement approach for the cash working capital balance and certain items with balances that are more volatile from month to month. Cash working capital is based on cash working capital factors that were derived from a lead-lag study multiplied by the Test Year expenses. I discuss the development of the lead-lag study later in my direct testimony. For those rate base balances that can be more volatile and have large variances from month to month, I used a 13-month average balance. The items that are based upon a 13-month average are: 18 19 20 21 22 23 24 25 Fuel inventory; Nitrogen oxide ( NOx ) and sulfur dioxide ( SO 2 ) emission allowance inventory; Materials and supplies; Prepayments; Liability associated with Statement of Financial Accounting Standard ( FAS ) 106, Employers Accounting for Post Retirement Benefits Other than Pensions ; and Blair Direct Revenue Requirement Page 21 RR16 - Page 77 of 426 07492
1 2 Liability associated with FAS 112 liability, Employers Accounting for Post Employment Benefits. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. Have you made any adjustments to rate base? A. Yes. I have made several adjustments to rate base, which I will discuss in the following subsections. I will then explain how SPS calculated its cash working capital, and after that I will discuss the jurisdictional allocation of certain rate base items. A. Adjustments to Rate Base 1. Post Test Year Adjustments Q. Did you make any adjustments to rate base to reflect SPS s proposed Post Test Year Adjustments? A. Yes. As discussed by Mr. Evans, SPS included in rate base the plant that will be placed in service between July 1, 2014 and December 31, 2014. The adjustment was calculated by comparing the estimated plant in service balance at December 31, 2014 to the actual plant in service balance at June 30, 2014. Then adjustments were made for known changes to four capital projects. SPS witnesses Alan J. Davidson, John S. Fulton, Brad E. Baldridge, Danny A. Nygaard, David C. Harkness, and Lisa H. Perkett all provide support for the capital projects that will be in service by the end of December 31, 2014. In addition, adjustments were made to several other accounts related to these plant adjustments, including accumulated reserve for depreciation, ADIT, depreciation expense, property taxes, additions and deductions used in the calculation of current income taxes, 23 and deferred income tax expense. The Post Test Year adjustments are Blair Direct Revenue Requirement Page 22 RR16 - Page 78 of 426 07493
1 2 3 4 5 6 7 8 9 10 11 12 13 summarized on Attachment DAB-RR-2, pages 53 through 60 and pages 66 through 74. 2. Transformers and Meters Q. Did you make any changes to the amounts recorded for transformers and meters? A. Yes. As discussed by Ms. Perkett, some plant balances for line transformers and electric meters were inadvertently recorded as Texas retail jurisdictional assets, when they should have been assigned to the New Mexico retail jurisdiction. In order to correct for those electric meters and line transformers that were not previously assigned to New Mexico, SPS assigned a portion of historical additions to New Mexico based on installed meters in each state. The amounts for transformers and meters mistakenly recorded to the Texas retail jurisdiction were $26,847,560 and $9,358,315, respectively, which appear on page 61, lines 2 14 and 5 of Attachment DAB-RR-2. The accumulated reserve for depreciation 15 16 17 18 19 20 21 22 23 associated with these assets has not been adjusted; however, an adjustment was made to eliminate the ADIT and depreciation expense associated with these assets, as shown on page 61, lines 3, 10 and 13 of Attachment DAB-RR-2. 3. Texas-Specific Depreciation Reserve Balance Q. What adjustments did you make to the accumulated reserve for depreciation? A. As discussed in detail by Ms. Perkett, the accumulated reserve for depreciation was adjusted to develop a Texas-specific depreciation reserve based upon the depreciation rates approved for the Texas retail jurisdiction. The book balances Blair Direct Revenue Requirement Page 23 RR16 - Page 79 of 426 07494
1 reflect blended depreciation rates, based on the various depreciation rates 2 approved by the regulatory authorities that regulate SPS. An adjustment is 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 necessary to reflect the effect of the Texas-approved depreciation rates on the accumulated depreciation reserve balance. The adjustment, which decreases the accumulated reserve by approximately $132.3 million (total company), appears on pages 62 through 65 of Attachment DAB-RR-2. 4. Elimination of CWIP Q. Is SPS requesting that CWIP be included in rate base? A. No. SPS is not asserting that it meets the criteria in P.U.C. SUBST. R. 25.231(c)(2) for including CWIP in rate base in this case. Therefore, I have eliminated all of the $353.5 million (total company) CWIP balance from rate base. That adjustment appears on page 37, lines 107 through 113, of Attachment DAB-RR-2. 5. Fuel Inventory Q. Did you make any adjustments for fuel inventory? A. Yes. As of June 10, 2014, environmental consumable chemicals consumed during the generation process are recoverable through fuel in Texas. The cost of environmental consumable chemicals was previously expensed as it was purchased. Because the Texas rules state that only the amount consumed may be included as fuel costs, SPS has adopted inventory accounting for these chemicals. As the chemicals are purchased, the inventory account is increased, and consumption of the chemicals reduces the inventory account. SPS expenses the 23 amount consumed for recovery in the fuel mechanism. SPS has made an Blair Direct Revenue Requirement Page 24 RR16 - Page 80 of 426 07495
1 adjustment to include the environmental consumable chemical inventory balance 2 in rate base. Accordingly, I took the environmental consumable chemical 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 inventory amounts for June through October 2014 and annualized that average to arrive at a 13-month average. I compared this 13-month average to the Test Year Inventory balance for an adjustment of $70,150 (total company), which appears on page 37, line 119, and page 75 of Attachment DAB-RR-2. 6. Elimination of Prepayment Amounts Q. What adjustments did you make to Prepayments? A. I made adjustments to Prepayments totaling $7,382,038 (total company), which appear on page 38, lines 125 through 133, of Attachment DAB-RR-2. Adjustments made include prepayments related to short-term debt, brand advertising, energy efficiency prepayments, and income taxes. Q. Please discuss the adjustment for short-term debt fees. A. As explained by Ms. Schell, SPS does not include short-term debt in its capital structure. Therefore, I have eliminated from the cost of service all prepayments associated with SPS s line of credit. Q. Why did you eliminate prepayments related to brand advertising? A. The costs that exceed the contributions and donations cap in P.U.C. SUBST. R. 25.231 include brand advertising costs. Accordingly, I eliminated the prepayments associated with SPS s brand advertising. Blair Direct Revenue Requirement Page 25 RR16 - Page 81 of 426 07496
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Why did you eliminate the energy efficiency prepayments? A. P.U.C. SUBST. R. 25.181(f)(4) provides that no energy efficiency costs can be included in base rates. Thus, I removed the prepayments associated with SPS s energy efficiency program. Q. Why did you eliminate the income tax prepayment? A. The income tax prepayment is an accounting entry and does not require any outof-pocket costs for SPS. Therefore, it is not appropriate for SPS to include that amount in rate base and earn a return on it. Q. Did you eliminate any other prepayments? A. Yes. I eliminated two other prepayments that are non-recurring in future periods. I eliminated a prepaid safety award and a transmission prepayment (labeled Other Prepaid TU ). The amount recorded as a transmission prepayment was an accounting error that was reversed in the next month. Adjustments were made to eliminate these two prepayments, which together total $50,367 (total company), as shown on Attachment DAB-RR-2, page 38, lines 127 and 128. 7. Elimination of Regulatory Assets Q. What regulatory assets have you removed from rate base? A. As reflected on page 38, lines 137, 141, and 145 of Attachment DAB-RR-2, I eliminated three types of regulatory assets from rate base: Regulatory assets of approximately $8.5 million (total company) related to energy efficiency and Interruptible Credit Option ( ICO ) costs; Regulatory assets of approximately $19.9 million (total company) related to Renewable Energy Credit ( REC ) costs; and Regulatory assets of approximately $7.5 million (total company) related to deferred pension and Other Post-Employment Benefit ( OPEB ) costs. Blair Direct Revenue Requirement Page 26 RR16 - Page 82 of 426 07497
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 SPS s request to recover these regulatory assets is based on the parties agreement in SPS s most recent base rate case, Docket No. 42004, 3 and on the Commission s orders in SPS s two prior base rate cases, which were Docket Nos. 40824 4 and 38147. 5 Mr. Evans presents SPS s request for amortization periods for these regulatory assets. Q. If the Commission does not approve the requested amortization periods for those regulatory assets, do you have an alternative request? A. Yes. If the Commission determines that the regulatory assets should be amortized for periods longer than the periods SPS has requested, SPS proposes that the regulatory assets be included in rate base, and that SPS earn a return of and on those assets until they are fully amortized. Q. Have you included any regulatory assets in rate base? A. Yes. I have included in rate base a regulatory asset associated with the cost of meters related to the Texas restructuring rulemaking. SPS incurred those costs in preparation for deregulation and restructuring, but the Legislature subsequently decided that SPS s service area would not be subject to retail competition. The Commission approved SPS s recovery of that regulatory asset in Docket No. 3 As explained in Mr. Evans s testimony, the stipulation in Docket No. 42004 was non-unanimous. After an evidentiary hearing and briefing on the justness and reasonableness of the settlement, the State Office of Administrative Hearing Administrative Law Judges recommended that the Commission find that the settlement is just, reasonable, and in the public interest. Application of for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for the Period July 1, 2012 Through June 30, 2013, Docket No. 42004, Proposal for Decision (Oct. 30, 2014). The Commission will consider that recommendation at the December 18, 2014 open meeting, which is after the date on which this base rate case application is being filed. 4 Application of for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for the Period January 1, 2010 to June 30, 2012, Docket No. 40824 (Jun. 19, 2013). 5 Application of for Authority to Change Rates and to Reconcile Fuel and Purchased Power Costs for 2008 and 2009, Docket No. 38147, (Mar. 25, 2011). Blair Direct Revenue Requirement Page 27 RR16 - Page 83 of 426 07498
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25088 and authorized recovery of the costs over a 20-year period beginning in 2002. 6 The Test Year amount is $279,186 (total company), all of which is assigned to the Texas retail jurisdiction, as shown on Attachment DAB-RR-2, page 8, line 207. 8. Adjustments to ADIT Balance Q. How does SPS account for income taxes? A. As discussed in more detail by SPS witness Christopher A. Arend, SPS uses the tax normalization method to account for income taxes. Tax normalization refers to the practice of providing deferred taxes on all book/tax timing differences. Timing differences are transactions that affect book income and taxable income in different periods. This issue arises because taxes are not always required to be paid by a utility at the same time the tax obligation is incurred. In contrast, flowthrough is the accounting method which, for ratemaking purposes, provides for income tax expense currently payable to be included as cost of service income tax expense for the period, and deferred income taxes are not recorded. The classic example of a timing difference is related to depreciation expense, which is recorded on a straight-line basis for financial reporting purposes. For tax purposes, however, depreciation is accelerated, which reduces current taxes by the value of the accelerated depreciation deduction multiplied by the tax rate. The difference between the accelerated deduction used for tax purposes and the straight-line depreciation used for financial reporting is multiplied by the tax rate, which results in recorded ADIT and a deferred tax 6 Application of to Recover Transition to Competition Costs Pursuant to Section 39.409 of the Public Utility Regulatory Act, Docket No. 25088 (May 14, 2002). Blair Direct Revenue Requirement Page 28 RR16 - Page 84 of 426 07499
1 2 3 liability. For the purpose of setting rates, the cost of service study includes both the current income tax expense and the ADIT balance, but the ADIT balance is applied as a reduction to rate base, which gives customers credit and a reduction 4 in rates. The reduction in rates reflects SPS s use of taxes that have been 5 6 7 8 collected from customers but that are not due and payable in SPS s current taxes. Q. Has this Commission adopted the use of tax normalization for ratemaking purposes? A. Yes. The Commission requires utilities to use the full tax normalization method 9 for calculating income taxes in the cost of service. 7 In addition, the normalization 10 11 12 13 14 15 method of accounting is provided for as comprehensive inter-period income tax allocation in General Instruction 18 of the FERC Uniform System of Accounts, which has been adopted by the Commission for use by utilities such as SPS. 8 Q. What is bonus tax depreciation? A. Bonus tax depreciation is the result of provisions in federal tax laws that allow SPS to deduct either 50% or 100% of qualifying capital investments in the first 16 year an investment is placed in service. In the case of the 50% bonus 17 18 19 20 depreciation, the remaining 50% is depreciated for tax purposes using the existing accelerated depreciation schedules. Both the bonus tax depreciation deductions and the existing accelerated depreciation deductions are normalized for accounting and ratemaking purposes. 7 See P.U.C. SUBST. R. 25.231(b)(1)(D). 8 See P.U.C. SUBST. R. 25.72. Blair Direct Revenue Requirement Page 29 RR16 - Page 85 of 426 07500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Q. Has SPS s use of bonus depreciation provided benefits to the customers? A. Yes. SPS s use of bonus depreciation has led to substantial reductions in SPS s rate base. Q. Has tax normalization become more complex as a result of bonus tax depreciation? A. Yes. SPS must determine if the bonus tax depreciation results in more tax deductions than SPS can currently use. In other words, SPS must calculate if there are more deductions than net income, which results in a tax Net Operating Loss ( NOL ). If SPS is in an NOL position, a deferred tax asset is created and included in rate base to offset the ADIT balances. SPS made those calculations for the Test Year and concluded it did not have operating losses in the Test Year, and thus it is not in an NOL position for the Test Year. However, SPS did have NOLs in prior years, resulting in a NOL accumulated deferred tax asset balance at the beginning of the Test Year, and SPS did not have enough income in the Test Year to unwind this balance. Therefore, there is a NOL accumulated deferred tax asset balance at the end of the Test Year. In other words, the NOL accumulated deferred tax asset balance declined from the beginning of the Test Year to the end of the Test Year by $14.6 million, resulting in an $8,273,909 balance as of June 30, 2014, as shown on Attachment DAB-RR-2, page 10, lines 253 and 254. Q. Please describe the basis for the ADIT balances included in rate base in this case. A. The ADIT balance included in rate base consists of both plant- and non-plantrelated items booked to FERC Accounts 281, 282, 283, and 190. The plant- Blair Direct Revenue Requirement Page 30 RR16 - Page 86 of 426 07501
1 2 3 4 5 6 related ADIT balance is primarily due to the book-tax timing difference relating to depreciation. The non-plant ADIT balance is primarily due to the book-tax timing differences relating to pensions and benefits and other non-depreciation related items. I have detailed the ADIT balance by each non-plant income tax addition/deduction (also known as Schedule M items ), and I have functionalized the plant-related ADIT items. The details of the non-plant ADIT 7 balances are presented on Attachment DAB-RR-2, page 9 through 11. In 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 addition, I have also presented the corresponding deferred income tax expense and additions and deductions to current income taxes for both plant and non-plant related items consistent with the ADIT balances. Q. Please discuss the adjustments to the ADIT balance included in rate base. A. I made several adjustments to the ADIT balance included in rate base in the cost of service study presented in this case. First, I adjusted the plant-related ADIT balances to reflect the impact that the adjustment to accumulated depreciation reserve for unblending the depreciation had on deferred taxes to reflect the Texas-approved depreciation rates. Second, I eliminated from the ADIT all remaining balances related to the sale of certain transmission assets to Sharyland Distribution and Transmission Services, LLC ( Sharyland ). Third, I adjusted the entire ADIT balances to reflect only the federal income tax rate of 35%, thereby removing any state income tax effects. Fourth, I adjusted the ADIT balances for the post-test Year plant adjustments and the reclassification of electric meters and line transformers, as Blair Direct Revenue Requirement Page 31 RR16 - Page 87 of 426 07502
1 2 3 4 5 6 7 8 9 previously discussed. In addition, I made an incremental adjustment to reflect the ADIT at December 31, 2014 at the federal income tax rate of 35%. As previously discussed, an adjustment was made to adjust the ADIT balances at June 30, 2014 to reflect only the federal income tax rate of 35%. An additional adjustment was required for the ADIT balances at December 31, 2014 to also be included at the federal income tax rate of 35%. Fifth, I eliminated from ADIT all balances that are related to items not included in the cost of service. For example, I eliminated the ADIT balances associated with: 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 unbilled revenue; deferred fuel and purchased energy costs associated with the fuel factor; fuel refunds/surcharges; regulatory liabilities associated with other state or federal jurisdictions; deferred compensation and performance share plans; non-utility plant; federal and state NOL balances; deferred energy efficiency costs associated with the Energy Efficiency Cost Recovery Factor ( EECRF ); ICO costs; deferred RECcosts applicable to the New Mexico retail jurisdiction; and taxes applicable to states other than Texas. 25 26 Because the costs that generated these deferred taxes are not part of the cost of service, the associated deferred tax balances must be excluded as well. Blair Direct Revenue Requirement Page 32 RR16 - Page 88 of 426 07503
1 2 3 4 Finally, I eliminated ADIT balances associated with FAS No. 109, Accounting for Income Taxes. The deferred taxes created by FAS 109 are recorded as both deferred tax assets (FERC Account 190) and deferred tax liabilities (FERC Account 282). These deferred taxes have equal and offsetting 5 regulatory asset and liability accounts on SPS s balance sheet. Because the 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 regulatory assets and liabilities are not included in rate base, the deferred taxes must also be eliminated. Details of the adjustments to the ADIT balances are shown on pages 38 and 39 of Attachment DAB-RR-2. 9. Pension Assets and Liabilities Q. How have you treated SPS s prepaid pension asset and the liabilities associated with FAS 106 and FAS 112 in the cost of service study? A. As discussed by SPS witness Richard R. Schrubbe, SPS has included the prepaid pension asset in rate base, as shown on page 8, line 182 of Attachment DAB-RR- 2. Similarly, and consistent with the treatment of the prepaid pension asset in rate base, I have included the liabilities associated with FAS 106 and FAS 112 in rate base. The inclusion of the FAS 106 liability in rate base reduces rate base by $17.4 million (total company), and the inclusion of the FAS 112 liability reduces rate base by $2.3 million (total company), as shown on page 11, lines 322 and 323 of Attachment DAB-RR-2. B. Cash Working Capital Q. Please describe cash working capital included in rate base. A. Cash working capital is the amount of investor-supplied capital necessary to finance cost of service expenses between the time the expenditures are required to Blair Direct Revenue Requirement Page 33 RR16 - Page 89 of 426 07504
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 provide the service to customers and the time cash is received for that service. To determine the allowance of cash working capital, the Commission has traditionally accepted the use of a lead-lag study, per P.U.C. SUBST. R. 25.231(c)(2)(B)(iii)(IV). Q. Did SPS prepare the lead-lag study that is used to derive the cash working capital amount in rate base in this case? A. Yes. SPS prepared a new lead-lag study for this case based on data from the Test Year. A summary of the lead lag study is attached as Attachment DAB-RR-3. Q. Please describe a lead-lag study. A. A lead-lag study is a method used to measure the amount of working capital required to finance a utility s day-to-day operations. There are two parts in a lead-lag study. First, the utility must calculate the expense lead based on an extensive and detailed study of the payment practices for each cash expense. That is done primarily by determining the service period when goods or services are received by the utility and when the expense is paid. Depending on the number of records, statistical sampling can be used to determine the expense lead. Second, the utility must calculate the revenue lag, which is the time between the mid-point of the service period to the date on which the utility receives payment from the customer. Depending on the number of customers, statistical sampling can be used to determine the revenue lag. The expense lead is then subtracted from the revenue lag to determine the number of days until the utility is compensated for its expense. This net number of days is converted to an annual number by dividing by 365 days, which is referred to as the cash working capital factor. The Blair Direct Revenue Requirement Page 34 RR16 - Page 90 of 426 07505
1 2 cash working capital factor is multiplied by the corresponding Test Year expense items and is an addition to rate base if it is positive or a subtraction from rate base 3 if it is negative. A negative cash working capital factor indicates that SPS 4 5 6 7 8 receives revenue before it pays expenses. Q. What cash expense items are included in the expense lead calculation you performed? A. The following cash expense items have been included in the expense lead calculation: 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Coal costs, including freight for steam production; Natural gas for other power generation; Oil for electric generation; Purchased power; Labor regular pay O&M expense; Labor incentive pay O&M expense; Non-labor O&M expense; Property taxes; Payroll taxes; Sales and use taxes; Municipal franchise fees; Texas gross margins (franchise tax) taxes; Texas miscellaneous gross receipts taxes; and Federal income taxes. Blair Direct Revenue Requirement Page 35 RR16 - Page 91 of 426 07506
1 2 3 4 5 6 7 8 9 10 11 12 13 14 Q. Please discuss in more detail the procedures used to determine the expense lead. A. The expense lead is the average number of days from the time of service to the date SPS payment for the service to the vendor clears the bank. The expense lead for each invoice is the difference between the number of days it takes for SPS s payment to the vendor to clear the bank and the mid-point date of each invoice s service period. In addition, expense lead days are weighted by the amount of the invoices. SPS used statistical sampling to determine the expense lead for the natural gas for other power generation, purchased power, and nonlabor O&M cash working capital expense categories. SPS followed a statistical sampling method that allowed for confidence intervals of 90% for expense leads. For each sample group, all of the invoice service dates and payment dates were reviewed. SPS reviewed all coal and freight costs for steam production and oil for electric generation invoices to determine the expense lead for these cash 15 working capital expense categories. Service dates and payment dates were 16 17 18 19 20 21 22 gathered for the O&M labor, the incentive compensation O&M labor, and the various tax cash working capital expense categories. A detailed description of the process used to develop the cash working capital expense lead factors is included in Attachment DAB-RR-3. Q. Please discuss in more detail the procedures used to determine the revenue lag. A. The revenue lag is the average number of days from the time of service to the date 23 on which SPS receives payment from the customer. The revenue lag is Blair Direct Revenue Requirement Page 36 RR16 - Page 92 of 426 07507
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 determined by calculating the collection lag, which is the number of days it takes for the customers to pay their bills from the mid-point date of the service period, and adding an additional half day to account for the posting of the customer receipts to SPS s bank account. An average lag day value for each rate group was calculated and weighted with that group s percent of total revenue. The revenue lag was calculated using data from SPS s customer billing system. SPS used statistical sampling for the customers billed on rate schedules with 1,200 or more customers, and it used 100% sampling for the customers on rate schedules with fewer than 1,200 customers. SPS followed a statistical sampling method that allowed for confidence intervals of 95 % for revenue lag. A revenue lag was calculated for each invoice. A detailed description of the process used to develop the cash working capital revenue lag factors is provided in Attachment DAB-RR-3. Q. What are the resulting lead-lag factors SPS has calculated for use in calculating cash working capital in this case? A. The lead-lag study results are presented in RFP Schedule E-4. The resulting cash working capital amount is ($10,788,103) (Texas retail), as reflected on page 7, line 179, and page 33, line 28 of Attachment DAB-RR-2. C. Jurisdictional Allocation of Rate Base Items Q. After arriving at the rate base balances for the various FERC accounts, did you jurisdictionalize those balances? A. Yes. As I discussed in an earlier section, after the costs are quantified, it is necessary to assign or allocate them among SPS s rate jurisdictions. Some are Blair Direct Revenue Requirement Page 37 RR16 - Page 93 of 426 07508
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 allocated to all three jurisdictions; some are allocated to just the two retail jurisdictions; and other balances are directly assigned to a single jurisdiction. Q. Please describe the types of rate base items that are assigned to SPS s two retail jurisdictions. A. The rate base items that are assigned to the two retail jurisdictions are the customer resource system ( CRS ) and the call center. Q. Please explain why those are assigned to the retail jurisdictions. A. The CRS is not used to bill any of SPS s wholesale customers, but instead is used solely to bill SPS s retail customers. To bill its wholesale customers, SPS uses an accounts receivable module within the general ledger system, J.D. Edwards, and a portion of that system is already being allocated to the wholesale customers. Likewise, SPS s wholesale customers do not benefit from or use the call centers. Instead, these large customers deal with account representatives, who are not call center employees. Because the wholesale jurisdiction does not benefit from either the CRS or the call center, the costs associated with those are allocated between only the retail jurisdictions served by SPS. Q. Were any rate base items direct-assigned to SPS s retail jurisdictions? A. Yes. I assigned several rate base items directly to SPS s retail jurisdictions. Those items include radial transmission lines, customer deposits, and customer advances for construction. In addition, I directly assigned distribution assets to the Texas or New Mexico retail jurisdiction where possible, and I directly assigned certain regulatory assets. Blair Direct Revenue Requirement Page 38 RR16 - Page 94 of 426 07509
1 2 3 4 5 6 7 8 9 Q. Why were customer deposits and customer advances for construction directly assigned? A. SPS records customer deposits and customer advances for construction balances by location. These costs are specific to the customers in either Texas or New Mexico and therefore were directly assigned. Q. Please discuss the direct assignment of transmission facilities that are included in the cost of service. A. Under the Southwest Power Pool ( SPP ) Regional Open Access Transmission Tariff ( OATT ), each transmission owner is required to determine which of its 10 facilities qualify as Transmission Facilities as defined in Attachment AI. 9 The 11 12 13 14 15 16 17 18 19 20 SPP definition of Transmission Facilities in Attachment AI to the SPP OATT requires SPS to analyze the way it allocates the costs of certain facilities that do not meet the SPP definition of Transmission Facilities. Accordingly, SPS has performed a systematic review of all of its transmission lines and has made a determination as to which facilities should be included in the cost of service as transmission facilities and which facilities should be directly assigned to SPS retail loads or wholesale customers. SPS has directly assigned specific radial transmission lines to the applicable SPS retail jurisdictions and wholesale transmission customers consistent with Attachment AI criteria in the cost of service presented in this case. 9 SPP OATT, Attachment AI IV; see also Southwest Power Pool, Inc., 112 FERC 61,355 at P 62 (2005) (establishing effective date for applicable tariff sheets and the requirement to determine which facilities are Transmission Facilities ), order granting clarif., 114 FERC 61,242 (2006). Blair Direct Revenue Requirement Page 39 RR16 - Page 95 of 426 07510
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Q. Is the direct assignment of these items to specific jurisdictions or the allocation to retail jurisdictions consistent with how SPS jurisdictionalized them in its last rate case? A. Yes. The practice of direct assigning these items is consistent with SPS s practice in its 2014, 2012, 2010, 2008, and 2006 base rate cases, which were Docket Nos. 42004, 40824, 38147, 35763, 10 and 32766, 11 respectively. Q. Has SPS changed the jurisdictional allocators for any of the items in the cost of service? A. Yes, SPS has made two changes to jurisdictional allocations. First, SPS changed the jurisdictional allocator for the intangible and general plant, along with the related costs (e.g., accumulated reserve for depreciation, ADIT, depreciation expense, etc.,) from Plant in Service Production, Transmission and Distribution (PIS-PTD) to Labor Excluding Administrative and General Expense (LABXAG). This change is consistent with how SPS allocates these same costs in its FERC-approved formula rates. Second, SPS changed the jurisdictional allocator for fuel inventory from the 12 Coincident Peak - Production (12CP-PROD) to Energy because fuel is generally allocated in accordance with sales. 10 Application of for Authority to Change Rates, to Reconcile Fuel and Purchased Power Costs for 2006 and 2007, and to Provide a Credit for Fuel Cost Savings, Docket No. 35763 (Jun. 1, 2009). 11 Application of for Authority to Change Rates; Reconciliation of its Fuel Costs for 2004 and 2005; Authority to Revise the Semi Annual Formulae Originally Approved in Docket No. 27751 Used to Adjust its Fuel Factors; and Related Relief, Docket No. 32766 (Jul. 27, 2007). Blair Direct Revenue Requirement Page 40 RR16 - Page 96 of 426 07511
1 2 3 4 5 6 D. Texas Retail Rate Base Q. What is the Texas retail jurisdictional rate base included in your revenue requirement after all of the adjustments and allocations discussed in this section of your testimony? A. The Texas retail jurisdictional rate base is $1,560,042,382, as reflected on page 11, line 329 of Attachment DAB-RR-2. Blair Direct Revenue Requirement Page 41 RR16 - Page 97 of 426 07512
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 VI. FUEL AND PURCHASED POWER EXPENSE Q. Did you make any adjustments to fuel and purchased power energy expense? A. Yes. I made several adjustments to fuel and purchased power energy expense. First, I eliminated all fuel and purchased power energy-related expenses, which include steam power fuel costs (gas, oil, and coal), other power fuel costs (gas and oil), purchased power energy costs, and deferred fuel and purchased power energy costs. Those adjustments appear on page 40 of Attachment DAB-RR-2. SPS s base rates do not include any fuel expense or purchased power energy expenses, as these are recovered through the fuel factor mechanism. SPS s base rates do recover certain purchased power capacity and purchased power variable O&M costs, which I will discuss later. Second, I reclassified to O&M certain expenses that are recorded in fuel accounts but that are not recovered through the fuel factor, including: (i) labor expenses that were recorded in FERC Accounts 501, Steam Production Fuel; and (ii) other expenses that were recorded in FERC Account 565, Transmission of Electricity by Others. These expenses are recovered in base rates and have been reclassified to operating expense, as shown on Attachment DAB-RR-2, page 40, line 3 and page 41, line 98. Q. Did you make any adjustments to purchased power capacity and purchased power variable O&M expenses? A. Yes. I made several adjustments to purchased power capacity and purchased power variable O&M for purchased capacity expense. First, I have continued the practice of recovering purchased power variable O&M expense in base rates, consistent with SPS s practice in its prior base rate cases. Blair Direct Revenue Requirement Page 42 RR16 - Page 98 of 426 07513
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Second, I adjusted Test Year purchased power capacity and purchased power variable O&M costs discussed by SPS witness Jeffrey C. Klein to reflect: 1. the known, contractual price changes that will occur in 2014 and 2015; 2. the elimination of contracts that expired during the Test Year and that will expire prior to the rate year; and 3. the new contracts that took effect after the end of the Test Year but will be in effect by the rate year. The adjustments are detailed on page 40, lines 24 through 26, of Attachment DAB-RR-2. Q. What is the dollar amount of the Texas retail purchased power capacityrelated and variable O&M costs reflected in the cost of service? A. The Texas retail portion of purchased capacity and variable O&M expenses included in base rates is $66,026,197, as shown on page 13, line 48 of Attachment DAB-RR-2. Blair Direct Revenue Requirement Page 43 RR16 - Page 99 of 426 07514
1 2 3 4 VII. NON-FUEL EXPENSES A. Labor O&M Expenses Q. What topics do you discuss in this section of your testimony? A. I discuss the adjustments to labor O&M expense, which consist of: 5 6 7 8 9 10 11 the annualization of labor expense and known and measurable adjustments to that expense; the reduction of annual incentive compensation amounts to match targets; and the elimination of the financial-based component of long-term incentive costs. 1. Employee Wages 12 13 14 Q. Please describe the adjustments for employee wages. A. I started with total company per book payroll expense for the Test Year and made several adjustments to add or remove expenses associated with items such as: 15 16 17 18 the Xcel Energy Foundation; wholesale managers; business area adjustments; and costs recovered through the EECRF. 19 20 21 22 23 After deriving the adjusted per book labor costs, I made two additional adjustments. First, I annualized the Test Year amount of employee wages by taking the three-month total of employee wages from April through June 2014 and multiplying it by four to arrive at an annual amount of employee wage expense as of the end of the Test Year. Blair Direct Revenue Requirement Page 44 RR16 - Page 100 of 426 07515
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. Why did you use the three-month period from April through June of 2014? A. I chose that three-month period because it included both the Test Year bargaining employee wage increase, which occurred in November 2013, and the Test Year nonbargaining employee wage increase, which occurred in March 2014. Q. What effect did the annualization have on base labor costs? A. It increased labor costs by $5,088,752 (total company). That amount is the sum of the amounts on page 108, line 275, and page 143, line 273 of Attachment DAB-RR-2. Q. What was the second adjustment that you made to employee wages? A. I made an adjustment to incorporate the known and measurable wage increases that SPS and XES employees will receive between the end of the Test Year and the date on which the rates set in this case take effect. Bargaining employees likely will receive a wage increase effective in November 2014 as a result of labor contract negotiations and arbitration, and non-bargaining employees will receive a wage increase in March 2015. Q. How did you calculate the known and measurable wage adjustment? A. I first divided employees into two groups XES employees and SPS employees. All XES employees are non-bargaining employees. As discussed by SPS witness Jill H. Reed, SPS has budgeted that the bargaining unit employees will receive a 3.0% wage increase in November 2014, and the non-bargaining employees will receive a 3.0% wage increase on March 15, 2015. I applied the same 3.0 percentage increase to all SPS employee payroll costs. Blair Direct Revenue Requirement Page 45 RR16 - Page 101 of 426 07516
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. What effect did the second known and measurable adjustment have on base labor costs? A. It increased labor costs by $3,140,852 (total company), as shown on page 164, line 275 of Attachment DAB-RR-2. Q. What is the total of the two wage adjustments on base labor costs? A. The amount is $8,229,604 (total company). 2. Annual Incentive Compensation Q. Please describe the adjustment for annual incentive compensation. A. I first changed the per book expense amounts to reflect the adjustments I described in the previous subsection. The remaining annual incentive compensation associated with the adjusted per book amounts exceeded the targeted amounts. Therefore, I eliminated the portion of the annual incentive compensation that exceeded the target. This adjustment was made by FERC account so that the proper jurisdictional allocation could be made. The total incentive compensation adjustment is a net decrease in O&M expenses of $1,302,415 (total company), as shown on Attachment DAB-RR-2, page 185, line 275. Q. Did you make any other adjustments to annual incentive compensation? A. Yes. I removed all of the incentive compensation that relate to financial goals. That is an adjustment net decrease of $959,219 (total company), as shown on page 192, line 275 of Attachment DAB-RR-2. Q. What is the total of the two incentive pay adjustments on base labor costs? A. The amount is a decrease of $2,261,634 (total company). Blair Direct Revenue Requirement Page 46 RR16 - Page 102 of 426 07517
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 3. Long-Term Incentive Compensation Q. Please describe the adjustments that you made to remove long-term incentive compensation. A. For the reasons discussed by SPS witness Ms. Reed, I have eliminated long-term incentive compensation from the cost of service. The adjustment for both SPS and XES employees totals $2,003,694; however, $1,308,488 was eliminated through the business area adjustments that I discuss later in my testimony, resulting in a net adjustment of $695,206 (total company), as shown on Attachment DAB-RR-2, page 231, line 11. The adjustment is made to FERC Account 920, Administrative and General Salaries. 4. Net Labor Adjustments Q. Please summarize the effect of the labor O&M adjustments that you have discussed in this section of your testimony. A. Table DAB-RR-2 summarizes the effects of the labor adjustments: Table DAB-RR-2 Adjustment Amount Wage Adjustment Annualization Wage Adjustment Wage Increases $5,088,752 $3,140,852 Annual Incentive ($2,261,634) Long-Term Incentive ($695,206) Total $5,572,764 Blair Direct Revenue Requirement Page 47 RR16 - Page 103 of 426 07518
1 2 3 4 B. Production O&M Expense Q. Have you made any adjustments to production O&M expense? A. Yes. In addition to the labor expense adjustments I discussed in the prior section, I have made the following adjustments: 5 6 7 8 9 10 11 Reflected corrections to accounting entries; Increased fuel handling charges to capture contractual increases; Eliminated environmental consumable expenses; Eliminated NO X and SO 2 allowance expenses; Adjusted REC expenses to reflect the methods by which SPS proposes to recover those expenses; and Eliminated expenses associated with trading operations. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I will address each of these adjustments in the following subsections. 1. Accounting Corrections Q. What adjustments did you make to production O&M expense for accounting corrections? A. I made adjustments to production O&M expense and other functional O&M expenses for accounting corrections in the Test Year. Each of the business area witnesses (the witnesses who support XES charges to SPS) reviewed the costs from his or her business area and identified costs that were charged to SPS in error. I have included adjustments for all of these amounts and identified them as business area reclassifications. These adjustments, which were made by FERC account so that the proper jurisdictional allocation could be made, are shown on pages 193 through 213 of Attachment DAB-RR-2. The total impact of all of these reclassification entries is a net decrease to O&M expense of $2,012,570 (total company), as shown on Attachment DAB-RR-2, page 213, line 275. Blair Direct Revenue Requirement Page 48 RR16 - Page 104 of 426 07519
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2. Fuel-Related O&M Expense Q. Please describe the adjustment to fuel handling expense. A. I made a known and measurable change to the Test Year level of costs charged to SPS by TUCO Inc. ( TUCO ) for supplier margins based on calendar year 2015 contract increases for this item. The amount of the adjustment was $40,117 (total company), as shown on Attachment DAB-RR-2, page 214, line 15. SPS witness H. Craig Romer discusses the change in more detail in his revenue requirement testimony. 3. Environmental Consumables Q. Please describe the adjustment to eliminate the environmental consumable chemicals expense. A. I eliminated the amount of environmental consumable chemicals expensed in the Test Year cost of service because those costs are now recoverable through the fuel recovery mechanism, instead of base rates, as I discussed previously in my testimony. The amount removed from the cost of service was $127,083, which is reflected on page 215, line 3 of Attachment DAB-RR-2. 4. NO X and SO 2 Allowance Expenses Q. Please describe the adjustment to eliminate NO X and SO 2 allowance expense. A. I eliminated the amount of NO x and SO 2 allowance expenses included in the Test Year cost of service because those costs are recoverable through the fuel recovery mechanism, instead of base rates. The amount removed from the cost of service was $1,275, which is reflected on page 41, line 105 of Attachment DAB-RR-2. Blair Direct Revenue Requirement Page 49 RR16 - Page 105 of 426 07520
1 2 3 4 5. REC Costs Q. What treatment of RECs did the parties agree to in Docket No. 42004? A. With respect to the treatment of RECs, the parties in Docket No. 42004 agreed, among other things, that: 5 6 7 8 9 10 11 12 The price of Texas-generated RECs would decrease from $2.55/MWh to $1.10/MWh effective June 1, 2014; SPS would end the REC tracker approved in Docket No. 38147 on June 30, 2013, and it would amortize the $9.9 million tracker balance as of that date over 42 months starting on September 1, 2013; and If SPS files for rate relief prior to the end of the 42-month REC amortization period, it may include any unamortized REC expense balance in its request for relief. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Q. What treatment of RECs is SPS proposing in this case? A. As discussed by SPS witness Ruth M. Sakya, SPS is proposing to continue the amortization of the $9.9 million REC tracker balance over a 42-month period. With the inclusion of interest, that produces an annual REC tracker amortization expense of $2,849,222, as shown on Attachment DAB-RR-2, page 217. The $9.9 million REC tracker balance was based on a projected balance at June 30, 2013 in Docket No. 40824. As discussed by Ms. Sakya, true-ups and reductions to the REC tracker balance have occurred since, and an adjustment is needed to adjust the REC tracker balance amortization, as shown on Attachment DAB-RR-2, page 218. In addition, SPS is proposing to change the price of bundled RECs from $1.10/MWh to $0.95/MWh, and to continue valuing unbundled RECs at $5.00/MWh per the contract. When those values are multiplied by the expected net annual generation from Texas wind facilities, it produces ongoing REC costs of $3,296,681, as shown on page 216 of Attachment DAB-RR-2. The sum of the Blair Direct Revenue Requirement Page 50 RR16 - Page 106 of 426 07521
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 REC tracker amortization amount and the ongoing REC costs is $5,800,373, which I have used as the Texas retail amount for REC costs in the cost of service. See page 43, lines 232 through 234, of Attachment DAB-RR-2. 6. Trading Organization Q. Please discuss the adjustment for expenses associated with the trading organization. A. SPS gives its Texas retail customers the benefit of the first $400,000 (Texas retail) in net margins by reducing the Texas retail revenue requirement by that amount. SPS is proposing to maintain this practice. Therefore, I have made an adjustment to remove $400,000 from FERC Account 557, as shown on page 43, line 235 of Attachment DAB-RR-2. The adjustment was directly assigned to the Texas retail jurisdiction. C. Transmission O&M Expense Q. Have you made any adjustments to transmission O&M expense? A. Yes. In addition to the labor adjustments and the accounting correction adjustments discussed in prior sections of my testimony, I have made adjustments to the following elements of transmission O&M expense: 18 19 20 21 22 SPP administrative fees; reclassification of transmission costs from fuel costs; wheeling expense; and elimination of O&M costs associated with the sale of transmission assets to Sharyland. Blair Direct Revenue Requirement Page 51 RR16 - Page 107 of 426 07522
1 2 3 4 5 6 7 8 9 10 11 1. SPP Administrative Fees Q. Please describe the adjustments for SPP administrative fees. A. I include the adjustments that SPS witness Arthur P. Freitas made to transmission O&M expense related to the SPP administrative fees. Those adjustments include elimination of SPP administrative fees associated with wholesale loads, as there is an offsetting revenue credit for these fees that has also been eliminated from the cost of service. I made that adjustment to FERC Accounts 561.4, Transmission Scheduling, System Control and Dispatch Services; 561.8, Transmission Reliability Planning and Standards Development Services; and 575.7, Regional Market Facilitation, Monitoring and Compliance Services. Second, I included the adjustment for a known and measurable change in 12 13 the rates charged by SPP for administrative fees. on page 219 of Attachment DAB-RR-2. These adjustments are shown 14 2. Reclassification of Fuel Costs 15 16 17 18 19 20 21 22 Q. Please describe the adjustment to reclassify costs that were booked as fuel costs to transmission O&M expense. A. As I previously mentioned, certain expenses were recorded in fuel-related expenses that are not recovered through the fuel factor, and therefore they should be reclassified to O&M expense to be recovered in base rates. I have reclassified $6,039 (total company) of SPP annual membership fees from fuel-related expenses to FERC Account 565, Transmission of Electricity by Others, as shown on page 45, line 356 of Attachment DAB-RR-2. Blair Direct Revenue Requirement Page 52 RR16 - Page 108 of 426 07523
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 3. Wheeling Expense Q. Did you also make adjustments for wheeling expense? A. Yes. I made the adjustments discussed by Mr. Freitas for wheeling expense. 4. Sharyland O&M Expense Q. Please describe the adjustments to eliminate O&M expense associated with the sale of transmission assets to Sharyland. A. I have eliminated outside services expenses, transaction costs and vegetation management costs recorded in transmission O&M and administrative and general expenses associated with the sale of transmission assets to Sharyland. I have made adjustments to FERC Accounts 566, Transmission Operations Miscellaneous; 571, Transmission Operations Overhead s; and 921, Administrative and General Office Supplies and Expense. These adjustments are shown on page 224 of Attachment DAB-RR-2. D. Regional Markets O&M Expense Q. Have you made any adjustments to regional markets O&M expense other than the labor-related adjustments, the accounting corrections, and the SPP administrative fee adjustments you discussed earlier? A. No. E. Distribution O&M Expense Q. Have you made any adjustments to distribution O&M expense other than the labor-related adjustments and accounting corrections you discussed earlier? A. No. Blair Direct Revenue Requirement Page 53 RR16 - Page 109 of 426 07524
1 2 3 4 5 F. Customer Operations Expense Q. Have you made any adjustments to customer operations expense other than the labor-related costs and the accounting corrections discussed earlier? A. Yes. In addition to the previously discussed adjustments to customer operations expense, I have eliminated the following costs from the cost of service: 6 7 8 9 10 Interest on customer deposits; Energy efficiency expense; ICO expense; and Expenses associated with wholesale account managers. 1. Customer Interest Expense 11 12 13 14 15 Q. Please describe the adjustment to customer operations expense for interest on customer deposits. A. As I previously discussed, SPS includes customer deposits as a reduction to rate base, whereas the interest paid on customer deposits is added to Customer Operations expense. The customer deposit interest rate used in this case is 0.09%, 16 which is the Commission-approved rate effective January 1, 2014. The 17 18 19 20 21 22 23 24 adjustment of $7,322 (total company) is shown on page 225, line 5, of Attachment DAB-RR-2. 2. Energy Efficiency Costs Q. How does SPS current recover energy efficiency costs? A. As discussed by SPS witness Shawn M. White, SPS recovers energy efficiency costs in a variety of ways. Since January 1, 2012, it has recovered current-period energy efficiency costs through the EECRF approved by the Commission. Before 2012, however, SPS was not subject to the EECRF statute and rule, and therefore Blair Direct Revenue Requirement Page 54 RR16 - Page 110 of 426 07525
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 it recovered energy efficiency costs in several ways. Not all of those costs from prior periods have been recovered, and therefore I have included amortized amounts in the cost of service. Saver s Switch costs continue to be recovered through base rates, however, and therefore they are not recovered through the EECRF. Q. Is SPS seeking to recover any of these energy efficiency expenses in future base rates? A. Yes. In Docket No. 35763, the parties agreed that SPS could recover energy efficiency expenses incurred as of December 31, 2008 over a ten-year period, with carrying costs to accrue at SPS s then-current cost of debt. And in Docket No. 38147, the parties agreed that SPS would be allowed to continue recovering the pre-2008 energy efficiency expenses in accordance with the Docket No. 35763 stipulation. SPS therefore seeks to recover the remaining portion of the pre-2008 energy efficiency expenses in accordance with the Docket No. 35763 stipulation and final order. For energy efficiency expenses incurred from January 1, 2010 through February 15, 2011, SPS created a tracker and recorded costs in a regulatory asset, as authorized by the stipulation and final order in Docket No. 38147. In Docket No. 42004, the parties agreed that SPS would be allowed to amortize those costs over 36 months, and that if SPS filed a new base rate case before the end of the amortization period, it would be allowed to include the unamortized amount in its rate request. The balance was $5,200,633 as of the end of the Test Year. Blair Direct Revenue Requirement Page 55 RR16 - Page 111 of 426 07526
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Did you make adjustments to the energy efficiency expense in the Test Year? A. Yes, I made several adjustments to the energy efficiency expense in the Test Year. First, I eliminated the Test Year amount of energy efficiency expense of $4,820,722, from the cost of service, as shown on page 49, lines 593 and 594 of Attachment DAB-RR-2. Second, I eliminated $5,577 of prior period EECRF costs from the cost of service recorded in FERC Accounts 908, Customer Assistance expense, 925, Administrative and General Injuries and Damages expense, 926, Administrative and General Pension and Benefits expense, and 931, Administrative and General Rent expense, as shown on page 230, lines 1 through 4 of Attachment DAB-RR-2. In addition, there are payroll taxes associated with the labor portion of these costs that have also been eliminated as I discuss later in my testimony. Finally, I added back the following amounts: 1. $1,155,696 to reflect one year s amortization of the pre-2008 expenses (Attachment DAB-RR-2, page 226, line 3); and 2. $367,685 to reflect carrying costs on the unamortized pre-2008 energy efficiency expense balance (Attachment DAB-RR-2, page 226, line 7). There is no adjustment for the EE tracker balance because the tracker balance is likely to be fully amortized before rates are effective in this case. Because all of these ongoing energy efficiency costs are for Texas programs, these amounts have all been directly assigned to the Texas retail jurisdiction. Q. Did you make any other energy efficiency-related adjustments to the cost of service? A. Yes, I made two additional adjustments associated with the ICO tariff. An adjustment was made to eliminate the historic ICO amortization of $521 (total Blair Direct Revenue Requirement Page 56 RR16 - Page 112 of 426 07527
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 company) and to include the actual Test Year level of ICO costs in the cost of service of $190,534 (total company). These adjustments were made to FERC Account 908, Customer Assistance expense, and are shown on page 49, lines 597 and 598, and page 227 of Attachment DAB-RR-2. 3. Wholesale Account Manager Costs Q. Why did you exclude costs attributable to wholesale account managers? A. I excluded $9,022 (total company) of costs attributable to wholesale account manager costs because wholesale account manager serve only wholesale customers, not retail customers. Accordingly, it is appropriate for all of the costs to be allocated to the wholesale jurisdiction. This adjustment is the remaining amount to eliminate the wholesale account manager costs after the business area adjustments were made. The adjustment was made to FERC Account 908, Customer Assistance expense; FERC Account 926, Administrative and General Pension and Benefits expense; and FERC Account 931, Administrative and General Rent expense. The adjustment amounts appear on page 229, lines 1 16 through 4 of Attachment DAB-RR-2. Wholesale manager costs that were 17 18 19 recorded in FERC Account 427, Other Deductions are not included in the cost of service, and therefore they are not included in the adjustment amounts noted above. Blair Direct Revenue Requirement Page 57 RR16 - Page 113 of 426 07528
1 2 3 4 4. Institutional and Informational Advertising Q. Have you included any informational and instructional advertising in the cost of service? A. Yes. The cost of service includes amounts SPS incurred for safety, conservation, 5 and customer program advertising. The advertisements and their costs are 6 7 8 9 10 11 12 included in Attachment DAB-RR-4. The advertising costs are recorded in FERC Account 909, and the amount of these advertisements is $506,941 (total company), as shown on page 18, line 284 of Attachment DAB-RR-2. G. A&G Expense Q. Did you adjust any A&G expense? A. Yes. In addition to the adjustments to labor O&M expense discussed in a prior section, I have made the following adjustments: 13 14 15 16 17 18 19 20 21 22 23 24 25 Eliminated costs associated with the Xcel Energy Foundation; Eliminated corporate aviation costs; Eliminated accounting corrections; Increased costs for the SPP letter of credit fee; Eliminated self-insured workers compensation costs; Eliminated FAS 88, Employers Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits costs; Increased total pension and benefits costs to reflect known and measurable changes; Included the amortization of deferred pension and OPEB costs; Increased costs for the 401(k) match costs; Increased costs for the Texas Commission Assessment fees; Blair Direct Revenue Requirement Page 58 RR16 - Page 114 of 426 07529
1 2 3 4 5 6 7 Adjusted the rate case expense amounts to include not only the rate case expenses expected to be incurred in this docket, but also the unamortized portion of rate case expenses from Docket Nos. 42004 and 40824; Eliminated costs for image and promotional advertising; and Adjusted the advertising, contributions, and donations, and membership dues. 1. Xcel Energy Foundation 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. Please describe the adjustments for the costs associated with the Xcel Energy Foundation. A. The Xcel Energy Foundation is a nonprofit corporation that makes contributions to nonprofit and other community organizations within the Xcel Energy service territories. A portion of the labor and other costs of the Foundation is charged to SPS. I have made an adjustment to eliminate the remaining $139,579 (total company) in Foundation costs booked to A&G expense in the Test Year, as a portion of these costs were already eliminated through the business area adjustments. The adjustment is shown on pages 233 through 235, lines 1 through 7 of Attachment DAB-RR-2. In addition, there are payroll taxes associated with the labor portion of these costs that have also been eliminated as I discuss later in my testimony. There are also Foundation costs that were recorded in FERC Account 426, Other Deductions that are not included in the cost of service, and therefore they are not included in the adjustment amounts noted above. 2. Corporate Aviation Q. Please explain the adjustment for corporate aviation expense. A. As discussed by Mr. Nygaard, I have made an adjustment include $60,910 (total 25 company) of corporate aviation costs in the Test Year. The adjustment to Blair Direct Revenue Requirement Page 59 RR16 - Page 115 of 426 07530
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 eliminate the remaining corporate aviation costs from A&G expense in the Test Year is $598,763 (total company), as shown on Attachment DAB-RR-2, page 232, lines 1 through 7. In addition, there are payroll taxes associated with the labor portion of these costs that have also been eliminated, as I discuss later in my testimony. 3. Accounting Corrections Q. Please explain the adjustment to eliminate accounting corrections to A&G expense. A. SPS recorded two accounting corrections in the Test Year that I have eliminated from FERC Accounts 920, Administrative Salaries, and 925, Injuries and Damages, as shown on Attachment DAB-RR-2, page 236. 4. SPP Letter of Credit Fee Q. Please explain the adjustment to increase the expenses associated with the SPP letter of credit fee. A. As discussed by SPS witness Thomas A. Imbler, I have made an adjustment to the Test Year level of expense for fees related to the letter of credit SPS posts for 17 participation in the SPP s Transmission Congestion Rights auction. An 18 19 20 adjustment of $301,243 (total company) has been made to FERC Account 921, A&G Office Supplies and Expense, as shown on Attachment DAB-RR-2, page 237, line 4. Blair Direct Revenue Requirement Page 60 RR16 - Page 116 of 426 07531
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 5. Self-Insured Workers Compensation Q. Please explain the adjustment to eliminate the self-insured workers compensation costs. A. As discussed by Mr. Schrubbe, I have made an adjustment to eliminate the negative expense of $271,725 (total company) from the Test Year, as no future claims are anticipated. The adjustment has been made to FERC Account 925, A&G Injuries and Damages, as shown on Attachment DAB-RR-2, page 238, line 2. 6. FAS 88 Q. Please discuss the adjustment to eliminate a one-time expense associated with termination benefits provided to an executive officer that recently retired. A. SPS made an adjustment of $198,918 (total company) to eliminate the expenses booked in compliance with the FAS 88. These expenses are associated with termination benefits provided to a certain executive officer that retired prior to the end of 2013. These are one-time expenses that have been eliminated. The adjustment to the Test Year is shown on Attachment DAB-RR-2, page 239. 7. Pension and Benefits Expense Q. Please explain the adjustment for pension and benefit expense. A. The Test Year amount of pension and benefit expense is based on the 2013 actuarial report for the first half of the Test Year (i.e., the last six months of 2013), and on the 2014 actuarial report for the second half of the Test Year (i.e., the first six months of 2014). The Test Year amount of active health care costs is $13,212,986 (total company), as shown on Attachment DAB-RR-2, page 240. As Blair Direct Revenue Requirement Page 61 RR16 - Page 117 of 426 07532
1 discussed by Mr. Schrubbe, two adjustments were made to the Test Year amount 2 of active health and welfare costs. First, an adjustment of $471,336 (total 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 company) was made to include claims incurred but not recorded in the Test Year. Second, an adjustment of $670,602 (total company) was made to adjust the amount of active health and welfare costs to reflect normal ongoing increases. The total adjustment to active health and welfare costs is an increase of $1,141,938 (total company), as shown on Attachment DAB-RR-2, page 240, line 6. Q. How did you calculate the adjustment for ongoing increases in health and welfare costs? A. Based on information provided by Mr. Schrubbe, I adjusted each of the amounts using two components: direct SPS costs and costs allocated to SPS from XES. For the direct costs, I totaled the Test Year amounts and then multiplied them by the percentage that will be expensed. I performed the same calculation for the XES charges, with the additional step of allocating the amounts to SPS. I then summed up the 2014 expense estimates and compared them to the Test Year actual expenses, with the difference being the adjustment to pension and benefits expense. 8. Deferred Pension and OPEB Q. Please describe the background regarding SPS s deferral of pension and OPEB costs. A. The stipulation in Docket No. 38147 allowed SPS to defer actual pension and OPEB costs above the amounts in base rates, except that the overall annual Blair Direct Revenue Requirement Page 62 RR16 - Page 118 of 426 07533
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 deferral amount was capped at $2.3 million in 2011 and $4.3 million in 2012 and subsequent years. Because SPS s actual pension and OPEB expenses exceeded the amounts in base rates by more than the caps in 2011 and 2012, SPS had a deferred balance of $6.6 million as of December 31, 2012. In the Docket No. 42004 stipulation, the signatories agreed that recovery of the pension and OPEB amounts deferred through December 31, 2012 of $6,690,007 is included in the base rate increase reflected in Section I of this Stipulation and will be amortized over a three-year period beginning on June 1, 2014. The signatories further agreed that if SPS files for rate relief before the end of the three-year amortization period, it may include any unamortized pension and OPEB balances in its request for relief. Finally, the signatories agreed that starting on June 1, 2014 the baseline for the pension and OPEB tracker is set at $9,338,000. Q. How much of the $6,690,007 balance as of December 31, 2012 will have been amortized when the rates set in this docket become effective? A. Based upon the assumption that the rates set in this docket will take effect on July 1, 2015, the unamortized amount of the $6,690,007 will be $4,274,171 (total 18 company). 12 SPS is requesting recovery of that amount in base rates. 19 20 21 Q. What was the amount of deferred pension expense in 2014? A. SPS deferred a net negative $690,662 of pension expense beginning from June 1, 2014 through December 31, 2014. Adding that to the $4,274,171 creates a total 12 The amount is calculated by the following steps: (1) $6,690,007 / 36 months = $185,834 per month; (2) the length of time between June 1, 2014 and June 30, 2015 is 13 months; (3) $185,834 * 13 = $2,415,836; (4) $6,690,007 $2,415,836 = $4,274,171. Blair Direct Revenue Requirement Page 63 RR16 - Page 119 of 426 07534
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 deferred pension and OPEB expense amount of $3,583,510, as shown on Attachment DAB-RR-2, page 241. Q. Over what period should the deferred pension and OPEB expense be amortized? A. For the reasons explained by Mr. Evans, the deferred pension and OPEB expense should be amortized over one year. Accordingly, I have added $3,583,510 to the cost of service, as shown on page 50, line 654 of Attachment DAB-RR-2. Q. On a going-forward basis, what should the baseline be for the pension and OPEB tracker? A. The baseline pension and OPEB tracker amount should be the amount of pension and OPEB expense set by the Commission in this case. Q. Did you make any other adjustment to the Test Year related to the deferred pension and OPEB tracker? A. Yes. In the Test Year, SPS recorded $1,538,030 of deferred pension and OPEB costs. I have eliminated this amount from the Test Year, as shown on Attachment DAB-RR-2, page 50, line 653, as SPS is requesting a total deferred pension and OPEB expense amount of $3,583,510 as discussed above. 9. 401(k) Match Expense Q. Please explain the adjustment to increase the 401(k) match costs. A. As discussed by Mr. Schrubbe, I have made an adjustment to the FERC Account 926, A&G Pension and Benefits, Test Year amount to increase the 401(k) match costs for the three percent merit increase. The adjustment to the Test Year is shown on Attachment DAB-RR-2, page 242, line 12. Blair Direct Revenue Requirement Page 64 RR16 - Page 120 of 426 07535
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 10. Texas Commission Assessment Fees Q. What is the Texas Commission assessment? A. The Texas Commission assessment is a tax imposed under Section 16.001 of the Public Utility Regulatory Act ( PURA ), 13 which imposes an assessment of onesixth of one percent of a utility s gross receipts from rates charged to end-use consumers in Texas. The amounts collected under PURA 16.001 are intended to defray the expenses incurred by the Commission to regulate utilities. Q. What amount did SPS incur during the Test Year for the Commission assessment? A. During the Test Year, SPS incurred $1,521,218 for the Commission assessment. Q. Is SPS proposing to include in the cost of service a Commission assessment amount that differs from the amount in the Test Year? A. Yes. I made an adjustment of $91,827 (Texas retail) to gross this amount up to include the tax associated with the net revenue change SPS is proposing in this case. The gross-up calculation results in a total amount of $1,613,044 (Texas retail), as shown on Attachment DAB-RR-2, page 243. 11. Rate Case Expense Q. Did you include any rate case expenses in the cost of service? A. Yes. I included not only the rate case expenses that SPS expects to incur in this proceeding, but also the unamortized rate case expenses from SPS s last two base rate cases, Docket Nos. 40824 and 42004. In Docket No. 42004, the signatories agreed SPS could amortize the rate case expenses from Docket Nos. 40824 and 13 PURA is codified in Title II of the Texas Utilities Code. See TEX. UTILS. CODE ANN. 11.001-66.016 (Vernon 2007 and Supp. 2014). Blair Direct Revenue Requirement Page 65 RR16 - Page 121 of 426 07536
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 42004 over a three-year period beginning June 1, 2014, and that if SPS files for rate relief prior to the three-year amortization period for recovery of rate case expenses, it may include any unamortized rate case expense balances in its request for relief. SPS is proposing to net the remaining Lubbock amortization and the TUCO refund against rate case expenses. Mr. Evans addresses these topics in more detail in his testimony. In addition, in the Test Year, SPS recorded rate case amortizations from Docket No. 40824 and EECRF case amortizations in FERC Account 928, A&G Regulatory Commission expense that I have eliminated, as shown on Attachment DAB-RR-2, page 244. Q. What amount of rate case expenses has SPS included for preparing and prosecuting this rate case? A. SPS expects that the costs incurred for consultants, law firms, municipal reimbursement, and other expenses in this case will be $4,345,400, as shown on page 245, line 1 of Attachment DAB-RR-2. I have amortized these costs over a 12-month period. Mr. Evans provides the details supporting SPS s rate case expenses and the amortization period. Q. What amount of rate case expenses from Docket Nos. 40824 and 42004 is included in the cost of service? A. The total amount of unamortized rate case expenses included in the cost of service from Docket No. 40824 will be $784,724 as of June 30, 2015 and the unamortized rate case expenses from Docket No. 42004 will be $1,737,216 as of June 30, 2015, for a total of $2,521,940. Blair Direct Revenue Requirement Page 66 RR16 - Page 122 of 426 07537
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. What is the total amount of rate case expenses in the cost of service? A. The total amount of rate case expense in the cost of service is $6,867,340. I have netted this amount with the unamortized balances of the Lubbock gain and the TUCO refund of $(2,310,030). The result is a net amount of rate case expense in the cost of service of $4,557,311, as shown on page 245, line 13 of Attachment DAB-RR-2. 12. Advertising, Contributions, Donations, and Membership Dues Q. Did you eliminate any advertising costs from the cost of service? A. Yes. I removed $1,506,603 (total company) in image and promotional advertising expense, as shown on page 50, line 659 of Attachment DAB-RR-2. Q. Have you included any advertising, contributions, donations and membership dues in the cost of service? A. Yes. I included costs for advertising, contributions, donations and memberships in the cost of service. P.U.C. SUBST. R. 25.231(b)(1)(E) provides for inclusion of advertising, contributions, and donations up to a cap of 0.3% of the gross receipts of the electric utility for services rendered to the public. SPS s gross receipts in Texas for the Test Year were $967,633,057, which when multiplied by 0.3% results in a cap of $2,902,899 for advertising, contributions, and donations. The sum of the advertising expense, the contributions and donations, and the membership dues is $3,143,092, which is more than the calculated cap. 14 Therefore, SPS has only included the cap amount of $2,902,899 in the cost of service. Of this amount $346,782 is related to customer advertising expenses that 14 The advertising expense is $1,372,964; the contributions and donations expense is $1,242,300; and the membership dues expense is $527,827, for a total of $3,143,092. Blair Direct Revenue Requirement Page 67 RR16 - Page 123 of 426 07538
1 2 3 4 5 6 7 8 9 10 11 12 13 14 are already included in the cost of service in FERC Accounts 908, Customer Assistance expense and 909, Customer Advertising expense. Therefore, I made an adjustment to include the net amount of $2,556,117 in the cost of service, as shown on page 246, line 12 of Attachment DAB-RR-2. 15 13. Other Adjustments Q. Does the cost of service include any expenses for the categories of disallowed expenses that are listed in P.U.C. SUBST. R. 25.231(b)(2)(A) through (I)? A. No. None of the types of expenses listed in P.U.C. SUBST. R. 25.231(b)(2)(A) through (I) have been included in the cost of service. H. Depreciation and Amortization Expense Q. What adjustments did you make to the depreciation expense used in the cost of service? A. I made several adjustments to depreciation expense in the cost of service presented in this case, as shown on Attachment DAB-RR-2, page 51, lines 674 15 through 714. First, as I previously mentioned, SPS unblended the book 16 17 18 19 20 21 22 depreciation expense to reflect the current Texas approved depreciation rates, and I adjusted depreciation expense to reflect that unblending. The effect of this adjustment is a reduction in depreciation expense of $13,901,235 (total company), as shown on Attachment DAB-RR-2, page 247, line 24. Second, I made an adjustment to annualize the depreciation expense at the end of the Test Year to correspond with the year-end plant balances in rate base and the level of depreciation expense SPS will incur prior to the effective date of 15 All numbers listed in this paragraph are Texas retail numbers. Blair Direct Revenue Requirement Page 68 RR16 - Page 124 of 426 07539
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 rates set in this case. The annualization adjustment is an increase in depreciation expense of $9,425,595 (total company), as shown on Attachment DAB-RR-2, page 248, line 25. Third, SPS witness Dane A. Watson has presented a new depreciation study for production and distribution plant, and Ms. Perkett recommends that the Commission use the revised depreciation rates set out in that study. Thus, I have incorporated the results of those revised depreciation rates into the cost of service. The adjustment is the difference between the depreciation expense that results from the revised Texas depreciation rates and the annualized depreciation expense based on the currently approved depreciation rates, which is shown on page 249, line 25 of Attachment DAB-RR-2. The effect of the revised depreciation rates increases the Test Year depreciation expense by $25,683,708 (total company). Fourth, I made an adjustment to annualize the depreciation expense related to the post-test Year adjustments to the plant in service balances at December 31, 2014. The adjustment is the difference between the Test Year depreciation expenses annualized at June 30, 2014, using the new depreciation rates compared to the depreciation expenses annualized at December 31, 2014, using the new depreciation rates, which is shown on page 250, line 25 of Attachment DAB-RR- 2. The effect of the Post Test Year adjustments is an increase to the Test Year depreciation expense of $16,217,089 (total company). Fifth, I made an adjustment to eliminate the depreciation expense related to the electric meters and line transformers that were assigned to the Texas jurisdiction that should be assigned to the New Mexico jurisdiction, which is Blair Direct Revenue Requirement Page 69 RR16 - Page 125 of 426 07540
1 2 3 4 5 6 7 8 9 10 shown on page 61 of Attachment DAB-RR-2. The effect of this adjustment is a decrease to Test Year depreciation expense of $960,207. Finally, I made an adjustment to eliminate Asset Retirement Obligation regulatory credits booked in FERC Account 407, and the related depreciation, depletion and accretion expense. These adjustments net to zero in the cost of service, as shown on Attachment DAB-RR-2, page 51, lines 682 through 684, 689, 700 through 702, and 710. I. Taxes Other than Income Q. Did you make any adjustments to Taxes Other than Income? A. Yes. I made adjustments to: 11 12 13 14 15 Reflect 2014 property taxes; Adjust payroll taxes associated with labor adjustments; Normalize and gross-up franchise fees; Reclassify and gross-up the Texas margins tax; and Gross-up Texas gross receipts tax. 16 17 18 19 20 Q. Please describe the adjustments to property taxes. A. I have made two adjustments to property taxes. First, as discussed by Mr. Arend, I have made an adjustment to reflect Test Year property taxes at the 2014 calendar year level. The adjustment is based on actual property taxes through September 2014, plus estimated expenses for October through December based on the 21 September expense level. The adjustment, which totals $7,052,613 (total 22 23 24 company) is shown on page 251, line 9 of Attachment DAB-RR-2. In addition, I made an adjustment to reflect Test Year property taxes at the 2014 calendar year level, using the plant in service balances at December 31, Blair Direct Revenue Requirement Page 70 RR16 - Page 126 of 426 07541
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2014. The adjustment, which totals $2,559,665 (total company), as shown on page 252, line 9, of Attachment DAB-RR-2. Q. Please describe the adjustment to payroll taxes. A. I adjusted payroll taxes associated with all labor adjustments that I have discussed in previous sections of my testimony. These adjustments include: 1. employee wages; 2. employee incentive compensation; 3. business area labor reclassifications; 4. other labor adjustments; and 5. long-term incentive compensation. The payroll tax adjustments are shown on page 253, line 9 of Attachment DAB- RR-2. Q. Please describe the adjustment to franchise fees. A. SPS s current base rates have a certain level of franchise fees embedded in them. I made two adjustments related to franchise fees. First, I made an adjustment to reflect the embedded franchise fees at the weather-normalized present revenue level. The adjustment increases franchise fee expense by $581,009, as shown on page 254, line 5 of Attachment DAB-RR-2. Second, I adjusted franchise fees for the revenue change SPS is requesting in this case, which leads to an increase in franchise fees of $1,205,855, as shown on Attachment DAB-RR-2, page 255, line 9. The net adjustment to franchise fees is an increase of $1,786,864 (Texas retail), all of which is allocated to the Texas retail jurisdiction. As discussed by Blair Direct Revenue Requirement Page 71 RR16 - Page 127 of 426 07542
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Mr. Evans, SPS is not proposing to change how it currently recovers franchise taxes in base rates. 16 Q. What is the margin tax? A. The Texas margin tax, which is also referred to as a franchise tax, is a tax imposed by the State of Texas for the privilege of doing business in Texas. Authorized by chapter 171 of the Texas Tax Code, the margin tax effectively requires SPS to pay 0.7 % of its total revenues to the Texas Comptroller. Q. What was the Test Year amount for the margin tax? A. The Test Year margin tax amount was $3,380,717 (Texas retail) and recorded it in FERC Account 409, State Income Tax. Q. Did you make any adjustment to the Texas margins tax expense? A. Yes. I made an adjustment of $245,009 (Texas retail) to gross this amount up to include the tax associated with the net revenue change SPS is proposing in this case and reclassified this expense from FERC Account 409 to FERC Account 408, Taxes Other than Income, as shown on Attachment DAB-RR-2, page 51, line 724. The gross-up calculation results in a total amount of $3,625,726 (Texas retail), as shown on Attachment DAB-RR-2, page 21, line 381, and page 255, line 7. Q. What is the miscellaneous gross receipts tax? A. The miscellaneous gross receipts tax is a tax imposed under section 182.022 of the Texas Tax Code. Under that provision, a tax is imposed on each utility 16 As noted in the text, SPS is not proposing to include all franchise fees in base rates. But if the Commission decides to include the entire amount of franchise fees in base rates, which SPS does not recommend for the reasons discussed by Mr. Evans, the amount of franchise fees in base rates would be $19,703,450, an increase of $8,621,638 from the level of franchise fees presented in Attachment DAB-RR-2, page 21, line 378. Blair Direct Revenue Requirement Page 72 RR16 - Page 128 of 426 07543
1 2 located in an incorporated city or town having a population of more than 1,000, according to the most recent federal census. The tax rates are: 3 4 5 6 7 8 0.581% of the gross receipts from business done in a city with a population of 1,000 2,499; 1.07% of the gross receipts from business done in a city with a population of 2,500 9,999; and 1.997% of the gross receipts from business done in a city with a population of 10,000 or more. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Q. What amount of miscellaneous gross receipts taxes did SPS incur during the Test Year? A. During the Test Year, SPS incurred $6,267,967 of gross receipts taxes. The miscellaneous gross receipts taxes are recorded in FERC Account 40910. Q. Please describe the adjustment to the Texas Gross Receipts Tax expense. A. Similar to the adjustments I made for franchise fees and the Texas margins tax, I made an adjustment to gross-up the Texas Gross Receipts tax for the revenue change SPS is proposing in this case, including accounting for the weather normalization adjustment on revenues. With an adjustment of $702,435, the grossed up amount of tax is $6,970,402 (Texas retail), as shown on Attachment DAB-RR-2, page 21, line 382 and page 255, line 7. J. Income Tax Expense Q. Did you make any adjustments to income tax expense? A. Yes. I adjusted current federal income tax expense to reflect the result of all adjustments to the cost of service study. The adjustments to deferred income tax expense include out-of-period adjustments, elimination of accounts that are not Blair Direct Revenue Requirement Page 73 RR16 - Page 129 of 426 07544
1 2 3 4 5 6 7 8 9 10 11 12 13 included in the cost of service study, and the deferred income tax impact of various adjustments made to the per-book data. Q. How is the income tax expense calculated for the cost of service studies presented in this case? A. Taxable income is determined by using Texas retail jurisdictional return on rate base, after which synchronized interest expense is deducted and taxable additions/deductions (these are also known as Schedule M items ) are added to arrive at taxable income. The federal income tax rate is then applied to taxable income to arrive at current income tax expense. As Mr. Arend explains, SPS is in an NOL position, and therefore I have not addressed the Federal Production Tax Deduction. However, that could change during the processing of this case. If SPS is no longer in an NOL position, then the Federal Production Tax Deduction would become applicable and would need to be calculated based on the 14 production taxable income as calculated by Mr. Luth. Deferred income tax 15 16 17 18 19 20 expense and the amortization of investment tax credits are added to arrive at total tax expense. The taxable additions/deductions and the deferred income taxes are being presented in this case at the same level of detail, in order to properly allocate to the Texas retail jurisdiction. As a result of these steps, SPS s tax expense for ratemaking purposes is calculated based on the items of income and expense included in SPS s jurisdictional revenue requirement calculation. Blair Direct Revenue Requirement Page 74 RR16 - Page 130 of 426 07545
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Q. What adjustments did SPS make to deferred income tax expense? A. SPS adjusted its deferred tax expense to remove deferred income tax expense associated with items excluded from the cost of service and the state deferred income tax expense associated with its operations in states other than Texas. K. Gain on the Sale of SO 2 Allowances, RECs, and Utility Plant Q. Please describe the adjustment to eliminate the gain on the sale of SO 2 allowances and the net gain on the sale of RECs from the cost of service. A. I eliminated $258 of gain on the sale of SO 2 allowances because they are returned to customers through fuel, as shown on page 52, line 773 of Attachment DAB-RR-2. I also eliminated $819,488 of net gain on RECs, which is reflected on page 52, lines 777 and 781, of Attachment DAB-RR-2. Q. What adjustment is included in the cost of service related to the gain on the sale of utility plant? A. I have made an adjustment to the Test Year to eliminate the gain on the sale of utility plant related to the sale of the Lubbock, Texas assets. As approved by the Commission in Docket No. 38147, the gain on the sale of assets to Lubbock is currently being amortized over a four-year period beginning February 16, 2011, with an annual amortization amount of $4,898,862. SPS is proposing to net the remaining amortization amount against rate case expenses in this rate case. Therefore, I have removed a revenue credit of $4,898,862 from the cost of service, as shown on page 52, line 785 and page 259 of Attachment DAB-RR-2. Mr. Evans discusses this issue in his testimony. Blair Direct Revenue Requirement Page 75 RR16 - Page 131 of 426 07546
1 VIII. REVENUE CREDITS 2 3 4 Q. Did you make any adjustments to other revenues? A. Yes. I made the following adjustments to revenue credits, all of which are shown on pages 52, lines 789 through 809 of Attachment DAB-RR-2: 5 6 7 8 9 10 11 12 13 14 15 16 17 Eliminated rate refunds; Made an adjustment to increase the meter-tampering fee revenue; Eliminated customer discounts; Made a pro forma adjustment to reflect substation lease revenue at current lease payment levels; Made transmission related revenue adjustments as described by Mr. Freitas. Eliminated Joint Operating Agreement ( JOA ) margins; Eliminated out-of-period adjustments; Eliminated energy efficiency incentive revenue and ICO revenue; Eliminated deferred fuel; and Made an adjustment to reflect revenues from wholesale contracts for backup service and planning reserves. 18 19 20 21 22 23 24 25 Q. Please discuss the elimination of rate refunds. A. SPS accrued rate refunds pertaining to its fuel collections during the Test Year. Because these refunds are not associated with base rates, I eliminated them from the cost of service, as shown on page 52, line 789, of Attachment DAB-RR-2. Q. Please discuss the adjustment to meter-tampering fee revenue. A. In Docket No. 42004, SPS amended its tariff to increase the charge for metertampering. An annualization adjustment of $19,120 was made to reflect that increased charge for the entire Test Year. Accordingly, I have added that amount Blair Direct Revenue Requirement Page 76 RR16 - Page 132 of 426 07547
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 to the revenue credits, as shown on page 52, line 790 and page 260 of Attachment DAB-RR-2. Q. What customer discounts did you eliminate from the cost of service? A. I eliminated the customer discounts given to state universities and colleges because PURA 36.351 prohibits utilities from recovering the amount of the discounts from other customers. Those adjustments appear on page 52, lines 791-792 of Attachment DAB-RR-2. The present revenue contains the full tariffed rate, and the discount is recorded as a reduction to other revenue. By eliminating the discounts, SPS s present revenue reflects the full base rate revenue for these customers. Q. What adjustment did you make for changes in substation leasing costs? A. I increased the revenue credit for substation leases by $29,026 (total company) to reflect the increase in substation leasing revenue that SPS will receive on a going forward basis. The increase appears on page 52, line 793 and page 261 of Attachment DAB-RR-2. Q. What adjustments did you make for transmission-related revenue? A. I made the adjustments discussed by Mr. Freitas. Q. Please discuss the elimination of the JOA revenues. A. SPS s share of JOA revenues is shared with customers through the calculation of the monthly cumulative fuel cost under-recovery and over-recovery balance. Therefore, $1,715,947 (total company) of revenue credits attributable to the JOA revenues have been eliminated from the cost of service, as shown on page 52, line 800 of Attachment DAB-RR-2. Blair Direct Revenue Requirement Page 77 RR16 - Page 133 of 426 07548
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Q. What adjustments did you make to eliminate out-of-period amounts? A. I made adjustments to eliminate out-of-period amounts related to the sale of assets to Lubbock and Sharyland, and the TUCO audit refund, as shown on page 52, lines, 801 through 803 and page 266, of Attachment DAB-RR-2. Q. What adjustment did you make for energy efficiency incentive payments? A. I eliminated $292,951 (total company) of incentive payments because P.U.C. SUBST. R. 25.181(h)(6) provides that energy efficiency incentive payments are not to be included in the utility s revenues or net income when establishing a utility s rates. That adjustment appears on page 52, line 804, of Attachment DAB-RR-2. Q. Please discuss the elimination of deferred fuel revenues. A. Fuel is not a base rate item, and therefore I eliminated $4,691,070 (total company) of deferred fuel revenues recorded in FERC Account 456.68 from the cost of service in this case. That amount is reflected on page 52, line 806 of Attachment DAB-RR-2. Q. Please discuss the revenue credits for the wholesale contracts. A. During the Test Year, SPS provided three of its wholesale customers with back-up service, incremental capacity, and planning reserves. The incremental sales will expire before the final rates in this case go into effect. Therefore, I have excluded from the cost of service the revenues with those incremental sales, and I have adjusted the level of revenues that will occur during the rate year from the wholesale contracts for backup service and planning reserves. The net effect of this adjustment is shown on page 52, line 809 and page 268, of Attachment DAB-RR-2. I have included the 2014 expected revenues of $931,127 (total Blair Direct Revenue Requirement Page 78 RR16 - Page 134 of 426 07549
1 2 company) as an offset to the cost of service to give all Texas retail customers a reduction in their production-related costs. Blair Direct Revenue Requirement Page 79 RR16 - Page 135 of 426 07550
1 2 3 4 5 6 7 IX. CAPITAL STRUCTURE Q. What capital structure is reflected in the cost of service? A. The cost of service uses the capital structure of 53.97% equity and 46.03% debt discussed by Ms. Schell and shown on RFP Schedule K-1. When the 5.98% average cost of debt presented by Ms. Schell and the 10.25% return on equity presented by Mr. Hevert are applied to the capital structure, it results in an 8.28% overall return on rate base. Blair Direct Revenue Requirement Page 80 RR16 - Page 136 of 426 07551
1 2 3 4 5 6 7 8 9 X. JURISDICTIONAL REVENUE DEFICIENCY Q. What is the overall Texas retail revenue requirements for the Test Year? A. The overall Texas retail revenue requirement for the Test Year is $577,633,008. Q. What is the Test Year revenue deficiency? A. The Test Year revenue deficiency is calculated by comparing the net revenue requirements to present base rate revenue. Mr. Luth presents the calculation of present base rate revenue, which is equal to $512,886,811. The result is a Test Year revenue deficiency of $64,746,197, as shown on Attachment DAB-RR-2, page 1. Blair Direct Revenue Requirement Page 81 RR16 - Page 137 of 426 07552
1 2 3 4 5 6 7 8 9 10 11 12 XI. CONCLUSION Q. Were Attachments DAB-RR-1 through DAB-RR-5 prepared by you or under your direct supervision and control? A. Yes. Q. Were the portions of the RFP Schedules you sponsor or co-sponsor prepared by you or under your supervision and control? A. Yes. Q. Do you incorporate the portions of SPS s RFP Schedules sponsored or co-sponsored by you into this testimony? A. Yes. Q. Does this conclude your pre-filed direct testimony? A. Yes. Blair Direct Revenue Requirement Page 82 RR16 - Page 138 of 426 07553
07554
Attachment DAB-RR-1 Page 1 of 4 List of Testimony Filed by Deborah A. Blair Year 1993 Regulatory Commission Colorado Public Utilities Commission ("CPUC") Docket/Case Number 93I-199EG 1995 CPUC 95S-041E 1995 CPUC 95A-531EG 1995 Wyoming Public Service Commission ("WPSC") 20003-EA-95-40 30005-GA-95-39 1996 CPUC 96S-290G 1996 Federal Electric Regulatory Commission ER96-713-000 1997 CPUC 97A-299EG 1997 CPUC 97S-366G 1997 WPSC 30005-GR-97-51 1998 CPUC 98A-262EG 1998 CPUC 98A-511E 1998 CPUC 98S-518G 1998 New Mexico Public Regulation Commission ("NMPRC") 2798 1999 CPUC 99A-037E Description of Proceeding In the Matter of the Investigation of Incentive Regulation and Demand Side Management Incentives for Public Service Company of Colorado ("PSCo") The Investigation and Suspension of Tariff Sheets filed by PSCo for Advice Letter No. 1238 - Electric with Regard to the Qualifying Facility Capacity Cost Adjustment Application of PSCo for Commission Authorization (1) to Merge with SPS through the Formation of a Registered Public Utility Holding Company and for Issuance of Securities in Conjunction Therewith and (2) to Implement a Five-Year Regulatory Plan which Includes an Earnings Sharing Mechanism In the Matter of the Application of Cheyenne Light Fuel and Power Company ("CLF&P") for Authority to Engage in a Reorganization Involving the Transfer of a Controlling Interest from PSCo to M-P New Co. as part of a Merger between PSCo and SPS The Investigation and Suspension of Tariff Sheets Filed by PSCo with Advice Letter No. 509 - Gas Rate Case Implementing Two General Rate Schedule Adjustment Riders Application of PSCo to Change its Rates Applicable to its Wholesale Customers In the Matter of the Application of PSCo for Commission Approval of: (1) Merger Costs; (2) Merger Costs Allocations; and (3) the Ratemaking Treatment of the Holy Cross TIE Agreement The Investigation and Suspension of Tariff Sheets filed by PSCo with Advice Letter No. 525 - Gas Rate Case In the Matter of the Application of CLF&P for a General Rate Increase of $1,249,949 in its Gas Rates for Sales and Transportation Service In the Matter of the Application of PSCo for an Order to Transfer Certain Assets from PSCo to New Century Energies Communications, Inc. Pursuant to 40-5-105, C.R.S. In the Matter of the Application of PSCo for an Air Quality Improvement Rider to Recover the Costs of Voluntary Emission Reductions in Three Metro Area Power Plants The Investigation and Suspension of Tariff Sheets Filed by PSCo with Advice Letter No. 543 - Gas Rate Case In the Matter of the Commission's Investigation of the Rates for SPS In the Matter of the Application of PSCo for a Certificate of Public Convenience and Necessity for the Construction of Phase 3 of Fort St. Vrain Repowering Party on Behalf Testimony was Submitted PSCo PSCo PSCo CLF&P PSCo PSCo PSCo PSCo CLF&P PSCo PSCo PSCo SPS PSCo RR16 - Page 140 of 426 07555
Attachment DAB-RR-1 Page 2 of 4 List of Testimony Filed by Deborah A. Blair Year Regulatory Commission Docket/Case Number 1999 CPUC 99A-377EG 1999 CPUC 99A-557E 1999 WPSC 1999 Public Utilities Commission of Texas ("PUCT") 20003-EA-99-53 30005-GA-99-69 21190 1999 NMPRC 3116 2000 CPUC 00A-351E 2000 FERC ER00-536-000 2002 PUCT 27052 2002 NMPRC 02-04001-UT 2003 FERC ER03-971-000 2004 FERC ER04-1174-000 2005 FERC EL05-19-002 Description of Proceeding In the Matter of the Application of PSCo for Commission Authorization for New Century Energies, Inc. to Merge with Northern States Power Company; for Extension of the Current Regulatory Plan which includes an Earnings Sharing Mechanism; and for such other relief as may be appropriate or necessary In the Matter of the Application of PSCo for an Order Approving its Incentive Cost Adjustment Filing for the Period July 1998 through June 1999 In the Matter of the Application of CLF&P for Authority to Transfer Controlling Interest from New Century Energies, Inc. to Xcel Energy, Inc. Application of SPS Regarding Proposed Merger Between New Century Energies, Inc., and Northern States Power Company Application of SPS for Approvals and Authorizations of the Merger Between New Century Energies, Inc. ("NCE") SPS's Parent/Holding company, into Northern States Power Company/Xcel Energy Inc., Approval of SPS's Second Amended General Diversification Plan that Reflects the Merger and All Other Approvals and Authorizations required to Effectuate and Implement the Merger In the Matter of the Application of PSCo for Commission Authorization to Sell Facilities and Property, and for Request for Declaratory Order or Alternately Request for Exemption under Integrated Resource Planning Rules Application of New Century Services Inc. on behalf of SPS for Revisions to the NCE Open Access Transmission Tariff ("OATT") and Proposed Revisions to SPS's rates for Transmission and Ancillary Services Application of SPS Regarding Transfer of Functional Control of Electric Transmission Facilities to TRANSLink Transmission Company, LLC and for Related Relief In the Matter of SPS's Application for NMPRC Approval of and Authorization for TRANSLink Transmission Company LLC to Operate and Control SPS's New Mexico Certificated Transmission Facilities in Accordance with the Proposed Private Power Operating Agreement Between SPS and TRANSLink Transmission Company LLC Application of PSCo for Changes in Rates Applicable to its Requirements Customers Together with Changes in the Fuel Cost Adjustment Provisions Applicable to each such Customer. Application of Xcel Energy Services Inc. ("XES") on behalf of PSCo and SPS for changes to the Xcel Energy OATT, and to implement a new Attachment O that sets forth a Formula to Annually Update Rates for Transmission Service Complaint filed by Cooperative Customer Group Requesting Investigation and Hearing of Cost-Based Rates and Fuel Adjustment Clause Charges and Establishment of Refund Effective Date Party on Behalf Testimony was Submitted PSCo PSCo CLF&P SPS SPS PSCo SPS SPS SPS PSCo PSCo and SPS SPS RR16 - Page 141 of 426 07556
Attachment DAB-RR-1 Page 3 of 4 List of Testimony Filed by Deborah A. Blair Year Regulatory Commission Docket/Case Number 2006 CPUC 06S-234EG 2006 FERC ER06-274-000 2007 CPUC 07A-469E 2007 FERC ER07-1415-000 2008 CPUC 08A-497EG 2008 CPUC 08S-520E 2008 FERC ER08-313-000 2008 FERC ER08-527-000 2008 FERC ER08-749-000 2009 CPUC 09AL-299E 2010 CPUC 10AL-963G 2010 FERC ER10-192-000 2010 FERC ER10-992-000 Description of Proceeding The Investigation and Suspension of Tariff Sheets filed by PSCo for Advice Letter No. 1454 - Electric Rate Case and Advice Letter No. 671 - Gas Rate Case Application of SPS for Changes in Rates, Terms and Conditions Applicable to its Full and Partial Requirements Customers In the Matter of the Application of PSCo for a Certificate of Public Convenience and Necessity to Construct Two Combustion Turbines at the Fort St. Vrain Generating Station, for an Amendment to its Contingency Plan and for Expedited Treatment Application of XES on behalf of Northern States Power Company, a Minnesota Company ("NSP-MN") and Northern States Power Company, a Wisconsin Company ("NSP-WI") and the Midwest Independent System Operator, Inc. ("Midwest ISO") for revisions to the Midwest ISO Open Access Transmission and Energy Market Tariff to revise Attachment O that sets forth a Formula for Rates for Transmission Service In the Matter of the Application of PSCo for Approval of the Sale of the Technical Services Building Located at 550 15th Street, Denver, Colorado The Tariff Sheets Filed by PSCo with Advice Letter No. 1525 - Electric Rate Case Application of XES on behalf of SPS to Revise Tariff Sheets to the Xcel Energy OATT to Implement Transmission Formula Rates for Transmission Services Application of PSCo for Changes in Rates Applicable to its Requirements Customers Together with Changes in the Fuel Cost Adjustment Provisions Applicable to each such Customer Application of SPS for Changes in Rates, Terms and Conditions Applicable to its Full Requirements Customers In the Matter of Advice Letter No. 1535 by PSCo to Revise its Colorado PUC No. 7 Electric Tariff to Reflect Revised Rates and Rate Schedules to be Effective on June 5, 2009 In the Matter of Advice Letter No. 791 by PSCo to Increase the Rates for all Natural Gas Sales and Transportation Services by Implementing a General Rate Schedule Adjustment in the Company's Colorado PUC No. 6 Gas Tariff to become Effective January 17, 2011 Application of PSCo for Changes in Rates Applicable to its Requirements Customers Together with Changes in the Fuel Cost and Economic Purchased Power Adjustment Clause Applicable to each such Customer. Application of NSP-WI for Changes in Rates, Terms and Conditions Applicable to its Full Requirements Customers and Changes in the Fuel Cost and Economic Purchased Power Adjustment Clause Applicable to each such Customer Party on Behalf Testimony was Submitted PSCo SPS PSCo NSP-MN and NSP-WI PSCo PSCo SPS PSCo SPS PSCo PSCo PSCo NSP-WI RR16 - Page 142 of 426 07557
Attachment DAB-RR-1 Page 4 of 4 List of Testimony Filed by Deborah A. Blair Year Regulatory Commission Docket/Case Number 2011 CPUC 11AL-947E 2011 FERC ER11-2853-000 2012 CPUC 12A-782E 2012 CPUC 12AL-1264ST 2012 CPUC 12AL-1268G 2012 CPUC 12AL-1269ST 2012 FERC ER12-1589-000 2014 CPUC 14AL-0660E 2014 FERC ER14-1969-000 2014 PUCT 42042 Description of Proceeding In the Matter of the Advice Letter No. 1597 - Electric filed by PSCo to Revise its Colorado PUC No. 7 - Electric Tariff and to Implement a General Rate Schedule Adjustment and Other Changes Effective December 23, 2011 Application of PSCo for Changes in Rates Applicable to its Requirements Customers Together with Changes in the Fuel Cost and Economic Purchased Power Adjustment Clause Applicable to each such Customer. In the Matter of the Application of PSCo for Approval of the Acquisition of the Brush 1, 3, and 4 Generation Facilities and, in connection therewith, the granting of Certificates of Public Convenience and Necessity if Required and the Approval of Cost Recovery through a General Rate Schedule Adjustment In the Matter of the Application of PSCo for a Certificate of Public Convenience and Necessity to Construct Two Package Boilers for its Steam Utility and for Approval of a Regulatory Plan affecting rates for Natural Gas and Steam Services Effective after the Boilers have been Place in Service In the Matter of Advice Letter No. 830 - Gas of PSCo, with Accompanying Tariff Sheets Concerning Implementing a General Rate Schedule Adjustment, to become Effective January 1, 2013 In the Matter of Advice Letter No. 119 - Steam filed by PSCo - Steam Rate Case Application of PSCo for Changes to the Xcel Energy OATT, and to implement a revised Attachment O that sets forth a Formula to Annually Update Rates for Transmission Service In the Matter of Advice Letter No. 1672 - Electric of PSCo to Revise the General Rate Schedule Adjustment Rider Applicable to all Electric Base Rate Schedules and Revise the Transmission Cost Adjustment to Remove Costs that have been Shifted to Base Rates to become Effective July 18, 2014 Application of PSCo for Changes to the Xcel Energy OATT, and to implement a revised Ancillary Service Schedule 3, and to add new Ancillary Service Schedules 3A and 6A to address Wind Integration Application of SPS for Approval of a Transmission Cost Recovery Factor Party on Behalf Testimony was Submitted PSCo PSCo PSCo PSCo PSCo PSCo PSCo PSCo PSCo SPS RR16 - Page 143 of 426 07558
Calculation of Revenue Deficiency / Excess Attachment DAB-RR-2 Page 1 of 270 No. Description Texas Retail 1 Net Jurisdictional Rate Base 1,560,042,382 2 3 Allowed Return on Rate Base 8.28% 4 5 Required Earnings 129,171,509 6 7 Net Jurisdictional Operating Expenses 498,586,468 8 9 Total Revenue Requirements 627,757,977 10 11 Less: Revenue Credits 50,124,969 12 13 Net Revenue Requirements 577,633,008 14 15 Total Rate Revenue 512,886,811 16 17 Revenue Deficiency 64,746,197 RR16 - Page 144 of 426 07559
Allowed Cost of Capital - Texas At June 30, 2014 Attachment DAB-RR-2 Page 2 of 270 Pro Forma Adjusted No. Description Per Books Adjustments Capital 1 Long Term Debt 1,350,000,000 (16,262,577) 1,333,737,423 2 3 Preferred Stock 4 5 Common Equity 1,469,071,104 94,651,896 1,563,723,000 6 7 Total 2,819,071,104 78,389,319 2,897,460,423 8 9 10 11 Composite 12 Ratio Cost Cost 13 14 Long Term Debt 46.03% 5.98% 2.75% 15 16 Preferred Stock 0.00% 0.00% 0.00% 17 18 Common Equity 53.97% 10.25% 5.53% 19 20 Total 100.00% 8.28% RR16 - Page 145 of 426 07560
Page 3 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 1 PLANT IN SERVICE 2 3 Intangible: 4 Organization 301 LABXAG 0 5 Franchises and Consents 302 LABXAG 0 6 Misc. Intangible Plant 303 72,269,482 16,779,053 89,048,535 LABXAG 52,133,374 7 Misc. Intangible Plant - CRS 303CRS 16,335,494 0 16,335,494 CUST-RET 11,115,465 8 Total Intangible 88,604,977 16,779,053 105,384,030 63,248,839 9 10 Steam Production: 11 Land and Land Rights 310 11,200,043 6,297,433 17,497,476 12CP-PROD 9,170,046 12 Structures & Improvements 311 218,513,533 9,527,963 228,041,496 12CP-PROD 119,511,574 13 Boiler Plant Equipment 312 929,295,419 7,647,553 936,942,972 12CP-PROD 491,031,376 14 Turbo-Generator Units 314 450,499,864 6,231,689 456,731,553 12CP-PROD 239,363,045 15 Accessory Electric Equipment 315 74,296,189 930,780 75,226,968 12CP-PROD 39,424,813 16 Misc. Power Plant Equipment 316 31,389,713 593,197 31,982,910 12CP-PROD 16,761,546 17 Total Steam Production 1,715,194,761 31,228,615 1,746,423,376 915,262,400 18 19 Other Production Combustion Equipment: 20 Land and Land Rights 340 115,722 0 115,722 12CP-PROD 60,647 21 Structures & Improvements 341 14,530,520 82,231 14,612,751 12CP-PROD 7,658,224 22 Fuel Holders, Prod & Acc 342 5,644,152 336,500 5,980,652 12CP-PROD 3,134,329 23 Other Production Engine 343 64,604,861 2,492,228 67,097,089 12CP-PROD 35,164,121 24 Generators 344 168,016,442 623,791 168,640,233 12CP-PROD 88,380,668 25 Accessory Electric Equipment 345 31,709,028 1,026,582 32,735,610 12CP-PROD 17,156,019 26 Misc. Power Plant Equipment 346 4,799,154 196,112 4,995,266 12CP-PROD 2,617,910 27 Total Other Production Combustion Equipment 289,419,878 4,757,445 294,177,323 154,171,918 28 RR16 - Page 146 of 426 07561
Page 4 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 29 Transmission Plant: 30 Land Owned in Fee 350.1 6,263,328 131,195 6,394,523 12CP-TRAN 2,966,452 31 Land Owned in Fee - Total 350.1 6,263,328 131,195 6,394,523 12CP-TRAN 2,966,452 32 Land Rights - Radial Texas 350.2R 3,693,695 0 3,693,695 TX 3,693,695 33 Land Rights - Radial New Mexico 350.2R 2,179,643 0 2,179,643 NM 0 34 Land Rights - Radial Wholesale 350.2R 573,376 0 573,376 WHLS 0 35 Land Rights - Other 350.2O 68,014,529 13,151,527 81,166,056 12CP-TRAN 37,653,353 36 Land Rights - Total 350 74,461,243 13,151,527 87,612,770 41,347,048 37 Structures & Improvements 352 46,300,952 10,576,705 56,877,656 12CP-TRAN 26,385,839 38 Station Equipment 353 597,702,558 84,827,328 682,529,886 12CP-TRAN 316,629,141 39 Station Equipment - Interconnection 353I 30,078,585 (1,384,562) 28,694,023 12CP-PROD 15,037,912 40 Station Equipment - Total 353 627,781,143 83,442,766 711,223,909 331,667,053 41 Towers and Fixtures - Radial Texas 354R 408,932 0 408,932 TX 408,932 42 Towers and Fixtures - Radial New Mexico 354R 241,310 0 241,310 NM 0 43 Towers and Fixtures - Radial Wholesale 354R 63,479 0 63,479 WHLS 0 44 Towers and Fixtures - Other 354O 7,529,950 3,287,653 10,817,603 12CP-TRAN 5,018,342 45 Towers and Fixtures - Total 354 8,243,671 3,287,653 11,531,324 5,427,274 46 Poles and Fixtures - Radial Texas 355R 29,399,599 0 29,399,599 TX 29,399,599 47 Poles and Fixtures - Radial New Mexico 355R 17,348,654 0 17,348,654 NM 0 48 Poles and Fixtures - Radial Wholesale 355R 4,563,727 0 4,563,727 WHLS 0 49 Poles and Fixtures - Other 355O 541,354,868 147,493,153 688,848,021 12CP-TRAN 319,560,157 50 Poles and Fixtures - Total 355 592,666,848 147,493,153 740,160,001 348,959,756 51 Overhead Conductor - Radial Texas 356R 12,268,818 0 12,268,818 TX 12,268,818 52 Overhead Conductor - Radial New Mexico 356R 7,239,809 0 7,239,809 NM 0 53 Overhead Conductor - Radial Wholesale 356R 1,904,500 0 1,904,500 WHLS 0 54 Overhead Conductor - Other 356O 225,914,118 84,201,839 310,115,957 12CP-TRAN 143,864,395 55 Overhead Conductor - Total 356 247,327,245 84,201,839 331,529,084 156,133,213 56 Underground Conduit 357 255,073 101,726 356,799 12CP-TRAN 165,521 57 Underground Conductor 358 489,717 195,304 685,020 12CP-TRAN 317,784 58 Total Transmission Plant 1,603,789,219 342,581,868 1,946,371,087 913,369,940 59 RR16 - Page 147 of 426 07562
Page 5 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 60 Distribution Plant: 61 Land and Land Rights 360 6,059,756 545,663 6,605,419 DA 3,107,057 62 Structures & Improvements 361 8,146,312 644,128 8,790,440 DA 6,140,712 63 Station Equipment 362 174,538,251 7,564,390 182,102,642 DA 113,594,903 64 Towers and Fixtures 364 208,928,886 7,920,351 216,849,237 DA 154,875,753 65 Overhead Conductor - Primary 365P 180,011,768 7,031,613 187,043,381 DA 130,541,498 66 Overhead Conductor - Secondary 365S 21,869,295 854,258 22,723,553 DA 15,859,244 67 Overhead Conductor 365 201,881,063 7,885,871 209,766,934 146,400,742 68 Underground Conduit 366 22,194,224 1,327,995 23,522,220 DA 17,772,345 69 Underground Conductor - Primary 367P 29,621,898 622,286 30,244,184 DA 23,238,295 70 Underground Conductor - Secondary 367S 3,372,005 70,838 3,442,843 DA 2,645,329 71 Underground Conductor 367 32,993,903 693,124 33,687,027 25,883,624 72 Transformers 368 175,957,907 (30,947,387) 145,010,520 DA 117,733,423 73 Services 369 74,567,682 (986,514) 73,581,168 DA 50,131,405 74 Meters 370 64,559,453 (11,596,687) 52,962,766 DA 36,576,611 75 Inst. on Customer Premises 371 13,083,382 (103,347) 12,980,036 DA 8,015,259 76 Street Light / Signal Systems 373 22,456,038 529,790 22,985,828 DA 13,396,967 77 Total Distribution Plant 1,005,366,860 (16,522,624) 988,844,236 693,628,800 78 79 General Plant: 80 Land and Land Rights 389 1,100,782 0 1,100,782 LABXAG 644,452 81 Structures & Improvements - Call Center 390 9,076,308 0 9,076,308 CUST-RET 6,175,961 82 Structures & Improvements - Other 390 61,762,171 681,596 62,443,767 LABXAG 36,557,640 83 Structures & Improvements - Total 390 70,838,479 681,596 71,520,075 42,733,601 84 Office Furniture & Equipment - Call Center 391 819,727 0 819,727 CUST-RET 557,782 85 Office Furniture & Equipment - Other 391 30,763,415 8,397,152 39,160,567 LABXAG 22,926,514 86 Office Furniture & Equipment - Total 391 31,583,142 8,397,152 39,980,294 23,484,296 87 Transportation Equipment 392 74,030,432 1,250,556 75,280,987 LABXAG 44,073,177 88 Stores Equipment 393 460,265 32,472 492,736 LABXAG 288,472 89 Tools, Shop & Garage Equip. - Call Center 394 23,558 0 23,558 CUST-RET 16,030 90 Tools, Shop & Garage Equip. - Other 394 22,776,159 284,100 23,060,259 LABXAG 13,500,605 91 Tools, Shop & Garage Equip. - Total 394 22,799,717 284,100 23,083,817 13,516,635 92 Laboratory Equipment - Call Center 395 273 0 273 CUST-RET 186 93 Laboratory Equipment - Other 395 10,918,788 675,576 11,594,364 LABXAG 6,787,909 94 Laboratory Equipment - Total 395 10,919,061 675,576 11,594,638 6,788,095 95 Power Operated Equipment 396 10,831,119 136,323 10,967,442 LABXAG 6,420,878 96 Communication Equipment - Call Center 397 757,943 0 757,943 CUST-RET 515,742 97 Communication Equipment - Other 397 60,142,309 6,537,076 66,679,385 LABXAG 39,037,378 98 Communication Equipment - Total 397 60,900,253 6,537,076 67,437,329 39,553,120 99 Miscellaneous Equipment - Call Center 398 21,915 0 21,915 CUST-RET 14,912 100 Miscellaneous Equipment - Other 398 2,845,338 202,284 3,047,622 LABXAG 1,784,227 101 Miscellaneous Equipment - Total 398 2,867,253 202,284 3,069,537 1,799,139 102 Total General Plant 286,330,502 18,197,135 304,527,637 179,301,865 103 104 Total Electric Plant in Service 4,988,706,197 397,021,491 5,385,727,689 2,918,983,762 105 RR16 - Page 148 of 426 07563
Page 6 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 106 Depreciation & Amortization Reserve: 107 Steam Production (1,022,392,197) 116,975,064 (905,417,133) PIS-PROD (474,509,370) 108 Other Production (64,902,115) (1,612,793) (66,514,908) PIS-PROD (34,859,013) 109 Total Production (1,087,294,312) 115,362,271 (971,932,041) (509,368,383) 110 Transmission (314,855,533) (33,287,131) (348,142,664) PIS-TRAN (163,372,260) 111 Distribution (316,483,879) (3,002,223) (319,486,102) DA (224,512,887) 112 General - CRS/Call Center (21,429,443) 678,877 (20,750,566) CUST-RET (14,119,695) 113 General & Intangible (154,844,352) (6,003,331) (160,847,683) PIS-GEN (94,704,998) 114 Total Depreciation & Amortization Reserve (1,894,907,519) 73,748,463 (1,821,159,056) (1,006,078,223) 115 116 Net Steam Production Plant 692,802,564 148,203,679 841,006,243 440,753,030 117 Net Other Production Plant 224,517,763 3,144,652 227,662,415 119,312,905 118 Total Net Production Plant 917,320,327 151,348,331 1,068,668,658 560,065,935 119 Net Transmission Plant 1,288,933,686 309,294,736 1,598,228,423 749,997,680 120 Net Distribution Plant 688,882,981 (19,524,847) 669,358,134 469,115,913 121 Net General & Intangible Plant 198,661,683 29,651,734 228,313,418 133,726,011 122 Total Net Plant in Service 3,093,798,678 470,769,954 3,564,568,632 1,912,905,539 123 124 Plant Held for Future Use: 125 Steam Production 12CP-PROD 0 126 Other Production 12CP-PROD 0 127 Total Production 0 128 Transmission 12CP-TRAN 0 129 Distribution DA 0 130 General LABXAG 0 131 Total Plant Held for Future Use 0 132 133 Construction Work in Progress: 134 Steam Production 5,736,592 (5,736,592) 0 12CP-PROD 0 135 Other Production 298,583 (298,583) 0 12CP-PROD 0 136 Total Production 6,035,175 (6,035,175) 0 0 137 Transmission 282,643,725 (282,643,725) 0 12CP-TRAN 0 138 Distribution 12,837,894 (12,837,894) 0 DA 0 139 Intangible & General 51,964,792 (51,964,792) 0 LABXAG 0 140 Total Construction Work in Progress 353,481,585 (353,481,585) 0 0 141 142 Total Plant 3,447,280,263 117,288,369 3,564,568,632 1,912,905,539 143 RR16 - Page 149 of 426 07564
Page 7 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 144 Fuel Inventory 12,255,296 0 12,255,296 ENERGY 6,728,085 145 NOx Inventory 12CP-PROD 0 146 Utility Materials & Supplies: 147 Production 11,725,233 70,150 11,795,383 12CP-PROD 6,181,703 148 Transmission 5,220,949 0 5,220,949 12CP-TRAN 2,422,025 149 Distribution 3,272,855 0 3,272,855 PIS-DIST 2,295,757 150 Total Utility Materials & Supplies 20,219,036 70,150 20,289,186 10,899,485 151 53.721% 152 Cash Working Capital: 153 Fuel & Non-Fuel Energy Costs 888,783,207 0 888,783,207 487,936,712 154 Demand Related Energy Costs 103,931,599 0 103,931,599 54,468,284 155 Total Energy Costs 992,714,806 992,714,806 542,404,996 156 Factor (0.000026) (0.000026) 0.000288 157 Total Energy Costs CWC Amount (25,406) (25,406) 155,989 158 159 Total O&M Expense 439,955,487 3,428,378 443,383,864 251,760,946 160 Factor 0.003429 0.003429 0.002983 161 Total O&M Expense CWC Amount 1,508,645 1,520,401 750,926 162 163 Total TOTI 41,606,755 14,190,205 55,796,960 35,326,903 164 Factor (0.274485) (0.274485) (0.328564) 165 Total TOTI CWC Amount (11,420,423) (15,315,419) (11,607,146) 166 167 Total Franchise Fees 4,331,623 4,331,623 168 Factor (0.043479) (0.043479) 169 Total Franchise Fees CWC Amount (188,335) (188,335) 170 171 Total Federal Income Tax Expense (14,479,100) (38,887,359) (25,825,894) 172 Factor (0.003778) (0.002848) (0.003890) 173 Total Federal Income Tax Expense CWC Amount 54,705 110,747 100,463 174 175 Total State Income Tax Expense 3,594,833 (853,097) 0 176 Factor (0.003260) (0.001993) 0.000000 177 Total State Income Tax Expense CWC Amount (11,718) 1,700 0 178 179 Total Cash Working Capital (10,082,532) (3,813,780) (13,896,312) (10,788,103) RR16 - Page 150 of 426 07565
Page 8 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 180 Prepayments: 181 Insurance 2,847,487 0 2,847,487 PIS-NET 1,528,088 182 Pensions 168,638,622 0 168,638,622 LABOR 100,354,908 183 Transmission (NERC Fees) 172,814 0 172,814 RETAIL-TRAN 126,259 184 Fuel LABOR 0 185 Capacity 12CP-PROD 0 186 Short-term Debt Fees 1,176,611 (1,176,611) 0 PIS-NET 0 187 Auto Licensing 56,568 0 56,568 PIS-NET 30,357 188 I/T Related 119,081 0 119,081 PIS-NET 63,904 189 Other Prepaid PIS-NET 0 190 Other Prepaid - Brand Adv 164,488 (164,488) 0 N/A 0 191 Other Prepaid-TU 47,284 (47,284) 0 N/A 0 192 Other Prepaid - Safety Award 3,083 (3,083) 0 N/A 0 193 Other Prepaid - Pollution Emissions 422,956 0 422,956 12CP-PROD 221,662 194 Other Prepaid - Benefits 9,881 0 9,881 LABOR 5,880 195 Other Prepaid - EE 87,366 (87,366) 0 N/A 0 196 197 Taxes: 198 Federal 4,882,813 (4,882,813) 0 N/A 0 199 State: 200 Texas 482,151 (482,151) 0 N/A 0 201 Other State 538,242 (538,242) 0 N/A 0 202 Total State 1,020,394 (1,020,394) 0 0 203 Total Taxes 5,903,207 (5,903,207) 0 0 204 Total Prepayments 179,649,447 (7,382,038) 172,267,409 102,331,058 205 Regulatory Asset - EE & ICO Related 8,541,014 (8,541,014) 0 12CP-PROD 0 206 Regulatory Asset - REC Related 19,866,234 (19,866,234) 0 N/A 0 207 Regulatory Asset - Texas Restructuring Meters 279,186 0 279,186 TX 279,186 208 Regulatory Asset - Deferred Pension and OPEB Costs 7,521,266 (7,521,266) 0 TX 0 209 RR16 - Page 151 of 426 07566
Page 9 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 210 Accumulated Deferred Income Taxes: 211 Account 190: 212 Bad Debts 1,990,556 (52,909) 1,937,647 CUST-RET 1,318,469 213 Contribution Carryover 1,289,287 (1,289,287) 0 N/A 0 214 Deferred Compensation Plan Reserve 420,698 (420,698) 0 LABOR 0 215 Renewable Energy Standard 84,101 (84,101) 0 N/A 0 216 Deferred Fuel Costs N/A 0 217 Demand Side Management 1,533,821 (1,533,821) 0 N/A 0 218 Electric Vehicle Credit - Fed DIT Only 7,500 0 7,500 LABOR 4,463 219 Employee Incentive Plans 604,055 (16,055) 588,000 LABOR 349,912 220 Environmental Remediation 56,443 (1,500) 54,943 PIS-PROD 28,794 221 Federal NOL Benefit 51,186,654 (51,186,654) 0 N/A 0 222 Fuel Tax Credit - Inc Addback 1,171 (31) 1,140 LABOR 678 223 Interest Inc/Exp on Disputed Tax - DTA N/A 0 224 Inventory Reserve 138,171 (3,673) 134,498 PIS-NET 72,178 225 ITC Grant - Fed DIT Only N/A 0 226 KS State Only NOL 10,425 (10,425) 0 N/A 0 227 Litigation Reserve PIS-NET 0 228 New Hire Retention Credit 11,000 0 11,000 LABOR 6,546 229 NM State Only NOL 923,949 (923,949) 0 N/A 0 230 Non-qualified Pension Plans 633,163 (16,829) 616,334 LABOR 366,773 231 OCI Treasury 603,830 (603,830) 0 N/A 0 232 OK Bonus Depreciation N/A 0 233 OK State Only NOL 12,021 (12,021) 0 N/A 0 234 Performance Share Plan 3,187 (3,187) 0 N/A 0 235 Post Employment Benefits - FAS106 6,204,792 (164,923) 6,039,869 LABOR 3,594,257 236 Post Employment Benefits - FAS106 Medicare LABOR 0 237 Post Employment Benefits - FAS112 645,716 (17,163) 628,553 LABOR 374,045 238 R&E Credit - Fed DIT Only 1,684,966 0 1,684,966 PIS-NET 904,227 239 Rate Refund 18,943,904 (18,943,904) 0 N/A 0 240 Reg Liab - Transmission Attach O 1,376,145 (1,376,145) 0 N/A 0 241 Reg Liab - Refund Obligation 2,698,597 (2,698,597) 0 N/A 0 242 Severance Accrual LABOR 0 243 State Tax Deduct Cash vs Acc - DTA 1,177,503 (1,177,503) 0 N/A 0 244 State Tax Deduction Cash vs. Accrual (FIN48) - Perm 434 (434) 0 N/A 0 245 State Tax Deduction Cash vs. Accrual (FIN48) - Temp - (Non-Utility) 653 (653) 0 N/A 0 246 Texas Margin Tax 404,321 (404,321) 0 N/A 0 247 Unrecovered REC Inventory N/A 0 RR16 - Page 152 of 426 07567
Page 10 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 248 TUCO Refund 229,714 (229,714) 0 N/A 0 249 Unbilled Revenue 15,706,203 (15,706,203) 0 N/A 0 250 Vacation Accrual 1,730,803 (46,004) 1,684,799 LABOR 1,002,605 251 FAS 109 - Rate Change (3,283,280) 3,283,280 0 N/A 0 252 FAS 109 - Unamortized ITC N/A 0 253 Texas NOL Carryforward - Beginning Balance 0 22,906,633 22,906,633 TX 22,906,633 254 Texas NOL Carryforward 0 (14,632,724) (14,632,724) TX (14,632,724) 255 Plant Timing Differences - Production 7,540,252 (63,636) 7,476,616 PIS-PROD 3,918,331 256 Plant Timing Differences - Transmission 25,861,934 1,248,573 27,110,507 PIS-TRAN 12,722,097 257 Plant Timing Differences - Distribution 30,632,671 (384,736) 30,247,935 PIS-DIST 21,217,537 258 Plant Timing Differences - General 819,220 23,345 842,565 LABXAG 493,279 259 Plant Timing Differences - Non Utility (952,514) 952,514 0 N/A 0 260 Total Account 190 190 170,932,067 (83,591,286) 87,340,781 54,648,100 261 262 Account 281: 263 Plant - 281 281 (1,262,777) (286,788) (1,549,565) PIS-PROD (812,093) 264 265 Account 282: 266 Plant Timing Differences - Production (234,225,353) 0 (234,225,353) PIS-PROD (122,752,399) 267 Plant Timing Differences - Transmission (311,325,984) 1,522,777 (309,803,207) PIS-TRAN (145,380,775) 268 Plant Timing Differences - Distribution (189,828,131) 0 (189,828,131) PIS-DIST (133,155,713) 269 Plant Timing Differences - General (43,676,701) 0 (43,676,701) LABXAG (25,570,480) 270 Plant Timing Differences - CRS / General Call Center (930,931) 0 (930,931) CUST-RET (633,451) 271 Plant Timing Differences - South Georgia 109,019 0 109,019 NM 0 272 Plant Timing Differences - Future Use PIS-NET 0 273 Plant Timing Differences - Non Utility 3,900 (3,900) 0 N/A 0 274 Plant Timing Differences - Unblend Adj Production 0 (51,250,571) (51,250,571) PIS-PROD (26,859,306) 275 Plant Timing Differences - Unblend Adj Transmission 0 7,398,504 7,398,504 PIS-TRAN 3,471,882 276 Plant Timing Differences - Unblend Adj Distribution PIS-DIST 0 277 Plant Timing Differences - Unblend Adj General 0 (2,375,115) (2,375,115) PIS-GEN (1,398,436) 278 Plant Timing Differences - Unblend Adj CRS/Call Center 0 (295,454) (295,454) CUST-RET (201,041) 279 Plant Timing Differences - Post TY Adj Production 0 (1,704,776) (1,704,776) PIS-PROD (893,436) 280 Plant Timing Differences - Post TY Adj Transmission 0 (31,634,234) (31,634,234) PIS-TRAN (14,844,938) 281 Plant Timing Differences - Post TY Adj Distribution 0 (3,634,622) (3,634,622) PIS-DIST (2,549,520) 282 Plant Timing Differences - Post TY Adj General 0 106,062 106,062 PIS-GEN 62,448 283 Plant Timing Differences - Post TY Adj CRS/Call Center 0 139,535 139,535 CUST-RET 94,946 284 Plant Timing Differences - State Tax Portion Exclusion (Texas Retail) Production 0 6,721,831 6,721,831 TX 6,721,831 285 Plant Timing Differences - State Tax Portion Exclusion (Texas Retail) Transmission 0 3,074,799 3,074,799 TX 3,074,799 286 Plant Timing Differences - State Tax Portion Exclusion (Texas Retail) Distribution 0 2,528,373 2,528,373 TX 2,528,373 287 Plant Timing Differences - State Tax Portion Exclusion (Texas Retail) General 0 948,991 948,991 TX 948,991 288 Plant Timing Differences - State Tax Portion Exclusion (Other Jurisdictions) Production 0 53,487,918 53,487,918 WHLS 0 289 Plant Timing Differences - State Tax Portion Exclusion (Other Jurisdictions) Transmissi 0 (3,623,184) (3,623,184) WHLS 0 290 Plant Timing Differences - State Tax Portion Exclusion (Other Jurisdictions) Distributio 0 2,184,764 2,184,764 WHLS 0 291 Plant Timing Differences - State Tax Portion Exclusion (Other Jurisdictions) General 0 3,283,211 3,283,211 WHLS 0 292 FAS 109 Related (34,085,491) 34,085,491 0 N/A 0 293 Total Account 282 282 (813,959,673) 20,960,401 (792,999,272) (457,336,225) 294 RR16 - Page 153 of 426 07568
Page 11 of 270 Electric Rate Base At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 295 Account 283: 296 Book Unamortized Cost of Reacquired Debt (1,551,360) 41,235 (1,510,125) PIS-NET (810,400) 297 Deferred Fuel Costs (5,833,102) 5,833,102 0 N/A 0 298 Demand Side Management Advertising (31,968) 31,968 0 N/A 0 299 Interest Expense - Deferred Fuel Revenue (179,563) 179,563 0 N/A 0 300 Interruptible Service Option Credit N/A 0 301 Mark to Market Adjustment (1,132,479) 1,132,479 0 N/A 0 302 Pension Expense (61,213,603) 1,627,054 (59,586,549) LABOR (35,459,271) 303 Prepaid Advertising (91,634) 91,634 0 N/A 0 304 Reg Asset - New Mexico NOx Expense (5,299) 5,299 0 N/A 0 305 Rate Case Expenses (2,568,238) 2,568,238 0 N/A 0 306 Restructuring Costs - Recoverable Meters 375,458 (9,979) 365,479 TX 365,479 307 Interest Inc/Exp on Disputed Tax (23,863) 23,863 0 N/A 0 308 Renewable Energy Standard N/A 0 309 State Tax Deduction Cash vs Accrual 877 (877) 0 N/A 0 310 Texas Margin Tax N/A 0 311 Unrecovered REC Inventory (7,549,079) 7,549,079 0 N/A 0 312 Accelerated Amortization & Basis Differences - Software (4,832,227) 290,097 (4,542,130) LABXAG (2,659,185) 313 Accelerated Amortization & Basis Differences - State Tax Unblend 0 (365,923) (365,923) TX (365,923) 314 Total Account 283 283 (84,636,079) 18,996,832 (65,639,247) (38,929,300) 315 316 Total Accumulated Deferred Income Taxes (728,926,462) (43,920,841) (772,847,303) (442,429,518) 317 318 Customer Deposits 319 Customer Deposits - Texas 235TX (8,136,028) 0 (8,136,028) TX (8,136,028) 320 Customer Deposits - New Mexico 235NM (2,168,851) 0 (2,168,851) NM 0 321 Total Customer Deposits (10,304,879) 0 (10,304,879) (8,136,028) 322 FAS 106 Liability (17,391,011) 0 (17,391,011) LABOR (10,349,191) 323 FAS 112 Liability (2,341,289) 0 (2,341,289) LABOR (1,393,274) 324 Customer Advances for Construction 325 Customer Advances for Construction - Texas 252 (4,860) 0 (4,860) NCP-DIST (4,857) 326 Customer Advances for Construction - New Mexico 252 (5,147) 0 (5,147) NM 0 327 Total Customer Advances for Construction (10,007) 0 (10,007) (4,857) 328 329 Net Rate Base 2,926,555,561 26,313,347 2,952,868,908 1,560,042,382 RR16 - Page 154 of 426 07569
Page 12 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 1 Cost of Sales: 2 Steam Production Fuel: 3 Steam Generation Fuel 50100 10,980 (10,980) 0 ENERGY 0 4 Steam Power Fuel - Gas 50110 232,575,224 (232,575,224) 0 ENERGY 0 5 Steam Power Fuel - Oil 50120 480,488 (480,488) 0 ENERGY 0 6 Steam Power Fuel - Coal 50130 230,469,407 (230,469,407) 0 ENERGY 0 7 Steam Power Fuel - Coal Non-Native Load 50165 3,137,626 (3,137,626) 0 ENERGY 0 8 Steam - Other Sources 5030 0 ENERGY 0 9 Total Steam Production Fuel 466,673,725 (466,673,725) 0 0 10 11 Other Production Turbine Fuel: 12 Other Operating Fuel 5470 0 ENERGY 0 13 Other Production Fuel - Gas / Nitrogen 54710 (4,040,459) 4,040,459 0 ENERGY 0 14 Other Production Fuel - Engine Oil 5472 0 ENERGY 0 15 Other Production Fuel - Gas Non-Native Load 54740 12,421,367 (12,421,367) 0 ENERGY 0 16 Total Other Production Fuel 8,380,908 (8,380,908) 0 0 17 18 Deferred Electric Generation Costs 55720 (7,198,888) 7,198,888 0 N/A 0 19 20 Purchased Power: 21 Energy: 22 Purchased Power - Real Time Energy 55500 72,491,327 (72,491,327) 0 ENERGY 0 23 Purchased Power - Energy 55502 198,411,723 (198,411,723) 0 ENERGY 0 24 Purchased Power - Non-Firm Energy 55503 703,907 (703,907) 0 ENERGY 0 25 Purchased Power - Wind 55506 108,854,094 (108,854,094) 0 ENERGY 0 26 Purchased Power - Variable O&M 55509 14,893,308 308,425 15,201,733 ENERGY 8,345,661 27 Purchased Power - Firm Energy 55518 5,096,267 (5,096,267) 0 ENERGY 0 28 Purchased Power - Solar 55524 12,483,442 (12,483,442) 0 ENERGY 0 29 Purchased Power - Gen Trading 55528 3,794,889 (3,794,889) 0 ENERGY 0 30 Purchased Power - Prop Trading 55529 ENERGY 0 31 Purchased Power - SPP Real Power Losses 55530 6,409 (6,409) 0 ENERGY 0 32 Purchased Power - MISO 55531 ENERGY 0 33 Purchased Power - MISO Prop 55532 ENERGY 0 34 Purchased Power - ICO 55533 ENERGY 0 35 Purchased Power - Non-Native Load Tolling 55535 (1,681,409) 1,681,409 0 ENERGY 0 36 Purchased Power - Non-Native Load LT 55536 (865,347) 865,347 0 ENERGY 0 37 Purchased Power - Non-Native Load ST 55537 (455,094) 455,094 0 ENERGY 0 38 Wheeling - by Others 56500 6,039 (6,039) 0 12CP-PROD 0 39 Wheeling - Resale 5652 0 12CP-PROD 0 40 Total Energy 413,739,555 (398,537,822) 15,201,733 8,345,661 41 RR16 - Page 155 of 426 07570
Page 13 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 42 Demand: 43 Purchased Power - Capacity 55501 103,931,599 6,129,338 110,060,937 12CP-PROD 57,680,536 44 Total Demand 103,931,599 6,129,338 110,060,937 57,680,536 45 46 Deferred Purchased Power 55710 8,338,242 (8,338,242) 0 N/A 0 47 48 Total Purchased Power 526,009,396 (400,746,726) 125,262,670 66,026,197 49 50 Total Cost of Sales 993,865,141 (868,602,471) 125,262,670 66,026,197 51 52 Operating & Maintenance Expenses: 53 54 Steam Production Operation: 55 Supervision & Engineering 0500 2,697,214 (16,937) 2,680,277 12CP-PROD 1,404,675 56 Fuel (Transportation & Handling) 0501F # 37,524,247 63,834 37,588,081 ENERGY 20,635,634 57 Steam Expense 0502 9,797,913 (532,765) 9,265,147 12CP-PROD 4,855,662 58 Electric Expense 0505 10,924,509 (239,950) 10,684,560 12CP-PROD 5,599,545 59 Miscellaneous 0506 13,370,199 732,248 14,102,447 12CP-PROD 7,390,785 60 Rent 0507 3,930,804 0 3,930,804 12CP-PROD 2,060,049 61 Supplies and Expenses 0508 12CP-PROD 0 62 Allowances 0509 1,275 (1,275) 0 12CP-PROD 0 63 Total Steam Production Operation 78,246,161 5,155 78,251,316 41,946,350 64 65 Steam Production Maintenance: 66 Supervision & Engineering 0510 2,286,187 131,949 2,418,136 12CP-PROD 1,267,293 67 Structures 0511 4,248,824 82,926 4,331,750 12CP-PROD 2,270,176 68 Boilers 0512 19,495,972 914,757 20,410,729 ENERGY 11,205,369 69 Electric Plant 0513 15,134,578 251,512 15,386,090 ENERGY 8,446,872 70 Miscellaneous Plant 0514 12,561,930 923,405 13,485,335 12CP-PROD 7,067,370 71 Steam Production (Nonmajor) 0515 12CP-PROD 0 72 Total Steam Production Maintenance 53,727,492 2,304,548 56,032,040 30,257,080 73 74 Total Steam Production O&M 131,973,653 2,309,703 134,283,356 72,203,430 75 RR16 - Page 156 of 426 07571
Page 14 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 76 Other Production Operation: 77 Supervision & Engineering 0546 7,719 (2,285) 5,434 12CP-PROD 2,848 78 Fuel Handling 0547 ENERGY 0 79 Generation Expense 0548 323,838 91,946 415,784 12CP-PROD 217,903 80 Miscellaneous 0549 583,791 (47,105) 536,685 12CP-PROD 281,265 81 Rents 0550 400,659 0 400,659 12CP-PROD 209,977 82 Total Other Production Operation 1,316,007 42,556 1,358,563 711,993 83 84 Other Production Maintenance: 85 Supervision & Engineering 0551 418 (144) 273 12CP-PROD 143 86 Structures 0552 169,349 (1,188) 168,161 12CP-PROD 88,129 87 Electric Plant 0553 1,514,369 178,231 1,692,600 12CP-PROD 887,055 88 Miscellaneous Plant 0554 10,791 0 10,791 12CP-PROD 5,655 89 Total Other Production Maintenance 1,694,927 176,898 1,871,826 980,982 90 91 Total Other Production O&M 3,010,935 219,454 3,230,389 1,692,975 92 93 System Control and Dispatch: 94 System Load Control 0556 1,073,100 28,921 1,102,021 12CP-PROD 577,545 95 Other Expenditures 0557 1,167,067 44,386 1,211,454 12CP-PROD 634,896 96 Other Expenditures - New Mexico 0557NM (329,666) 0 (329,666) NM 0 97 Other Expenditures - Texas 0557TX 6,494,034 (693,661) 5,800,373 TX 5,800,373 98 Total System Control and Dispatch 8,404,536 (620,354) 7,784,181 7,012,814 99 100 Total Non-Fuel Production O&M 143,389,123 1,908,803 145,297,927 80,909,219 101 102 Transmission Operations: 103 Supervision & Engineering 0560 7,239,154 (95,971) 7,143,183 PIS-TRAN 3,352,068 104 Load Dispatch 0561 12CP-TRAN 0 105 Load Dispatch - Reliability 0561.1 63,412 14,159 77,572 12CP-TRAN 35,986 106 Load Dispatch - Monitor/Operate 0561.2 3,127,814 56,842 3,184,656 12CP-TRAN 1,477,378 107 Load Dispatch - Transmission Serv/Sch 0561.3 12CP-TRAN 0 108 Load Dispatch - Sch/Con/Disp Serv 0561.4 3,806,674 (773,115) 3,033,559 RETAIL-TRAN 2,216,338 109 Rel/Plan/Standards Dev Serv 0561.5 321,929 (191,212) 130,717 12CP-TRAN 60,640 110 Trans Service Studies 0561.6 (51,414) (45,396) (96,810) 12CP-TRAN (44,911) 111 Generation Interconnection Studies 0561.7 (416,085) 4,404 (411,682) 12CP-TRAN (190,981) 112 Rel/Plan/Standards Dev Serv 0561.8 3,026,406 (410,717) 2,615,689 RETAIL-TRAN 1,911,039 113 Station Equipment 0562 1,276,075 57,663 1,333,738 PIS-TRAN 625,881 114 Overhead s 0563 949,291 (48,949) 900,341 PIS-TRAN 422,502 115 Underground s 0564 PIS-TRAN 0 116 Miscellaneous 0566 2,617,092 651,137 3,268,229 PIS-TRAN 1,533,676 117 Rents 0567 1,226,164 0 1,226,164 PIS-TRAN 575,400 118 Total Transmission Operations 23,186,512 (781,156) 22,405,356 11,975,016 119 RR16 - Page 157 of 426 07572
Page 15 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 120 Transmission Maintenance: 121 Supervision & Engineering 0568 73,238 25,345 98,583 PIS-TRAN 46,262 122 Structures 0569 PIS-TRAN 0 123 Station Equipment 0570 2,524,018 144,289 2,668,308 PIS-TRAN 1,252,152 124 Overhead s 0571 1,051,352 11,272 1,062,624 PIS-TRAN 498,655 125 Underground s 0572 89 0 89 PIS-TRAN 42 126 Miscellaneous 0573 25,137 (105) 25,032 PIS-TRAN 11,747 127 Total Transmission Maintenance 3,673,834 180,801 3,854,635 1,808,858 128 129 Wheeling: 130 Wheeling - Lamar HVDC Tie 0565P 8,475,178 390,182 8,865,360 12CP-PROD 4,646,142 131 Wheeling - PNM Reliability Purchase 0565P 3,292,873 (3,292,873) 0 12CP-PROD 0 132 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charges 0565R 1,396,707 (1,153,757) 242,950 RETAIL-TRAN 177,501 133 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 1,653,421 (1,653,421) 0 RETAIL-TRAN 0 134 Wheeling - Schedules 7 & 8 - Point to Point 0565R 43,004 0 43,004 RETAIL-TRAN 31,419 135 Wheeling - Schedule 9 Network Integration 0565T 24,828,360 (24,440,418) 387,943 12CP-TRAN 179,969 136 Wheeling - Schedule 11 0565T 54,595,476 29,369,550 83,965,026 12CP-TRAN 38,951,809 137 Wheeling - Schedule 12 - FERC Assessment 0565R 1,757,837 6,575 1,764,412 RETAIL-TRAN 1,289,091 138 Wheeling - Other 0565T 7,352 6,039 13,391 12CP-TRAN 6,212 139 140 141 Total Wheeling 96,050,207 (768,122) 95,282,086 45,282,143 142 143 Total Transmission O&M 122,910,554 (1,368,477) 121,542,077 59,066,017 144 145 Regional Market Expenses: 146 Operation Supervision 0575.1 193,385 (23,368) 170,017 ENERGY 93,339 147 Day Ahead & Real Time Mkt Admin 0575.2 41,592 (6,199) 35,393 ENERGY 19,431 148 Trans Rights Mkt Admin 0575.3 ENERGY 0 149 Cap Mkt Admin 0575.4 ENERGY 0 150 Ancillary Serv Mkt Admin 0575.5 9,301 (3,328) 5,974 ENERGY 3,280 151 Market Monitoring/Compliance 0575.6 62,120 (8,684) 53,437 ENERGY 29,336 152 Mkt Fac/Mon/Comp Serv 0575.7 6,066,886 (1,232,152) 4,834,734 RETAIL-TRAN 3,532,289 153 Regional Market Rents 0575.8 26,353 0 26,353 ENERGY 14,468 154 Total Regional Market Expenses 6,399,638 (1,273,730) 5,125,909 3,692,143 155 156 Distribution Operations: 157 Supervision - H/S 0580 # 45,713 0 45,713 CUST-H/S 8,599 158 Supervision - Texas 0580 # 2,599,678 0 2,599,678 TX 2,599,678 159 Supervision - New Mexico 0580 # 513,150 0 513,150 NM 0 160 Supervision 0580 1,984,403 (44,628) 1,939,775 PIS-DIST 1,360,663 161 Total Supervision 0580 5,142,944 (44,628) 5,098,316 3,968,940 162 Load Dispatch - H/S 0581 # CUST-H/S 0 163 Load Dispatch - Texas 0581 # 464,557 0 464,557 TX 464,557 164 Load Dispatch - New Mexico 0581 # NM 0 165 Load Dispatch 0581 302,142 456,947 759,089 PIS-DIST 532,466 166 Total Load Dispatch 0581 766,698 456,947 1,223,645 997,023 RR16 - Page 158 of 426 07573
Page 16 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 167 Station Equipment - H/S 0582 # CUST-H/S 0 168 Station Equipment - Texas 0582 # 466,933 0 466,933 TX 466,933 169 Station Equipment - New Mexico 0582 # 556 0 556 NM 0 170 Station Equipment 0582 486,556 44,447 531,003 PIS-DIST 372,474 171 Total Station Equipment 0582 954,045 44,447 998,492 839,407 172 Overhead s - H/S 0583 # CUST-H/S 0 173 Overhead s - Texas 0583 # 1,678,776 0 1,678,776 TX 1,678,776 174 Overhead s - New Mexico 0583 # 641,615 0 641,615 NM 0 175 Overhead s 0583 (1,842,805) 44,511 (1,798,294) PIS-DIST (1,261,420) 176 Total Overhead s 0583 477,587 44,511 522,098 417,356 177 Underground s - H/S 0584 # CUST-H/S 0 178 Underground s - Texas 0584 # 364,465 0 364,465 TX 364,465 179 Underground s - New Mexico 0584 # 263,584 0 263,584 NM 0 180 Underground s 0584 (272,801) 51,484 (221,317) PIS-DIST (155,244) 181 Total Underground s 0584 355,248 51,484 406,732 209,221 182 Street Lighting - H/S 0585 # CUST-H/S 0 183 Street Lighting - Texas 0585 # 127,327 0 127,327 TX 127,327 184 Street Lighting - New Mexico 0585 # 43,990 0 43,990 NM 0 185 Street Lighting 0585 748,469 (113,631) 634,838 PIS-DIST 445,310 186 Total Street Lighting 0585 919,785 (113,631) 806,154 572,637 187 Metering - H/S 0586 # CUST-H/S 0 188 Metering - Texas 0586 # 2,680,607 0 2,680,607 TX 2,680,607 189 Metering - New Mexico 0586 # 1,408,300 0 1,408,300 NM 0 190 Metering 0586 896,531 16,242 912,773 PIS-DIST 640,269 191 Total Metering 0586 4,985,438 16,242 5,001,680 3,320,876 192 Customer Installations - H/S 0587 # CUST-H/S 0 193 Customer Installations - Texas 0587 # 693,595 0 693,595 TX 693,595 194 Customer Installations - New Mexico 0587 # 6,579 0 6,579 NM 0 195 Customer Installations 0587 631,373 (82,251) 549,123 PIS-DIST 385,184 196 Total Customer Installations 0587 1,331,547 (82,251) 1,249,297 1,078,779 197 Miscellaneous - H/S 0588 # 84,712 0 84,712 CUST-H/S 15,936 198 Miscellaneous - Texas 0588 # 3,433,050 0 3,433,050 TX 3,433,050 199 Miscellaneous - New Mexico 0588 # 2,156,607 0 2,156,607 NM 0 200 Miscellaneous 0588 1,749,876 408,435 2,158,311 PIS-DIST 1,513,956 201 Total Miscellaneous 0588 7,424,244 408,435 7,832,680 4,962,942 202 Rents - H/S 0589 # 10,039 0 10,039 CUST-H/S 1,888 203 Rents - Texas 0589 # 896,857 0 896,857 TX 896,857 204 Rents - New Mexico 0589 # 295,755 0 295,755 NM 0 205 Rents 0589 1,125,909 0 1,125,909 PIS-DIST 789,774 206 Total Rents 0589 2,328,560 0 2,328,560 1,688,519 207 208 Total Distribution Operations 24,686,097 781,557 25,467,654 18,055,700 209 RR16 - Page 159 of 426 07574
Page 17 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 210 Distribution Maintenance: 211 Supervision So - H/S 0590 # CUST-H/S 0 212 Supervision - TX 0590 # 80,262 0 80,262 TX 80,262 213 Supervision - NM 0590 # 31,249 0 31,249 NM 0 214 Supervision 0590 186,572 44,928 231,500 PIS-DIST 162,387 215 Total Supervision 0590 298,083 44,928 343,012 242,649 216 Structures So - H/S 0591 # CUST-H/S 0 217 Structures - TX 0591 # TX 0 218 Structures - NM 0591 # NM 0 219 Structures 0591 PIS-DIST 0 220 Total Structures 0591 0 221 Station Equipment So - H/S 0592 # CUST-H/S 0 222 Station Equipment - TX 0592 # 1,160,521 0 1,160,521 TX 1,160,521 223 Station Equipment - NM 0593 # 15,441 0 15,441 NM 0 224 Station Equipment 0592 845,603 204,927 1,050,530 PIS-DIST 736,899 225 Total Station Equipment 0592 2,021,565 204,927 2,226,492 1,897,420 226 Overhead s So - H/S 0593 # 1,526 0 1,526 CUST-H/S 287 227 Overhead s - TX 0593 # 4,512,487 0 4,512,487 TX 4,512,487 228 Overhead s - NM 0593 # 1,810,416 0 1,810,416 NM 0 229 Overhead s 0593 2,786,869 1,115,369 3,902,239 PIS-DIST 2,737,241 230 Total Overhead s 0593 9,111,298 1,115,369 10,226,668 7,250,015 231 Underground s So - H/S 0594 # CUST-H/S 0 232 Underground s - TX 0594 # 201,888 0 201,888 TX 201,888 233 Underground s - NM 0594 # 115,021 0 115,021 NM 0 234 Underground s 0594 (52,437) (11,140) (63,576) PIS-DIST (44,596) 235 Total Underground s 0594 264,472 (11,140) 253,332 157,292 236 Transformers So - H/S 0595 # CUST-H/S 0 237 Transformers - TX 0595 # 24,362 0 24,362 TX 24,362 238 Transformers - NM 0595 # 71,793 0 71,793 NM 0 239 Transformers 0595 0 4,564 4,564 PIS-DIST 3,202 240 Total Transformers 0595 96,155 4,564 100,719 27,564 241 Street Lighting So - H/S 0596 # CUST-H/S 0 242 Street Lighting - TX 0596 # 16,808 0 16,808 TX 16,808 243 Street Lighting - NM 0596 # 14,776 0 14,776 NM 0 244 Street Lighting 0596 37,234 (6,615) 30,619 PIS-DIST 21,477 245 Total Street Lighting 0596 68,818 (6,615) 62,202 38,285 246 Metering So - H/S 0597 # CUST-H/S 0 247 Metering - TX 0597 # 8,691 0 8,691 TX 8,691 248 Metering - NM 0597 # 1,124 0 1,124 NM 0 249 Metering 0597 15,940 (2,145) 13,795 PIS-DIST 9,676 250 Total Metering 0597 25,756 (2,145) 23,610 18,367 RR16 - Page 160 of 426 07575
Page 18 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 251 Miscellaneous So - H/S 0598 # CUST-H/S 0 252 Miscellaneous - TX 0598 # TX 0 253 Miscellaneous - NM 0598 # 201 0 201 NM 0 254 Miscellaneous 0598 8,611 (129) 8,482 PIS-DIST 5,950 255 Total Miscellaneous 0598 8,812 (129) 8,683 5,950 256 257 Total Distribution Maintenance 11,894,958 1,349,760 13,244,718 9,637,542 258 259 Total Distribution O&M 36,581,055 2,131,317 38,712,373 27,693,242 260 261 Customer Accounting Expense: 262 Supervision 0901 42,398 841 43,239 CUST-AVG 29,421 263 Meter Reading 0902 5,017,127 221,780 5,238,907 CUST-AVG 3,564,734 264 Billing & Cashiering 0903 6,761,856 18,914 6,780,769 CUST-AVG 4,613,871 265 Uncollectible Accounts 0904 DA 0 266 Uncollectible Accounts 0904 # 3,910,703 0 3,910,703 CUST-RET 2,661,033 267 Total Uncollectible Accounts 0904 3,910,703 0 3,910,703 2,661,033 268 Customer Deposit Interest - Texas 0 7,322 7,322 TX 7,322 269 Miscellaneous 0905 CUST-AVG 0 270 Total Miscellaneous 0905 0 7,322 7,322 7,322 271 272 Total Customer Accounting Expense 15,732,084 248,856 15,980,940 10,876,381 273 274 275 Customer Service Expense: 276 Supervision 0907 CUST-AVG 0 277 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 1,673,346 (149,965) 1,523,381 TX 1,523,381 278 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 3,147,376 (3,147,376) 0 TX 0 279 Customer Assistance - EE - New Mexico 0908DSMNM 6,045,416 0 6,045,416 NM 0 280 Customer Assistance - ICO Credits 0908ICO 521 190,013 190,534 TX 190,534 281 Customer Assistance - Saver Switch & EE Labor 0908SVR 1,082,553 (624) 1,081,929 TX 1,081,929 282 Customer Assistance - Other 0908 2,610,071 (54,686) 2,555,385 CUST-AVG 1,738,773 283 Customer Assistance - Total 0908 14,559,283 (3,162,638) 11,396,645 CUST-AVG 4,534,617 284 Advertisement 0909 506,941 0 506,941 CUST-RET 344,948 285 Miscellaneous 091 0 CUST-AVG 0 286 287 Total Customer Service Expense 15,066,224 (3,162,638) 11,903,586 4,879,565 288 RR16 - Page 161 of 426 07576
Page 19 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 289 Sales Expense: 290 Sales Expense - Supv. 0911 CUST-AVG 0 291 Demonstrations & Selling 0912 188,858 (11,129) 177,729 CUST-AVG 120,933 292 Advertising Expense - Sales 0913 CUST-RET 0 293 Miscellaneous Sales Expense 0916 CUST-AVG 0 294 295 Total Sales Expense 188,858 (11,129) 177,729 120,933 296 297 Total Customer Service & Sales Expense 15,255,082 (3,173,767) 12,081,315 5,000,498 298 299 Total Customer Operations Expense 30,987,166 (2,924,911) 28,062,255 15,876,879 300 301 Administrative & General Expense: 302 Administrative Salaries 0920 22,263,197 (1,999,497) 20,263,701 LABXAG 11,863,363 303 Office Supplies & Expense 0921 16,119,259 (357,781) 15,761,477 LABXAG 9,227,541 304 A&G Expense Transferred 0922 (6,408,374) 0 (6,408,374) LABXAG (3,751,776) 305 Outside Services - Legal 0923 7,014,213 (252,197) 6,762,016 LABXAG 3,958,816 306 Property Insurance 0924 3,695,725 (5,016) 3,690,710 PIS-NET 1,980,598 307 Injuries and Damages 0925 4,394,334 450,325 4,844,659 LABXAG 2,836,301 308 Pensions & Benefits 0926 34,621,643 930,099 35,551,742 LABXAG 20,813,731 309 Deferred Pensions & Benefits 092603 1,538,030 2,045,479 3,583,510 TX 3,583,510 310 Regulatory Commission Expense - Texas 0928 3,113,949 3,246,621 6,360,570 TX 6,360,570 311 Regulatory Commission Expense - New Mexico 0928 1,976,504 723,045 2,699,549 NM 0 312 Regulatory Commission Expense - Wholesale 0928 1,061,102 (723,045) 338,057 WHLS 0 313 Regulatory Commission Expense - ENERGY 0928 110,959 0 110,959 ENERGY 60,916 314 Regulatory Commission Expense - Transmission 0928 229,903 0 229,903 12CP-TRAN 106,653 315 Regulatory Commission Expense - NERC Fees 0928 RETAIL-TRAN 0 316 Regulatory Commission Expense - Misc 0928 21,982 0 21,982 RETAIL-ENERGY 16,169 317 Total Regulatory Commission Expense 0928 6,514,399 3,246,621 9,761,019 6,544,308 318 Duplicate Charges - Electric 0929 (1,199,955) 0 (1,199,955) PIS-PTD (645,442) 319 Miscellaneous 0930 09 2,606,807 (1,517,157) 1,089,650 PIS-PTD 586,110 320 Rents - Retail Allocated 0931 2,468,489 (13,065) 2,455,423 PISRET-PTD 1,772,192 321 Rents - Other 931O 5,791,385 (7,565) 5,783,821 PIS-PTD 3,111,049 322 Rents 0931 8,259,874 (20,630) 8,239,244 4,883,241 323 Maintenance of Structures 0932 PIS-GEN 0 324 Maintenance of General Plant 0935 268,798 (120,990) 147,808 PIS-GEN 87,028 325 Contributions &, Dues 0 2,556,117 2,556,117 TX 2,556,117 326 Total Administrative & General Expense 99,687,950 4,955,375 104,643,324 64,523,446 327 328 Total O&M Expense 439,955,487 3,428,378 443,383,864 251,760,946 329 RR16 - Page 162 of 426 07577
Page 20 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 330 Depreciation and Amortization Expense: 2,975,579 331 332 Intangible: 333 Misc. Intangible 04060 0 PIS-GEN 0 334 04040 0 PIS-GEN 0 335 Total Intangible 0 336 337 Production: 338 Amortization of Regulatory Assets - DG, NM Fuel Audit NM 0 339 Depreciation Expense 0403 44,133,456 5,011,837 49,145,293 PIS-PROD 25,755,976 340 Depreciation & Depletion Expense 040310 40 (1,047,071) 1,047,071 0 N/A 0 341 Amortization - ARO Regulatory Credits 040740 40 217,394 (217,394) 0 N/A 0 342 Accretion Expense 041190 # 829,676 (829,676) 0 N/A 0 343 Total Production 44,133,456 5,011,837 49,145,293 25,755,976 344 345 Transmission: 346 Depreciation Expense 0403 32,564,218 16,625,744 49,189,962 PIS-TRAN 23,083,282 347 Depreciation & Depletion Expense 040310 # 456 (456) 0 N/A 0 348 Total Transmission 32,564,675 16,625,287 49,189,962 23,083,282 349 350 Distribution: 351 Depreciation Expense - Texas 0403TX 17,329,277 1,230,612 18,559,889 NCP-DIST 18,548,942 352 Depreciation Expense - New Mexico 0403NM 8,632,874 (487,368) 8,145,506 NM 0 353 Depreciation & Depletion Expense 040310 # 200,895 (200,895) 0 N/A 0 354 Amortization - Distribution Regulatory Credits 040740TX (53,949) 0 (53,949) NCP-DIST (53,917) 355 Amortization - ARO Regulatory Credits 040740 # (426,091) 426,091 0 N/A 0 356 Accretion Expense 041190 # 222,135 (222,135) 0 N/A 0 357 Total Distribution 25,905,141 746,305 26,651,446 18,495,025 358 359 General: 360 361 Amortization of Software - CRS 040422CRS 1,585,372 0 1,585,372 CUST-RET 1,078,764 362 Amortization of Intangible 040422 8,309,892 6,903,077 15,212,969 PIS-GEN 8,957,196 363 Depreciation Expense 0403 7,898,558 7,091,628 14,990,186 PIS-GEN 8,826,024 364 Depreciation Expense - Call Center 0403 227,468 89,419 316,888 CUST-RET 215,626 365 Depreciation & Depletion Expense 040310 # 2,605 (2,605) 0 N/A 0 366 Amortization - Office Remodel 040416 PIS-GEN 0 367 Amortization - Regulatory Debits - Texas 040730TX 34,898 0 34,898 TX 34,898 368 Amortization - Regulatory Debits - New Mexico 040730NM 3,400,406 0 3,400,406 NM 0 369 Total General 21,459,198 14,081,520 35,540,718 19,112,508 370 371 Total Depreciation and Amortization Expense 124,062,470 36,464,950 160,527,419 86,446,791 372 RR16 - Page 163 of 426 07578
Page 21 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 373 Taxes Other Than Income: 374 Property 0408 04 27,506,086 9,612,279 37,118,364 PIS-NET 19,919,360 375 Payroll 40831 # 7,860,609 249,765 8,110,374 LABOR 4,826,391 376 Sales and Use Tax 40832 (27,907) (27,907) PIS-NET (14,976) 377 Other: 378 Franchise Fees - Texas 40833TX 9,294,948 1,786,864 11,081,812 TX 11,081,812 379 Franchise Fees - New Mexico 40833NM 0 0 NM 0 380 Franchise Fees - Other 40833OTH 0 0 N/A 0 381 Texas Franchise Tax 40910 3,625,726 3,625,726 TX 3,625,726 382 Texas Gross Receipts Tax 40833 6,267,967 702,435 6,970,402 TX 6,970,402 383 Other 40833 8,548 0 8,548 PIS-NET 4,587 384 Total Other 15,571,464 6,115,025 21,686,489 21,682,527 385 386 Total Taxes Other Than Income 50,910,251 15,977,069 66,887,320 46,413,302 387 388 Income Tax Expense: 389 390 Net Original Cost Rate Base 2,952,868,914 1,560,042,382 391 Return on Rate Base 8.28% 392 Earnings 244,497,546 129,171,509 393 Net Original Cost Rate Base 2,952,868,914 1,560,042,382 394 Composite Cost of Debt 2.75% 395 Synchronized Interest 81,203,896 42,901,166 396 397 Schedule M Items: Temp/Perm 398 Plant Differences: 399 Plant Deferred Tax - Production T 5,670,619 (36,709,727) (31,039,108) PIS-PROD (16,266,919) 400 Plant Deferred Tax - Transmission T (92,478,987) (85,851,847) (178,330,833) PIS-TRAN (83,684,978) 401 Plant Deferred Tax - Distribution T (35,068,284) (2,889,161) (37,957,445) PIS-DIST (26,625,403) 402 Plant Deferred Tax - General T 6,490,763 15,337,834 21,828,597 PIS-GEN 12,852,390 403 Plant Related - General Call Center / CRS T (1,136,722) (295,455) (1,432,177) PISRET-PTD (1,033,668) 404 Plant Deferred Tax - Other T 873,360 (873,360) 0 N/A 0 405 Plant Deferred Tax - Production P 1,354,855 1,206,827 2,561,682 PIS-PROD 1,342,521 406 Plant Deferred Tax - Transmission P (6,937,654) 8,804,039 1,866,385 PIS-TRAN 875,835 407 Plant Deferred Tax - Distribution P (854,110) 1,394,312 540,203 PIS-DIST 378,927 408 Plant Deferred Tax - General P (823,122) 1,692,855 869,733 PIS-GEN 512,087 409 Plant Deferred Tax - Other P 6,267 (6,267) 0 N/A 0 410 RR16 - Page 164 of 426 07579
Page 22 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 411 Non-Plant differences - Permanent: 412 Additional Charitable Contribution P N/A 0 413 Club Dues P 28,361 (28,361) 0 N/A 0 414 Deferred Revenue (ITC Grant Accounting) P (12,027) 12,027 0 N/A 0 415 Depletion on Royalty Income P (832) 832 0 N/A 0 416 Lobbying Expenses P 468,509 (468,509) 0 N/A 0 417 Meals & Entertainment P 307,625 0 307,625 LABOR 183,064 418 Penalties P 319,803 (319,803) 0 N/A 0 419 420 Non-Plant differences - Temporary 421 Bad Debts T 1,035,747 0 1,035,747 CUST-RET 704,773 422 Book Unamort Cost of Reacquired Debt T 1,224,570 0 1,224,570 PIS-NET 657,159 423 Contributions Carryover T 757,640 (757,640) 0 N/A 0 424 Deferred Compensation Plan Reserve T 317,332 (317,332) 0 LABOR 0 425 REC Amortization T 0 2,836,570 2,836,570 TX 2,836,570 426 Historic EE Amortization T 0 1,155,696 1,155,696 TX 1,155,696 427 Unamortized Rate Case Expense Amortization T 0 784,724 784,724 TX 784,724 428 Unamortized Pension/OPEB Reg Asset Amortization T 0 3,583,510 3,583,510 TX 3,583,510 429 Deferred Fuel Costs T (8,538,701) 8,538,701 0 N/A 0 430 Demand Side Management T (297,206) 297,206 0 N/A 0 431 Demand Side Management - Advertising T 81,408 (81,408) 0 N/A 0 432 Employee Incentive Plans T 216,541 0 216,541 LABOR 128,861 433 Environmental Remediation T 104,906 0 104,906 PIS-PROD 54,979 434 FAS 106 Medicare Reimbursements T LABOR 0 435 Fed NOL Benefit - DIT NR (Non regulated) T (295) 295 0 N/A 0 436 Fed NOL Benefit - DIT OPER T (93,907,893) 93,907,893 0 N/A 0 437 Interest Expense - Deferred Fuel Revenue T (22,487) 22,487 0 N/A 0 438 Interest inc/exp on Disputed Tax T (370,467) 370,467 0 N/A 0 439 Interruptible Service Option Credit T N/A 0 440 Inventory Reserve T 33,889 0 33,889 PIS-NET 18,186 441 Litigation Reserve T PIS-NET 0 442 Mark to Market Adjustment T 765,456 (765,456) 0 N/A 0 443 Non-Qualified Pension Plan T (45,831) 0 (45,831) LABOR (27,274) 444 Pension Expense T 16,139,486 0 16,139,486 LABOR 9,604,423 445 Performance Share Plan T 1,137 (1,137) 0 N/A 0 446 Post Employment Benefit - FAS 106 T (210,039) 0 (210,039) LABOR (124,992) 447 Post Employment Benefit - FAS 112 T (720,060) 0 (720,060) LABOR (428,499) 448 Prepaid Advertising T 34,772 (34,772) 0 N/A 0 449 Rate Case Expenses T (3,548,184) 3,548,184 0 N/A 0 450 Restructuring Costs - Recoverable Meters T 34,898 0 34,898 TX 34,898 451 Rate Refund T 42,628,134 (42,628,134) 0 N/A 0 RR16 - Page 165 of 426 07580
Page 23 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 452 Regulatory Liability - Refund Obligation T (3,191,349) 3,191,349 0 N/A 0 453 Reg Asset - NM NOX Expense T 1,275 (1,275) 0 N/A 0 454 Reg Liability - Transmission Attachment O T 1,253,675 (1,253,675) 0 N/A 0 455 Renewable Energy Standard T (780,321) 780,321 0 N/A 0 456 Severance Accrual T LABOR 0 457 State Tax Deduction Cash vs. Accrual T 874,926 (874,926) 0 N/A 0 458 TUCO Refund T 541,185 (541,185) 0 N/A 0 459 Unbilled Revenue T 5,838,583 (5,838,583) 0 N/A 0 460 Unrecovered REC Inventory T (2,104,328) 2,104,328 0 N/A 0 461 Vacation Accrual T 97,793 0 97,793 LABOR 58,195 462 VEBA T (697,981) 697,981 0 LABOR 0 463 State Only NOL T N/A 0 464 Texas Gross Margin Tax T N/A 0 465 OK Bonus Depreciation T N/A 0 466 Fuel Tax Credit - Inc. Addback T N/A 0 467 R&E Credit - Fed FIT only T N/A 0 468 NOL Carryforward 0 (41,807,783) (41,807,783) TX (41,807,783) 469 (164,243,364) (72,077,358) (236,320,722) (134,232,718) 470 471 State Taxable Income (73,027,072) (47,962,375) 472 State Income Tax Rate 0.00% 473 State Income Tax Expense SIT 3,594,833 (4,402,525) (807,692) 0 474 475 Federal Taxable Income (72,219,380) (47,962,375) 476 Federal Tax Rate 1 35.00% 477 Federal Income Tax Expense 040901 (14,479,100) (10,797,683) (25,276,783) (16,786,831) 478 Impact of Production Tax Deduction TX 0 479 Total Current Federal Income Tax Expense (14,479,100) (10,797,683) (25,276,783) (16,786,831) 480 481 RR16 - Page 166 of 426 07581
Page 24 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 482 Deferred Income Tax Expense: 483 Plant Related 484 Plant Deferred Tax - Production (2,384,044) 13,247,732 10,863,688 PIS-PROD 5,693,422 485 Plant Deferred Tax - Transmission 33,586,124 28,829,667 62,415,792 PIS-TRAN 29,289,742 486 Plant Deferred Tax - Distribution 13,177,693 107,413 13,285,106 PIS-DIST 9,318,891 487 Plant Deferred Tax - General (1,534,782) (6,105,227) (7,640,009) PIS-GEN (4,498,337) 488 Plant Deferred Tax - General - CRS/Call Center (394,353) 895,615 501,262 PISRET-PTD 361,784 489 490 491 Non-Plant Related: 492 Additional Charitable Contribution # N/A 0 493 Club Dues N/A 0 494 Deferred Revenue (ITC Grant - Fed Only) N/A 0 495 Depletion on Royalty Income N/A 0 496 Lobbying Expenses N/A 0 497 Meals & Entertainment LABOR 0 498 Penalties N/A 0 499 Bad Debts (371,100) 8,589 (362,511) CUST-RET (246,670) 500 Book Unamort Cost of Reacquired Debt (441,914) 13,315 (428,600) PIS-NET (230,005) 501 Contributions Carryover 2,060,240 (2,060,240) 0 N/A 0 502 Deferred Compensation Plan Reserve (113,851) 113,851 0 LABOR 0 503 Deferred Fuel Costs 3,067,914 (3,067,914) 0 N/A 0 504 Demand Side Management 108,190 (108,190) 0 N/A 0 505 Demand Side Management - Advertising (29,321) 29,321 0 N/A 0 506 Employee Incentive Plans (77,433) 1,644 (75,789) LABOR (45,101) 507 Environmental Remediation (37,705) 988 (36,717) PIS-PROD (19,243) 508 FAS 106 Medicare Reimbursements LABOR 0 509 Fed NOL Benefit - DIT NR (Non regulated) (2,278,360) 2,278,360 0 N/A 0 510 Fed NOL Benefit - DIT OPER 37,216,599 (37,216,599) 0 N/A 0 511 Interest Expense - Deferred Fuel Revenue 7,947 (7,947) 0 N/A 0 512 Interest inc/exp on Disputed Tax 133,293 (133,293) 0 N/A 0 513 Interruptible Service Option Credit N/A 0 514 Inventory Reserve (12,083) 222 (11,861) PIS-NET (6,365) 515 Litigation Reserve PIS-NET 0 516 Mark to Market Adjustment (276,364) 276,364 0 N/A 0 517 Non-Qualified Pension Plan 17,005 (964) 16,041 LABOR 9,546 518 Pension Expense (5,857,304) 208,484 (5,648,820) LABOR (3,361,548) 519 Performance Share Plan (407) 407 0 N/A 0 520 Post Employment Benefit - FAS 106 80,604 (7,090) 73,514 LABOR 43,747 521 Post Employment Benefit - FAS 112 259,635 (7,614) 252,021 LABOR 149,975 522 Prepaid Advertising (12,587) 12,587 0 N/A 0 523 Rate Case Expenses 1,274,729 (1,274,729) 0 N/A 0 524 Restructuring Costs - Recoverable Meters (12,254) 40 (12,214) TX (12,214) RR16 - Page 167 of 426 07582
Page 25 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 525 Rate Refund (15,324,316) 15,324,316 0 N/A 0 526 Regulatory Liability - Refund Obligation 1,150,585 (1,150,585) 0 N/A 0 527 Reg Asset - NM NOX Expense (463) 463 0 N/A 0 528 Reg Liability - Transmission Attachment O (450,019) 450,019 0 N/A 0 529 Renewable Energy Standard (726,025) 726,025 0 N/A 0 530 Severance Accrual LABOR 0 531 State Tax Deduction Cash vs. Accrual (310,467) 310,467 0 N/A 0 532 TUCO Refund (194,559) 194,559 0 N/A 0 533 Unbilled Revenue (2,088,291) 2,088,291 0 N/A 0 534 Unrecovered REC Inventory 1,758,019 (1,758,019) 0 N/A 0 535 Vacation Accrual (33,790) (438) (34,228) LABOR (20,368) 536 VEBA LABOR 0 537 REC Amortization 0 (992,799) (992,799) TX (992,799) 538 Historic EE Amortization 0 (404,494) (404,494) TX (404,494) 539 Unamortized Rate Case Expense Amortization 0 (274,654) (274,654) TX (274,654) 540 Unamortized Pension/OPEB Reg Asset Amortization 0 (1,254,228) (1,254,228) TX (1,254,228) 541 State Only NOL 572,579 (572,579) 0 N/A 0 542 Texas Gross Margin Tax (173,982) 173,982 0 TX 0 543 Electric Vehicle Credit - Fed DIT Only LABOR 0 544 State Tax Deduction Cash vs Accrual (FIN 48) - Perm LT - Elec (15) 15 0 N/A 0 545 State Tax Deduction Cash vs Accrual (FIN 48) - Perm LT - NonReg 316 (316) 0 N/A 0 546 ITC Grant - Fed DIT Only 313,352 (313,352) 0 N/A 0 547 OCI - Treasury 96,981 (96,981) 0 N/A 0 548 OK Bonus Depreciation 563 (563) 0 N/A 0 549 Fuel Tax Credit - Inc. Addback (388) 388 0 LABOR 0 550 R&E Credit - Fed FIT only (330,371) 330,371 0 PIS-NET 0 551 New Hire Retention Credit LABOR 0 552 NOL Carryforward 0 14,632,724 14,632,724 TX 14,632,724 553 Total Deferred Income Tax Expense 61,415,819 23,447,403 84,863,222 48,133,805 554 555 ITC - Generated N/A 0 556 ITC - Amortized 041140 (347,479) 0 (347,479) PIS-NET (186,473) 557 558 Total 50,184,073 8,247,195 58,431,268 31,160,501 559 560 Tax Gross-up Factor 1.5384615 561 562 Total Income Tax Expense 50,184,073 41,178,603 91,362,676 47,939,232 563 564 Gain on Sale of Disposition of Allowances 41180 (258) 258 0 N/A 0 565 Gain on Sale of Disposition of RECs 41181 (813,102) 813,102 0 N/A 0 566 Loss on Sale of Disposition of RECs 41191 (6,386) 6,386 0 N/A 0 567 Gain on Sale of Utility Plant 41160 (5,067,357) 4,898,862 (168,495) NM 0 568 569 Total Operating Deductions 1,653,090,319 (765,834,864) 887,255,455 498,586,468 570 571 Total Revenue Requirements 1,131,753,001 627,757,977 RR16 - Page 168 of 426 07583
Page 26 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 572 573 Revenue Credits: 574 Provision for Rate Refunds 449 44 45,073,217 (45,073,217) 0 N/A 0 575 Late Payment Revenue - Texas 450 # (1,655,673) 0 (1,655,673) TX (1,655,673) 576 Late Payment Revenue - New Mexico 450 # (580,960) 0 (580,960) NM 0 577 Late Payment Revenue - Total 450 (2,236,633) 0 (2,236,633) (1,655,673) 578 Misc Service Revenue - Cust Connection - Texas 45103 # (665,311) 0 (665,311) TX (665,311) 579 Misc Service Revenue - Cust Connection - New Mexico 45103 # (152,560) 0 (152,560) NM 0 580 Misc Service Revenue - Cust Connection - Other 45103 # N/A 0 581 Misc Service Revenue - Cust Connection - Total 45103 (817,871) 0 (817,871) (665,311) 582 Misc Service Revenue - Return Check Charge - Texas 45104 # (122,870) 0 (122,870) TX (122,870) 583 Misc Service Revenue - Return Check Charge - New Mexico 45104 # (45,770) 0 (45,770) NM 0 584 Misc Service Revenue - Return Check Charge - Other 45104 # N/A 0 585 Misc Service Revenue - Return Check Charge - Total 45104 (168,640) 0 (168,640) (122,870) 586 Misc Service Revenue - Other 45106 (330,586) 0 (330,586) PIS-DIST (231,891) 587 Misc Service Revenue - Other Texas 45106 0 (19,120) (19,120) TX (19,120) 588 Misc Service Revenue - NonRecoverable Discounts 45110 491 (491) 0 N/A 0 589 Misc Service Revenue - Recoverable Discounts 45111 (4,556) 4,556 0 N/A 0 590 Rent from Electric Property - Texas 454TX # (2,947,443) (29,026) (2,976,469) TX (2,976,469) 591 Rent from Electric Property - New Mexico 454NM # (2,572,802) 0 (2,572,802) NM 0 592 Rent from Electric Property - Other 454 # (1,419,154) 0 (1,419,154) PIS-DIST (995,471) 593 Total Rent from Electric Property 454 (6,939,399) (29,026) (6,968,425) (3,971,940) 594 Other Electric Revenue: 595 Other Electric Revenues - EEI Mutual 45600 (99,156) 0 (99,156) PIS-DIST (69,554) 596 RTO PTP Firm Revenues 45605 (4,086,694) (327,563) (4,414,257) 12CP-TRAN (2,047,796) 597 Tariff-Base Non-Firm PTP 45606 (782,943) (130,287) (913,230) 12CP-TRAN (423,652) 598 Network Transmission Revenue 45607 (40,574,055) 40,574,055 0 N/A 0 599 Contracts Transmission Revenue 45609 (986,452) 0 (986,452) WHLS 0 600 Sch 1 Sys Ctrl Disp Serv Revenue 45612 (2,029,014) 748,415 (1,280,599) PIS-TRAN (600,944) 601 Sch 2 Ret Supp Voltage Ctr Revenue 45614 (377,148) 0 (377,148) 12CP-PROD (197,655) 602 Sch 3 Reg 7 Freq Rspon Rv 45616 (709,893) 0 (709,893) WHLS 0 603 Sch 4 Energy Imbalance Revenue 45619 ENERGY 0 604 Sch 5 Oper Rsv Spinning Revenue 45622 (971,600) 0 (971,600) WHLS 0 605 Sch 6 Oper Rsv Sup Rev 45624 (380,436) 0 (380,436) WHLS 0 RR16 - Page 169 of 426 07584
Page 27 of 270 Electric Net Operating Earnings At June 30, 2014 No. Description Account Per Book Adjustments Adjusted State Allocator Texas Retail 606 Losses Revenue 45625 ENERGY 0 607 Offsystem Transmission Wheeling 45626 286,506 (286,506) 0 WHLS 0 608 Misc Transmission Adj - Gen Step-Up 45628 WHLS 0 609 JOA - Other Elec Rev fr PSCO 45641 (1,715,947) 1,715,947 0 N/A 0 610 Other - Texas 45642TX (4,657,438) 4,583,454 (73,984) TX (73,984) 611 Other - New Mexico 45642NM 2,665 0 2,665 NM 0 612 Other - Wholesale 45642WH (211,382) 0 (211,382) WHLS 0 613 Other 45642 (519,319) 0 (519,319) PIS-NET (278,690) 614 Total Other 45642 (5,385,474) 4,583,454 (802,020) (352,674) 615 CIP - Incentive Revenue 45646 (292,951) 292,951 0 N/A 0 616 Service Quality Adj Revenue 45651 N/A 0 617 Unbilled Transmission Revenue 45654 N/A 0 618 Interruptible Revenue 45667 N/A 0 619 Deferred Fuel Revenue 45668 (4,691,070) 4,691,070 0 N/A 0 620 Schedule 11 Base Plan Revenues - PTP 45669 (8,430,758) 0 (8,430,758) 12CP-TRAN (3,911,072) 621 Distribution Interconnection Revenue 4567 0 12CP-TRAN 0 622 Schedule 1 Network Sys Cntrl Dispatch Srvc Revenue 45671 (7,011) 0 (7,011) 12CP-TRAN (3,253) 623 Schedule 11 Network Base Plan Revenues 45673 (52,405,377) (23,824,817) (76,230,194) 12CP-TRAN (35,363,581) 624 NM Deferred for Building Donation 45674 (2,277) 0 (2,277) NM 0 625 NM Deferred for Building Donation 45677 10,520 0 10,520 NM 0 626 Wholesale Incremental Capacity Contracts 447 (931,127) (931,127) 12CP-PROD (487,983) 627 Total Revenue Credits (89,055,206) (18,011,707) (107,066,912) (50,124,969) 628 629 Total Revenue Requirements 1,024,686,088 577,633,008 RR16 - Page 170 of 426 07585
Labor - Total Company Attachment DAB-RR-2 Page 28 of 270 No. Description Allocator Texas All Others 1 Operating & Maintenance Labor Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 12CP-PROD 1,086,198 986,389 5 Fuel (Transportation & Handling) ENERGY 272,942 224,226 6 Steam Expense 12CP-PROD 3,220,234 2,924,334 7 Electric Expense 12CP-PROD 3,155,408 2,865,465 8 Miscellaneous 12CP-PROD 3,714,788 3,373,445 9 Rent 12CP-PROD 0 0 10 Total Steam Production Operation 11,449,570 10,373,859 11 12 Steam Production Maintenance: 13 Supervision & Engineering 12CP-PROD 919,373 834,894 14 Structures 12CP-PROD 830,424 754,118 15 Boilers ENERGY 3,743,967 3,075,718 16 Electric Plant ENERGY 2,634,087 2,163,937 17 Miscellaneous Plant 12CP-PROD 4,420,167 4,014,008 18 Total Steam Production Maintenance 12,548,018 10,842,675 19 20 Total Steam Production O&M 23,997,588 21,216,534 21 22 Other Production Operation: 23 Supervision & Engineering 12CP-PROD 1,308 1,188 24 Fuel Handling ENERGY 0 0 25 Generation Expense 12CP-PROD 217,183 197,227 26 Miscellaneous 12CP-PROD 115,293 104,699 27 Rents 12CP-PROD 0 0 28 Total Other Production Operation 333,784 303,114 29 30 Other Production Maintenance: 31 Supervision & Engineering 12CP-PROD 128 116 32 Structures 12CP-PROD 32,235 29,273 33 Electric Plant 12CP-PROD 421,028 382,341 34 Miscellaneous Plant 12CP-PROD 0 0 35 Total Other Production Maintenance 453,391 411,730 36 37 Total Other Production O&M 787,175 714,844 38 39 Load Dispatch: 40 System Load Control 12CP-PROD 482,988 438,608 41 Other Expenditures 12CP-PROD 1,181,700 1,073,116 42 Total Load Dispatch 1,664,688 1,511,724 43 44 Total Non-Fuel Production O&M 26,449,451 23,443,102 45 RR16 - Page 171 of 426 07586
Labor - Total Company Attachment DAB-RR-2 Page 29 of 270 No. Description Allocator Texas All Others 46 Transmission Operations: 47 Supervision & Engineering PIS-TRAN 2,222,026 2,513,061 48 Load Dispatch 12CP-TRAN 0 0 49 Load Dispatch - Reliability 12CP-TRAN 9,071 10,483 50 Load Dispatch - Monitor/Operate 12CP-TRAN 1,074,614 1,241,838 51 Load Dispatch - Transmission Serv/Sch 12CP-TRAN 0 0 52 Load Dispatch - Sch/Con/Disp Serv RETAIL-TRAN 0 0 53 Rel/Plan/Standards Dev Serv 12CP-TRAN 40,811 47,161 54 Trans Service Studies 12CP-TRAN 2,124 2,455 55 Generation Interconnection Studies 12CP-TRAN 2,706 3,127 56 Rel/Plan/Standards Dev Serv RETAIL-TRAN 0 0 57 Station Equipment PIS-TRAN 393,273 444,782 58 Overhead s PIS-TRAN 110,286 124,731 59 Underground s PIS-TRAN 0 0 60 Miscellaneous PIS-TRAN 1,135,071 1,283,740 61 Rents PIS-TRAN 0 0 62 Total Transmission Operations 4,989,982 5,671,378 63 64 Transmission Maintenance: 65 Supervision & Engineering PIS-TRAN 45,026 50,923 66 Structures PIS-TRAN 0 0 67 Station Equipment PIS-TRAN 690,417 780,846 68 Overhead s PIS-TRAN 64,792 73,278 69 Underground s PIS-TRAN 0 0 70 Miscellaneous PIS-TRAN 0 0 71 Total Transmission Maintenance 800,235 905,047 72 73 Wheeling: 74 Wheeling - Wholesale WHLS 0 0 75 Wheeling - Long Term Purchases 12CP-PROD 0 0 76 Wheeling - Reliability Purchases 12CP-PROD 0 0 77 Wheeling - Schedule 9 - SPP Zone 11 Network 12CP-TRAN 0 0 78 Wheeling - Schedule 11 - LT Purchases 12CP-PROD 0 0 79 Wheeling - Schedule 11 - Retail RETAIL-TRAN 0 0 80 Wheeling - Schedule 11 - Wholesale WHLS 0 0 81 Wheeling - Schedule 11 - Known & Measurable 12CP-TRAN 0 0 82 Wheeling - Schedule 12 - Retail RETAIL-TRAN 0 0 83 Wheeling - Schedule 12 - Wholesale WHLS 0 0 84 Wheeling - Other 12CP-TRAN 0 0 85 Total Wheeling 0 0 86 0 87 Total Transmission O&M 5,790,217 6,576,425 88 89 Regional Market Expenses: 90 Operation Supervision ENERGY 73,277 60,199 91 DA & RT Mkt Admin ENERGY 19,431 15,963 92 Trans Rights Mkt Admin ENERGY 0 0 93 Cap Mkt Admin ENERGY 0 0 94 Ancillary Serv Mkt Admin ENERGY 3,280 2,694 95 Market Monitoring/Compliance ENERGY 29,336 24,100 96 Mkt Fac/Mon/Comp Serv RETAIL-ENERGY 0 0 97 Regional Market Rents ENERGY 0 0 98 Total Regional Market Expenses 125,324 102,956 99 RR16 - Page 172 of 426 07587
Labor - Total Company Attachment DAB-RR-2 Page 30 of 270 No. Description Allocator Texas All Others 100 Distribution Operations: 101 Supervision - H/S CUST-H/S 152 657 102 Supervision - Texas TX 1,882,118 0 103 Supervision - New Mexico NM 0 439,313 104 Supervision PIS-DIST 1,131,204 481,452 105 Total Supervision 3,013,474 921,422 106 Load Dispatch - H/S CUST-H/S 0 0 107 Load Dispatch - Texas TX 804,632 0 108 Load Dispatch - New Mexico NM 0 0 109 Load Dispatch PIS-DIST 100,562 42,800 110 Total Load Dispatch 905,194 42,800 111 Station Equipment - H/S CUST-H/S 0 0 112 Station Equipment - Texas TX 352,471 0 113 Station Equipment - New Mexico NM 0 1,294 114 Station Equipment PIS-DIST 229,090 97,503 115 Total Station Equipment 581,561 98,797 116 Overhead s - H/S CUST-H/S 0 0 117 Overhead s - Texas TX 1,089,017 0 118 Overhead s - New Mexico NM 0 384,072 119 Overhead s PIS-DIST 37,514 15,966 120 Total Overhead s 1,126,531 400,038 121 Underground s - H/S CUST-H/S 0 0 122 Underground s - Texas TX 134,853 0 123 Underground s - New Mexico NM 0 20,019 124 Underground s PIS-DIST 14 6 125 Total Underground s 134,867 20,025 126 Street Lighting - H/S CUST-H/S 0 0 127 Street Lighting - Texas TX 16 0 128 Street Lighting - New Mexico NM 0 2,981 129 Street Lighting PIS-DIST 306,865 130,605 130 Total Street Lighting 306,881 133,586 131 Metering - H/S CUST-H/S 0 0 132 Metering - Texas TX 1,779,093 0 133 Metering - New Mexico NM 0 1,024,524 134 Metering PIS-DIST 816,643 347,571 135 Total Metering 2,595,736 1,372,095 136 Customer Installations - H/S CUST-H/S 0 0 137 Customer Installations - Texas TX 260,862 0 138 Customer Installations - New Mexico NM 0 2,508 139 Customer Installations PIS-DIST 468,675 199,473 140 Total Customer Installations 729,537 201,981 141 Miscellaneous - H/S CUST-H/S 478 2,061 142 Miscellaneous - Texas TX 1,464,873 0 143 Miscellaneous - New Mexico NM 0 861,603 144 Miscellaneous PIS-DIST 751,663 319,916 145 Total Miscellaneous 2,217,014 1,183,580 146 Rents CUST-H/S 0 0 147 Rents - H/S TX 0 0 148 Rents - Texas NM 0 0 149 Rents - New Mexico PIS-DIST 0 0 150 Total Rents 0 0 151 152 Total Distribution Operations 11,610,795 4,374,324 153 RR16 - Page 173 of 426 07588
Labor - Total Company Attachment DAB-RR-2 Page 31 of 270 No. Description Allocator Texas All Others 154 Distribution Maintenance: 155 Supervision So - H/S CUST-H/S 0 0 156 Supervision - TX TX 67,065 0 157 Supervision - NM NM 0 30,130 158 Supervision PIS-DIST 156,309 66,527 159 Total Supervision 223,374 96,657 160 Structures So - H/S CUST-H/S 0 0 161 Structures - TX TX 0 0 162 Structures - NM NM 0 163 Structures PIS-DIST 0 0 164 Total Structures 0 0 165 Station Equipment So - H/S CUST-H/S 0 0 166 Station Equipment - TX TX 733,100 0 167 Station Equipment - NM NM 0 22,886 168 Station Equipment PIS-DIST 356,738 151,831 169 Total Station Equipment 1,089,838 174,717 170 Overhead s So - H/S CUST-H/S 0 0 171 Overhead s - TX TX 3,404,729 0 172 Overhead s - NM NM 0 1,089,279 173 Overhead s PIS-DIST 87,171 37,101 174 Total Overhead s 3,491,900 1,126,380 175 Underground s So - H/S CUST-H/S 0 0 176 Underground s - TX TX 89,702 0 177 Underground s - NM NM 0 59,553 178 Underground s PIS-DIST 404 171 179 Total Underground s 90,106 59,724 180 Transformers So - H/S CUST-H/S 0 0 181 Transformers - TX TX 17,072 0 182 Transformers - NM NM 0 67,590 183 Transformers PIS-DIST 0 0 184 Total Transformers 17,072 67,590 185 Street Lighting So - H/S CUST-H/S 0 0 186 Street Lighting - TX TX 6,034 0 187 Street Lighting - NM NM 0 963 188 Street Lighting PIS-DIST 17,394 7,402 189 Total Street Lighting 23,428 8,365 190 Metering So - H/S CUST-H/S 0 0 191 Metering - TX TX 2,928 0 192 Metering - NM NM 0 20 193 Metering PIS-DIST 9,212 3,921 194 Total Metering 12,140 3,941 195 Miscellaneous So - H/S CUST-H/S 0 0 196 Miscellaneous - TX TX 0 0 197 Miscellaneous - NM NM 0 3 198 Miscellaneous PIS-DIST 0 0 199 Total Miscellaneous 0 3 200 201 Total Distribution Maintenance 4,947,858 1,537,377 202 203 Total Distribution O&M 16,558,653 5,911,701 204 RR16 - Page 174 of 426 07589
Labor - Total Company Attachment DAB-RR-2 Page 32 of 270 No. Description Allocator Texas All Others 205 Customer Accounting Expense: 206 Supervision CUST-AVG 19,504 9,160 207 Meter Reading CUST-AVG 2,094,148 983,514 208 Billing & Cashiering CUST-AVG 2,028,600 952,729 209 Uncollectible Accounts DA 0 0 210 Uncollectible Accounts CUST-AVG 0 0 211 Total Uncollectible Accounts 0 0 212 Miscellaneous DA 0 0 213 Miscellaneous CUST-RET 0 0 214 Total Miscellaneous 0 0 215 216 Total Customer Accounting Expense 4,142,252 1,945,403 217 218 219 Customer Service Expense: 220 Supervision CUST-AVG 0 0 221 Customer Assistance CUST-AVG 1,494,434 701,859 222 Customer Assistance TX 27,347 0 223 Advertisement CUST-RET 0 0 224 Miscellaneous CUST-AVG 0 0 225 226 Total Customer Service Expense 1,521,781 701,859 227 228 Sales Expense: 229 Sales Expense - Supv. CUST-AVG 0 0 230 Demonstrations & Selling CUST-AVG 119,169 55,968 231 Advertising Expense - Sales CUST-AVG 0 0 232 Miscellaneous Sales Expense CUST-AVG 0 0 233 234 Total Sales Expense 119,169 55,968 235 236 Total Customer Service & Sales Expense 1,640,950 757,827 237 238 Total Customer Operations Expense 5,783,202 2,703,230 239 240 Administrative & General Expense: 241 Administrative Salaries LABXAG 11,863,363 8,400,337 242 Office Supplies & Expense LABXAG 0 0 243 A&G Expense Transferred LABXAG 0 0 244 Outside Services - Legal LABXAG 0 0 245 Property Insurance PIS-NET 0 0 246 Injuries and Damages LABXAG 741,527 525,068 247 Pensions & Benefits LABXAG 20,813,731 14,738,011 248 Deferred Pensions & Benefits TX 3,583,510 0 249 Regulatory Commission Expense - Wholesale DA 0 0 250 Regulatory Commission Expense - Retail REV-RET 0 0 251 Total Regulatory Commission Expense 0 0 252 Duplicate Charges - Electric PIS-PTD 0 0 253 Miscellaneous PIS-PTD 0 0 254 Rents PIS-PTD 0 0 255 Maintenance of General Plant PIS-GEN 0 0 256 257 Total Administrative & General Expense 37,002,131 23,663,416 258 259 Total O&M Labor Expense 91,708,978 62,400,830 RR16 - Page 175 of 426 07590
Cash Working Capital Calculation - Texas Retail At June 30, 2014 Attachment DAB-RR-2 Page 33 of 270 Texas Jurisdictional No. Description Amount Factor CWC 1 Texas Retail Energy Costs: 2 Gas For Generation 132,283,488 (0.010466) (1,384,479) 3 Coal Fossil Fuel & Freight 128,248,876 0.012877 1,651,461 4 Fuel Oil 263,785 (0.010822) (2,855) 5 Purchased Power - Energy 227,140,563 (0.000384) (87,222) 6 Purchased Power - Capacity 54,468,284 (0.000384) (20,916) 7 Total Texas Retail Energy Costs 542,404,996 155,989 8 9 Texas Retail O&M Expense: 10 Labor O&M - Regular 88,666,205 0.066658 5,910,312 11 Labor O&M - Incentive 3,042,773 (0.596055) (1,813,660) 12 Other O&M 160,051,968 (0.020904) (3,345,726) 13 Total Texas Retail O&M Expense 251,760,946 750,926 14 15 Texas Retail Taxes Other Than Income Texas: 16 Property Taxes 19,919,360 (0.408356) (8,134,190) 17 Payroll 4,826,391 0.036630 176,791 18 Sales & Use Tax (14,976) (0.003151) 47 19 Texas Franchise Tax 3,625,726 (0.795534) (2,884,388) 20 Texas Gross Receipts Tax 6,970,402 (0.109808) (765,406) 21 Total Texas Retail Taxes Other Than Income Texas 35,326,903 (11,607,146) 22 23 24 Franchise Fees Paid 4,331,623 (0.043479) (188,335) 25 Federal Income Taxes (25,825,894) (0.003890) 100,463 26 State Income Taxes 0 0.000000 0 27 28 Total Texas Retail Electric CWC 807,998,574 (10,788,103) RR16 - Page 176 of 426 07591
Cash Working Capital Calculation - Total Company Adjusted At June 30, 2014 Attachment DAB-RR-2 Page 34 of 270 CWC Total Weighted Company No. Description Amount Factor CWC 1 Total Adjusted Energy Costs 992,714,805 (0.000026) (25,406) 2 3 Total Adjusted O&M Expense 443,383,873 0.003429 1,520,401 4 5 Total Adjusted Forma Taxes Other Than Income 55,796,960 (0.274485) (15,315,419) 6 7 Franchise Fees Paid 4,331,623 (0.043479) (188,335) 8 Federal Income Taxes (29,312,214) (0.003778) 110,747 9 State Income Taxes (521,531) (0.003260) 1,700 10 11 Total Company Adjusted 1,466,393,516 (13,896,312) RR16 - Page 177 of 426 07592
Cash Working Capital Calculation - Per Book At June 30, 2014 Attachment DAB-RR-2 Page 35 of 270 CWC Total Weighted Company No. Description Amount Factor CWC 1 Total Per Book Energy Costs 992,714,806 (0.000026) (25,406) 2 3 Total Per Book O&M Expense 439,955,487 0.003429 1,508,645 4 5 Total Per Book Taxes Other Than Income 41,606,755 (0.274485) (11,420,423) 6 7 Franchise Fees Paid 4,331,623 (0.043479) (188,335) 8 Per Book Federal Income Taxes (14,479,100) (0.003778) 54,705 9 Per Book State Income Taxes 3,594,833 (0.003260) (11,718) 10 11 Total 1,467,724,404 (10,082,532) RR16 - Page 178 of 426 07593
Details of Adjustments Attachment DAB-RR-2 Page 36 of 270 No. Description Account Labor Non-Labor Total 1 Gross Plant: 2 Intangible Plant 3 Post Test Year Adjustment - Organization 301 0 0 4 Post Test Year Adjustment - Franchises and Consents 302 0 0 5 Post Test Year Adjustment - Misc. Intangible Plant 303 16,779,053 16,779,053 6 Total Intangible Plant 0 16,779,053 16,779,053 7 8 Steam Production: 9 Post Test Year Adjustment - Land and Land Rights 310 6,297,433 6,297,433 10 Post Test Year Adjustment - Structures & Improvements 311 9,527,963 9,527,963 11 Post Test Year Adjustment - Boiler Plant Equipment 312 7,647,553 7,647,553 12 Post Test Year Adjustment - Turbo-Generator Units 314 6,231,689 6,231,689 13 Post Test Year Adjustment - Accessory Electric Equipment 315 930,780 930,780 14 Post Test Year Adjustment - Misc. Power Plant Equipment 316 593,197 593,197 15 Total Steam Production 0 31,228,615 31,228,615 16 17 Internal Combustion Equipment: 18 Post Test Year Adjustment - Land and Land Rights 34 19 Post Test Year Adjustment - Structures & Improvements 341 82,231 82,231 20 Post Test Year Adjustment - Fuel Holders, Prod & Acc 342 336,500 336,500 21 Post Test Year Adjustment - Internal Combustion Engine 343 2,492,228 2,492,228 22 Post Test Year Adjustment - Generators 344 623,791 623,791 23 Post Test Year Adjustment - Accessory Electric Equipment 345 1,026,582 1,026,582 24 Post Test Year Adjustment - Misc. Power Plant Equipment 346 196,112 196,112 25 Total Internal Combustion Equipment 0 4,757,445 4,757,445 26 27 Transmission Plant: 28 Post Test Year Adjustment - Land Owned in Fee 350.1 131,195 131,195 29 Post Test Year Adjustment - Land Rights 350.2 13,151,527 13,151,527 30 Post Test Year Adjustment - Structures & Improvements 352 10,576,705 10,576,705 31 Post Test Year Adjustment - Station Equipment 353.0 84,827,328 84,827,328 32 Post Test Year Adjustment - Station Equipment - Production 353.1 (1,384,562) (1,384,562) 33 Post Test Year Adjustment - Towers and Fixtures 354 3,287,653 3,287,653 34 Post Test Year Adjustment - Poles and Fixtures 355 147,493,153 147,493,153 35 Post Test Year Adjustment - Overhead Conductor 356 84,201,839 84,201,839 36 Post Test Year Adjustment - Underground Conduit 357 101,726 101,726 37 Post Test Year Adjustment - Underground Conductor 358 195,304 195,304 38 Total Transmission Plant 0 342,581,868 342,581,868 39 40 Texas Distribution Plant: 41 Post Test Year Adjustment - Land and Land Rights 360 545,663 545,663 42 Post Test Year Adjustment - Structures & Improvements 361 644,128 644,128 43 Post Test Year Adjustment - Station Equipment 362 7,564,390 7,564,390 44 Post Test Year Adjustment - Towers and Fixtures 364 7,920,351 7,920,351 45 Post Test Year Adjustment - Overhead Conductor 365 7,885,871 7,885,871 46 Post Test Year Adjustment - Underground Conduit 366 1,327,995 1,327,995 47 Post Test Year Adjustment - Underground Conductor 367 693,124 693,124 48 Post Test Year Adjustment - Transformers 368 (4,099,826) (4,099,826) 49 Reclass Transformers to New Mexico 368 (26,847,560) (26,847,560) 50 Post Test Year Adjustment - Services 369 (986,514) (986,514) 51 Post Test Year Adjustment - Meters 370 (2,238,373) (2,238,373) 52 Reclass Meters to New Mexico 370 (9,358,315) (9,358,315) 53 Post Test Year Adjustment - Inst. on Customer Premises 371 (103,347) (103,347) 54 Post Test Year Adjustment - Street Light / Signal Systems 373 529,790 529,790 55 Total Texas Distribution Plant 0 (16,522,624) (16,522,624) 56 RR16 - Page 179 of 426 07594
Details of Adjustments Attachment DAB-RR-2 Page 37 of 270 No. Description Account Labor Non-Labor Total 57 General Plant: 58 Post Test Year Adjustment - Land and Land Rights 389 0 0 59 Post Test Year Adjustment - Structures & Improvements 390 681,596 681,596 60 Post Test Year Adjustment - Office Furniture & Equipment 391 8,397,152 8,397,152 61 Post Test Year Adjustment - Transportation Equipment 392 1,250,556 1,250,556 62 Post Test Year Adjustment - Stores Equipment 393 32,472 32,472 63 Post Test Year Adjustment - Tools, Shop & Garage Equip. 394 284,100 284,100 64 Post Test Year Adjustment - Laboratory Equipment 395 675,576 675,576 65 Post Test Year Adjustment - Power Operated Equipment 396 136,323 136,323 66 Post Test Year Adjustment - Communication Equipment 397 6,537,076 6,537,076 67 Post Test Year Adjustment - Miscellaneous Equipment 398 202,284 202,284 68 Total General Plant 0 18,197,135 18,197,135 69 70 Total Electric Plant in Service 0 397,021,491 397,021,491 71 72 Accumulated Reserve for Depreciation & Amortization: 73 Steam Production: 74 Unblend Depreciation 141,868,211 141,868,211 75 Post Test Year Adjustment (24,893,147) (24,893,147) 76 Total Steam Production 0 116,975,064 116,975,064 77 78 Other Production: 79 Unblend Depreciation 5,166,130 5,166,130 80 Post Test Year Adjustment (6,778,924) (6,778,924) 81 Total Other Production 0 (1,612,793) (1,612,793) 82 83 Transmission: 84 Unblend Depreciation (20,600,683) (20,600,683) 85 Post Test Year Adjustment (12,686,448) (12,686,448) 86 Total Transmission 0 (33,287,131) (33,287,131) 87 88 Distribution: 89 Unblend Depreciation 0 0 90 Post Test Year Adjustment (3,002,223) (3,002,223) 91 Total Distribution 0 (3,002,223) (3,002,223) 92 93 General: 94 Unblend Depreciation 5,016,410 5,016,410 95 Unblend Call Center/CRS Depreciation 819,957 819,957 96 Post Test Year Adjustment (11,019,741) (11,019,741) 97 Call Center/CRS Post Test Year Adjustment (141,079) (141,079) 98 Total General 0 (5,324,454) (5,324,454) 99 100 Total Accumulated Reserve for Depreciation & Amortization 0 73,748,463 73,748,463 101 102 Plant Held for Future Use 103 0 104 Total Plant Held for Future Use 0 0 105 106 Construction Work in Progress 107 Eliminate Steam Production (5,736,592) (5,736,592) 108 Eliminate Other Production (298,583) (298,583) 109 Total Production (6,035,175) (6,035,175) 110 Eliminate Transmission (282,643,725) (282,643,725) 111 Eliminate Distribution - Texas (9,072,843) (9,072,843) 112 Eliminate Distribution - New Mexico (3,765,051) (3,765,051) 113 Eliminate Intangible & General (51,964,792) (51,964,792) 114 Total Construction Work in Progress (353,481,585) (353,481,585) 115 116 Total Plant 0 117,288,369 117,288,369 117 118 Materials and Supplies 119 Include Inventory of Environmental Chemicals 70,150 70,150 120 Total Materials and Supplies 0 70,150 70,150 RR16 - Page 180 of 426 07595
Details of Adjustments Attachment DAB-RR-2 Page 38 of 270 No. Description Account Labor Non-Labor Total 121 122 Cash Working Capital (3,813,780) (3,813,780) 123 124 Prepayments: 125 Eliminate Prepaid Capacity 0 0 126 Eliminate Prepaid Short-Term Debt Fees (1,176,611) (1,176,611) 127 Eliminate Other Prepaid - TU (47,284) (47,284) 128 Eliminate Other Prepaid - Safety Award (3,083) (3,083) 129 Eliminate Prepaid Brand Advertising (164,488) (164,488) 130 Eliminate Prepaid - EE (87,366) (87,366) 131 Eliminate Prepaid Taxes - Federal (4,882,813) (4,882,813) 132 Eliminate Prepaid Taxes - Texas (482,151) (482,151) 133 Eliminate Prepaid Taxes - Other State (538,242) (538,242) 134 Total Prepayments 0 (7,382,038) (7,382,038) 135 136 Regulatory Asset - EE & ICO Related: 137 Eliminate Regulatory Asset - EE & ICO Related (8,541,014) (8,541,014) 138 Total Regulatory Asset - EE & ICO 0 (8,541,014) (8,541,014) 139 140 Regulatory Asset - REC Related: 141 Eliminate Regulatory Asset - REC Related (19,866,234) (19,866,234) 142 Total Regulatory Asset - REC Related 0 (19,866,234) (19,866,234) 143 144 Regulatory Asset - Pension and OPEB Costs 145 Eliminate Regulatory Asset - Pension and OPEB Costs (7,521,266) (7,521,266) 146 Total Regulatory Asset - Pension and OPEB Costs 0 (7,521,266) (7,521,266) 147 148 Accumulated Deferred Income Taxes: 149 Account 190: 150 Exclude State Tax Portion - Bad Debts (52,909) (52,909) 151 Eliminate Contribution Carryover (1,289,287) (1,289,287) 152 Eliminate Deferred Compensation Plan Reserve (420,698) (420,698) 153 Eliminate Renewable Energy Standard (84,101) (84,101) 154 Eliminate Deferred Fuel Costs 0 0 155 Eliminate Demand Side Management (1,533,821) (1,533,821) 156 Exclude State Tax Portion - Employee Incentive Plans (16,055) (16,055) 157 Exclude State Tax Portion - Environmental Remediation (1,500) (1,500) 158 Eliminate Federal NOL Benefit (51,186,654) (51,186,654) 159 Exclude State Tax Portion - Fuel Tax Credit - Inc Addback (31) (31) 160 Eliminate Interest Inc/Exp on Disputed Tax - DTA 0 0 161 Exclude State Tax Portion - Inventory Reserve (3,673) (3,673) 162 Eliminate ITC Grant - Fed DIT Only 0 0 163 Eliminate KS State Only NOL (10,425) (10,425) 164 Exclude State Tax Portion - Litigation Reserve 0 0 165 Eliminate NM State Only NOL (923,949) (923,949) 166 Exclude State Tax Portion - Non-qualified Pension Plans (16,829) (16,829) 167 Eliminate OCI Treasury (603,830) (603,830) 168 Eliminate OK Bonus Depreciation 0 0 169 Eliminate OK State Only NOL (12,021) (12,021) 170 Eliminate Performance Share Plan (3,187) (3,187) 171 Exclude State Tax Portion - Post Employment Benefits - FAS106 (164,923) (164,923) 172 Exclude State Tax Portion - Post Employment Benefits - FAS106 Medicare 0 0 173 Exclude State Tax Portion - Post Employment Benefits - FAS112 (17,163) (17,163) 174 Eliminate Rate Refund (18,943,904) (18,943,904) 175 Eliminate Reg Liab - Transmission Attach O (1,376,145) (1,376,145) 176 Eliminate Reg Liab - Refund Obligation (2,698,597) (2,698,597) 177 Eliminate State Tax Deduct Cash vs Acc - DTA (1,177,503) (1,177,503) 178 Eliminate State Tax Deduction Cash vs. Accrual (FIN48) - Perm -LT (434) (434) 179 Eliminate State Tax Deduction Cash vs. Accrual (FIN48) - Temp -LT (Non-Utility) (653) (653) 180 Eliminate Texas Margin Tax (404,321) (404,321) 181 Eliminate Unrecovered REC Inventory 0 0 182 Eliminate TUCO Refund (229,714) (229,714) 183 Eliminate Unbilled Revenue (15,706,203) (15,706,203) 184 Exclude State Tax Portion - Vacation Accrual (46,004) (46,004) 185 Eliminate FAS 109 - Rate Change 3,283,280 3,283,280 186 Texas NOL Carryforward - Beginning Balance 22,906,633 22,906,633 187 Texas NOL Carryforward (14,632,724) (14,632,724) 188 Eliminate Plant Timing Differences for Non-Utility 952,514 952,514 189 Plant Timing Differences - Post Test Year Adjustment - Production (63,636) (63,636) 190 Plant Timing Differences - Post Test Year Adjustment - Transmission 1,248,573 1,248,573 191 Plant Timing Differences - Post Test Year Adjustment - Distribution (384,736) (384,736) 192 Plant Timing Differences - Post Test Year Adjustment - General 23,345 23,345 193 Total Account 190 0 (83,591,286) (83,591,286) 194 RR16 - Page 181 of 426 07596
Details of Adjustments Attachment DAB-RR-2 Page 39 of 270 No. Description Account Labor Non-Labor Total 195 Account 281: 196 Plant Timing Differences - Post Test Year Adjustment - Production (286,788) (286,788) 197 Total Account 281 0 (286,788) (286,788) 198 199 200 Account 282: 201 Eliminate Plant Timing Differences - Non Utility (3,900) (3,900) 202 Eliminate Sharyl;and ADIT 1,522,777 1,522,777 203 Adjust ADIT for Reclass of Transformers 107,360 107,360 204 Plant Timing Differences - Unblend Depreciation - Production (51,250,571) (51,250,571) 205 Plant Timing Differences - Unblend Depreciation - Transmission 7,291,144 7,291,144 206 Plant Timing Differences - Unblend Depreciation - Distribution 0 0 207 Plant Timing Differences - Unblend Depreciation - General (2,375,115) (2,375,115) 208 Plant Timing Differences - Unblend Depreciation - Call Center/CRS (295,454) (295,454) 209 Plant Timing Differences - Post Test Year Adjustment - Production (1,704,776) (1,704,776) 210 Plant Timing Differences - Post Test Year Adjustment - Transmission (31,634,234) (31,634,234) 211 Plant Timing Differences - Post Test Year Adjustment - Distribution (3,634,622) (3,634,622) 212 Plant Timing Differences - Post Test Year Adjustment - General 106,062 106,062 213 Plant Timing Differences - Post Test Year Adjustment - Call Center/CRS 139,535 139,535 214 Plant Timing Differences Production - Exclude State Tax Portion (Texas Retail) 6,683,973 6,683,973 215 Plant Timing Differences Transmission - Exclude State Tax Portion (Texas Retail) 1,377,120 1,377,120 216 Plant Timing Differences Distribution - Exclude State Tax Portion (Texas Retail) 2,668,533 2,668,533 217 Plant Timing Differences General - Exclude State Tax Portion (Texas Retail) 1,272,702 1,272,702 218 Plant Timing Differences Production - Exclude State Tax Portion (Texas Retail) - Post Test Yr Adj 37,858 37,858 219 Plant Timing Differences Transmission - Exclude State Tax Portion (Texas Retail) - Post Test Yr Adj 1,697,679 1,697,679 220 Plant Timing Differences Distribution - Exclude State Tax Portion (Texas Retail) - Post Test Yr Adj (140,159) (140,159) 221 Plant Timing Differences General - Exclude State Tax Portion (Texas Retail) - Post Test Yr Adj (323,711) (323,711) 222 Plant Timing Differences Production - Exclude State Tax Portion (Other Jurisdictions) 53,487,918 53,487,918 223 Plant Timing Differences Transmission - Exclude State Tax Portion (Other Jurisdictions) (3,623,184) (3,623,184) 224 Plant Timing Differences Distribution - Exclude State Tax Portion (Other Jurisdictions) 2,184,764 2,184,764 225 Plant Timing Differences General - Exclude State Tax Portion (Other Jurisdictions) 3,283,211 3,283,211 226 Eliminate FAS 109 Related 34,085,491 34,085,491 227 Total Account 282 0 20,960,401 20,960,401 228 229 Account 283: 230 Exclude State Tax Portion - Book Unamortized Cost of Reacquired Debt 41,235 41,235 231 Eliminate Deferred Fuel Costs 5,833,102 5,833,102 232 Eliminate Demand Side Management Advertising 31,968 31,968 233 Eliminate Interest Expense - Deferred Fuel Revenue 179,563 179,563 234 Eliminate Interruptible Service Option Credit 0 0 235 Eliminate Mark to Market Adjustment 1,132,479 1,132,479 236 Exclude State Tax Portion - Pension Expense 1,627,054 1,627,054 237 Eliminate Prepaid Advertising 91,634 91,634 238 Eliminate Reg Asset - New Mexico NOx Expense 5,299 5,299 239 Eliminate Non-Texas Related Portion - Rate Case/Restructuring Costs 2,568,238 2,568,238 240 Exclude State Tax Portion - Rate Case/Restructuring Costs - Recoverable Meters (9,979) (9,979) 241 Eliminate Reg Asset - Transmission Attachment O 23,863 23,863 242 Eliminate Renewable Energy Standard 0 0 243 Eliminate State Tax Deduction Cash vs Accrual (877) (877) 244 Eliminate Texas Margin Tax 0 0 245 Plant Timing Differences - Post Test Year Adjustment - Intangible 290,097 290,097 246 Plant Timing Differences Intangible - Exclude State Tax Portion (Texas Retail) (314,970) (314,970) 247 Plant Timing Differences Intangible - Exclude State Tax Portion (Texas Retail) - Post Test Yr Adj (50,953) (50,953) 248 Eliminate Unrecovered REC Inventory 7,549,079 7,549,079 249 Total Account 283 0 18,996,832 18,996,832 250 251 Total Accumulated Deferred Income Taxes 0 (43,920,841) (43,920,841) 252 253 Total Rate Base 0 26,313,347 26,313,347 RR16 - Page 182 of 426 07597
Details of Adjustments Attachment DAB-RR-2 Page 40 of 270 No. Description Account Labor Non-Labor Total 1 Cost of Sales 2 Steam Production Fuel: 3 Reclassify Steam Generation Fuel Costs as Misc. Expenses 50100 (10,980) (10,980) 4 Eliminate Steam Power Fuel - Gas 50110 (232,575,224) (232,575,224) 5 Eliminate Steam Power Fuel - Oil 50120 (480,488) (480,488) 6 Eliminate Steam Power Fuel - Coal 50130 (230,469,407) (230,469,407) 7 Eliminate Steam Power Fuel - Non-Native Load 50165 (3,137,626) (3,137,626) 8 Eliminate Steam - Other Sources 5030 9 Total Steam Production Fuel (10,980) (466,662,745) (466,673,725) 10 11 Other Production Fuel: 12 Reclassify Other Operating Fuel Costs as Misc. Expenses 5470 13 Eliminate Other Production Fuel - Gas / Nitrogen 54710 4,040,459 4,040,459 14 Eliminate Other Production Fuel - Engine Oil 5472 15 Eliminate Other Production Fuel - Non-Native Load 54740 (12,421,367) (12,421,367) 16 Total Other Production Turbine Fuel 0 (8,380,908) (8,380,908) 17 18 Deferred Electric Generation Costs: 19 Eliminate Deferred Fuel Costs 55720 7,198,888 7,198,888 20 Total Deferred Electric Generation Costs 0 7,198,888 7,198,888 21 22 Purchased Power: 23 Capacity: 24 Adjustment for changes in contract demand rates 55501 (4,590,551) (4,590,551) 25 Adjustment for new contracts 55501 17,984,200 17,984,200 26 Adjustment for expiring contracts 55501 (7,264,311) (7,264,311) 27 Total Capacity 0 6,129,338 6,129,338 28 29 Energy: 30 Eliminate Purchased Power - Real Time Energy Recovered through Fuel Adjustment Clauses 55500 (72,491,327) (72,491,327) 31 Eliminate Purchased Power - Energy Recovered through Fuel Adjustment Clauses 55502 (198,411,723) (198,411,723) 32 Eliminate Purchased Power - Non-Firm Energy Recovered through Fuel Adjustment Clauses 55503 (703,907) (703,907) 33 Eliminate Purchased Power - Wind Recovered through Fuel Adjustment Clauses 55506 (108,854,094) (108,854,094) 34 Adjustment for changes in contract Variable O&M rates 55509 (1,257,486) (1,257,486) 35 Adjustment for new contracts 55509 1,660,395 1,660,395 36 Adjustment for expiring contracts 55509 (94,484) (94,484) 37 Eliminate Purchased Power - Firm Energy Recovered through Fuel Adjustment Clauses 55518 (5,096,267) (5,096,267) 38 Eliminate Purchased Power - Solar Recovered through Fuel Adjustment Clauses 55524 (12,483,442) (12,483,442) 39 Eliminate Gen Book Trading 55528 (3,794,889) (3,794,889) 40 Eliminate Prop Book Trading 55529 0 0 41 Eliminate Purchased Power - SPP Transmission Loss Purchases 55530 (6,409) (6,409) 42 Eliminate Wheeling - Resale Short Term 55531 0 0 43 Eliminate Wheeling - Retail Purchases 55532 0 0 44 Eliminate Purchased Power - ICO 55533 0 0 45 Eliminate Gen Book Trading 55535 1,681,409 1,681,409 46 Eliminate Prop Book Trading 55536 865,347 865,347 47 Eliminate Purchased Power - Non-Native Load ST 55537 455,094 455,094 48 Reclassify SPP Annual Membership Fee 56500 (6,039) (6,039) 49 Total Energy 0 (398,537,822) (398,537,822) 50 51 Deferred Purchased Power: 52 Eliminate Deferred Purchased Power Costs 55710 (8,338,242) (8,338,242) 53 Total Deferred Purchased Power 0 (8,338,242) (8,338,242) 54 55 Total Purchased Power 0 (400,746,726) (400,746,726) 56 57 Total Cost of Sales (10,980) (868,591,491) (868,602,471) 58 RR16 - Page 183 of 426 07598
Details of Adjustments Attachment DAB-RR-2 Page 41 of 270 No. Description Account Labor Non-Labor Total 59 Operating & Maintenance Expenses: 60 Steam Production Operation: 61 Wage Adjustment 500 57,930 57,930 62 Wage Adjustment 501 13,174 13,174 63 Wage Adjustment 502 173,479 173,479 64 Wage Adjustment 505 170,304 170,304 65 Wage Adjustment 506 194,244 194,244 66 Adjust SPS Annual Incentive to Target Level 500 (13,274) (13,274) 67 Adjust SPS Annual Incentive to Target Level 501 0 0 68 Adjust SPS Annual Incentive to Target Level 502 (46,040) (46,040) 69 Adjust SPS Annual Incentive to Target Level 505 (44,530) (44,530) 70 Adjust SPS Annual Incentive to Target Level 506 (21,201) (21,201) 71 Adjust XES Annual Incentive to Target Level 500 (7,849) (7,849) 72 Adjust XES Annual Incentive to Target Level 501 (11,049) (11,049) 73 Adjust XES Annual Incentive to Target Level 502 (2,164) (2,164) 74 Adjust XES Annual Incentive to Target Level 505 0 0 75 Adjust XES Annual Incentive to Target Level 506 (77,578) (77,578) 76 Remove SPS Financial Based Annual Incentive 500 (6,533) (6,533) 77 Remove SPS Financial Based Annual Incentive 501 0 0 78 Remove SPS Financial Based Annual Incentive 502 (22,661) (22,661) 79 Remove SPS Financial Based Annual Incentive 505 (21,918) (21,918) 80 Remove SPS Financial Based Annual Incentive 506 (10,435) (10,435) 81 Remove XES Financial Based Annual Incentive 500 (6,947) (6,947) 82 Remove XES Financial Based Annual Incentive 501 (9,780) (9,780) 83 Remove XES Financial Based Annual Incentive 502 (1,916) (1,916) 84 Remove XES Financial Based Annual Incentive 505 0 0 85 Remove XES Financial Based Annual Incentive 506 (68,665) (68,665) 86 Annualize SPS Wages 500 (22,017) (22,017) 87 Annualize SPS Wages 501 0 0 88 Annualize SPS Wages 502 (479,721) (479,721) 89 Annualize SPS Wages 505 (343,806) (343,806) 90 Annualize SPS Wages 506 467,402 467,402 91 Annualize XES Wages 500 (17,980) (17,980) 92 Annualize XES Wages 501 17,992 17,992 93 Annualize XES Wages 502 (26,642) (26,642) 94 Annualize XES Wages 505 0 0 95 Annualize XES Wages 506 237,965 237,965 96 Business Area Adjustment 500 0 (267) (267) 97 Increase in TUCO Margin Costs 501 40,117 40,117 98 Reclassify Steam Generation Fuel Costs as Misc. Expenses 501 10,980 10,980 99 Business Area Adjustment 501 10 2,389 2,400 100 Business Area Adjustment 502 0 (16) (16) 101 Eliminate Environmental Chemical Costs Recovered through Fuel Adjustment Clauses 502 0 (127,083) (127,083) 102 Business Area Adjustment 505 103 Business Area Adjustment 506 6 10,508 10,514 104 Business Area Adjustment 507 105 Eliminate NOX And SO2 Allowance Costs Recovered through Fuel Adjustment Clauses 509 (1,275) (1,275) 106 Total Steam Production Operation 80,783 (75,628) 5,155 107 108 Steam Production Maintenance: 109 Wage Adjustment 510 49,197 49,197 110 Wage Adjustment 511 44,908 44,908 111 Wage Adjustment 512 194,834 194,834 112 Wage Adjustment 513 136,348 136,348 113 Wage Adjustment 514 235,231 235,231 114 Adjust SPS Annual Incentive to Target Level 510 (9,822) (9,822) 115 Adjust SPS Annual Incentive to Target Level 511 (10,969) (10,969) 116 Adjust SPS Annual Incentive to Target Level 512 (31,099) (31,099) 117 Adjust SPS Annual Incentive to Target Level 513 (23,619) (23,619) 118 Adjust SPS Annual Incentive to Target Level 514 (37,126) (37,126) 119 Adjust XES Annual Incentive to Target Level 510 (5,996) (5,996) 120 Adjust XES Annual Incentive to Target Level 511 25 25 121 Adjust XES Annual Incentive to Target Level 512 (2,222) (2,222) 122 Adjust XES Annual Incentive to Target Level 513 (6,050) (6,050) 123 Adjust XES Annual Incentive to Target Level 514 (52,475) (52,475) 124 Remove SPS Financial Based Annual Incentive 510 (4,834) (4,834) 125 Remove SPS Financial Based Annual Incentive 511 (5,399) (5,399) 126 Remove SPS Financial Based Annual Incentive 512 (15,307) (15,307) 127 Remove SPS Financial Based Annual Incentive 513 (11,626) (11,626) 128 Remove SPS Financial Based Annual Incentive 514 (18,274) (18,274) 129 Remove XES Financial Based Annual Incentive 510 (5,307) (5,307) 130 Remove XES Financial Based Annual Incentive 511 22 22 131 Remove XES Financial Based Annual Incentive 512 (1,967) (1,967) 132 Remove XES Financial Based Annual Incentive 513 (5,355) (5,355) 133 Remove XES Financial Based Annual Incentive 514 (46,446) (46,446) 134 Annualize SPS Wages 510 87,546 87,546 135 Annualize SPS Wages 511 46,320 46,320 RR16 - Page 184 of 426 07599
Details of Adjustments Attachment DAB-RR-2 Page 42 of 270 No. Description Account Labor Non-Labor Total 136 Annualize SPS Wages 512 823,022 823,022 137 Annualize SPS Wages 513 171,070 171,070 138 Annualize SPS Wages 514 410,221 410,221 139 Annualize XES Wages 510 21,166 21,166 140 Annualize XES Wages 511 8,018 8,018 141 Annualize XES Wages 512 (5,381) (5,381) 142 Annualize XES Wages 513 (56,335) (56,335) 143 Annualize XES Wages 514 432,501 432,501 144 Business Area Adjustment 51 0 145 Business Area Adjustment 511 146 Business Area Adjustment 512 (47,093) (30) (47,124) 147 Business Area Adjustment 513 47,093 (15) 47,078 148 Business Area Adjustment 514 0 (226) (226) 149 Total Steam Production Maintenance 2,304,820 (271) 2,304,548 150 151 Other Production Operation: 152 Wage Adjustment 546 61 61 153 Wage Adjustment 548 11,750 11,750 154 Wage Adjustment 549 5,817 5,817 155 Adjust SPS Annual Incentive to Target Level 546 (5) (5) 156 Adjust SPS Annual Incentive to Target Level 548 (2,250) (2,250) 157 Adjust SPS Annual Incentive to Target Level 549 (356) (356) 158 Adjust XES Annual Incentive to Target Level 546 (94) (94) 159 Adjust XES Annual Incentive to Target Level 548 (55) (55) 160 Adjust XES Annual Incentive to Target Level 549 (4,653) (4,653) 161 Remove SPS Financial Based Annual Incentive 546 (2) (2) 162 Remove SPS Financial Based Annual Incentive 548 (1,107) (1,107) 163 Remove SPS Financial Based Annual Incentive 549 (175) (175) 164 Remove XES Financial Based Annual Incentive 546 (83) (83) 165 Remove XES Financial Based Annual Incentive 548 (49) (49) 166 Remove XES Financial Based Annual Incentive 549 (4,118) (4,118) 167 Annualize SPS Wages 546 (793) (793) 168 Annualize SPS Wages 548 75,904 75,904 169 Annualize SPS Wages 549 (36,861) (36,861) 170 Annualize XES Wages 546 (1,365) (1,365) 171 Annualize XES Wages 548 7,753 7,753 172 Annualize XES Wages 549 (6,752) (6,752) 173 Business Area Adjustment 546 0 (3) (3) 174 Business Area Adjustment 548 175 Reclassify Other Operating Fuel Costs as Misc. Expenses 549 0 0 176 Business Area Adjustment 549 0 (7) (7) 177 Total Other Production Operation 42,565 (9) 42,556 178 RR16 - Page 185 of 426 07600
Details of Adjustments Attachment DAB-RR-2 Page 43 of 270 No. Description Account Labor Non-Labor Total 179 Other Production Maintenance: 180 Wage Adjustment 551 6 6 181 Wage Adjustment 552 1,741 1,741 182 Wage Adjustment 553 22,710 22,710 183 Wage Adjustment 554 0 0 184 Adjust SPS Annual Incentive to Target Level 551 (1) (1) 185 Adjust SPS Annual Incentive to Target Level 552 (370) (370) 186 Adjust SPS Annual Incentive to Target Level 553 (3,807) (3,807) 187 Adjust SPS Annual Incentive to Target Level 554 0 0 188 Adjust XES Annual Incentive to Target Level 551 (5) (5) 189 Adjust XES Annual Incentive to Target Level 552 (75) (75) 190 Adjust XES Annual Incentive to Target Level 553 (2,170) (2,170) 191 Adjust XES Annual Incentive to Target Level 554 0 0 192 Remove SPS Financial Based Annual Incentive 551 (0) (0) 193 Remove SPS Financial Based Annual Incentive 552 (182) (182) 194 Remove SPS Financial Based Annual Incentive 553 (1,874) (1,874) 195 Remove SPS Financial Based Annual Incentive 554 0 0 196 Remove XES Financial Based Annual Incentive 551 (4) (4) 197 Remove XES Financial Based Annual Incentive 552 (67) (67) 198 Remove XES Financial Based Annual Incentive 553 (1,921) (1,921) 199 Remove XES Financial Based Annual Incentive 554 0 0 200 Annualize SPS Wages 551 (164) (164) 201 Annualize SPS Wages 552 1,577 1,577 202 Annualize SPS Wages 553 168,965 168,965 203 Annualize SPS Wages 554 0 0 204 Annualize XES Wages 551 24 24 205 Annualize XES Wages 552 (3,812) (3,812) 206 Annualize XES Wages 553 (3,672) (3,672) 207 Annualize XES Wages 554 0 0 208 Business Area Adjustment 551 209 Business Area Adjustment 552 210 Business Area Adjustment 553 211 Business Area Adjustment 554 212 Total Other Production Maintenance 176,898 0 176,898 213 214 System Control and Dispatch: 215 Wage Adjustment 556 24,709 24,709 216 Wage Adjustment 557 49,319 49,319 217 Adjust SPS Annual Incentive to Target Level 556 (6,791) (6,791) 218 Adjust SPS Annual Incentive to Target Level 557 (7) (7) 219 Adjust XES Annual Incentive to Target Level 556 (11,266) (11,266) 220 Adjust XES Annual Incentive to Target Level 557 (42,563) (42,563) 221 Remove SPS Financial Based Annual Incentive 556 (3,343) (3,343) 222 Remove SPS Financial Based Annual Incentive 557 (4) (4) 223 Remove XES Financial Based Annual Incentive 556 (9,972) (9,972) 224 Remove XES Financial Based Annual Incentive 557 (37,673) (37,673) 225 Annualize SPS Wages 556 (141,200) (141,200) 226 Annualize SPS Wages 557 (991) (991) 227 Annualize XES Wages 556 179,231 179,231 228 Annualize XES Wages 557 62,358 62,358 229 Business Area Adjustment 556 (1,084) (1,364) (2,448) 230 Business Area Adjustment 557 17,438 (3,490) 13,948 231 Eliminate Annual REC Costs 0557TX (6,094,034) (6,094,034) 232 REC Costs - Ongoing Obligation 0557TX 3,296,681 3,296,681 233 REC Tracker Costs - Annual Amortization 0557TX 2,849,222 # 2,849,222 234 REC Tracker Costs - Annual Amortization Impact of True Up Adjustments 0557TX (345,530) (345,530) 235 Trading A&G Adjustment 0557TX (400,000) (400,000) 236 Total System Control and Dispatch 78,161 (698,515) (620,354) 237 RR16 - Page 186 of 426 07601
Details of Adjustments Attachment DAB-RR-2 Page 44 of 270 No. Description Account Labor Non-Labor Total 238 Transmission Operations 239 Wage Adjustment 560 129,310 129,310 240 Wage Adjustment 561.1 558 558 241 Wage Adjustment 561.2 64,450 64,450 242 Wage Adjustment 561.5 2,310 2,310 243 Wage Adjustment 561.6 126 126 244 Wage Adjustment 561.7 170 170 245 Wage Adjustment 562 23,753 23,753 246 Wage Adjustment 563 6,445 6,445 247 Wage Adjustment 566 65,789 65,789 248 Adjust SPS Annual Incentive to Target Level 560 (20,355) (20,355) 249 Adjust SPS Annual Incentive to Target Level 561.1 0 0 250 Adjust SPS Annual Incentive to Target Level 561.2 (12,132) (12,132) 251 Adjust SPS Annual Incentive to Target Level 561.5 (1,633) (1,633) 252 Adjust SPS Annual Incentive to Target Level 561.6 (64) (64) 253 Adjust SPS Annual Incentive to Target Level 561.7 (3) (3) 254 Adjust SPS Annual Incentive to Target Level 562 (4,715) (4,715) 255 Adjust SPS Annual Incentive to Target Level 563 (1,395) (1,395) 256 Adjust SPS Annual Incentive to Target Level 566 (5,987) (5,987) 257 Adjust XES Annual Incentive to Target Level 560 (53,137) (53,137) 258 Adjust XES Annual Incentive to Target Level 561.1 (98) (98) 259 Adjust XES Annual Incentive to Target Level 561.2 (9,194) (9,194) 260 Adjust XES Annual Incentive to Target Level 561.5 (567) (567) 261 Adjust XES Annual Incentive to Target Level 561.6 0 0 262 Adjust XES Annual Incentive to Target Level 561.7 0 0 263 Adjust XES Annual Incentive to Target Level 562 (1,015) (1,015) 264 Adjust XES Annual Incentive to Target Level 563 (1,179) (1,179) 265 Adjust XES Annual Incentive to Target Level 566 (18,697) (18,697) 266 Remove SPS Financial Based Annual Incentive 560 (10,019) (10,019) 267 Remove SPS Financial Based Annual Incentive 561 0 0 268 Remove SPS Financial Based Annual Incentive 561.1 0 0 269 Remove SPS Financial Based Annual Incentive 561.2 (5,972) (5,972) 270 Remove SPS Financial Based Annual Incentive 561.5 (804) (804) 271 Remove SPS Financial Based Annual Incentive 561.6 (31) (31) 272 Remove SPS Financial Based Annual Incentive 561.7 (1) (1) 273 Remove SPS Financial Based Annual Incentive 562 (2,321) (2,321) 274 Remove SPS Financial Based Annual Incentive 563 (687) (687) 275 Remove SPS Financial Based Annual Incentive 566 (2,947) (2,947) 276 Remove XES Financial Based Annual Incentive 560 (47,032) (47,032) 277 Remove XES Financial Based Annual Incentive 561 0 0 278 Remove XES Financial Based Annual Incentive 561.1 (87) (87) 279 Remove XES Financial Based Annual Incentive 561.2 (8,137) (8,137) 280 Remove XES Financial Based Annual Incentive 561.5 (502) (502) 281 Remove XES Financial Based Annual Incentive 561.6 0 0 282 Remove XES Financial Based Annual Incentive 561.7 0 0 283 Remove XES Financial Based Annual Incentive 562 (898) (898) 284 Remove XES Financial Based Annual Incentive 563 (1,044) (1,044) 285 Remove XES Financial Based Annual Incentive 566 (16,549) (16,549) 286 Annualize SPS Wages 560 341,413 341,413 287 Annualize SPS Wages 561.1 0 0 288 Annualize SPS Wages 561.2 923 923 289 Annualize SPS Wages 561.5 (182,065) (182,065) 290 Annualize SPS Wages 561.6 (45,427) (45,427) 291 Annualize SPS Wages 561.7 4,238 4,238 292 Annualize SPS Wages 562 36,994 36,994 293 Annualize SPS Wages 563 (45,431) (45,431) 294 Annualize SPS Wages 566 146,145 146,145 295 Annualize XES Wages 560 (433,618) (433,618) 296 Annualize XES Wages 561.1 13,787 13,787 297 Annualize XES Wages 561.2 27,095 27,095 298 Annualize XES Wages 561.5 (7,945) (7,945) 299 Annualize XES Wages 561.6 0 0 300 Annualize XES Wages 561.7 0 0 301 Annualize XES Wages 562 5,866 5,866 302 Annualize XES Wages 563 (5,611) (5,611) 303 Annualize XES Wages 566 485,463 485,463 304 Business Area Adjustment 560 140 (2,674) (2,534) 305 Business Area Adjustment 561.1 306 Business Area Adjustment 561.2 0 (191) (191) 307 Eliminate SPP Admin Fees - Wholesale 561.4 (1,054,121) (1,054,121) 308 SPP Admin Fees - Adjust for impact of change in Schedule 1a Rate 561.4 281,006 281,006 309 Business Area Adjustment 561.5 0 (4) (4) 310 Business Area Adjustment 561.6 311 Eliminate SPP Admin Fees - Wholesale 561.8 (560,002) (560,002) 312 SPP Admin Fees - Adjust for impact of change in Schedule 1a Rate 561.8 149,284 149,284 313 Business Area Adjustment 562 RR16 - Page 187 of 426 07602
Details of Adjustments Attachment DAB-RR-2 Page 45 of 270 No. Description Account Labor Non-Labor Total 314 Business Area Adjustment 563 0 (48) (48) 315 Business Area Adjustment 566 0 (1,017) (1,017) 316 Eliminate Transaction costs related to Transmission Assets sold to Sharyland 566 (1,062) (1,062) 317 318 Total Transmission Operations 407,672 (1,188,828) (781,156) 319 320 Transmission Maintenance 321 Wage Adjustment 568 2,750 2,750 322 Wage Adjustment 570 41,908 41,908 323 Wage Adjustment 571 3,899 3,899 324 Adjust SPS Annual Incentive to Target Level 568 (391) (391) 325 Adjust SPS Annual Incentive to Target Level 570 (8,304) (8,304) 326 Adjust SPS Annual Incentive to Target Level 571 (851) (851) 327 Adjust XES Annual Incentive to Target Level 568 0 0 328 Adjust XES Annual Incentive to Target Level 57 329 Adjust XES Annual Incentive to Target Level 571 (216) (216) 330 Remove SPS Financial Based Annual Incentive 568 (193) (193) 331 Remove SPS Financial Based Annual Incentive 570 (4,087) (4,087) 332 Remove SPS Financial Based Annual Incentive 571 (419) (419) 333 Remove XES Financial Based Annual Incentive 568 0 0 334 Remove XES Financial Based Annual Incentive 57 335 Remove XES Financial Based Annual Incentive 571 (191) (191) 336 Annualize SPS Wages 568 23,179 23,179 337 Annualize SPS Wages 570 114,772 114,772 338 Annualize SPS Wages 571 1,679 1,679 339 Annualize XES Wages 568 0 0 340 Annualize XES Wages 57 341 Annualize XES Wages 571 597 597 342 Business Area Adjustment 568 343 Business Area Adjustment 57 0 344 Business Area Adjustment 571 (22) 13,459 13,436 345 Eliminate O&M on Assets Sold to Sharyland 571 (6,664) (6,664) 346 Business Area Adjustment 573 0 (105) (105) 347 Total Transmission Maintenance 174,112 6,690 180,801 348 349 Wheeling: 350 Eliminate Schedule 9 Charges 0565T (24,828,360) (24,828,360) 351 Eliminate PNM Charges 0565R (3,292,873) (3,292,873) 352 Eliminate Wholesale Ancillary Charges - Sch 1, Sch 2, facilities 0565W (1,153,757) (1,153,757) 353 Eliminate Wholesale Ancillary Charges - Sch 3, 5 & 6 0565W (1,653,421) (1,653,421) 354 Eliminate Per Book Schedule 11 0565T (54,595,476) (54,595,476) 355 Eliminate Wholesale Schedule 12 FERC Assessment 0565W 6,575 6,575 356 Reclassify SPP Annual Membership Fee 0565T 6,039 6,039 357 Include Schedule 9 Charges for Lea County Formula Rate 0565T 387,943 387,943 358 Include Schedule 11 Charges 0565T 83,965,026 83,965,026 359 Adjust Lamar DC Tie Charges for 2015 Rates 0565P 390,182 390,182 360 Total Wheeling 0 (768,122) (768,122) 361 RR16 - Page 188 of 426 07603
Details of Adjustments Attachment DAB-RR-2 Page 46 of 270 No. Description Account Labor Non-Labor Total 362 Regional Markets Expense: 363 Wage Adjustment 0575.1 3,437 3,437 364 Wage Adjustment 0575.2 894 894 365 Wage Adjustment 0575.3 0 0 366 Wage Adjustment 0575.5 152 152 367 Wage Adjustment 0575.6 1,352 1,352 368 Adjust SPS Annual Incentive to Target Level 0575.1 0 0 369 Adjust SPS Annual Incentive to Target Level 0575.2 (6) (6) 370 Adjust SPS Annual Incentive to Target Level 0575.3 0 0 371 Adjust SPS Annual Incentive to Target Level 0575.5 (6) (6) 372 Adjust SPS Annual Incentive to Target Level 0575.6 0 0 373 Adjust XES Annual Incentive to Target Level 0575.1 (3,814) (3,814) 374 Adjust XES Annual Incentive to Target Level 0575.2 (1,154) (1,154) 375 Adjust XES Annual Incentive to Target Level 0575.3 0 0 376 Adjust XES Annual Incentive to Target Level 0575.5 (178) (178) 377 Adjust XES Annual Incentive to Target Level 0575.6 (1,729) (1,729) 378 Remove SPS Financial Based Annual Incentive 0575.1 0 0 379 Remove SPS Financial Based Annual Incentive 0575.2 (3) (3) 380 Remove SPS Financial Based Annual Incentive 0575.3 0 0 381 Remove SPS Financial Based Annual Incentive 0575.5 (3) (3) 382 Remove SPS Financial Based Annual Incentive 0575.6 0 0 383 Remove XES Financial Based Annual Incentive 0575.1 (3,376) (3,376) 384 Remove XES Financial Based Annual Incentive 0575.2 (1,022) (1,022) 385 Remove XES Financial Based Annual Incentive 0575.3 0 0 386 Remove XES Financial Based Annual Incentive 0575.5 (158) (158) 387 Remove XES Financial Based Annual Incentive 0575.6 (1,531) (1,531) 388 Annualize SPS Wages 0575.1 0 0 389 Annualize SPS Wages 0575.2 (824) (824) 390 Annualize SPS Wages 0575.3 0 0 391 Annualize SPS Wages 0575.5 (824) (824) 392 Annualize SPS Wages 0575.6 0 0 393 Annualize XES Wages 0575.1 (17,507) (17,507) 394 Annualize XES Wages 0575.2 (5,583) (5,583) 395 Annualize XES Wages 0575.3 0 0 396 Annualize XES Wages 0575.5 (2,310) (2,310) 397 Annualize XES Wages 0575.6 (6,775) (6,775) 398 Business Area Adjustment 575.1 0 (2,107) (2,107) 399 Business Area Adjustment 575.2 1,500 0 1,500 400 Business Area Adjustment 575.5 401 Business Area Adjustment 575.6 402 Eliminate SPP Admin Fees - Wholesale 575.7 (1,680,005) (1,680,005) 403 SPP Admin Fees - Adjust for impact of change in Schedule 1a Rate 575.7 447,853 447,853 404 Total Regional Markets Expense (39,471) (1,234,259) (1,273,730) 405 406 Distribution Operations 407 Wage Adjustment 580 109,789 109,789 408 Wage Adjustment 581 27,022 27,022 409 Wage Adjustment 582 19,322 19,322 410 Wage Adjustment 583 43,192 43,192 411 Wage Adjustment 584 4,396 4,396 412 Wage Adjustment 585 12,362 12,362 413 Wage Adjustment 586 111,684 111,684 414 Wage Adjustment 587 26,275 26,275 415 Wage Adjustment 588 95,767 95,767 416 Wage Adjustment 589-0 417 Adjust SPS Annual Incentive to Target Level 580 (24,139) (24,139) 418 Adjust SPS Annual Incentive to Target Level 581 (1,837) (1,837) 419 Adjust SPS Annual Incentive to Target Level 582 (4,349) (4,349) 420 Adjust SPS Annual Incentive to Target Level 583 (7,520) (7,520) 421 Adjust SPS Annual Incentive to Target Level 584 (505) (505) 422 Adjust SPS Annual Incentive to Target Level 585 (4,107) (4,107) 423 Adjust SPS Annual Incentive to Target Level 586 (28,135) (28,135) 424 Adjust SPS Annual Incentive to Target Level 587 (7,538) (7,538) 425 Adjust SPS Annual Incentive to Target Level 588 (21,004) (21,004) 426 Adjust XES Annual Incentive to Target Level 580 (17,556) (17,556) 427 Adjust XES Annual Incentive to Target Level 581 (3,224) (3,224) 428 Adjust XES Annual Incentive to Target Level 582-0 429 Adjust XES Annual Incentive to Target Level 583 (927) (927) 430 Adjust XES Annual Incentive to Target Level 584-0 431 Adjust XES Annual Incentive to Target Level 585-0 432 Adjust XES Annual Incentive to Target Level 586 (5,804) (5,804) 433 Adjust XES Annual Incentive to Target Level 587-0 434 Adjust XES Annual Incentive to Target Level 588 (1,020) (1,020) 435 Remove SPS Financial Based Annual Incentive 580 (11,881) (11,881) 436 Remove SPS Financial Based Annual Incentive 581 (904) (904) 437 Remove SPS Financial Based Annual Incentive 582 (2,141) (2,141) RR16 - Page 189 of 426 07604
Details of Adjustments Attachment DAB-RR-2 Page 47 of 270 No. Description Account Labor Non-Labor Total 438 Remove SPS Financial Based Annual Incentive 583 (3,702) (3,702) 439 Remove SPS Financial Based Annual Incentive 584 (248) (248) 440 Remove SPS Financial Based Annual Incentive 585 (2,022) (2,022) 441 Remove SPS Financial Based Annual Incentive 586 (13,848) (13,848) 442 Remove SPS Financial Based Annual Incentive 587 (3,710) (3,710) 443 Remove SPS Financial Based Annual Incentive 588 (10,338) (10,338) 444 Remove XES Financial Based Annual Incentive 580 (15,539) (15,539) 445 Remove XES Financial Based Annual Incentive 581 (2,853) (2,853) 446 Remove XES Financial Based Annual Incentive 582-0 447 Remove XES Financial Based Annual Incentive 583 (820) (820) 448 Remove XES Financial Based Annual Incentive 584-0 449 Remove XES Financial Based Annual Incentive 585-0 450 Remove XES Financial Based Annual Incentive 586 (5,137) (5,137) 451 Remove XES Financial Based Annual Incentive 587-0 452 Remove XES Financial Based Annual Incentive 588 (903) (903) 453 Annualize SPS Wages 580 (126,580) (126,580) 454 Annualize SPS Wages 581 431,227 431,227 455 Annualize SPS Wages 582 31,616 31,616 456 Annualize SPS Wages 583 9,230 9,230 457 Annualize SPS Wages 584 47,841 47,841 458 Annualize SPS Wages 585 (119,864) (119,864) 459 Annualize SPS Wages 586 (65,162) (65,162) 460 Annualize SPS Wages 587 (97,276) (97,276) 461 Annualize SPS Wages 588 326,260 326,260 462 Annualize XES Wages 580 40,079 40,079 463 Annualize XES Wages 581 7,520 7,520 464 Annualize XES Wages 582-0 465 Annualize XES Wages 583 5,058 5,058 466 Annualize XES Wages 584-0 467 Annualize XES Wages 585-0 468 Annualize XES Wages 586 22,932 22,932 469 Annualize XES Wages 587-0 470 Annualize XES Wages 588 8,153 8,153 471 Business Area Adjustment 580 (68) 1,267 1,199 472 Business Area Adjustment 581 0 (3) (3) 473 Business Area Adjustment 582 - (2) (2) 474 Business Area Adjustment 583 - - 0 475 Business Area Adjustment 584 - - 0 476 Business Area Adjustment 585 - - 0 477 Business Area Adjustment 586 (287) - (287) 478 Business Area Adjustment 587 - - 0 479 Business Area Adjustment 588 1,079 10,440 11,519 480 Total Distribution Operations 769,855 11,702 781,557 481 RR16 - Page 190 of 426 07605
Details of Adjustments Attachment DAB-RR-2 Page 48 of 270 No. Description Account Labor Non-Labor Total 482 Distribution Maintenance 483 Wage Adjustment 590 9,071 9,071 484 Wage Adjustment 592 35,989 35,989 485 Wage Adjustment 593 132,691 132,691 486 Wage Adjustment 594 4,262 4,262 487 Wage Adjustment 595 2,400 2,400 488 Wage Adjustment 596 901 901 489 Wage Adjustment 597 454 454 490 Wage Adjustment 598 0 0 491 Adjust SPS Annual Incentive to Target Level 590 (1,798) (1,798) 492 Adjust SPS Annual Incentive to Target Level 592 (7,414) (7,414) 493 Adjust SPS Annual Incentive to Target Level 593 (15,227) (15,227) 494 Adjust SPS Annual Incentive to Target Level 594 (899) (899) 495 Adjust SPS Annual Incentive to Target Level 595 (582) (582) 496 Adjust SPS Annual Incentive to Target Level 596 (222) (222) 497 Adjust SPS Annual Incentive to Target Level 597 (128) (128) 498 Adjust SPS Annual Incentive to Target Level 598 (1) (1) 499 Adjust XES Annual Incentive to Target Level 590 (390) (390) 500 Adjust XES Annual Incentive to Target Level 592 0 0 501 Adjust XES Annual Incentive to Target Level 593 (768) (768) 502 Adjust XES Annual Incentive to Target Level 594 0 0 503 Adjust XES Annual Incentive to Target Level 595 0 0 504 Adjust XES Annual Incentive to Target Level 596 0 0 505 Adjust XES Annual Incentive to Target Level 597 0 0 506 Adjust XES Annual Incentive to Target Level 598 0 0 507 Remove SPS Financial Based Annual Incentive 590 (885) (885) 508 Remove SPS Financial Based Annual Incentive 592 (3,649) (3,649) 509 Remove SPS Financial Based Annual Incentive 593 (7,495) (7,495) 510 Remove SPS Financial Based Annual Incentive 594 (443) (443) 511 Remove SPS Financial Based Annual Incentive 595 (287) (287) 512 Remove SPS Financial Based Annual Incentive 596 (109) (109) 513 Remove SPS Financial Based Annual Incentive 597 (63) (63) 514 Remove SPS Financial Based Annual Incentive 598 (0) (0) 515 Remove XES Financial Based Annual Incentive 590 (345) (345) 516 Remove XES Financial Based Annual Incentive 592 0 0 517 Remove XES Financial Based Annual Incentive 593 (680) (680) 518 Remove XES Financial Based Annual Incentive 594 0 0 519 Remove XES Financial Based Annual Incentive 595 0 0 520 Remove XES Financial Based Annual Incentive 596 0 0 521 Remove XES Financial Based Annual Incentive 597 0 0 522 Remove XES Financial Based Annual Incentive 598 0 0 523 Annualize SPS Wages 590 25,693 25,693 524 Annualize SPS Wages 592 180,002 180,002 525 Annualize SPS Wages 593 1,004,862 1,004,862 526 Annualize SPS Wages 594 (14,060) (14,060) 527 Annualize SPS Wages 595 3,034 3,034 528 Annualize SPS Wages 596 (7,184) (7,184) 529 Annualize SPS Wages 597 (2,408) (2,408) 530 Annualize SPS Wages 598 (128) (128) 531 Annualize XES Wages 590 13,583 13,583 532 Annualize XES Wages 592 0 0 533 Annualize XES Wages 593 2,303 2,303 534 Annualize XES Wages 594 0 0 535 Annualize XES Wages 595 0 0 536 Annualize XES Wages 596 0 0 537 Annualize XES Wages 597 0 0 538 Annualize XES Wages 598 0 0 RR16 - Page 191 of 426 07606
Details of Adjustments Attachment DAB-RR-2 Page 49 of 270 No. Description Account Labor Non-Labor Total 539 Business Area Adjustment 59 0 540 Business Area Adjustment 592 541 Business Area Adjustment 593 0 (317) (317) 542 Business Area Adjustment 594 543 Business Area Adjustment 595 544 Business Area Adjustment 596 545 Business Area Adjustment 597 546 Business Area Adjustment 598 547 Total Distribution Maintenance 1,350,077 (317) 1,349,760 548 549 Customer Accounting Expense: 550 Wage Adjustment 901 763 763 551 Wage Adjustment 902 87,296 87,296 552 Wage Adjustment 903 79,081 79,081 553 Adjust SPS Annual Incentive to Target Level 901 (0) (0) 554 Adjust SPS Annual Incentive to Target Level 902 (19,768) (19,768) 555 Adjust SPS Annual Incentive to Target Level 903 0 0 556 Adjust XES Annual Incentive to Target Level 901 (604) (604) 557 Adjust XES Annual Incentive to Target Level 902 (826) (826) 558 Adjust XES Annual Incentive to Target Level 903 (65,565) (65,565) 559 Remove SPS Financial Based Annual Incentive 901 (0) (0) 560 Remove SPS Financial Based Annual Incentive 902 (9,730) (9,730) 561 Remove SPS Financial Based Annual Incentive 903 0 0 562 Remove XES Financial Based Annual Incentive 901 (534) (534) 563 Remove XES Financial Based Annual Incentive 902 (731) (731) 564 Remove XES Financial Based Annual Incentive 903 (58,033) (58,033) 565 Annualize SPS Wages 901 (25) (25) 566 Annualize SPS Wages 902 158,439 158,439 567 Annualize SPS Wages 903 0 0 568 Annualize XES Wages 901 1,350 1,350 569 Annualize XES Wages 902 1,059 1,059 570 Annualize XES Wages 903 51,668 51,668 571 Business Area Adjustment 901 9 (118) (109) 572 Business Area Adjustment 902 4 6,037 6,041 573 Business Area Adjustment 903 (337) 12,100 11,763 574 Business Area Adjustment 904 575 Business Area Adjustment 905 576 Interest Expense on Customer Deposits - Texas 7,322 7,322 577 Total Customer Accounting Expense 223,516 25,341 248,856 578 579 Customer Service Expense: 580 Wage Adjustment 908 61,323 61,323 581 Wage Adjustment 0908SVR 511 511 582 Adjust SPS Annual Incentive to Target Level 908 (13,096) (13,096) 583 Adjust SPS Annual Incentive to Target Level 0908SVR 0 0 584 Adjust XES Annual Incentive to Target Level 908 (10,618) (10,618) 585 Adjust XES Annual Incentive to Target Level 0908SVR (602) (602) 586 Remove SPS Financial Based Annual Incentive 908 (6,446) (6,446) 587 Remove SPS Financial Based Annual Incentive 0908SVR 0 0 588 Remove XES Financial Based Annual Incentive 908 (9,398) (9,398) 589 Remove XES Financial Based Annual Incentive 0908SVR (533) (533) 590 Annualize SPS Wages 908 127,803 127,803 591 Annualize SPS Wages 0908SVR 0 0 592 Annualize XES Wages 908 (147,643) (147,643) 593 Eliminate Texas Per Book EE Costs - EE Tracker 0908DSMTX (3,147,376) (3,147,376) 594 Eliminate Texas Per Book EE Costs - Historic EE 0908HDSMT (1,673,346) (1,673,346) 595 Include One year Amortization of Existing EE (10 year Amortization) 0908HDSMT 1,155,696 1,155,696 596 Include Carrying Costs of Existing EE 0908HDSMT 367,685 367,685 597 Eliminate Historic ICO Amortization 0908ICO (521) (521) 598 Include ICO Credits to Expected Rate Year Amount 0908ICO 190,534 190,534 599 Business Area Adjustment 908 (60,119) 1,358 (58,762) 600 Eliminate Wholesale Account Manager Costs 908 0 (918) (918) 601 Eliminate Prior Period EECRF Costs 908 3,468 (400) 3,067 602 Total Customer Service Expense (55,350) (3,107,289) (3,162,638) 603 RR16 - Page 192 of 426 07607
Details of Adjustments Attachment DAB-RR-2 Page 50 of 270 No. Description Account Labor Non-Labor Total 604 Sales Expense: 605 Wage Adjustment 912 4,853 4,853 606 Adjust SPS Annual Incentive to Target Level 912 (1,184) (1,184) 607 Adjust XES Annual Incentive to Target Level 912 (960) (960) 608 Remove SPS Financial Based Annual Incentive 912 (583) (583) 609 Remove XES Financial Based Annual Incentive 912 (850) (850) 610 Annualize SPS Wages 912 12,541 12,541 611 Annualize XES Wages 912 (24,948) (24,948) 612 Business Area Adjustment 912 613 Total Sales Expense (11,129) 0 (11,129) 614 615 Administrative & General Expense: 616 Wage Adjustment 920 538,385 538,385 617 Adjust SPS Annual Incentive to Target Level 920 (26,074) (26,074) 618 Adjust XES Annual Incentive to Target Level 920 (383,693) (383,693) 619 Remove SPS Financial Based Annual Incentive 920 (12,834) (12,834) 620 Remove XES Financial Based Annual Incentive 920 (339,610) (339,610) 621 Annualize SPS Wages 920 46,509 46,509 622 Annualize XES Wages 920 615,494 615,494 623 Eliminate Long-term Incentive 920 (695,206) 0 (695,206) 624 Business Area Adjustment 920 (1,645,555) 0 (1,645,555) 625 Eliminate Labor Costs Associated with Xcel Foundation 920 (51,552) 0 (51,552) 626 Aviation Adjustment 920 (105,162) (105,162) 627 Eliminate Other Compensation Accounting Correction 920 59,802 59,802 628 Include cost for SPP Letter of Credit 921 301,243 301,243 629 Eliminate Costs Associated with Xcel Foundation 921 0 (50,138) (50,138) 630 Business Area Adjustment 921 0 (105,611) (105,611) 631 Aviation Adjustment 921 (330,806) (330,806) 632 Eliminate Transaction costs related to Transmission Assets sold to Sharyland 921 (172,469) (172,469) 633 Business Area Adjustment 923 0 (226,802) (226,802) 634 Eliminate Costs Associated with Xcel Foundation 923 0 (17,986) (17,986) 635 Aviation Adjustment 923 (7,409) (7,409) 636 Business Area Adjustment 924 637 Aviation Adjustment 924 (5,016) (5,016) 638 Eliminate Wholesale Account Manager Injuries & Damages Costs 925 639 Business Area Adjustment 925 (517) 59,802 59,285 640 Eliminate Self-Insured Workers Compensation 925 271,725 271,725 641 Eliminate Costs Associated with Xcel Foundation 925 (92) 0 (92) 642 Eliminate Prior Period EECRF Costs 925 7 0 7 643 Aviation Adjustment 925 (204) (204) 644 Eliminate Injuries and Damages Accounting Correction 925 119,604 119,604 645 Eliminate Wholesale Account Manager Pension & Benefits Costs 926 (539) 0 (539) 646 Eliminate Prior Period EECRF Costs 926 1,081 0 1,081 647 Eliminate FAS 88 Costs 926 (198,918) 0 (198,918) 648 Pension & Benefits Adjustment 926 1,141,938 1,141,938 649 Business Area Adjustment 926 (78,260) 0 (78,260) 650 Eliminate Costs Associated with Xcel Foundation 926 (13,328) 0 (13,328) 651 Aviation Adjustment 926 (30,040) (30,040) 652 Adjust 401k Matching Expense for Base Labor Adjustment 926 108,166 108,166 653 Eliminate Deferral of Pension Costs 092603 (1,538,030) (1,538,030) 654 Include Amortization of Deferred Pension Costs 092603 3,583,510 3,583,510 655 Adjust PUCT Fees to Present Rates 928 91,827 91,827 656 Eliminate Test Year Rate Case Expense Amortization 928 (1,370,858) (1,370,858) 657 Eliminate EECRF Case Expense Amortization Recovered in EECRF 928 (31,658) (31,658) 658 Include Amortization of Rate Case Expenses 928 4,557,311 4,557,311 659 Eliminate Brand & General Advertising 930 0 (1,506,603) (1,506,603) 660 Business Area Adjustment 930 0 (10,554) (10,554) 661 Business Area Adjustment 931 0 (8,037) (8,037) 662 Eliminate Costs Associated with Xcel Foundation 931 0 (6,451) (6,451) 663 Eliminate Prior Period EECRF Costs 931 0 1,422 1,422 664 Eliminate Wholesale Account Manager Rents 931O 0 (7,565) (7,565) 665 Business Area Adjustment 935 0 (832) (832) 666 Eliminate Costs Associated with Xcel Foundation 935 0 (31) (31) 667 Aviation Adjustment 935 (120,127) (120,127) 668 Contributions/Donations/Organization Memberships/Dues 2,556,117 2,556,117 669 Total Administrative & General Expense 1,366,605 3,588,770 4,955,375 670 671 Total O&M 6,869,114 (3,440,736) 3,428,378 RR16 - Page 193 of 426 07608
Details of Adjustments Attachment DAB-RR-2 Page 51 of 270 No. Description Account Labor Non-Labor Total 672 673 Depreciation & Amortization Expense: 674 Steam Production - Unblend Depreciation Expense 403 (14,393,306) (14,393,306) 675 Other Production - Unblend Depreciation Expense 403 (1,857,015) (1,857,015) 676 Steam Production - Annualize Unblended Depreciation Expense 403 219,237 219,237 677 Other Production - Annualize Unblended Depreciation Expense 403 97,193 97,193 678 Steam Production - New Depreciation/Amortization Rates 403 19,089,860 19,089,860 679 Other Production - New Depreciation/Amortization Rates 403 1,189,706 1,189,706 680 Steam Production - Post Test Year Adjustment 403 545,791 545,791 681 Other Production - Post Test Year Adjustment 403 120,371 120,371 682 Eliminate Depreciation & Depletion Expense - Production 40310 1,047,071 1,047,071 683 Eliminate Amortization of Reg Credits - Production 040740 (217,394) (217,394) 684 Eliminate Accretion Expense - Production 041190 (829,676) (829,676) 685 Transmission - Unblend Depreciation Expense 403 2,403,172 2,403,172 686 Transmission - Annualize Unblended Depreciation Expense 403 4,053,066 4,053,066 687 Transmission - New Depreciation/Amortization Rates 403 1,167,345 1,167,345 688 Transmission - Post Test Year Adjustment 403 9,002,160 9,002,160 689 Eliminate Depreciation & Depletion Expense - Transmission 40310 (456) (456) 690 Texas Distribution - Unblend Depreciation Expense 0403TX 0 0 691 New Mexico Distribution - Unblend Depreciation Expense 0403NM 0 0 692 Texas Distribution - Annualize Unblended Depreciation Expense 0403TX 459,716 459,716 693 New Mexico Distribution - Annualize Unblended Depreciation Expense 0403NM (1,279,333) (1,279,333) 694 Texas Distribution - New Depreciation/Amortization Rates 0403TX 1,225,742 1,225,742 695 New Mexico Distribution - New Depreciation/Amortization Rates 0403NM 403,220 403,220 696 Texas Distribution - Adjust Depreciation Expense for Transformer Reclass 0403TX (703,960) (703,960) 697 Texas Distribution - Adjust Depreciation Expense for Meter Reclass 0403TX (256,247) (256,247) 698 Texas Distribution - Post Test Year Adjustment 0403TX 505,361 505,361 699 New Mexico Distribution - Post Test Year Adjustment 0403NM 388,745 388,745 700 Eliminate Depreciation & Depletion Expense - Distribution 40310 (200,895) (200,895) 701 Eliminate Amortization of Reg Credits - Distribution 040740 426,091 426,091 702 Eliminate Accretion Expense - Distribution 041190 (222,135) (222,135) 703 General - Unblend Depreciation Expense 403 (210,899) (210,899) 704 General - Call Center - Unblend Depreciation Expense 403 (40,735) (40,735) 705 General - Annualize Unblended Depreciation Expense 403 2,553,629 2,553,629 706 General - Call Center - Annualize Unblended Depreciation Expense 403 4,439 4,439 707 General - New Depreciation/Amortization Rates 403 2,450,048 2,450,048 708 General - Post Test Year Adjustment 403 2,298,850 2,298,850 709 General - Call Center - New Depreciation/Amortization Rates 403 125,715 125,715 710 Eliminate Depreciation & Depletion Expense - General 40310 (2,605) (2,605) 711 Intangible - Unblend Depreciation Expense 040422 197,547 197,547 712 Intangible - Annualize Unblended Depreciation Expense 040422 3,317,647 3,317,647 713 Intangible - New Depreciation/Amortization Rates 040422 32,072 32,072 714 Intangible - Post Test Year Adjustment 040422 3,355,811 3,355,811 715 Total Depreciation & Amortization Expense 0 36,464,950 36,464,950 716 717 Taxes Other Than Income: 718 Adjust Property Tax Expense to June 2014 Plant Levels 0408 7,052,613 7,052,613 719 Adjust Property Tax Expense for Post Test Year Plant 0408 2,559,665 2,559,665 720 Adjust Payroll Tax Expense Associated with Labor Adjustments 40831 249,765 249,765 721 Adjust Franchise Fees to Present Revenues 40833TX 581,009 581,009 722 Adjust Franchise Fees to Proposed Revenues 40833TX 1,205,855 1,205,855 723 Reclassify Texas Franchise Tax 408 3,380,717 3,380,717 724 Adjust Texas Franchise Tax to Proposed Revenues 408 245,009 245,009 725 Adjust Texas Gross Receipts to Proposed Revenues 40833 702,435 702,435 726 Total Taxes Other Than Income 0 15,977,069 15,977,069 727 728 State Income Tax Expense: 729 Reclassify Texas Margin Tax 40910 (3,380,717) (3,380,717) 730 Adjust State Income Tax 40910 (1,021,808) (1,021,808) 731 Total State Income Tax Expense 0 (4,402,525) (4,402,525) 732 733 Federal Income Tax Expense: 734 Federal Income Tax Expense (10,797,683) (10,797,683) 735 Production Tax Deduction 0 0 736 Total Federal Income Tax Expense 0 (10,797,683) (10,797,683) 737 RR16 - Page 194 of 426 07609
Details of Adjustments Attachment DAB-RR-2 Page 52 of 270 No. Description Account Labor Non-Labor Total 738 Schedule M 739 Plant Schedule M - Production T (36,709,727) (36,709,727) 740 Plant Schedule M - Transmission T (85,851,847) (85,851,847) 741 Plant Schedule M - Texas Distribution T (2,047,712) (2,047,712) 742 Plant Schedule M - New Mexico Distribution T (841,449) (841,449) 743 Plant Schedule M - Intangible T 7,734,596 7,734,596 744 Plant Schedule M - General Call Center T (295,455) (295,455) 745 Plant Schedule M - General T 7,603,238 7,603,238 746 Plant Schedule M - Production P 1,206,827 1,206,827 747 Plant Schedule M - Transmission P 8,804,039 8,804,039 748 Plant Schedule M - Texas Distribution P 988,228 988,228 749 Plant Schedule M - New Mexico Distribution P 406,084 406,084 750 Plant Schedule M - Intangible P 1,506,926 1,506,926 751 Plant Schedule M - General P 185,929 185,929 752 REC Amortization (excl tracker interest) T 2,836,570 2,836,570 753 Historic EE Amortization (excl interest) T 1,155,696 1,155,696 754 Unamortized Rate Case Expense Amortization T 784,724 784,724 755 Unamortized Pension/OPEB Reg Asset Amortization T 3,583,510 3,583,510 756 Eliminate amounts related to sale of Sharyland assets 0 757 Total Schedule M 0 8,360,500 8,360,500 758 759 Deferred Income Tax Expense 760 Plant 0 0 761 Non-Plant 762 State Only NOL (572,579) (572,579) 763 Texas Gross Margin Tax 173,982 173,982 764 State Tax Deduction Cash vs Accrual (FIN 48) - Perm LT - Elec 15 15 765 State Tax Deduction Cash vs Accrual (FIN 48) - Perm LT - NonReg (316) (316) 766 ITC Grant - Fed DIT Only (313,352) (313,352) 767 OCI - Treasury (96,981) (96,981) 768 OK Bonus Depreciation (563) (563) 769 New Hire Retention Credit 0 0 770 Total Deferred Income Tax Expense 0 (809,795) (809,795) 771 772 Gain on Disposition of Allowances 773 Eliminate Gain Returned through Fuel Adjustments 41180 258 258 774 Total Gain on Disp. of Allowances 0 258 258 775 776 Gain on Disposition of RECs 777 Eliminate Gain on Disposition of RECs 41181 813,102 813,102 778 Total Gain on Disposition of RECs 0 813,102 813,102 779 780 Loss on Disposition of RECs 781 Eliminate Loss on Disposition of RECs 41191 6,386 6,386 782 Total Loss on Disposition of RECs 0 6,386 6,386 783 784 Gain on Sale of Utility Plant 785 Eliminate Lubbock Sale Gain 41160 4,898,862 4,898,862 786 Total Gain on Sale of Utility Plant 0 4,898,862 4,898,862 787 788 Revenue Credits: 789 Eliminate Provision for Rate Refunds 449 (45,073,217) (45,073,217) 790 Increase in Meter Tampering Fee 45106 (19,120) (19,120) 791 Eliminate Customer Discounts 45110 (491) (491) 792 Eliminate New Mexico Customer Discounts 45111 4,556 4,556 793 Adjust Rent from Electric Property - Texas for Known & Measurable Lease Changes 454TX (29,026) (29,026) 794 Adjust RTO PTP Firm Revenues for 2015 Rate Increase 45605 (642,812) (642,812) 795 Exclude Out of Period PTP Resettlement 45605 315,249 315,249 796 Adjust RTO PTP Non-Firm Revenues for 2015 Rate Increase 45606 (130,287) (130,287) 797 Eliminate Network Transmission Revenue 45607 40,574,055 40,574,055 798 Exclude Out of Period Schedule 1 Resettlement 45612 748,415 748,415 799 Eliminate Offsystem Wheeling 45626 (286,506) (286,506) 800 Elminate JOA Revenues Shared in Fuel 45641 1,715,947 1,715,947 801 Eliminate Out-of-Period Amount 45642TX (527) (527) 802 Eliminate Sharyland Gain Refund 45642TX 5,222,262 5,222,262 803 EliminateTUCO Savage Refund Amount returned to Texas Rate Payers 45642TX (638,281) (638,281) 804 Eliminate CIP Inentive Revenue 45646 292,951 292,951 805 Eliminate ICO Revenue 45667 0 0 806 Eliminate Deferred Fuel Revenue 45668 4,691,070 4,691,070 807 Eliminate Test Period Schedule 11 Network Base Plan Revenues 45673 52,405,377 52,405,377 808 Include Base Plan Upgrade Revenue at 2013 Rates with Test Year Plant-in-Service 45673 (76,230,194) (76,230,194) 809 Include Demand Revenues from New Wholesale Contracts 447 (931,127) (931,127) 810 Total Revenue Credits 0 (18,011,707) (18,011,707) 811 812 Total Operating Deductions Adjustments, Excluding Income Taxes 6,858,134 (829,881,604) (823,023,470) RR16 - Page 195 of 426 07610
Page 53 of 270 Post Test Year Adjustments - Gross Plant Remove Texas Rules Texas Rules 11789416 Jun-14 Dec-14 Adjustment Install Higg East Sub No. Description Account Plant Plant Plant Plant 1 Intangible: 2 Organization 301 3 Franchises and Consents 302 4 Misc. Intangible Plant 303 88,604,977 105,384,030 16,779,053 5 Total Intangible 88,604,977 105,384,030 16,779,053 0 6 7 Steam Production: 8 Land and Land Rights 310 11,200,043 11,257,571 57,528 9 Structures & Improvements 311 218,513,533 228,041,496 9,527,963 10 Boiler Plant Equipment 312 929,295,419 936,942,972 7,647,553 11 Turbo-Generator Units 314 450,499,864 456,731,553 6,231,689 12 Accessory Electric Equipment 315 74,296,189 75,226,968 930,780 13 Misc. Power Plant Equipment 316 31,389,713 31,982,910 593,197 14 Total Steam Production 1,715,194,761 1,740,183,471 24,988,710 0 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 115,722 115,722 0 18 Structures & Improvements 341 14,530,520 14,612,751 82,231 19 Fuel Holders, Prod & Acc 342 5,644,152 5,980,652 336,500 20 Internal Combustion Engine 343 64,604,861 67,097,089 2,492,228 21 Generators 344 168,016,442 168,640,233 623,791 22 Accessory Electric Equipment 345 31,709,028 32,735,610 1,026,582 23 Misc. Power Plant Equipment 346 4,799,154 4,995,266 196,112 24 Total Internal Combustion Equipment 289,419,878 294,177,323 4,757,445 0 25 RR16 - Page 196 of 426 07611
Page 54 of 270 Post Test Year Adjustments - Gross Plant Remove Texas Rules Texas Rules 11789416 Jun-14 Dec-14 Adjustment Install Higg East Sub No. Description Account Plant Plant Plant Plant 26 Transmission Plant: 27 Land Owned in Fee 350.1 6,263,328 6,394,523 131,195 28 Land Rights 350.2 74,461,243 87,612,770 13,151,527 29 Structures & Improvements 352 46,300,952 56,877,656 10,576,705 30 Station Equipment 353.0 597,702,558 682,529,886 84,827,328 31 Station Equipment - Production 353.1 30,078,585 28,694,023 (1,384,562) 32 Towers and Fixtures 354 8,243,671 11,531,324 3,287,653 33 Poles and Fixtures 355 592,666,848 740,160,001 147,493,153 34 Overhead Conductor 356 247,327,245 331,529,084 84,201,839 35 Underground Conduit 357 255,073 356,799 101,726 36 Underground Conductor 358 489,717 685,020 195,304 37 Total Transmission Plant 1,603,789,219 1,946,371,087 342,581,868 0 38 39 Texas Distribution Plant: 40 Land and Land Rights 360 2,562,906 3,108,569 545,663 41 Structures & Improvements 361 5,499,828 6,161,776 661,949 (17,821) 42 Station Equipment 362 106,093,089 114,596,754 8,503,665 (939,275) 43 Towers and Fixtures 364 147,042,130 155,149,585 8,107,454 44 Overhead Conductor 365 138,596,619 146,482,489 7,885,871 45 Underground Conduit 366 16,454,055 17,782,050 1,327,995 46 Underground Conductor 367 25,205,366 25,898,491 693,124 47 Transformers 368 148,680,809 144,580,983 (4,099,826) 48 Services 369 51,117,920 50,131,405 (986,514) 49 Meters 370 49,894,664 47,656,292 (2,238,373) 50 Inst. on Customer Premises 371 8,118,606 8,015,259 (103,347) 51 Street Light / Signal Systems 373 12,867,177 13,396,967 529,790 52 Total Texas Distribution Plant 712,133,170 732,960,620 20,827,450 (957,096) 53 RR16 - Page 197 of 426 07612
Page 55 of 270 Post Test Year Adjustments - Gross Plant Remove Texas Rules Texas Rules 11789416 Jun-14 Dec-14 Adjustment Install Higg East Sub No. Description Account Plant Plant Plant Plant 54 New Mexico Distribution Plant: 55 Land and Land Rights 360 3,496,850 3,681,456 184,605 56 Structures & Improvements 361 2,646,485 2,920,521 274,036 57 Station Equipment 362 68,445,162 72,669,001 4,223,839 58 Towers and Fixtures 364 61,886,756 67,204,073 5,317,317 59 Overhead Conductor 365 63,284,445 67,620,516 4,336,071 60 Underground Conduit 366 5,740,169 6,389,125 648,955 61 Underground Conductor 367 7,788,537 8,498,738 710,201 62 Transformers 368 27,277,098 27,653,929 376,832 63 Services 369 23,449,762 22,952,720 (497,042) 64 Meters 370 14,664,789 13,794,651 (870,138) 65 Inst. on Customer Premises 371 4,964,777 4,903,700 (61,076) 66 Street Light / Signal Systems 373 9,588,862 10,141,825 552,963 67 Total New Mexico Distribution Plant 293,233,692 308,430,256 15,196,564 0 68 69 Distribution Plant: 70 Land and Land Rights 360 6,059,756 6,790,025 730,268 0 71 Structures & Improvements 361 8,146,312 9,082,297 935,985 (17,821) 72 Station Equipment 362 174,538,251 187,265,755 12,727,503 (939,275) 73 Towers and Fixtures 364 208,928,886 222,353,658 13,424,771 0 74 Overhead Conductor 365 201,881,063 214,103,005 12,221,942 0 75 Underground Conduit 366 22,194,224 24,171,175 1,976,951 0 76 Underground Conductor 367 32,993,904 34,397,229 1,403,325 0 77 Transformers 368 175,957,907 172,234,912 (3,722,995) 0 78 Services 369 74,567,682 73,084,126 (1,483,556) 0 79 Meters 370 64,559,453 61,450,942 (3,108,511) 0 80 Inst. on Customer Premises 371 13,083,382 12,918,959 (164,423) 0 81 Street Light / Signal Systems 373 22,456,038 23,538,792 1,082,753 0 82 Total Distribution Plant 1,005,366,861 1,041,390,875 36,024,014 (957,096) 83 RR16 - Page 198 of 426 07613
Page 56 of 270 Post Test Year Adjustments - Gross Plant Remove Texas Rules Texas Rules 11789416 Jun-14 Dec-14 Adjustment Install Higg East Sub No. Description Account Plant Plant Plant Plant 84 General Plant: 85 Land and Land Rights 389 1,100,782 1,100,782 0 86 Structures & Improvements 390 70,838,479 71,520,075 681,596 87 Office Furniture & Equipment 391 31,583,142 39,980,294 8,397,152 88 Transportation Equipment 392 74,030,432 75,280,987 1,250,556 89 Stores Equipment 393 460,265 492,736 32,472 90 Tools, Shop & Garage Equip. 394 22,799,717 23,083,817 284,100 91 Laboratory Equipment 395 10,919,061 11,594,638 675,576 92 Power Operated Equipment 396 10,831,119 10,967,442 136,323 93 Communication Equipment 397 60,900,253 67,437,329 6,537,076 94 Miscellaneous Equipment 398 2,867,253 3,069,537 202,284 95 Total General Plant 286,330,502 304,527,637 18,197,135 0 96 97 Total Electric Plant in Service 4,988,706,198 5,432,034,423 443,328,225 (957,096) RR16 - Page 199 of 426 07614
Page 57 of 270 Post Test Year Adjustments - Gross Plant No. Description Account 1 Intangible: 2 Organization 301 3 Franchises and Consents 302 4 Misc. Intangible Plant 303 5 Total Intangible 6 7 Steam Production: 8 Land and Land Rights 310 9 Structures & Improvements 311 10 Boiler Plant Equipment 312 11 Turbo-Generator Units 314 12 Accessory Electric Equipment 315 13 Misc. Power Plant Equipment 316 14 Total Steam Production 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 18 Structures & Improvements 341 19 Fuel Holders, Prod & Acc 342 20 Internal Combustion Engine 343 21 Generators 344 22 Accessory Electric Equipment 345 23 Misc. Power Plant Equipment 346 24 Total Internal Combustion Equipment 25 Remove Add Add 11789418 11838442 11649187 Total Dec Adj Install Higg East Feeders Pur Oliver Rose Water Rights Develop Barrett H2O Rights Texas Rules Plant Plant Plant Plant 0 0 16,779,053 16,779,053 5,286,923 952,982 6,297,433 9,527,963 7,647,553 6,231,689 930,780 593,197 0 5,286,923 952,982 31,228,615 0 82,231 336,500 2,492,228 623,791 1,026,582 196,112 4,757,445 RR16 - Page 200 of 426 07615
Page 58 of 270 Post Test Year Adjustments - Gross Plant No. Description Account 26 Transmission Plant: 27 Land Owned in Fee 350.1 28 Land Rights 350.2 29 Structures & Improvements 352 30 Station Equipment 353.0 31 Station Equipment - Production 353.1 32 Towers and Fixtures 354 33 Poles and Fixtures 355 34 Overhead Conductor 356 35 Underground Conduit 357 36 Underground Conductor 358 37 Total Transmission Plant 38 39 Texas Distribution Plant: 40 Land and Land Rights 360 41 Structures & Improvements 361 42 Station Equipment 362 43 Towers and Fixtures 364 44 Overhead Conductor 365 45 Underground Conduit 366 46 Underground Conductor 367 47 Transformers 368 48 Services 369 49 Meters 370 50 Inst. on Customer Premises 371 51 Street Light / Signal Systems 373 52 Total Texas Distribution Plant 53 Remove Add Add 11789418 11838442 11649187 Total Dec Adj Install Higg East Feeders Pur Oliver Rose Water Rights Develop Barrett H2O Rights Texas Rules Plant Plant Plant Plant 131,195 13,151,527 10,576,705 84,827,328 (1,384,562) 3,287,653 147,493,153 84,201,839 101,726 195,304 342,581,868 545,663 644,128 7,564,390 (187,104) 7,920,351 7,885,871 1,327,995 693,124 (4,099,826) (986,514) (2,238,373) (103,347) 529,790 (187,104) 0 0 19,683,251 RR16 - Page 201 of 426 07616
Page 59 of 270 Post Test Year Adjustments - Gross Plant No. Description Account 54 New Mexico Distribution Plant: 55 Land and Land Rights 360 56 Structures & Improvements 361 57 Station Equipment 362 58 Towers and Fixtures 364 59 Overhead Conductor 365 60 Underground Conduit 366 61 Underground Conductor 367 62 Transformers 368 63 Services 369 64 Meters 370 65 Inst. on Customer Premises 371 66 Street Light / Signal Systems 373 67 Total New Mexico Distribution Plant 68 69 Distribution Plant: 70 Land and Land Rights 360 71 Structures & Improvements 361 72 Station Equipment 362 73 Towers and Fixtures 364 74 Overhead Conductor 365 75 Underground Conduit 366 76 Underground Conductor 367 77 Transformers 368 78 Services 369 79 Meters 370 80 Inst. on Customer Premises 371 81 Street Light / Signal Systems 373 82 Total Distribution Plant 83 Remove Add Add 11789418 11838442 11649187 Total Dec Adj Install Higg East Feeders Pur Oliver Rose Water Rights Develop Barrett H2O Rights Texas Rules Plant Plant Plant Plant 184,605 274,036 4,223,839 5,317,317 4,336,071 648,955 710,201 376,832 (497,042) (870,138) (61,076) 552,963 15,196,564 730,268 918,164 11,788,229 (187,104) 0 0 13,237,668 12,221,942 1,976,951 1,403,325 (3,722,995) (1,483,556) (3,108,511) (164,423) 1,082,753 (187,104) 0 0 34,879,815 RR16 - Page 202 of 426 07617
Page 60 of 270 Post Test Year Adjustments - Gross Plant No. Description Account 84 General Plant: 85 Land and Land Rights 389 86 Structures & Improvements 390 87 Office Furniture & Equipment 391 88 Transportation Equipment 392 89 Stores Equipment 393 90 Tools, Shop & Garage Equip. 394 91 Laboratory Equipment 395 92 Power Operated Equipment 396 93 Communication Equipment 397 94 Miscellaneous Equipment 398 95 Total General Plant 96 97 Total Electric Plant in Service Remove Add Add 11789418 11838442 11649187 Total Dec Adj Install Higg East Feeders Pur Oliver Rose Water Rights Develop Barrett H2O Rights Texas Rules Plant Plant Plant Plant 0 681,596 8,397,152 1,250,556 32,472 284,100 675,576 136,323 6,537,076 202,284 18,197,135 (187,104) 5,286,923 952,982 448,423,930 RR16 - Page 203 of 426 07618
Meters and Transformers Adjustment Attachment DAB-RR-2 Page 61 of 270 No. Description Account Amount 1 2 Adjustment to Transformers - Gross Plant 368 (26,847,560) 3 Adjustment to Transformers - ADIT 282 107,360 4 5 Adjustment to Meters - Gross Plant 370 (9,358,315) 6 7 Adjustment to Depreciation Expense 8 9 Proposed Depreciation Rate - Transformers 368 2.622% 10 Adjustment to Proposed Depreciation Expense 403 (703,960) 11 12 Proposed Depreciation Rate - Meters 370 2.738% 13 Adjustment to Proposed Depreciation Expense 403 (256,247) RR16 - Page 204 of 426 07619
Page 62 of 270 Accumulated Depreciation - Financial Rules to Texas Rules Adjustment Financial Rules Texas Rules Adjustment Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation DAR RWIP Depreciation Depreciation 1 Intangible: 2 Organization 301 0 3 Franchises and Consents 302 0 4 Misc. Intangible Plant 303 (63,803,704) 739 (63,802,965) (63,803,704) 739 (63,802,965) 0 5 Total Intangible (63,803,704) 739 (63,802,965) (63,803,704) 739 (63,802,965) 0 6 7 Steam Production: 8 Land and Land Rights 310 (2,388,158) 0 (2,388,158) (2,303,555) 0 (2,303,555) 84,603 9 Structures & Improvements 311 (113,928,855) 348,241 (113,580,614) (115,440,002) 348,241 (115,091,761) (1,511,147) 10 Boiler Plant Equipment 312 (543,236,301) 1,661,526 (541,574,774) (470,394,362) 1,661,526 (468,732,836) 72,841,938 11 Turbo-Generator Units 314 (301,510,994) 1,009,540 (300,501,454) (237,514,015) 1,009,540 (236,504,476) 63,996,979 12 Accessory Electric Equipment 315 (43,303,764) 8,432 (43,295,332) (39,895,957) 8,432 (39,887,525) 3,407,806 13 Misc. Power Plant Equipment 316 (21,028,226) (23,638) (21,051,864) (17,980,194) (23,638) (18,003,832) 3,048,032 14 Total Steam Production (1,025,396,298) 3,004,101 (1,022,392,197) (883,528,086) 3,004,101 (880,523,985) 141,868,211 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 (568) 0 (568) (677) 0 (677) (109) 18 Structures & Improvements 341 (851,091) 0 (851,091) (522,690) 0 (522,690) 328,401 19 Fuel Holders, Prod & Acc 342 (3,367,761) 4,561 (3,363,200) (3,038,837) 4,561 (3,034,276) 328,924 20 Internal Combustion Engine 343 (26,667,051) 5,411 (26,661,640) (24,993,867) 5,411 (24,988,456) 1,673,184 21 Generators 344 (27,620,764) 36,110 (27,584,654) (25,512,750) 36,110 (25,476,640) 2,108,015 22 Accessory Electric Equipment 345 (5,730,696) 20,610 (5,710,086) (5,092,059) 20,610 (5,071,449) 638,637 23 Misc. Power Plant Equipment 346 (730,875) 0 (730,875) (641,797) 0 (641,797) 89,078 24 Total Internal Combustion Equipment (64,968,808) 66,692 (64,902,115) (59,802,677) 66,692 (59,735,985) 5,166,130 25 26 Transmission Plant: 27 Land Owned in Fee 350 107 0 107 79 0 79 (28) 28 Land Rights 350 (14,982,850) 10,909 (14,971,941) (14,796,219) 10,909 (14,785,310) 186,631 29 Structures & Improvements 352 (15,791,599) (75,429) (15,867,029) (15,491,987) (75,429) (15,567,416) 299,612 30 Station Equipment 353 (107,388,187) 1,916,189 (105,471,998) (116,424,784) 1,916,189 (114,508,595) (9,036,597) 31 Station Equipment - Production 353 (14,429,760) 9,046 (14,420,715) (11,366,156) 9,046 (11,357,110) 3,063,605 32 Towers and Fixtures 354 (2,356,740) 0 (2,356,740) (2,998,729) 0 (2,998,729) (641,989) 33 Poles and Fixtures 355 (109,706,123) 13,174,489 (96,531,634) (125,779,344) 13,174,489 (112,604,856) (16,073,222) 34 Overhead Conductor 356 (66,019,920) 1,181,955 (64,837,965) (64,674,574) 1,181,955 (63,492,619) 1,345,346 35 Underground Conduit 357 (162,590) 0 (162,590) (85,203) 0 (85,203) 77,388 36 Underground Conductor 358 (235,029) 0 (235,029) (56,458) 0 (56,458) 178,571 37 Total Transmission Plant (331,072,691) 16,217,158 (314,855,533) (351,673,375) 16,217,158 (335,456,217) (20,600,683) 38 RR16 - Page 205 of 426 07620
Page 63 of 270 Accumulated Depreciation - Financial Rules to Texas Rules Adjustment Financial Rules Texas Rules Adjustment Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation DAR RWIP Depreciation Depreciation 39 Texas Distribution Plant: 40 Land and Land Rights 360 (784,942) 0 (784,942) (784,942) 0 (784,942) 0 41 Structures & Improvements 361 (1,893,952) 4,286 (1,889,666) (1,893,952) 4,286 (1,889,666) 0 42 Station Equipment 362 (31,786,648) 495,724 (31,290,924) (31,786,648) 495,724 (31,290,924) 0 43 Towers and Fixtures 364 (54,496,173) (113,688) (54,609,861) (54,496,173) (113,688) (54,609,861) 0 44 Overhead Conductor 365 (40,735,749) (239,198) (40,974,947) (40,735,749) (239,198) (40,974,947) 0 45 Underground Conduit 366 (6,762,659) 1,946 (6,760,712) (6,762,659) 1,946 (6,760,712) 0 46 Underground Conductor 367 (6,452,463) (85,290) (6,537,753) (6,452,463) (85,290) (6,537,753) 0 47 Transformers 368 (36,595,301) 515,462 (36,079,839) (36,595,301) 515,462 (36,079,839) 0 48 Services 369 (22,700,630) 198,000 (22,502,630) (22,700,630) 198,000 (22,502,630) 0 49 Meters 370 (12,083,345) 0 (12,083,345) (12,083,345) 0 (12,083,345) 0 50 Inst. on Customer Premises 371 (8,687,712) 1,946 (8,685,765) (8,687,712) 1,946 (8,685,765) 0 51 Street Light / Signal Systems 373 (2,413,371) (31,632) (2,445,003) (2,413,371) (31,632) (2,445,003) 0 52 Total Texas Distribution Plant (225,392,943) 747,556 (224,645,388) (225,392,943) 747,556 (224,645,388) 0 53 54 New Mexico Distribution Plant: 55 Land and Land Rights 360 (520,757) 0 (520,757) (520,757) 0 (520,757) 0 56 Structures & Improvements 361 (678,817) 0 (678,817) (678,817) 0 (678,817) 0 57 Station Equipment 362 (15,051,803) 286,772 (14,765,031) (15,051,803) 286,772 (14,765,031) 0 58 Towers and Fixtures 364 (20,458,964) 228,282 (20,230,682) (20,458,964) 228,282 (20,230,682) 0 59 Overhead Conductor 365 (13,587,926) 320,029 (13,267,898) (13,587,926) 320,029 (13,267,898) 0 60 Underground Conduit 366 (2,257,543) 383 (2,257,160) (2,257,543) 383 (2,257,160) 0 61 Underground Conductor 367 (2,481,029) 8,950 (2,472,079) (2,481,029) 8,950 (2,472,079) 0 62 Transformers 368 (8,176,260) 2,493 (8,173,767) (8,176,260) 2,493 (8,173,767) 0 63 Services 369 (14,089,914) 42,088 (14,047,826) (14,089,914) 42,088 (14,047,826) 0 64 Meters 370 (6,801,893) 0 (6,801,893) (6,801,893) 0 (6,801,893) 0 65 Inst. on Customer Premises 371 (5,243,649) 60 (5,243,589) (5,243,649) 60 (5,243,589) 0 66 Street Light / Signal Systems 373 (3,417,044) 38,051 (3,378,993) (3,417,044) 38,051 (3,378,993) 0 67 Total New Mexico Distribution Plant (92,765,599) 927,107 (91,838,491) (92,765,599) 927,107 (91,838,491) 0 68 RR16 - Page 206 of 426 07621
Page 64 of 270 Accumulated Depreciation - Financial Rules to Texas Rules Adjustment Financial Rules Texas Rules Adjustment Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation DAR RWIP Depreciation Depreciation 69 Total Distribution Plant: 70 Land and Land Rights 360 (1,305,699) 0 (1,305,699) (1,305,699) 0 (1,305,699) 0 71 Structures & Improvements 361 (2,572,769) 4,286 (2,568,483) (2,572,769) 4,286 (2,568,483) 0 72 Station Equipment 362 (46,838,451) 782,495 (46,055,955) (46,838,451) 782,495 (46,055,955) 0 73 Towers and Fixtures 364 (74,955,137) 114,594 (74,840,544) (74,955,137) 114,594 (74,840,544) 0 74 Overhead Conductor 365 (54,323,676) 80,831 (54,242,845) (54,323,676) 80,831 (54,242,845) 0 75 Underground Conduit 366 (9,020,201) 2,330 (9,017,872) (9,020,201) 2,330 (9,017,872) 0 76 Underground Conductor 367 (8,933,492) (76,340) (9,009,832) (8,933,492) (76,340) (9,009,832) 0 77 Transformers 368 (44,771,560) 517,955 (44,253,606) (44,771,560) 517,955 (44,253,606) 0 78 Services 369 (36,790,543) 240,087 (36,550,456) (36,790,543) 240,087 (36,550,456) 0 79 Meters 370 (18,885,238) 0 (18,885,238) (18,885,238) 0 (18,885,238) 0 80 Inst. on Customer Premises 371 (13,931,361) 2,006 (13,929,355) (13,931,361) 2,006 (13,929,355) 0 81 Street Light / Signal Systems 373 (5,830,415) 6,419 (5,823,996) (5,830,415) 6,419 (5,823,996) 0 82 Total Distribution Plant (318,158,542) 1,674,663 (316,483,879) (318,158,542) 1,674,663 (316,483,879) 0 83 84 General Plant: 85 Land and Land Rights 389 (25,792) 0 (25,792) (28,081) 0 (28,081) (2,288) 86 Structures & Improvements 390 (28,948,342) 444,769 (28,503,573) (25,815,007) 444,769 (25,370,238) 3,133,335 87 Office Furniture & Equipment 391 (13,333,859) 213 (13,333,646) (12,905,784) 213 (12,905,571) 428,075 88 Transportation Equipment 392 (29,127,707) 0 (29,127,707) (27,897,653) 0 (27,897,653) 1,230,054 89 Stores Equipment 393 (229,966) 0 (229,966) (201,656) 0 (201,656) 28,310 90 Tools, Shop & Garage Equip. 394 (4,726,830) (625) (4,727,455) (5,996,675) (625) (5,997,300) (1,269,845) 91 Laboratory Equipment 395 (5,949,094) 0 (5,949,094) (4,021,959) 0 (4,021,959) 1,927,136 92 Power Operated Equipment 396 (2,954,761) 0 (2,954,761) (3,160,274) 0 (3,160,274) (205,513) 93 Communication Equipment 397 (26,446,942) 47,860 (26,399,081) (25,679,795) 0 (25,679,795) 719,286 94 Miscellaneous Equipment 398 (1,219,755) 0 (1,219,755) (1,371,938) 0 (1,371,938) (152,183) 95 Total General Plant (112,963,048) 492,217 (112,470,830) (107,078,820) 444,357 (106,634,463) 5,836,367 96 97 Total Electric Plant in Service (1,916,363,091) 21,455,571 (1,894,907,519) (1,784,045,205) 21,407,711 (1,762,637,494) 132,270,025 RR16 - Page 207 of 426 07622
Page 65 of 270 Accumulated Depreciation - Financial Rules to Texas Rules Adjustment No. Description Financial Rules Texas Rules Adjustment 1 Call Center Accumulated Depreciation (5,462,148) (4,642,191) 819,957 2 3 CRS Accumulated Depreciation (15,967,295) (15,967,295) 0 4 5 Total (21,429,443) (20,609,486) 819,957 RR16 - Page 208 of 426 07623
Page 66 of 270 Post Test Year Adjustments - Accumulated Depreciation Remove Remove 11789416 11789418 Texas Rules December Adjustment Install Higg East Sub Install Higg East Feeders Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation Depreciation Depreciation 1 Intangible: 2 Organization 301 3 Franchises and Consents 302 4 Misc. Intangible Plant 303 (4,812,090) (649) (4,812,739) 5 Total Intangible (4,812,090) (649) (4,812,739) 0 0 6 7 Steam Production: 8 Land and Land Rights 310 (89,442) 0 (89,442) 9 Structures & Improvements 311 (1,658,850) (348,241) (2,007,091) 10 Boiler Plant Equipment 312 (12,270,497) (1,325,316) (13,595,813) 11 Turbo-Generator Units 314 (6,167,264) (544,733) (6,711,998) 12 Accessory Electric Equipment 315 (703,017) (8,432) (711,449) 13 Misc. Power Plant Equipment 316 (1,772,015) 23,638 (1,748,377) 14 Total Steam Production (22,661,086) (2,203,084) (24,864,169) 0 0 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 1 0 1 18 Structures & Improvements 341 (107,564) 0 (107,564) 19 Fuel Holders, Prod & Acc 342 (91,828) (4,561) (96,390) 20 Internal Combustion Engine 343 (4,665,771) (5,411) (4,671,182) 21 Generators 344 (1,498,859) (36,110) (1,534,969) 22 Accessory Electric Equipment 345 (307,014) (20,610) (327,625) 23 Misc. Power Plant Equipment 346 (41,196) 0 (41,196) 24 Total Internal Combustion Equipment (6,712,231) (66,692) (6,778,924) 0 0 25 RR16 - Page 209 of 426 07624
Page 67 of 270 Post Test Year Adjustments - Accumulated Depreciation Remove Remove 11789416 11789418 Texas Rules December Adjustment Install Higg East Sub Install Higg East Feeders Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation Depreciation Depreciation 26 Transmission Plant: 27 Land Owned in Fee 350.1 28 Land Rights 350.2 (508,030) (10,909) (518,939) 29 Structures & Improvements 352 (481,678) 94,479 (387,199) 30 Station Equipment 353.0 (3,168,087) 6,089,440 2,921,352 31 Station Equipment - Production 353.1 (151,279) (9,046) (160,325) 32 Towers and Fixtures 354 (63,710) 0 (63,710) 33 Poles and Fixtures 355 (2,046,792) (10,804,897) (12,851,689) 34 Overhead Conductor 356 (1,535,063) (88,762) (1,623,826) 35 Underground Conduit 357 (1,970) 0 (1,970) 36 Underground Conductor 358 (142) 0 (142) 37 Total Transmission Plant (7,956,752) (4,729,696) (12,686,448) 0 0 38 39 Texas Distribution Plant: 40 Land and Land Rights 360 (12,970) 0 (12,970) 41 Structures & Improvements 361 (7,720) (1,148) (8,869) 42 Station Equipment 362 (160,787) (393,948) (554,735) (8,907) 43 Towers and Fixtures 364 (806,270) 413,960 (392,309) (12,528) 44 Overhead Conductor 365 (800,603) 286,593 (514,010) 45 Underground Conduit 366 (18,109) (1,773) (19,882) 46 Underground Conductor 367 (27,847) 92,972 65,125 47 Transformers 368 74,882 (507,052) (432,170) 48 Services 369 (128,177) (196,990) (325,166) 49 Meters 370 142,303 172 142,475 50 Inst. on Customer Premises 371 (84,660) (211) (84,871) 51 Street Light / Signal Systems 373 239,147 40,507 279,654 52 Total Texas Distribution Plant (1,590,810) (266,917) (1,857,728) (8,907) (12,528) 53 RR16 - Page 210 of 426 07625
Page 68 of 270 Post Test Year Adjustments - Accumulated Depreciation Remove Remove 11789416 11789418 Texas Rules December Adjustment Install Higg East Sub Install Higg East Feeders Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation Depreciation Depreciation 54 New Mexico Distribution Plant: 55 Land and Land Rights 360 (89,025) 0 (89,025) 56 Structures & Improvements 361 (21,169) 0 (21,169) 57 Station Equipment 362 (1,488,508) (227,619) (1,716,127) 58 Towers and Fixtures 364 (98,581) (116,656) (215,237) 59 Overhead Conductor 365 125,903 (302,192) (176,289) 60 Underground Conduit 366 328,235 (194) 328,041 61 Underground Conductor 367 130,636 (6,150) 124,485 62 Transformers 368 (4,431,864) 227 (4,431,636) 63 Services 369 2,751,016 (41,627) 2,709,388 64 Meters 370 291,959 0 291,959 65 Inst. on Customer Premises 371 (29,520) 146 (29,374) 66 Street Light / Signal Systems 373 2,132,882 (30,961) 2,101,921 67 Total New Mexico Distribution Plant (398,034) (725,027) (1,123,061) 0 0 68 69 Distribution Plant: 70 Land and Land Rights 360 (101,994) 0 (101,994) 0 0 71 Structures & Improvements 361 (28,889) (1,148) (30,038) 0 0 72 Station Equipment 362 (1,649,295) (621,567) (2,270,862) (8,907) 0 73 Towers and Fixtures 364 (904,850) 297,304 (607,546) 0 (12,528) 74 Overhead Conductor 365 (674,700) (15,599) (690,299) 0 0 75 Underground Conduit 366 310,126 (1,967) 308,159 0 0 76 Underground Conductor 367 102,788 86,822 189,61 77 Transformers 368 (4,356,981) (506,825) (4,863,806) 0 0 78 Services 369 2,622,839 (238,617) 2,384,222 0 0 79 Meters 370 434,262 172 434,434 0 0 80 Inst. on Customer Premises 371 (114,180) (65) (114,245) 0 0 81 Street Light / Signal Systems 373 2,372,030 9,546 2,381,576 0 0 82 Total Distribution Plant (1,988,845) (991,944) (2,980,789) (8,907) (12,528) 83 RR16 - Page 211 of 426 07626
Page 69 of 270 Post Test Year Adjustments - Accumulated Depreciation Remove Remove 11789416 11789418 Texas Rules December Adjustment Install Higg East Sub Install Higg East Feeders Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for No. Description Account DAR RWIP Depreciation Depreciation Depreciation 84 General Plant: 85 Land and Land Rights 389 (359) 0 (359) 86 Structures & Improvements 390 309,689 (261,449) 48,240 87 Office Furniture & Equipment 391 (2,672,166) (213) (2,672,379) 88 Transportation Equipment 392 (1,974,778) 0 (1,974,778) 89 Stores Equipment 393 (14,006) 0 (14,006) 90 Tools, Shop & Garage Equip. 394 (370,009) 625 (369,384) 91 Laboratory Equipment 395 (112,547) 0 (112,547) 92 Power Operated Equipment 396 (148,740) 0 (148,740) 93 Communication Equipment 397 (1,003,678) (13,507) (1,017,185) 94 Miscellaneous Equipment 398 (86,943) 0 (86,943) 95 Total General Plant (6,073,537) (274,544) (6,348,082) 0 0 96 97 Total Electric Plant in Service (50,204,540) (8,266,610) (58,471,150) (8,907) (12,528) RR16 - Page 212 of 426 07627
Page 70 of 270 Post Test Year Adjustments - Accumulated Depreciation No. Description Account 1 Intangible: 2 Organization 301 3 Franchises and Consents 302 4 Misc. Intangible Plant 303 5 Total Intangible 6 7 Steam Production: 8 Land and Land Rights 310 9 Structures & Improvements 311 10 Boiler Plant Equipment 312 11 Turbo-Generator Units 314 12 Accessory Electric Equipment 315 13 Misc. Power Plant Equipment 316 14 Total Steam Production 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 18 Structures & Improvements 341 19 Fuel Holders, Prod & Acc 342 20 Internal Combustion Engine 343 21 Generators 344 22 Accessory Electric Equipment 345 23 Misc. Power Plant Equipment 346 24 Total Internal Combustion Equipment 25 Add Add 11838442 11649187 Pur Oliver Rose Water Rights Develop Barrett H2O Rights Total Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for Depreciation Depreciation Depreciation 0 0 (4,812,739) 0 0 (4,812,739) (28,584) (394) (118,420) (2,007,091) (13,595,813) (6,711,998) (711,449) (1,748,377) (28,584) (394) (24,893,147) 1 (107,564) (96,390) (4,671,182) (1,534,969) (327,625) (41,196) 0 0 (6,778,924) RR16 - Page 213 of 426 07628
Page 71 of 270 Post Test Year Adjustments - Accumulated Depreciation No. Description Account 26 Transmission Plant: 27 Land Owned in Fee 350.1 28 Land Rights 350.2 29 Structures & Improvements 352 30 Station Equipment 353.0 31 Station Equipment - Production 353.1 32 Towers and Fixtures 354 33 Poles and Fixtures 355 34 Overhead Conductor 356 35 Underground Conduit 357 36 Underground Conductor 358 37 Total Transmission Plant 38 39 Texas Distribution Plant: 40 Land and Land Rights 360 41 Structures & Improvements 361 42 Station Equipment 362 43 Towers and Fixtures 364 44 Overhead Conductor 365 45 Underground Conduit 366 46 Underground Conductor 367 47 Transformers 368 48 Services 369 49 Meters 370 50 Inst. on Customer Premises 371 51 Street Light / Signal Systems 373 52 Total Texas Distribution Plant 53 Add Add 11838442 11649187 Pur Oliver Rose Water Rights Develop Barrett H2O Rights Total Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for Depreciation Depreciation Depreciation 0 (518,939) (387,199) 2,921,352 (160,325) (63,710) (12,851,689) (1,623,826) (1,970) (142) 0 0 (12,686,448) (12,970) (8,869) (563,642) (404,837) (514,010) (19,882) 65,125 (432,170) (325,166) 142,475 (84,871) 279,654 0 0 (1,879,162) RR16 - Page 214 of 426 07629
Page 72 of 270 Post Test Year Adjustments - Accumulated Depreciation No. Description Account 54 New Mexico Distribution Plant: 55 Land and Land Rights 360 56 Structures & Improvements 361 57 Station Equipment 362 58 Towers and Fixtures 364 59 Overhead Conductor 365 60 Underground Conduit 366 61 Underground Conductor 367 62 Transformers 368 63 Services 369 64 Meters 370 65 Inst. on Customer Premises 371 66 Street Light / Signal Systems 373 67 Total New Mexico Distribution Plant 68 69 Distribution Plant: 70 Land and Land Rights 360 71 Structures & Improvements 361 72 Station Equipment 362 73 Towers and Fixtures 364 74 Overhead Conductor 365 75 Underground Conduit 366 76 Underground Conductor 367 77 Transformers 368 78 Services 369 79 Meters 370 80 Inst. on Customer Premises 371 81 Street Light / Signal Systems 373 82 Total Distribution Plant 83 Add Add 11838442 11649187 Pur Oliver Rose Water Rights Develop Barrett H2O Rights Total Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for Depreciation Depreciation Depreciation (89,025) (21,169) (1,716,127) (215,237) (176,289) 328,041 124,485 (4,431,636) 2,709,388 291,959 (29,374) 2,101,921 0 0 (1,123,061) (101,994) (30,038) (2,279,769) (620,074) (690,299) 308,159 189,610 (4,863,806) 2,384,222 434,434 (114,245) 2,381,576 0 0 (3,002,223) RR16 - Page 215 of 426 07630
Page 73 of 270 Post Test Year Adjustments - Accumulated Depreciation No. Description Account 84 General Plant: 85 Land and Land Rights 389 86 Structures & Improvements 390 87 Office Furniture & Equipment 391 88 Transportation Equipment 392 89 Stores Equipment 393 90 Tools, Shop & Garage Equip. 394 91 Laboratory Equipment 395 92 Power Operated Equipment 396 93 Communication Equipment 397 94 Miscellaneous Equipment 398 95 Total General Plant 96 97 Total Electric Plant in Service Add Add 11838442 11649187 Pur Oliver Rose Water Rights Develop Barrett H2O Rights Total Accumulated Accumulated Accumulated Reserve for Reserve for Reserve for Depreciation Depreciation Depreciation (359) 48,240 (2,672,379) (1,974,778) (14,006) (369,384) (112,547) (148,740) (1,017,185) (86,943) 0 0 (6,348,082) (28,584) (394) (58,521,562) RR16 - Page 216 of 426 07631
Call Center and CRS Post Test Year Adjustment Attachment DAB-RR-2 Page 74 of 270 June 2014 December 2014 No. Description Balance Balance Adjustment 1 Accumulated Depreciation - Texas Rules 2 Call Center (4,642,191) (4,737,362) (95,170) 3 CRS (15,967,295) (16,013,204) (45,909) 4 5 ADIT - Texas Rules 6 Call Center (1,005,894) (992,950) 12,944 7 CRS (220,490) (93,900) 126,590 8 9 Schedule M - Texas Rules 10 Call Center 75,746 71,861 (3,885) 11 CRS 1,020,161 728,591 (291,570) RR16 - Page 217 of 426 07632
Environmental Chemical Inventory Attachment DAB-RR-2 Page 75 of 270 No. Description Account Amount 1 Adjusted Chemical Inventory 154 76,157 2 3 Test Year Chemical Inventory 154 6,007 4 5 Adjustment to Chemical Inventory 70,150 RR16 - Page 218 of 426 07633
Page 76 of 270 Plant Related Accumulated Deferred Income Taxes Financial Rules to Texas Rules Adjustment Financial Rules No. Description Account 190 281 282 283 1 Intangible: 2 Organization 301 0 3 Franchises and Consents 302 0 4 Misc. Intangible Plant 303 68,539 0 (414,750) (4,822,802) 5 Total Intangible 68,539 0 (414,750) (4,822,802) 6 7 Steam Production: 8 Land and Land Rights 310 57,810 0 29,356 0 9 Structures & Improvements 311 703,857 (1,262,777) (22,814,277) 0 10 Boiler Plant Equipment 312 2,357,002 0 (95,707,829) 0 11 Turbo-Generator Units 314 1,159,270 0 (45,144,225) 0 12 Accessory Electric Equipment 315 211,080 0 (7,560,096) 0 13 Misc. Power Plant Equipment 316 83,950 0 (3,085,602) 0 14 Total Steam Production 4,572,970 (1,262,777) (174,282,673) 0 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 1 0 (55) 0 18 Structures & Improvements 341 113,153 0 (2,553,041) 0 19 Fuel Holders, Prod & Acc 342 59,517 0 (922,790) 0 20 Internal Combustion Engine 343 1,015,001 0 (12,443,379) 0 21 Generators 344 1,372,016 0 (35,535,994) 0 22 Accessory Electric Equipment 345 330,414 0 (7,079,945) 0 23 Misc. Power Plant Equipment 346 77,180 0 (1,407,474) 0 24 Total Internal Combustion Equipment 2,967,282 0 (59,942,679) 0 25 26 Transmission Plant: 27 Land Owned in Fee 350 1,653 0 (763) 0 28 Land Rights 350 188,845 0 (5,664,844) 0 29 Structures & Improvements 352 858,652 0 (8,991,064) 0 30 Station Equipment 353 11,172,449 0 (116,988,238) 0 31 Station Equipment - Production 353 150,824 0 (4,878,529) 0 32 Towers and Fixtures 354 121,895 0 (1,530,865) 0 33 Poles and Fixtures 355 8,402,983 0 (121,986,175) 0 34 Overhead Conductor 356 3,493,973 0 (50,722,029) 0 35 Underground Conduit 357 3,772 0 (54,753) 0 36 Underground Conductor 358 1,466,889 0 (508,726) 0 37 Total Transmission Plant 25,861,934 0 (311,325,984) 0 38 RR16 - Page 219 of 426 07634
Page 77 of 270 Plant Related Accumulated Deferred Income Taxes Financial Rules to Texas Rules Adjustment Financial Rules No. Description Account 190 281 282 283 39 Distribution Plant: 40 Land and Land Rights 360 3,939 0 (368,920) 0 41 Structures & Improvements 361 275,056 0 (3,190,462) 0 42 Station Equipment 362 3,989,128 0 (35,031,330) 0 43 Towers and Fixtures 364 7,895,435 0 (48,425,306) 0 44 Overhead Conductor 365 8,343,577 0 (35,876,967) 0 45 Underground Conduit 366 563,395 0 (2,778,556) 0 46 Underground Conductor 367 1,682,140 0 (11,955,956) 0 47 Transformers 368 4,274,201 0 (28,821,496) 0 48 Services 369 1,660,229 0 (8,056,742) 0 49 Meters 370 1,319,591 0 (8,014,228) 0 50 Inst. on Customer Premises 371 108,680 0 (1,294,941) 0 51 Street Light / Signal Systems 373 517,300 0 (5,904,208) 0 52 Total Distribution Plant 30,632,671 0 (189,719,113) 0 53 54 General Plant: 55 Land and Land Rights 389 (45) 0 (6,156) 0 56 Structures & Improvements 390 415,950 0 (3,737,184) 0 57 Office Furniture & Equipment 391 31,761 0 (5,128,959) (9,267) 58 Transportation Equipment 392 2,919 0 (13,725,654) 0 59 Stores Equipment 393 1,326 0 (92,466) (1) 60 Tools, Shop & Garage Equip. 394 86,246 0 (4,694,703) (38) 61 Laboratory Equipment 395 33,208 0 (2,315,902) (19) 62 Power Operated Equipment 396 429 0 (2,016,525) 0 63 Communication Equipment 397 170,096 0 (11,862,226) (95) 64 Miscellaneous Equipment 398 8,792 0 (613,109) (5) 65 Total General Plant 750,681 0 (44,192,883) (9,425) 66 67 Total 64,854,077 (1,262,777) (779,878,081) (4,832,227) RR16 - Page 220 of 426 07635
Page 78 of 270 Plant Related Accumulated Deferred Income Taxes Financial Rules to Texas Rules Adjustment No. Description Account 1 Intangible: 2 Organization 301 3 Franchises and Consents 302 4 Misc. Intangible Plant 303 5 Total Intangible Texas Rules Adjustment 190 281 282 283 190 281 282 283 0 0 0 0 68,539 0 (414,750) (4,822,802) 0 0 (0) 0 68,539 0 (414,750) (4,822,802) 0 0 (0) 0 57,810 0 40,498 11,142 0 703,857 (1,262,777) (28,394,719) (5,580,442) 0 2,357,002 0 (123,252,373) (27,544,543) 0 1,159,270 0 (58,302,698) (13,158,473) 0 211,080 0 (9,651,462) (2,091,367) 0 83,950 0 (4,094,254) (1,008,651) 0 4,572,970 (1,262,777) (223,655,008) (49,372,334) 0 1 0 (4) 52 0 113,153 0 (2,711,164) (158,123) 0 59,517 0 (1,025,790) (103,000) 0 1,015,001 0 (12,913,897) (470,517) 0 1,372,016 0 (36,349,703) (813,709) 0 330,414 0 (7,310,234) (230,289) 0 77,180 0 (1,510,125) (102,651) 0 2,967,282 0 (61,820,916) (1,878,236) 0 1,653 0 (753) 10 0 188,845 0 (6,106,158) (441,314) 0 858,652 0 (8,782,710) 208,354 0 11,172,449 0 (114,277,214) 2,711,024 0 150,824 0 (5,950,578) (1,072,048) 0 121,895 0 (1,471,233) 59,632 0 8,402,983 0 (117,875,359) 4,110,816 0 3,493,973 0 (49,012,746) 1,709,283 0 3,772 0 (52,908) 1,845 0 1,466,889 0 (505,183) 3,542 0 25,861,934 0 (304,034,840) 7,291,144 0 6 7 Steam Production: 8 Land and Land Rights 310 9 Structures & Improvements 311 10 Boiler Plant Equipment 312 11 Turbo-Generator Units 314 12 Accessory Electric Equipment 315 13 Misc. Power Plant Equipment 316 14 Total Steam Production 15 16 Internal Combustion Equipment: 17 Land and Land Rights 340 18 Structures & Improvements 341 19 Fuel Holders, Prod & Acc 342 20 Internal Combustion Engine 343 21 Generators 344 22 Accessory Electric Equipment 345 23 Misc. Power Plant Equipment 346 24 Total Internal Combustion Equipment 25 26 Transmission Plant: 27 Land Owned in Fee 350 28 Land Rights 350 29 Structures & Improvements 352 30 Station Equipment 353 31 Station Equipment - Production 353 32 Towers and Fixtures 354 33 Poles and Fixtures 355 34 Overhead Conductor 356 35 Underground Conduit 357 36 Underground Conductor 358 37 Total Transmission Plant 38 RR16 - Page 221 of 426 07636
Page 79 of 270 Plant Related Accumulated Deferred Income Taxes Financial Rules to Texas Rules Adjustment Texas Rules Adjustment 190 281 282 283 190 281 282 283 3,939 0 (368,920) 0 0 275,056 0 (3,190,462) 0 0 3,989,128 0 (35,031,330) 0 0 7,895,435 0 (48,425,306) 0 0 8,343,577 0 (35,876,967) 0 0 563,395 0 (2,778,556) 0 0 1,682,140 0 (11,955,956) 0 0 4,274,201 0 (28,821,496) 0 0 1,660,229 0 (8,056,742) 0 0 1,319,591 0 (8,014,228) 0 0 108,680 0 (1,294,941) 0 0 517,300 0 (5,904,208) 0 0 30,632,671 0 (189,719,113) 0 0 (45) 0 (6,424) (268) 0 415,950 0 (5,792,799) (2,055,615) 0 31,761 0 (5,390,836) (9,267) 0 0 (261,877) 0 2,919 0 (14,110,161) (384,507) 0 1,326 0 (90,664) (1) 0 0 1,801 0 86,246 0 (4,601,076) (38) 0 0 93,627 0 33,208 0 (2,270,782) (19) 0 0 45,120 0 429 0 (2,072,974) (56,449) 0 170,096 0 (11,631,118) (95) 0 0 231,108 0 8,792 0 (601,164) (5) 0 0 11,945 0 750,681 0 (46,567,998) (9,425) 0 0 (2,375,115) 0 64,854,077 (1,262,777) (826,212,624) (4,832,227) 0 0 (46,334,542) 0 No. Description Account 39 Distribution Plant: 40 Land and Land Rights 360 41 Structures & Improvements 361 42 Station Equipment 362 43 Towers and Fixtures 364 44 Overhead Conductor 365 45 Underground Conduit 366 46 Underground Conductor 367 47 Transformers 368 48 Services 369 49 Meters 370 50 Inst. on Customer Premises 371 51 Street Light / Signal Systems 373 52 Total Distribution Plant 53 54 General Plant: 55 Land and Land Rights 389 56 Structures & Improvements 390 57 Office Furniture & Equipment 391 58 Transportation Equipment 392 59 Stores Equipment 393 60 Tools, Shop & Garage Equip. 394 61 Laboratory Equipment 395 62 Power Operated Equipment 396 63 Communication Equipment 397 64 Miscellaneous Equipment 398 65 Total General Plant 66 67 Total RR16 - Page 222 of 426 07637
Accumulated Depreciation - Financial Rules to Texas Rules Adjustment Attachment DAB-RR-2 Page 80 of 270 No. Description Financial Rules Texas Rules Adjustment 1 Call Center Accumulated Depreciation (710,440) (1,005,894) (295,454) 2 3 CRS Accumulated Depreciation (220,490) (220,490) 0 4 5 Total (930,931) (1,226,384) (295,454) RR16 - Page 223 of 426 07638
Page 81 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 22,569 25,215 21,235 69,019 0 5 Fuel (Transportation & Handling) 0501F 37,029 35,379 34,621 107,029 10 6 Steam Expense 502 3,470 3,292 3,398 10,160 0 7 Electric Expense 505 0 0 8 Miscellaneous 506 239,128 268,349 270,408 777,884 0 9 Rent 507 0 0 10 Supplies and Expenses 508 0 0 11 Allowances 509 0 0 12 Total Steam Production Operation 302,196 332,234 329,662 964,092 10 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 21,360 23,758 15,059 60,177 0 16 Structures 511 497 0 1,286 1,783 0 17 Boilers 512 7,934 19,686 321 27,942 0 18 Electric Plant 513 29,358 4,023 7,277 40,657 0 19 Miscellaneous Plant 514 136,030 240,629 213,265 589,924 0 20 Steam Production (Nonmajor) 515 0 0 21 Total Steam Production Maintenance 195,179 288,096 237,208 720,483 0 22 23 Total Steam Production O&M 497,375 620,330 566,870 1,684,575 10 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 168 183 158 509 0 27 Fuel Handling 547 0 0 28 Generation Expense 548 0 1,057 1,527 2,584 0 29 Miscellaneous 549 17,542 10,999 12,581 41,122 0 30 Rents 55 31 Total Combustion Turbine Production Operation 17,709 12,239 14,267 44,215 0 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 21 16 17 54 0 35 Structures 552 0 0 36 Electric Plant 553 3,708 6,982 10,079 20,769 0 37 Miscellaneous Plant 554 0 0 38 Total Combustion Turbine Production Maintenance 3,729 6,998 10,096 20,823 0 39 40 Total Combustion Turbine Production O&M 21,439 19,237 24,362 65,038 0 41 RR16 - Page 224 of 426 07639
Page 82 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 42 System Control and Dispatch: 43 System Load Control 556 37,464 36,583 66,569 140,616 212 44 Other Expenditures 557 143,912 130,821 136,579 411,313 (321) 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 181,376 167,404 203,148 551,929 (109) 48 49 Total Non-Fuel Production O&M 700,190 806,971 794,380 2,301,542 (98) 50 51 Transmission Operations: 52 Supervision & Engineering 560 111,461 127,889 118,774 358,125 (82) 53 Load Dispatch 561 0 0 54 Load Dispatch - Reliability 56111 0 0 4,649 4,649 0 55 Load Dispatch - Monitor/Operate 56120 29,547 30,181 32,261 91,989 0 56 Load Dispatch - Transmission Serv/Sch 5613 57 Load Dispatch - Sch/Con/Disp Serv 5614 58 Rel/Plan/Standards Dev Serv 56150 1,994 1,660 1,743 5,397 0 59 Trans Service Studies 5616 60 Generation Interconnection Studies 5617 61 Rel/Plan/Standards Dev Serv 5618 62 Station Equipment 562 3,346 2,716 3,653 9,715 0 63 Overhead s 563 5,599 560 1,002 7,162 0 64 Underground s 564 0 0 65 Miscellaneous 566 90,780 120,708 89,584 301,072 0 66 Rents 567 0 0 67 Total Transmission Operations 242,727 283,715 251,666 778,108 (82) 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 0 0 71 Structures 569 0 0 72 Station Equipment 57 73 Overhead s 571 593 573 579 1,744 0 74 Underground s 572 0 0 75 Miscellaneous 573 0 0 76 Total Transmission Maintenance 593 573 579 1,744 0 77 RR16 - Page 225 of 426 07640
Page 83 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 0 0 80 Wheeling - PNM Reliability Purchase 0565P 0 0 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 0 0 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 0 0 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 0 0 84 Wheeling - Schedule 9 Network Integration 0565T 0 0 85 Wheeling - Schedule 11 0565T 0 0 86 Wheeling - Schedule 12 - FERC Assessment 0565R 0 0 87 Wheeling - Other 0565T 0 0 88 0 0 89 0 0 90 Total Wheeling 565 0 0 91 92 Total Transmission O&M 243,320 284,287 252,245 779,853 (82) 93 94 Regional Market Expenses: 95 Operation Supervision 57510 11,726 8,611 8,302 28,639 0 96 DA & RT Mkt Admin 57520 4,312 2,878 258 7,447 0 97 Trans Rights Mkt Admin 5753 98 Cap Mkt Admin 5754 99 Ancillary Serv Mkt Admin 57550 361 649 258 1,268 0 100 Market Monitoring/Compliance 57560 4,697 4,180 2,389 11,266 0 101 Mkt Fac/Mon/Comp Serv 5757 102 Regional Market Rents 5758 103 Total Regional Market Expenses 21,096 16,318 11,207 48,620 0 104 105 Distribution Operations: 106 Supervision - H/S 58019 107 Supervision - Texas 580903 0 0 108 Supervision - New Mexico 580904 0 0 109 Supervision 580 58,925 57,600 56,862 173,386 (88) 110 Total Supervision 580 58,925 57,600 56,862 173,386 (88) 111 Load Dispatch - H/S 58119 112 Load Dispatch - Texas 581903 0 0 113 Load Dispatch - New Mexico 581904 0 0 114 Load Dispatch 581 10,697 10,927 9,996 31,620 0 115 Total Load Dispatch 581 10,697 10,927 9,996 31,620 0 116 Station Equipment - H/S 58219 117 Station Equipment - Texas 582903 0 0 118 Station Equipment - New Mexico 582904 0 0 119 Station Equipment 582 0 0 RR16 - Page 226 of 426 07641
Page 84 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 120 Total Station Equipment 582 0 0 121 Overhead s - H/S 58319 122 Overhead s - Texas 583903 0 0 123 Overhead s - New Mexico 583904 0 0 124 Overhead s 583 4,076 4,035 2,864 10,975 0 125 Total Overhead s 583 4,076 4,035 2,864 10,975 0 126 Underground s - H/S 58419 127 Underground s - Texas 584903 0 0 128 Underground s - New Mexico 584904 0 0 129 Underground s 584 0 0 130 Total Underground s 584 0 0 131 Street Lighting - H/S 58519 132 Street Lighting - Texas 585903 0 0 133 Street Lighting - New Mexico 585904 0 0 134 Street Lighting 585 0 0 135 Total Street Lighting 585 0 0 136 Metering - H/S 58619 137 Metering - Texas 586903 0 0 138 Metering - New Mexico 586904 0 0 139 Metering 586 17,096 23,032 23,319 63,447 0 140 Total Metering 586 17,096 23,032 23,319 63,447 0 141 Customer Installations - H/S 58719 142 Customer Installations - Texas 587903 0 0 143 Customer Installations - New Mexico 587904 0 0 144 Customer Installations 587 0 0 145 Total Customer Installations 587 0 0 146 Miscellaneous - H/S 58819 147 Miscellaneous - Texas 588903 0 0 148 Miscellaneous - New Mexico 588904 0 0 149 Miscellaneous 588 3,376 3,908 4,354 11,638 0 150 Total Miscellaneous 588 3,376 3,908 4,354 11,638 0 151 Rents 58919 152 Rents - H/S 589903 0 0 153 Rents - Texas 589904 0 0 154 Rents - New Mexico 589 0 0 155 Total Rents 589 0 0 156 157 Total Distribution Operations 94,170 99,502 97,396 291,067 (88) 158 RR16 - Page 227 of 426 07642
Page 85 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 159 Distribution Maintenance: 160 Supervision So - H/S 59019 161 Supervision - TX 590903 0 0 162 Supervision - NM 590904 0 0 163 Supervision 590 2,753 2,100 2,449 7,302 0 164 Total Supervision 590 2,753 2,100 2,449 7,302 0 165 Structures So - H/S 59119 166 Structures - TX 591903 0 0 167 Structures - NM 591904 0 0 168 Structures 591 0 0 169 Total Structures 591 0 0 170 Station Equipment So - H/S 59219 171 Station Equipment - TX 592903 0 0 172 Station Equipment - NM 592904 0 0 173 Station Equipment 592 0 0 174 Total Station Equipment 592 0 0 175 Overhead s So - H/S 59319 176 Overhead s - TX 593903 0 0 177 Overhead s - NM 593904 0 0 178 Overhead s 593 2,271 2,198 2,253 6,722 0 179 Total Overhead s 593 2,271 2,198 2,253 6,722 0 180 Underground s So - H/S 59419 181 Underground s - TX 594903 0 0 182 Underground s - NM 594904 0 0 183 Underground s 594 0 0 184 Total Underground s 594 0 0 185 Transformers So - H/S 59519 186 Transformers - TX 595903 0 0 187 Transformers - NM 595904 0 0 188 Transformers 595 0 0 189 Total Transformers 595 0 0 190 Street Lighting So - H/S 59619 191 Street Lighting - TX 596903 0 0 192 Street Lighting - NM 596904 0 0 193 Street Lighting 596 0 0 194 Total Street Lighting 596 0 0 195 Metering So - H/S 59719 196 Metering - TX 597903 0 0 197 Metering - NM 597904 0 0 198 Metering 597 0 0 199 Total Metering 597 0 0 200 Miscellaneous So - H/S 59819 RR16 - Page 228 of 426 07643
Page 86 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 201 Miscellaneous - TX 598903 0 0 202 Miscellaneous - NM 598904 0 0 203 Miscellaneous 598 0 0 204 Total Miscellaneous 598 0 0 205 206 Total Distribution Maintenance 5,025 4,298 4,702 14,024 0 207 208 Total Distribution O&M 99,194 103,799 102,097 305,091 (88) 209 210 Customer Accounting Expense: 211 Supervision 901 2,137 2,214 2,012 6,362 0 212 Meter Reading 902 2,281 3,445 1,813 7,539 0 213 Billing & Cashiering 903 223,482 222,616 212,911 659,009 0 214 Uncollectible Accounts 904 0 0 215 Uncollectible Accounts 904907 0 0 216 Total Uncollectible Accounts 904 0 0 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 0 0 219 Total Miscellaneous 905 0 0 220 221 Total Customer Accounting Expense 227,900 228,275 216,736 672,911 0 222 223 224 Customer Service Expense: 225 Supervision 907 0 0 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 1,199 935 2,120 4,255 231 Customer Assistance - Other 908 19,010 17,558 23,001 59,569 (5,404) 232 Customer Assistance - Total 908 20,210 18,493 25,121 63,824 (5,404) 233 Advertisement 909 0 234 Miscellaneous 91 0 0 235 236 Total Customer Service Expense 20,210 18,493 25,121 63,824 (5,404) 237 RR16 - Page 229 of 426 07644
Page 87 of 270 XES Labor Annualization XES XES XES XES XES 50 50 50 Total Bus Area Adj BL BL BL Apr-Jun Apr-Jun No. Description Account April-13 May-13 June-13 Base Labor Base Labor 238 Sales Expense: 239 Sales Expense - Supv. 911 0 0 240 Demonstrations & Selling 912 0 0 241 Advertising Expense - Sales 913 0 0 242 Miscellaneous Sales Expense 916 0 0 243 244 Total Sales Expense 0 0 245 246 Total Customer Service & Sales Expense 20,210 18,493 25,121 63,824 (5,404) 247 248 Total Customer Operations Expense 248,110 246,768 241,858 736,735 (5,404) 249 250 Administrative & General Expense: 251 Administrative Salaries 920 1,247,146 1,256,580 1,225,684 3,729,410 (50,755) 252 Office Supplies & Expense 921 0 0 253 A&G Expense Transferred 922 0 0 254 Outside Services - Legal 923 0 0 255 Property Insurance 924 0 0 256 Injuries and Damages 925 0 0 257 Pensions & Benefits 926 0 0 258 Deferred Pensions & Benefits 92603 0 0 259 Regulatory Commission Expense - Texas 928 0 0 260 Regulatory Commission Expense - New Mexico 928 0 0 261 Regulatory Commission Expense - Wholesale 928 0 0 262 Regulatory Commission Expense - NERC Fees 928 0 0 263 Regulatory Commission Expense - Misc 928 0 0 264 Total Regulatory Commission Expense 928 0 0 265 Duplicate Charges - Electric 929 0 0 266 Miscellaneous 930M 0 0 267 Rents - Retail Allocated 931 0 0 268 Rents - Other 931O 0 0 269 Rents 931 0 0 270 Maintenance of Structures 932 0 0 271 Maintenance of General Plant 935 0 0 272 Contributions &, Dues 273 Total Administrative & General Expense 1,247,146 1,256,580 1,225,684 3,729,410 (50,755) 274 275 Total O&M Expense 2,559,056 2,714,723 2,627,471 7,901,250 (56,428) RR16 - Page 230 of 426 07645
Page 88 of 270 XES Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 69,019 23,006 0 0 107,040 35,680 0 0 10,160 3,387 0 0 0 777,884 259,295 0 0 0 964,102 321,367 0 0 60,177 20,059 0 0 1,783 594 0 0 27,942 9,314 0 0 40,657 13,552 0 0 589,924 196,641 0 720,483 240,161 1,684,585 561,528 0 0 509 170 0 0 0 2,584 861 0 0 41,122 13,707 0 44,215 14,738 0 0 54 18 0 0 0 20,769 6,923 0 20,823 6,941 65,038 21,679 RR16 - Page 231 of 426 07646
Page 89 of 270 XES Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 140,828 46,943 0 0 410,992 136,997 551,820 183,940 2,301,443 767,148 0 0 358,042 119,347 0 0 0 4,649 1,550 0 0 91,989 30,663 0 0 0 0 5,397 1,799 0 0 0 0 0 9,715 3,238 0 0 7,162 2,387 0 0 0 301,072 100,357 0 778,026 259,342 0 0 0 0 0 1,744 581 0 0 1,744 581 RR16 - Page 232 of 426 07647
Page 90 of 270 XES Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 779,770 259,923 0 0 28,639 9,546 0 0 7,447 2,482 0 0 0 0 1,268 423 0 0 11,266 3,755 0 0 0 0 48,620 16,207 0 0 0 0 0 173,298 57,766 173,298 57,766 0 0 0 0 0 31,620 10,540 31,620 10,540 0 0 0 0 RR16 - Page 233 of 426 07648
Page 91 of 270 XES Labor Annualization No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 0 10,975 3,658 10,975 3,658 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 63,447 21,149 63,447 21,149 0 0 0 0 0 0 0 0 0 0 0 11,638 3,879 11,638 3,879 0 0 0 0 0 0 290,979 96,993 RR16 - Page 234 of 426 07649
Page 92 of 270 XES Labor Annualization No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 7,302 2,434 7,302 2,434 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,722 2,241 6,722 2,241 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 RR16 - Page 235 of 426 07650
Page 93 of 270 XES Labor Annualization No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 14,024 4,675 305,003 101,668 0 0 6,362 2,121 0 0 7,539 2,513 0 0 659,009 219,670 0 0 0 0 0 0 0 0 0 672,911 224,304 0 4,255 1,418 54,165 18,055 58,420 19,473 58,420 19,473 RR16 - Page 236 of 426 07651
Page 94 of 270 XES Labor Annualization No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense XES XES XES XES XES Foundation EE to EECRF Whls Acct Mgr Adjusted Average Monthly Apr-Jun Apr-Jun Apr-Jun Apr-Jun Labor Expense Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 58,420 19,473 731,331 243,777 (12,865) 0 3,665,790 1,221,930 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (12,865) 0 0 3,665,790 1,221,930 (12,865) 0 0 7,831,957 2,610,652 RR16 - Page 237 of 426 07652
Page 95 of 270 XES Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 276,077 294,057 0 0 428,159 410,157 10 0 40,638 67,281 0 0 0 3,111,535 2,873,564 5 0 0 0 0 3,856,408 3,645,058 16 0 240,709 219,543 0 0 7,130 (888) 0 0 111,769 154,782 (37,632) 0 162,629 181,332 37,632 0 2,359,695 1,927,194 0 0 0 2,881,932 2,481,963 0 0 6,738,340 6,127,021 16 0 2,034 3,40 0 10,338 2,584 0 0 164,489 171,241 0 0 0 176,861 177,225 0 0 216 192 0 0 0 3,812 0 0 83,077 86,749 0 0 0 83,293 90,753 0 0 260,154 267,978 0 0 RR16 - Page 238 of 426 07653
Page 96 of 270 XES Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 563,312 383,664 416 0 1,643,968 1,584,262 (2,652) 0 2,207,280 1,967,926 (2,236) 0 9,205,774 8,362,925 (2,220) 0 1,432,169 1,865,647 140 0 0 18,596 4,809 0 0 367,955 340,86 0 0 21,589 29,534 0 0 0 0 0 38,860 32,995 0 0 28,648 34,259 0 0 0 1,204,287 718,824 0 0 0 3,112,104 3,026,929 140 0 0 0 0 6,977 6,379 0 0 0 0 6,977 6,379 0 0 RR16 - Page 239 of 426 07654
Page 97 of 270 XES Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 0 0 0 0 0 0 0 0 0 0 0 0 3,119,081 3,033,308 140 0 114,555 132,062 0 0 29,789 35,372 0 0 0 0 5,074 7,384 0 0 45,064 51,839 0 0 0 0 194,482 226,658 0 0 0 0 0 693,193 653,182 (68) 0 693,193 653,182 (68) 0 0 0 0 126,481 118,962 0 0 126,481 118,962 0 0 0 0 0 0 RR16 - Page 240 of 426 07655
Page 98 of 270 XES Labor Annualization No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 0 0 0 0 43,899 38,841 0 0 43,899 38,841 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 253,789 231,115 (258) 0 253,789 231,115 (258) 0 0 0 0 0 0 0 0 0 46,554 37,322 1,079 0 46,554 37,322 1,079 0 0 0 0 0 0 1,163,915 1,079,421 753 0 RR16 - Page 241 of 426 07656
Page 99 of 270 XES Labor Annualization No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 0 0 0 29,207 15,624 0 0 29,207 15,624 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26,889 24,585 0 0 26,889 24,585 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 RR16 - Page 242 of 426 07657
Page 100 of 270 XES Labor Annualization No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 0 0 0 0 56,095 40,209 0 0 1,220,011 1,119,630 753 0 25,449 24,090 9 0 30,157 29,094 3 0 2,636,038 2,584,784 (414) 0 0 0 0 0 0 0 2,691,643 2,637,968 (401) 0 0 17,019 21,446 0 0 216,659 405,429 (48,654) 0 233,679 426,875 (48,654) 0 0 0 233,679 426,875 (48,654) 0 RR16 - Page 243 of 426 07658
Page 101 of 270 XES Labor Annualization No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense XES XES XES XES Annualized 50 Bus Area Adj Foundation Labor Expense BL Test Yr Test Yr Base Labor Test Yr Base Labor Base Labor Base Labor 0 0 24,948 0 0 0 0 0 24,948 0 0 233,679 451,823 (48,654) 0 2,925,322 3,089,790 (49,055) 0 14,663,159 14,276,410 (187,847) (40,898) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14,663,159 14,276,410 (187,847) (40,898) 31,327,828 30,108,721 (238,229) (40,898) RR16 - Page 244 of 426 07659
Page 102 of 270 XES Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 294,057 (17,980) 0 0 410,167 17,992 0 0 67,281 (26,642) 0 0 0 2,873,569 237,965 0 0 0 0 0 3,645,074 211,334 0 0 219,543 21,166 0 0 (888) 8,018 0 0 117,150 (5,381) 0 0 218,964 (56,335) 0 0 1,927,194 432,501 0 0 0 2,481,963 399,969 0 0 6,127,037 611,304 0 0 3,400 (1,365) 0 0 0 2,584 7,753 0 0 171,241 (6,752) 0 0 0 177,225 (364) 0 0 192 24 0 0 3,812 (3,812) 0 0 86,749 (3,672) 0 0 0 90,753 (7,460) 0 0 267,978 (7,824) RR16 - Page 245 of 426 07660
Page 103 of 270 XES Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 384,081 179,231 0 0 1,581,610 62,358 0 0 1,965,691 241,589 0 0 8,360,705 845,069 0 0 1,865,786 (433,618) 0 0 0 4,809 13,787 0 0 340,860 27,095 0 0 0 0 29,534 (7,945) 0 0 0 0 0 32,995 5,866 0 0 34,259 (5,611) 0 0 0 718,824 485,463 0 0 0 3,027,068 85,036 0 0 0 0 0 6,379 597 0 0 0 0 6,379 597 RR16 - Page 246 of 426 07661
Page 104 of 270 XES Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,033,448 85,633 0 0 132,062 (17,507) 0 0 35,372 (5,583) 0 0 0 0 7,384 (2,310) 0 0 51,839 (6,775) 0 0 0 0 226,658 (32,176) 0 0 0 0 0 653,114 40,079 0 0 653,114 40,079 0 0 0 0 0 118,962 7,520 0 0 118,962 7,520 0 0 0 0 RR16 - Page 247 of 426 07662
Page 105 of 270 XES Labor Annualization No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 0 0 0 0 38,841 5,058 0 0 38,841 5,058 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 230,857 22,932 0 0 230,857 22,932 0 0 0 0 0 0 0 0 0 0 38,400 8,153 0 0 38,400 8,153 0 0 0 0 0 0 0 1,080,174 83,741 RR16 - Page 248 of 426 07663
Page 106 of 270 XES Labor Annualization No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 0 0 0 15,624 13,583 0 0 15,624 13,583 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24,585 2,303 0 0 24,585 2,303 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 RR16 - Page 249 of 426 07664
Page 107 of 270 XES Labor Annualization No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 0 0 0 0 40,209 15,886 0 0 1,120,383 99,628 0 0 24,099 1,350 0 0 29,097 1,059 0 0 2,584,370 51,668 0 0 0 0 0 0 0 0 2,637,567 54,077 0 0 0 21,446 (4,427) 3,100 0 359,875 (143,216) 3,100 0 381,321 (147,643) 3,100 0 381,321 (147,643) RR16 - Page 250 of 426 07665
Page 108 of 270 XES Labor Annualization No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense XES XES XES EE to EECRF Whls Acct Mgr Adjusted Test Yr Test Yr Test Yr Base Labor Base Labor Base Labor Adjustment 0 0 0 24,948 (24,948) 0 0 0 0 24,948 (24,948) 3,100 0 406,269 (172,590) 3,100 0 3,043,836 (118,514) 0 0 14,047,665 615,494 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14,047,665 615,494 3,100 0 29,832,694 1,495,134 RR16 - Page 251 of 426 07666
Page 109 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 126,900 135,786 151,043 413,729 5 Fuel (Transportation & Handling) 0501F 0 6 Steam Expense 502 483,703 492,719 459,077 1,435,498 7 Electric Expense 505 452,277 478,999 487,922 1,419,198 8 Miscellaneous 506 341,910 359,754 139,157 840,820 9 Rent 507 0 10 Supplies and Expenses 508 0 11 Allowances 509 0 12 Total Steam Production Operation 1,404,790 1,467,257 1,237,200 4,109,246 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 109,154 118,376 122,267 349,797 16 Structures 511 77,838 124,789 169,823 372,450 17 Boilers 512 596,923 663,444 335,307 1,595,674 18 Electric Plant 513 448,621 374,825 272,133 1,095,578 19 Miscellaneous Plant 514 438,823 433,751 497,760 1,370,334 20 Steam Production (Nonmajor) 515 0 21 Total Steam Production Maintenance 1,671,359 1,715,185 1,397,289 4,783,833 22 23 Total Steam Production O&M 3,076,149 3,182,442 2,634,489 8,893,080 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 0 27 Fuel Handling 547 0 28 Generation Expense 548 33,646 31,566 30,117 95,329 29 Miscellaneous 549 4,969 1,386 997 7,352 30 Rents 55 0 0 31 Total Combustion Turbine Production Operation 38,615 32,952 31,114 102,681 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 0 35 Structures 552 5,510 5,928 3,067 14,504 36 Electric Plant 553 43,720 65,519 59,240 168,479 37 Miscellaneous Plant 554 0 38 Total Combustion Turbine Production Maintenance 49,230 71,447 62,306 182,983 39 40 Total Combustion Turbine Production O&M 87,845 104,399 93,421 285,664 41 RR16 - Page 252 of 426 07667
Page 110 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 42 System Control and Dispatch: 43 System Load Control 556 30,753 35,061 (730) 65,084 44 Other Expenditures 557 0 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 30,753 35,061 (730) 65,084 48 49 Total Non-Fuel Production O&M 3,194,747 3,321,901 2,727,180 9,243,828 50 51 Transmission Operations: 52 Supervision & Engineering 560 284,170 237,708 197,662 719,541 53 Load Dispatch 561 0 54 Load Dispatch - Reliability 56111 0 55 Load Dispatch - Monitor/Operate 56120 155,611 145,415 144,069 445,095 56 Load Dispatch - Transmission Serv/Sch 5613 0 0 57 Load Dispatch - Sch/Con/Disp Serv 5614 0 0 58 Rel/Plan/Standards Dev Serv 56150 5,243 4,647 3,959 13,849 59 Trans Service Studies 56160 0 900 151 1,051 60 Generation Interconnection Studies 56170 0 1,413 0 1,413 61 Rel/Plan/Standards Dev Serv 5618 0 0 62 Station Equipment 562 61,935 46,053 80,242 188,230 63 Overhead s 563 53,342 (21,511) 14,717 46,548 64 Underground s 564 0 65 Miscellaneous 566 87,126 113,447 46,594 247,166 66 Rents 567 0 67 Total Transmission Operations 647,428 528,072 487,393 1,662,892 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 10,131 6,760 6,027 22,918 71 Structures 569 0 72 Station Equipment 570 94,970 127,832 126,435 349,237 73 Overhead s 571 8,217 6,819 15,714 30,749 74 Underground s 572 0 75 Miscellaneous 573 0 76 Total Transmission Maintenance 113,318 141,411 148,176 402,904 77 RR16 - Page 253 of 426 07668
Page 111 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 0 80 Wheeling - PNM Reliability Purchase 0565P 0 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 0 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 0 82 Wheeling - Schedules 7 & 8 - Point to Point 0565R 0 83 Wheeling - Schedule 9 Network Integration 0565T 0 84 Wheeling - Schedule 11 0565T 0 Wheeling - Schedule 12 - FERC Assessment 0565R 0 85 Wheeling - Other 0565T 0 86 0 87 0 88 Total Wheeling 565 0 89 90 Total Transmission O&M 760,745 669,482 635,569 2,065,797 91 92 Regional Market Expenses: 93 Operation Supervision 5751 0 0 94 DA & RT Mkt Admin 5752 0 0 95 Trans Rights Mkt Admin 5753 0 0 96 Cap Mkt Admin 5754 0 0 97 Ancillary Serv Mkt Admin 5755 0 0 98 Market Monitoring/Compliance 5756 0 0 99 Mkt Fac/Mon/Comp Serv 5757 0 0 100 Regional Market Rents 5758 0 0 101 Total Regional Market Expenses 0 102 103 Distribution Operations: 104 Supervision - H/S 58019 0 0 105 Supervision - Texas 580903 184,143 124,539 132,776 441,458 106 Supervision - New Mexico 580904 40,684 30,668 32,594 103,947 107 Supervision 580 71,881 62,824 61,501 196,206 108 Total Supervision 580 296,708 218,031 226,872 741,611 109 Load Dispatch - H/S 58119 0 0 110 Load Dispatch - Texas 581903 45,403 77,634 70,522 193,559 111 Load Dispatch - New Mexico 581904 0 112 Load Dispatch 581 0 113 Total Load Dispatch 581 45,403 77,634 70,522 193,559 114 Station Equipment - H/S 58219 0 0 115 Station Equipment - Texas 582903 24,115 24,512 34,843 83,470 116 Station Equipment - New Mexico 582904 311 0 0 311 117 Station Equipment 582 21,418 29,171 26,645 77,234 RR16 - Page 254 of 426 07669
Page 112 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 118 Total Station Equipment 582 45,845 53,683 61,488 161,016 119 Overhead s - H/S 58319 0 0 120 Overhead s - Texas 583903 73,379 92,767 92,914 259,060 121 Overhead s - New Mexico 583904 23,081 27,005 39,035 89,121 122 Overhead s 583 158 172 451 780 123 Total Overhead s 583 96,617 119,945 132,400 348,961 124 Underground s - H/S 58419 0 0 125 Underground s - Texas 584903 9,587 13,522 9,215 32,324 126 Underground s - New Mexico 584904 1,463 684 2,157 4,304 127 Underground s 584 5 0 0 5 128 Total Underground s 584 11,055 14,206 11,371 36,632 129 Street Lighting - H/S 58519 0 0 130 Street Lighting - Texas 585903 0 131 Street Lighting - New Mexico 585904 214 260 214 688 132 Street Lighting 585 37,710 32,122 32,499 102,331 133 Total Street Lighting 585 37,925 32,382 32,713 103,019 134 Metering - H/S 58619 0 0 135 Metering - Texas 586903 136,630 136,150 145,982 418,763 136 Metering - New Mexico 586904 91,666 83,111 66,543 241,321 137 Metering 586 74,407 75,082 57,676 207,166 138 Total Metering 586 302,704 294,344 270,202 867,250 139 Customer Installations - H/S 58719 0 0 140 Customer Installations - Texas 587903 22,015 20,866 18,757 61,638 141 Customer Installations - New Mexico 587904 291 236 42 570 142 Customer Installations 587 52,830 49,073 54,845 156,748 143 Total Customer Installations 587 75,136 70,175 73,645 218,956 144 Miscellaneous - H/S 58819 0 0 145 Miscellaneous - Texas 588903 150,386 166,975 28,855 346,215 146 Miscellaneous - New Mexico 588904 60,228 83,319 61,140 204,687 147 Miscellaneous 588 96,759 79,206 59,550 235,515 148 Total Miscellaneous 588 307,372 329,500 149,544 786,417 149 Rents 58919 0 0 150 Rents - H/S 589903 0 151 Rents - Texas 589904 0 152 Rents - New Mexico 589 0 153 Total Rents 589 0 154 155 Total Distribution Operations 1,218,764 1,209,899 1,028,757 3,457,421 156 RR16 - Page 255 of 426 07670
Page 113 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 157 Distribution Maintenance: 158 Supervision So - H/S 59019 0 0 159 Supervision - TX 590903 5,287 5,469 5,069 15,825 160 Supervision - NM 590904 2,310 2,463 2,347 7,120 161 Supervision 590 18,376 14,249 12,718 45,344 162 Total Supervision 590 25,973 22,180 20,134 68,288 163 Structures So - H/S 59119 0 0 164 Structures - TX 591903 0 165 Structures - NM 591904 0 166 Structures 591 0 167 Total Structures 591 0 168 Station Equipment So - H/S 59219 0 0 169 Station Equipment - TX 592903 59,466 60,583 54,543 174,592 170 Station Equipment - NM 592904 1,208 1,707 2,528 5,443 171 Station Equipment 592 38,704 36,638 44,532 119,873 172 Total Station Equipment 592 99,378 98,927 101,603 299,908 173 Overhead s So - H/S 59319 0 0 174 Overhead s - TX 593903 199,144 274,433 342,090 815,667 175 Overhead s - NM 593904 75,405 101,008 84,690 261,103 176 Overhead s 593 6,647 7,430 8,192 22,269 177 Total Overhead s 593 281,196 382,871 434,972 1,099,039 178 Underground s So - H/S 59419 0 0 179 Underground s - TX 594903 9,144 3,011 9,105 21,259 180 Underground s - NM 594904 4,631 4,937 4,575 14,143 181 Underground s 594 65 25 23 113 182 Total Underground s 594 13,839 7,973 13,702 35,515 183 Transformers So - H/S 59519 0 0 184 Transformers - TX 595903 942 1,272 1,776 3,990 185 Transformers - NM 595904 5,188 6,252 4,567 16,008 186 Transformers 595 0 187 Total Transformers 595 6,131 7,524 6,343 19,998 188 Street Lighting So - H/S 59619 0 0 189 Street Lighting - TX 596903 341 44 1,059 1,444 190 Street Lighting - NM 596904 65 85 68 218 191 Street Lighting 596 1,252 2,458 2,134 5,844 192 Total Street Lighting 596 1,658 2,588 3,261 7,506 193 Metering So - H/S 59719 0 0 194 Metering - TX 597903 226 228 224 678 195 Metering - NM 597904 0 196 Metering 597 400 2,588 116 3,104 197 Total Metering 597 626 2,816 340 3,782 198 Miscellaneous So - H/S 59819 0 0 RR16 - Page 256 of 426 07671
Page 114 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 199 Miscellaneous - TX 598903 0 200 Miscellaneous - NM 598904 0 201 Miscellaneous 598 0 202 Total Miscellaneous 598 0 203 204 Total Distribution Maintenance 428,801 524,879 580,355 1,534,035 205 206 Total Distribution O&M 1,647,565 1,734,779 1,609,113 4,991,456 207 208 Customer Accounting Expense: 209 Supervision 901 0 210 Meter Reading 902 247,853 233,228 238,848 719,928 211 Billing & Cashiering 903 0 212 Uncollectible Accounts 904 0 213 Uncollectible Accounts 904907 0 214 Total Uncollectible Accounts 904 0 215 Customer Deposit Interest - Texas 216 Miscellaneous 905 0 217 Total Miscellaneous 905 0 218 219 Total Customer Accounting Expense 247,853 233,228 238,848 719,928 220 221 222 Customer Service Expense: 223 Supervision 907 0 224 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 225 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 226 Customer Assistance - EE - New Mexico 0908DSMNM 227 Customer Assistance - ICO Credits 0908ICO 228 Customer Assistance - Saver Switch & EE Labor 0908SVR 0 229 Customer Assistance - Other 908 148,503 147,511 160,847 456,860 230 Customer Assistance - Total 908 148,503 147,511 160,847 456,860 231 Advertisement 909 0 232 Miscellaneous 91 0 0 233 234 Total Customer Service Expense 148,503 147,511 160,847 456,860 235 RR16 - Page 257 of 426 07672
Page 115 of 270 SPS Labor Annualization BL BL BL Total No. Description Account April-13 May-13 June-13 Base Labor 236 Sales Expense: 237 Sales Expense - Supv. 911 0 238 Demonstrations & Selling 912 15,589 14,765 10,088 40,442 239 Advertising Expense - Sales 913 0 240 Miscellaneous Sales Expense 916 0 241 242 Total Sales Expense 15,589 14,765 10,088 40,442 243 244 Total Customer Service & Sales Expense 164,092 162,275 170,935 497,302 245 246 Total Customer Operations Expense 411,945 395,503 409,782 1,217,230 247 248 Administrative & General Expense: 249 Administrative Salaries 920 290,012 283,482 269,892 843,386 250 Office Supplies & Expense 921 0 251 A&G Expense Transferred 922 0 252 Outside Services - Legal 923 0 253 Property Insurance 924 0 254 Injuries and Damages 925 0 255 Pensions & Benefits 926 0 256 Deferred Pensions & Benefits 92603 0 257 Regulatory Commission Expense - Texas 928 0 258 Regulatory Commission Expense - New Mexico 928 0 259 Regulatory Commission Expense - Wholesale 928 0 260 Regulatory Commission Expense - NERC Fees 928 0 261 Regulatory Commission Expense - Misc 928 0 262 Total Regulatory Commission Expense 928 0 263 Duplicate Charges - Electric 929 0 264 Miscellaneous 930M 0 265 Rents - Retail Allocated 931 0 266 Rents - Other 931O 0 267 Rents 931 0 268 Maintenance of Structures 932 0 269 Maintenance of General Plant 935 0 270 Contributions &, Dues 271 Total Administrative & General Expense 290,012 283,482 269,892 843,386 272 273 Total O&M Expense 6,305,014 6,405,147 5,651,535 18,361,697 RR16 - Page 258 of 426 07673
Page 116 of 270 SPS Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 413,729 2,745 2,745 1,435,498 1,419,198 840,820 0 0 0 2,745 0 4,111,991 0 0 349,797 372,450 1,595,674 1,095,578 1,370,334 0 0 4,783,833 0 0 2,745 0 8,895,825 0 0 95,329 7,352 0 0 102,681 0 14,504 168,479 0 0 182,983 0 285,664 RR16 - Page 259 of 426 07674
Page 117 of 270 SPS Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 65,084 0 0 65,084 0 0 2,745 0 9,246,573 719,541 0 0 445,095 0 0 13,849 1,051 1,413 0 188,230 46,548 0 247,166 0 0 1,662,892 22,918 0 349,237 30,749 0 0 402,904 0 RR16 - Page 260 of 426 07675
Page 118 of 270 SPS Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 82 Wheeling - Schedules 7 & 8 - Point to Point 0565R 83 Wheeling - Schedule 9 Network Integration 0565T 84 Wheeling - Schedule 11 0565T Wheeling - Schedule 12 - FERC Assessment 0565R 85 Wheeling - Other 0565T 86 87 88 Total Wheeling 565 89 90 Total Transmission O&M 91 92 Regional Market Expenses: 93 Operation Supervision 57510 94 DA & RT Mkt Admin 57520 95 Trans Rights Mkt Admin 57530 96 Cap Mkt Admin 57540 97 Ancillary Serv Mkt Admin 57550 98 Market Monitoring/Compliance 57560 99 Mkt Fac/Mon/Comp Serv 57570 100 Regional Market Rents 57580 101 Total Regional Market Expenses 102 103 Distribution Operations: 104 Supervision - H/S 580190 105 Supervision - Texas 580903 106 Supervision - New Mexico 580904 107 Supervision 580 108 Total Supervision 580 109 Load Dispatch - H/S 581190 110 Load Dispatch - Texas 581903 111 Load Dispatch - New Mexico 581904 112 Load Dispatch 581 113 Total Load Dispatch 581 114 Station Equipment - H/S 582190 115 Station Equipment - Texas 582903 116 Station Equipment - New Mexico 582904 117 Station Equipment 582 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,065,797 0 0 0 0 0 0 0 0 0 0 0 441,458 103,947 196,206 0 741,611 0 193,559 0 0 193,559 0 0 83,470 311 77,234 RR16 - Page 261 of 426 07676
Page 119 of 270 SPS Labor Annualization No. Description Account 118 Total Station Equipment 582 119 Overhead s - H/S 583190 120 Overhead s - Texas 583903 121 Overhead s - New Mexico 583904 122 Overhead s 583 123 Total Overhead s 583 124 Underground s - H/S 584190 125 Underground s - Texas 584903 126 Underground s - New Mexico 584904 127 Underground s 584 128 Total Underground s 584 129 Street Lighting - H/S 585190 130 Street Lighting - Texas 585903 131 Street Lighting - New Mexico 585904 132 Street Lighting 585 133 Total Street Lighting 585 134 Metering - H/S 586190 135 Metering - Texas 586903 136 Metering - New Mexico 586904 137 Metering 586 138 Total Metering 586 139 Customer Installations - H/S 587190 140 Customer Installations - Texas 587903 141 Customer Installations - New Mexico 587904 142 Customer Installations 587 143 Total Customer Installations 587 144 Miscellaneous - H/S 588190 145 Miscellaneous - Texas 588903 146 Miscellaneous - New Mexico 588904 147 Miscellaneous 588 148 Total Miscellaneous 588 149 Rents 589190 150 Rents - H/S 589903 151 Rents - Texas 589904 152 Rents - New Mexico 589 153 Total Rents 589 154 155 Total Distribution Operations 156 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 0 161,016 0 259,060 89,121 780 0 348,961 0 32,324 4,304 5 0 36,632 0 688 102,331 0 103,019 0 0 418,763 241,321 207,166 0 867,250 0 61,638 570 156,748 0 218,956 0 346,215 204,687 235,515 0 786,417 0 0 0 0 0 0 0 3,457,421 RR16 - Page 262 of 426 07677
Page 120 of 270 SPS Labor Annualization No. Description Account 157 Distribution Maintenance: 158 Supervision So - H/S 590190 159 Supervision - TX 590903 160 Supervision - NM 590904 161 Supervision 590 162 Total Supervision 590 163 Structures So - H/S 591190 164 Structures - TX 591903 165 Structures - NM 591904 166 Structures 591 167 Total Structures 591 168 Station Equipment So - H/S 592190 169 Station Equipment - TX 592903 170 Station Equipment - NM 592904 171 Station Equipment 592 172 Total Station Equipment 592 173 Overhead s So - H/S 593190 174 Overhead s - TX 593903 175 Overhead s - NM 593904 176 Overhead s 593 177 Total Overhead s 593 178 Underground s So - H/S 594190 179 Underground s - TX 594903 180 Underground s - NM 594904 181 Underground s 594 182 Total Underground s 594 183 Transformers So - H/S 595190 184 Transformers - TX 595903 185 Transformers - NM 595904 186 Transformers 595 187 Total Transformers 595 188 Street Lighting So - H/S 596190 189 Street Lighting - TX 596903 190 Street Lighting - NM 596904 191 Street Lighting 596 192 Total Street Lighting 596 193 Metering So - H/S 597190 194 Metering - TX 597903 195 Metering - NM 597904 196 Metering 597 197 Total Metering 597 198 Miscellaneous So - H/S 598190 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 0 15,825 7,120 45,344 0 68,288 0 0 0 0 174,592 5,443 119,873 0 299,908 0 815,667 261,103 22,269 0 1,099,039 0 21,259 14,143 113 0 35,515 0 3,990 16,008 0 0 19,998 0 1,444 218 5,844 0 7,506 0 3,104 0 3,782 0 678 0 0 0 0 RR16 - Page 263 of 426 07678
Page 121 of 270 SPS Labor Annualization No. Description Account 199 Miscellaneous - TX 598903 200 Miscellaneous - NM 598904 201 Miscellaneous 598 202 Total Miscellaneous 598 203 204 Total Distribution Maintenance 205 206 Total Distribution O&M 207 208 Customer Accounting Expense: 209 Supervision 901 210 Meter Reading 902 211 Billing & Cashiering 903 212 Uncollectible Accounts 904 213 Uncollectible Accounts 904907 214 Total Uncollectible Accounts 904 215 Customer Deposit Interest - Texas 216 Miscellaneous 905 217 Total Miscellaneous 905 218 219 Total Customer Accounting Expense 220 221 222 Customer Service Expense: 223 Supervision 907 224 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 225 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 226 Customer Assistance - EE - New Mexico 0908DSMNM 227 Customer Assistance - ICO Credits 0908ICO 228 Customer Assistance - Saver Switch & EE Labor 0908SVR 229 Customer Assistance - Other 908 230 Customer Assistance - Total 908 231 Advertisement 909 232 Miscellaneous 910 233 234 Total Customer Service Expense 235 Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 1,534,035 0 4,991,456 0 719,928 0 0 0 0 0 0 0 0 0 0 719,928 0 0 456,860 0 456,860 0 456,860 RR16 - Page 264 of 426 07679
Page 122 of 270 SPS Labor Annualization No. Description Account 236 Sales Expense: 237 Sales Expense - Supv. 911 238 Demonstrations & Selling 912 239 Advertising Expense - Sales 913 240 Miscellaneous Sales Expense 916 241 242 Total Sales Expense 243 244 Total Customer Service & Sales Expense 245 246 Total Customer Operations Expense 247 248 Administrative & General Expense: 249 Administrative Salaries 920 250 Office Supplies & Expense 921 251 A&G Expense Transferred 922 252 Outside Services - Legal 923 253 Property Insurance 924 254 Injuries and Damages 925 255 Pensions & Benefits 926 256 Deferred Pensions & Benefits 92603 257 Regulatory Commission Expense - Texas 928 258 Regulatory Commission Expense - New Mexico 928 259 Regulatory Commission Expense - Wholesale 928 260 Regulatory Commission Expense - NERC Fees 928 261 Regulatory Commission Expense - Misc 928 262 Total Regulatory Commission Expense 928 263 Duplicate Charges - Electric 929 264 Miscellaneous 930M 265 Rents - Retail Allocated 931 266 Rents - Other 931O 267 Rents 931 268 Maintenance of Structures 932 269 Maintenance of General Plant 935 270 Contributions &, Dues 271 Total Administrative & General Expense 272 273 Total O&M Expense Reclass Bus Area Adj Foundation Fuel Handling Whls Acct Mgr Adjusted Base Labor Base Labor Base Labor Base Labor Base Labor 0 40,442 0 0 0 40,442 0 497,302 0 1,217,230 843,386 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 843,386 0 0 2,745 0 18,364,442 RR16 - Page 265 of 426 07680
Page 123 of 270 SPS Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 137,910 1,654,917 1,676,934 915 10,980 0 478,499 5,741,994 6,221,715 473,066 5,676,793 6,020,599 280,273 3,363,282 2,895,879 1,370,664 16,447,966 16,815,127 116,599 1,399,188 1,311,642 124,150 1,489,800 1,443,479 531,891 6,382,698 5,559,676 365,193 4,382,313 4,211,244 456,778 5,481,335 5,071,114 1,594,611 19,135,334 17,597,154 2,965,275 35,583,299 34,412,282 0 0 793 31,776 381,318 305,413 2,451 29,407 66,268 34,227 410,725 372,474 0 0 164 4,835 58,017 56,440 56,160 673,915 504,950 60,994 731,932 561,554 95,221 1,142,657 934,028 RR16 - Page 266 of 426 07681
Page 124 of 270 SPS Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 21,695 260,337 401,537 0 0 991 21,695 260,337 402,528 3,082,191 36,986,293 35,748,838 239,847 2,878,162 2,536,749 148,365 1,780,378 1,779,455 4,616 55,396 237,461 350 4,204 49,632 471 5,651 1,413 62,743 752,920 715,927 15,516 186,192 231,622 82,389 988,666 842,520 554,297 6,651,570 6,394,779 7,639 91,672 68,493 116,412 1,396,947 1,282,175 10,250 122,997 121,318 134,301 1,611,617 1,471,986 RR16 - Page 267 of 426 07682
Page 125 of 270 SPS Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 82 Wheeling - Schedules 7 & 8 - Point to Point 0565R 83 Wheeling - Schedule 9 Network Integration 0565T 84 Wheeling - Schedule 11 0565T Wheeling - Schedule 12 - FERC Assessment 0565R 85 Wheeling - Other 0565T 86 87 88 Total Wheeling 565 89 90 Total Transmission O&M 91 92 Regional Market Expenses: 93 Operation Supervision 57510 94 DA & RT Mkt Admin 57520 95 Trans Rights Mkt Admin 57530 96 Cap Mkt Admin 57540 97 Ancillary Serv Mkt Admin 57550 98 Market Monitoring/Compliance 57560 99 Mkt Fac/Mon/Comp Serv 57570 100 Regional Market Rents 57580 101 Total Regional Market Expenses 102 103 Distribution Operations: 104 Supervision - H/S 580190 105 Supervision - Texas 580903 106 Supervision - New Mexico 580904 107 Supervision 580 108 Total Supervision 580 109 Load Dispatch - H/S 581190 110 Load Dispatch - Texas 581903 111 Load Dispatch - New Mexico 581904 112 Load Dispatch 581 113 Total Load Dispatch 581 114 Station Equipment - H/S 582190 115 Station Equipment - Texas 582903 116 Station Equipment - New Mexico 582904 117 Station Equipment 582 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 688,599 8,263,187 7,866,765 0 0 824 0 0 824 0 0 1,648 0 0 24,013 147,153 1,765,831 2,065,016 34,649 415,788 366,033 65,402 784,825 637,961 247,204 2,966,443 3,093,023 64,520 774,236 343,009 64,520 774,236 343,009 27,823 333,882 305,376 104 1,245 431 25,745 308,938 306,642 RR16 - Page 268 of 426 07683
Page 126 of 270 SPS Labor Annualization No. Description Account 118 Total Station Equipment 582 119 Overhead s - H/S 583190 120 Overhead s - Texas 583903 121 Overhead s - New Mexico 583904 122 Overhead s 583 123 Total Overhead s 583 124 Underground s - H/S 584190 125 Underground s - Texas 584903 126 Underground s - New Mexico 584904 127 Underground s 584 128 Total Underground s 584 129 Street Lighting - H/S 585190 130 Street Lighting - Texas 585903 131 Street Lighting - New Mexico 585904 132 Street Lighting 585 133 Total Street Lighting 585 134 Metering - H/S 586190 135 Metering - Texas 586903 136 Metering - New Mexico 586904 137 Metering 586 138 Total Metering 586 139 Customer Installations - H/S 587190 140 Customer Installations - Texas 587903 141 Customer Installations - New Mexico 587904 142 Customer Installations 587 143 Total Customer Installations 587 144 Miscellaneous - H/S 588190 145 Miscellaneous - Texas 588903 146 Miscellaneous - New Mexico 588904 147 Miscellaneous 588 148 Total Miscellaneous 588 149 Rents 589190 150 Rents - H/S 589903 151 Rents - Texas 589904 152 Rents - New Mexico 589 153 Total Rents 589 154 155 Total Distribution Operations 156 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 53,672 644,064 612,448 86,353 1,036,242 987,490 29,707 356,482 396,422 260 3,121 2,704 116,320 1,395,845 1,386,615 10,775 129,295 83,293 1,435 17,214 15,348 2 18 45 12,211 146,527 98,686 0 0 767 229 2,753 4,953 34,110 409,325 526,222 34,340 412,078 531,942 139,588 1,675,050 1,694,870 80,440 965,284 959,974 69,055 828,664 879,317 289,083 3,468,999 3,534,161 20,546 246,551 237,633 190 2,281 4,802 52,249 626,993 730,666 72,985 875,824 973,101 0 0 65,917 115,405 1,384,861 1,257,531 68,229 818,747 667,368 78,505 942,058 828,590 262,139 3,145,667 2,819,407 1,152,474 13,829,684 13,392,392 RR16 - Page 269 of 426 07684
Page 127 of 270 SPS Labor Annualization No. Description Account 157 Distribution Maintenance: 158 Supervision So - H/S 590190 159 Supervision - TX 590903 160 Supervision - NM 590904 161 Supervision 590 162 Total Supervision 590 163 Structures So - H/S 591190 164 Structures - TX 591903 165 Structures - NM 591904 166 Structures 591 167 Total Structures 591 168 Station Equipment So - H/S 592190 169 Station Equipment - TX 592903 170 Station Equipment - NM 592904 171 Station Equipment 592 172 Total Station Equipment 592 173 Overhead s So - H/S 593190 174 Overhead s - TX 593903 175 Overhead s - NM 593904 176 Overhead s 593 177 Total Overhead s 593 178 Underground s So - H/S 594190 179 Underground s - TX 594903 180 Underground s - NM 594904 181 Underground s 594 182 Total Underground s 594 183 Transformers So - H/S 595190 184 Transformers - TX 595903 185 Transformers - NM 595904 186 Transformers 595 187 Total Transformers 595 188 Street Lighting So - H/S 596190 189 Street Lighting - TX 596903 190 Street Lighting - NM 596904 191 Street Lighting 596 192 Total Street Lighting 596 193 Metering So - H/S 597190 194 Metering - TX 597903 195 Metering - NM 597904 196 Metering 597 197 Total Metering 597 198 Miscellaneous So - H/S 598190 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 5,275 63,298 59,373 2,373 28,478 26,721 15,115 181,375 161,364 22,763 273,151 247,458 58,197 698,367 544,139 1,814 21,771 12,981 39,958 479,494 462,509 99,969 1,199,631 1,019,629 271,889 3,262,666 2,423,476 87,034 1,044,413 896,179 7,423 89,077 71,639 366,346 4,396,156 3,391,294 7,086 85,037 87,322 4,714 56,572 63,920 38 451 4,878 11,838 142,059 156,119 1,330 15,958 22,724 5,336 64,032 54,234 0 0 (0) 6,666 79,991 76,957 481 5,777 6,829 73 872 3,405 1,948 23,376 26,975 2,502 30,025 37,210 226 2,713 3,694 0 0 855 1,035 12,415 12,987 1,261 15,128 17,536 RR16 - Page 270 of 426 07685
Page 128 of 270 SPS Labor Annualization No. Description Account 199 Miscellaneous - TX 598903 200 Miscellaneous - NM 598904 201 Miscellaneous 598 202 Total Miscellaneous 598 203 204 Total Distribution Maintenance 205 206 Total Distribution O&M 207 208 Customer Accounting Expense: 209 Supervision 901 210 Meter Reading 902 211 Billing & Cashiering 903 212 Uncollectible Accounts 904 213 Uncollectible Accounts 904907 214 Total Uncollectible Accounts 904 215 Customer Deposit Interest - Texas 216 Miscellaneous 905 217 Total Miscellaneous 905 218 219 Total Customer Accounting Expense 220 221 222 Customer Service Expense: 223 Supervision 907 224 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 225 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 226 Customer Assistance - EE - New Mexico 0908DSMNM 227 Customer Assistance - ICO Credits 0908ICO 228 Customer Assistance - Saver Switch & EE Labor 0908SVR 229 Customer Assistance - Other 908 230 Customer Assistance - Total 908 231 Advertisement 909 232 Miscellaneous 910 233 234 Total Customer Service Expense 235 Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 0 0 128 0 0 128 511,345 6,136,142 4,946,331 1,663,819 19,965,826 18,338,723 0 0 25 239,976 2,879,712 2,721,273 239,976 2,879,712 2,721,299 0 0 152,287 1,827,441 1,699,638 152,287 1,827,441 1,699,638 152,287 1,827,441 1,699,638 RR16 - Page 271 of 426 07686
Page 129 of 270 SPS Labor Annualization No. Description Account 236 Sales Expense: 237 Sales Expense - Supv. 911 238 Demonstrations & Selling 912 239 Advertising Expense - Sales 913 240 Miscellaneous Sales Expense 916 241 242 Total Sales Expense 243 244 Total Customer Service & Sales Expense 245 246 Total Customer Operations Expense 247 248 Administrative & General Expense: 249 Administrative Salaries 920 250 Office Supplies & Expense 921 251 A&G Expense Transferred 922 252 Outside Services - Legal 923 253 Property Insurance 924 254 Injuries and Damages 925 255 Pensions & Benefits 926 256 Deferred Pensions & Benefits 92603 257 Regulatory Commission Expense - Texas 928 258 Regulatory Commission Expense - New Mexico 928 259 Regulatory Commission Expense - Wholesale 928 260 Regulatory Commission Expense - NERC Fees 928 261 Regulatory Commission Expense - Misc 928 262 Total Regulatory Commission Expense 928 263 Duplicate Charges - Electric 929 264 Miscellaneous 930M 265 Rents - Retail Allocated 931 266 Rents - Other 931O 267 Rents 931 268 Maintenance of Structures 932 269 Maintenance of General Plant 935 270 Contributions &, Dues 271 Total Administrative & General Expense 272 273 Total O&M Expense Average Monthly Annualized Test Year Labor Expense Labor Expense Base Labor 13,481 161,767 149,226 13,481 161,767 149,226 165,767 1,989,208 1,848,863 405,743 4,868,920 4,570,162 281,129 3,373,545 3,327,036 281,129 3,373,545 3,327,036 6,121,481 73,457,769 69,853,172 RR16 - Page 272 of 426 07687
Page 130 of 270 SPS Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor 10,980 0 0 10,980 0 0 10,980 RR16 - Page 273 of 426 07688
Page 131 of 270 SPS Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor 0 0 10,980 RR16 - Page 274 of 426 07689
Page 132 of 270 SPS Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 82 Wheeling - Schedules 7 & 8 - Point to Point 0565R 83 Wheeling - Schedule 9 Network Integration 0565T 84 Wheeling - Schedule 11 0565T Wheeling - Schedule 12 - FERC Assessment 0565R 85 Wheeling - Other 0565T 86 87 88 Total Wheeling 565 89 90 Total Transmission O&M 91 92 Regional Market Expenses: 93 Operation Supervision 57510 94 DA & RT Mkt Admin 57520 95 Trans Rights Mkt Admin 57530 96 Cap Mkt Admin 57540 97 Ancillary Serv Mkt Admin 57550 98 Market Monitoring/Compliance 57560 99 Mkt Fac/Mon/Comp Serv 57570 100 Regional Market Rents 57580 101 Total Regional Market Expenses 102 103 Distribution Operations: 104 Supervision - H/S 580190 105 Supervision - Texas 580903 106 Supervision - New Mexico 580904 107 Supervision 580 108 Total Supervision 580 109 Load Dispatch - H/S 581190 110 Load Dispatch - Texas 581903 111 Load Dispatch - New Mexico 581904 112 Load Dispatch 581 113 Total Load Dispatch 581 114 Station Equipment - H/S 582190 115 Station Equipment - Texas 582903 116 Station Equipment - New Mexico 582904 117 Station Equipment 582 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor RR16 - Page 275 of 426 07690
Page 133 of 270 SPS Labor Annualization No. Description Account 118 Total Station Equipment 582 119 Overhead s - H/S 583190 120 Overhead s - Texas 583903 121 Overhead s - New Mexico 583904 122 Overhead s 583 123 Total Overhead s 583 124 Underground s - H/S 584190 125 Underground s - Texas 584903 126 Underground s - New Mexico 584904 127 Underground s 584 128 Total Underground s 584 129 Street Lighting - H/S 585190 130 Street Lighting - Texas 585903 131 Street Lighting - New Mexico 585904 132 Street Lighting 585 133 Total Street Lighting 585 134 Metering - H/S 586190 135 Metering - Texas 586903 136 Metering - New Mexico 586904 137 Metering 586 138 Total Metering 586 139 Customer Installations - H/S 587190 140 Customer Installations - Texas 587903 141 Customer Installations - New Mexico 587904 142 Customer Installations 587 143 Total Customer Installations 587 144 Miscellaneous - H/S 588190 145 Miscellaneous - Texas 588903 146 Miscellaneous - New Mexico 588904 147 Miscellaneous 588 148 Total Miscellaneous 588 149 Rents 589190 150 Rents - H/S 589903 151 Rents - Texas 589904 152 Rents - New Mexico 589 153 Total Rents 589 154 155 Total Distribution Operations 156 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor RR16 - Page 276 of 426 07691
Page 134 of 270 SPS Labor Annualization No. Description Account 157 Distribution Maintenance: 158 Supervision So - H/S 590190 159 Supervision - TX 590903 160 Supervision - NM 590904 161 Supervision 590 162 Total Supervision 590 163 Structures So - H/S 591190 164 Structures - TX 591903 165 Structures - NM 591904 166 Structures 591 167 Total Structures 591 168 Station Equipment So - H/S 592190 169 Station Equipment - TX 592903 170 Station Equipment - NM 592904 171 Station Equipment 592 172 Total Station Equipment 592 173 Overhead s So - H/S 593190 174 Overhead s - TX 593903 175 Overhead s - NM 593904 176 Overhead s 593 177 Total Overhead s 593 178 Underground s So - H/S 594190 179 Underground s - TX 594903 180 Underground s - NM 594904 181 Underground s 594 182 Total Underground s 594 183 Transformers So - H/S 595190 184 Transformers - TX 595903 185 Transformers - NM 595904 186 Transformers 595 187 Total Transformers 595 188 Street Lighting So - H/S 596190 189 Street Lighting - TX 596903 190 Street Lighting - NM 596904 191 Street Lighting 596 192 Total Street Lighting 596 193 Metering So - H/S 597190 194 Metering - TX 597903 195 Metering - NM 597904 196 Metering 597 197 Total Metering 597 198 Miscellaneous So - H/S 598190 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor RR16 - Page 277 of 426 07692
Page 135 of 270 SPS Labor Annualization No. Description Account 199 Miscellaneous - TX 598903 200 Miscellaneous - NM 598904 201 Miscellaneous 598 202 Total Miscellaneous 598 203 204 Total Distribution Maintenance 205 206 Total Distribution O&M 207 208 Customer Accounting Expense: 209 Supervision 901 210 Meter Reading 902 211 Billing & Cashiering 903 212 Uncollectible Accounts 904 213 Uncollectible Accounts 904907 214 Total Uncollectible Accounts 904 215 Customer Deposit Interest - Texas 216 Miscellaneous 905 217 Total Miscellaneous 905 218 219 Total Customer Accounting Expense 220 221 222 Customer Service Expense: 223 Supervision 907 224 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 225 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 226 Customer Assistance - EE - New Mexico 0908DSMNM 227 Customer Assistance - ICO Credits 0908ICO 228 Customer Assistance - Saver Switch & EE Labor 0908SVR 229 Customer Assistance - Other 908 230 Customer Assistance - Total 908 231 Advertisement 909 232 Miscellaneous 910 233 234 Total Customer Service Expense 235 Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor RR16 - Page 278 of 426 07693
Page 136 of 270 SPS Labor Annualization No. Description Account 236 Sales Expense: 237 Sales Expense - Supv. 911 238 Demonstrations & Selling 912 239 Advertising Expense - Sales 913 240 Miscellaneous Sales Expense 916 241 242 Total Sales Expense 243 244 Total Customer Service & Sales Expense 245 246 Total Customer Operations Expense 247 248 Administrative & General Expense: 249 Administrative Salaries 920 250 Office Supplies & Expense 921 251 A&G Expense Transferred 922 252 Outside Services - Legal 923 253 Property Insurance 924 254 Injuries and Damages 925 255 Pensions & Benefits 926 256 Deferred Pensions & Benefits 92603 257 Regulatory Commission Expense - Texas 928 258 Regulatory Commission Expense - New Mexico 928 259 Regulatory Commission Expense - Wholesale 928 260 Regulatory Commission Expense - NERC Fees 928 261 Regulatory Commission Expense - Misc 928 262 Total Regulatory Commission Expense 928 263 Duplicate Charges - Electric 929 264 Miscellaneous 930M 265 Rents - Retail Allocated 931 266 Rents - Other 931O 267 Rents 931 268 Maintenance of Structures 932 269 Maintenance of General Plant 935 270 Contributions &, Dues 271 Total Administrative & General Expense 272 273 Total O&M Expense Bus Area Adj Foundation Reclass Test Yr Test Yr Fuel Handling Base Labor Base Labor Base Labor 0 0 10,980 RR16 - Page 279 of 426 07694
Page 137 of 270 SPS Labor Annualization No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 1,676,934 (22,017) 10,980 0 6,221,715 (479,721) 6,020,599 (343,806) 2,895,879 467,402 0 0 0 0 0 0 0 16,826,107 (378,142) 1,311,642 87,546 1,443,479 46,320 5,559,676 823,022 4,211,244 171,070 5,071,114 410,221 0 0 0 17,597,154 1,538,179 0 34,423,262 1,160,037 793 (793) 0 0 305,413 75,904 66,268 (36,861) 0 0 0 372,474 38,251 164 (164) 56,440 1,577 504,950 168,965 0 0 0 561,554 170,378 0 934,028 208,629 RR16 - Page 280 of 426 07695
Page 138 of 270 SPS Labor Annualization No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 401,537 (141,200) 991 (991) 0 402,528 (142,191) 0 35,759,818 1,226,474 2,536,749 341,413 0 0 0 0 1,779,455 923 0 0 0 0 237,461 (182,065) 49,632 (45,427) 1,413 4,238 0 0 715,927 36,994 231,622 (45,431) 0 0 842,520 146,145 0 0 0 6,394,779 256,791 68,493 23,179 0 0 1,282,175 114,772 121,318 1,679 0 0 0 0 0 1,471,986 139,631 RR16 - Page 281 of 426 07696
Page 139 of 270 SPS Labor Annualization No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 82 Wheeling - Schedules 7 & 8 - Point to Point 0565R 83 Wheeling - Schedule 9 Network Integration 0565T 84 Wheeling - Schedule 11 0565T Wheeling - Schedule 12 - FERC Assessment 0565R 85 Wheeling - Other 0565T 86 87 88 Total Wheeling 565 89 90 Total Transmission O&M 91 92 Regional Market Expenses: 93 Operation Supervision 57510 94 DA & RT Mkt Admin 57520 95 Trans Rights Mkt Admin 57530 96 Cap Mkt Admin 57540 97 Ancillary Serv Mkt Admin 57550 98 Market Monitoring/Compliance 57560 99 Mkt Fac/Mon/Comp Serv 57570 100 Regional Market Rents 57580 101 Total Regional Market Expenses 102 103 Distribution Operations: 104 Supervision - H/S 580190 105 Supervision - Texas 580903 106 Supervision - New Mexico 580904 107 Supervision 580 108 Total Supervision 580 109 Load Dispatch - H/S 581190 110 Load Dispatch - Texas 581903 111 Load Dispatch - New Mexico 581904 112 Load Dispatch 581 113 Total Load Dispatch 581 114 Station Equipment - H/S 582190 115 Station Equipment - Texas 582903 116 Station Equipment - New Mexico 582904 117 Station Equipment 582 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 0 7,866,765 396,422 0 0 824 (824) 0 0 0 0 824 (824) 0 0 0 0 0 0 0 1,648 (1,648) 24,013 (24,013) 2,065,016 (299,186) 366,033 49,755 637,961 146,864 0 3,093,023 (126,580) 0 0 343,009 431,227 0 0 0 0 0 343,009 431,227 0 0 305,376 28,506 431 814 306,642 2,296 RR16 - Page 282 of 426 07697
Page 140 of 270 SPS Labor Annualization No. Description Account 118 Total Station Equipment 582 119 Overhead s - H/S 583190 120 Overhead s - Texas 583903 121 Overhead s - New Mexico 583904 122 Overhead s 583 123 Total Overhead s 583 124 Underground s - H/S 584190 125 Underground s - Texas 584903 126 Underground s - New Mexico 584904 127 Underground s 584 128 Total Underground s 584 129 Street Lighting - H/S 585190 130 Street Lighting - Texas 585903 131 Street Lighting - New Mexico 585904 132 Street Lighting 585 133 Total Street Lighting 585 134 Metering - H/S 586190 135 Metering - Texas 586903 136 Metering - New Mexico 586904 137 Metering 586 138 Total Metering 586 139 Customer Installations - H/S 587190 140 Customer Installations - Texas 587903 141 Customer Installations - New Mexico 587904 142 Customer Installations 587 143 Total Customer Installations 587 144 Miscellaneous - H/S 588190 145 Miscellaneous - Texas 588903 146 Miscellaneous - New Mexico 588904 147 Miscellaneous 588 148 Total Miscellaneous 588 149 Rents 589190 150 Rents - H/S 589903 151 Rents - Texas 589904 152 Rents - New Mexico 589 153 Total Rents 589 154 155 Total Distribution Operations 156 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 0 612,448 31,616 0 0 987,490 48,752 396,422 (39,940) 2,704 418 0 1,386,615 9,230 0 0 83,293 46,002 15,348 1,867 45 (27) 0 98,686 47,841 0 0 767 (767) 4,953 (2,200) 526,222 (116,897) 0 531,942 (119,864) 0 0 1,694,870 (19,819) 959,974 5,310 879,317 (50,653) 0 3,534,161 (65,162) 0 0 237,633 8,918 4,802 (2,521) 730,666 (103,674) 0 973,101 (97,276) 65,917 (65,917) 1,257,531 127,330 667,368 151,379 828,590 113,468 0 2,819,407 326,260 0 0 0 0 0 0 0 0 0 13,392,392 437,292 RR16 - Page 283 of 426 07698
Page 141 of 270 SPS Labor Annualization No. Description Account 157 Distribution Maintenance: 158 Supervision So - H/S 590190 159 Supervision - TX 590903 160 Supervision - NM 590904 161 Supervision 590 162 Total Supervision 590 163 Structures So - H/S 591190 164 Structures - TX 591903 165 Structures - NM 591904 166 Structures 591 167 Total Structures 591 168 Station Equipment So - H/S 592190 169 Station Equipment - TX 592903 170 Station Equipment - NM 592904 171 Station Equipment 592 172 Total Station Equipment 592 173 Overhead s So - H/S 593190 174 Overhead s - TX 593903 175 Overhead s - NM 593904 176 Overhead s 593 177 Total Overhead s 593 178 Underground s So - H/S 594190 179 Underground s - TX 594903 180 Underground s - NM 594904 181 Underground s 594 182 Total Underground s 594 183 Transformers So - H/S 595190 184 Transformers - TX 595903 185 Transformers - NM 595904 186 Transformers 595 187 Total Transformers 595 188 Street Lighting So - H/S 596190 189 Street Lighting - TX 596903 190 Street Lighting - NM 596904 191 Street Lighting 596 192 Total Street Lighting 596 193 Metering So - H/S 597190 194 Metering - TX 597903 195 Metering - NM 597904 196 Metering 597 197 Total Metering 597 198 Miscellaneous So - H/S 598190 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 0 0 59,373 3,926 26,721 1,757 161,364 20,010 0 247,458 25,693 0 0 0 0 0 0 0 0 0 0 544,139 154,228 12,981 8,789 462,509 16,984 0 1,019,629 180,002 0 0 2,423,476 839,190 896,179 148,234 71,639 17,438 0 3,391,294 1,004,862 0 0 87,322 (2,285) 63,920 (7,348) 4,878 (4,427) 0 156,119 (14,060) 0 0 22,724 (6,765) 54,234 9,799 (0) 0 0 76,957 3,034 0 0 6,829 (1,053) 3,405 (2,533) 26,975 (3,598) 0 37,210 (7,184) 0 0 3,694 (981) 855 (855) 12,987 (572) 0 17,536 (2,408) 0 0 RR16 - Page 284 of 426 07699
Page 142 of 270 SPS Labor Annualization No. Description Account 199 Miscellaneous - TX 598903 200 Miscellaneous - NM 598904 201 Miscellaneous 598 202 Total Miscellaneous 598 203 204 Total Distribution Maintenance 205 206 Total Distribution O&M 207 208 Customer Accounting Expense: 209 Supervision 901 210 Meter Reading 902 211 Billing & Cashiering 903 212 Uncollectible Accounts 904 213 Uncollectible Accounts 904907 214 Total Uncollectible Accounts 904 215 Customer Deposit Interest - Texas 216 Miscellaneous 905 217 Total Miscellaneous 905 218 219 Total Customer Accounting Expense 220 221 222 Customer Service Expense: 223 Supervision 907 224 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 225 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 226 Customer Assistance - EE - New Mexico 0908DSMNM 227 Customer Assistance - ICO Credits 0908ICO 228 Customer Assistance - Saver Switch & EE Labor 0908SVR 229 Customer Assistance - Other 908 230 Customer Assistance - Total 908 231 Advertisement 909 232 Miscellaneous 910 233 234 Total Customer Service Expense 235 Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 0 0 128 (128) 0 0 0 128 (128) 0 4,946,331 1,189,810 0 18,338,723 1,627,102 25 (25) 2,721,273 158,439 0 0 0 0 0 0 0 0 0 0 0 2,721,299 158,413 0 0 0 0 1,699,638 127,803 0 1,699,638 127,803 0 0 0 1,699,638 127,803 RR16 - Page 285 of 426 07700
Page 143 of 270 SPS Labor Annualization No. Description Account 236 Sales Expense: 237 Sales Expense - Supv. 911 238 Demonstrations & Selling 912 239 Advertising Expense - Sales 913 240 Miscellaneous Sales Expense 916 241 242 Total Sales Expense 243 244 Total Customer Service & Sales Expense 245 246 Total Customer Operations Expense 247 248 Administrative & General Expense: 249 Administrative Salaries 920 250 Office Supplies & Expense 921 251 A&G Expense Transferred 922 252 Outside Services - Legal 923 253 Property Insurance 924 254 Injuries and Damages 925 255 Pensions & Benefits 926 256 Deferred Pensions & Benefits 92603 257 Regulatory Commission Expense - Texas 928 258 Regulatory Commission Expense - New Mexico 928 259 Regulatory Commission Expense - Wholesale 928 260 Regulatory Commission Expense - NERC Fees 928 261 Regulatory Commission Expense - Misc 928 262 Total Regulatory Commission Expense 928 263 Duplicate Charges - Electric 929 264 Miscellaneous 930M 265 Rents - Retail Allocated 931 266 Rents - Other 931O 267 Rents 931 268 Maintenance of Structures 932 269 Maintenance of General Plant 935 270 Contributions &, Dues 271 Total Administrative & General Expense 272 273 Total O&M Expense Whls Acct Mgr Adjusted Test Yr Test Yr Base Labor Base Labor Adjustment 0 0 149,226 12,541 0 0 0 0 0 149,226 12,541 0 1,848,863 140,344 0 4,570,162 298,758 3,327,036 46,509 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,327,036 46,509 0 69,864,152 3,593,617 RR16 - Page 286 of 426 07701
Page 144 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 1,970,991 294,057 1,676,934 5 Fuel (Transportation & Handling) 0501F 410,157 410,157 0 6 Steam Expense 502 6,288,995 67,281 6,221,715 7 Electric Expense 505 6,020,599 0 6,020,599 8 Miscellaneous 506 5,769,443 2,873,564 2,895,879 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 20,460,185 3,645,058 16,815,127 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 1,531,185 219,543 1,311,642 16 Structures 511 1,442,591 (888) 1,443,479 17 Boilers 512 5,714,458 154,782 5,559,676 18 Electric Plant 513 4,392,575 181,332 4,211,244 19 Miscellaneous Plant 514 6,998,308 1,927,194 5,071,114 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 20,079,117 2,481,963 17,597,154 22 23 Total Steam Production O&M 40,539,303 6,127,021 34,412,282 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 4,193 3,400 793 27 Fuel Handling 547 28 Generation Expense 548 307,998 2,584 305,413 29 Miscellaneous 549 237,509 171,241 66,268 30 Rents 55 0 31 Total Combustion Turbine Production Operation 549,699 177,225 372,474 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 356 192 164 35 Structures 552 60,252 3,812 56,440 36 Electric Plant 553 591,699 86,749 504,950 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 652,307 90,753 561,554 39 40 Total Combustion Turbine Production O&M 1,202,006 267,978 934,028 41 RR16 - Page 287 of 426 07702
Page 145 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 42 System Control and Dispatch: 43 System Load Control 556 785,201 383,664 401,537 44 Other Expenditures 557 1,585,253 1,584,262 991 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 2,370,454 1,967,926 402,528 48 49 Total Non-Fuel Production O&M 44,111,763 8,362,925 35,748,838 50 51 Transmission Operations: 52 Supervision & Engineering 560 4,402,396 1,865,647 2,536,749 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 4,809 4,809 0 55 Load Dispatch - Monitor/Operate 56120 2,120,315 340,860 1,779,455 56 Load Dispatch - Transmission Serv/Sch 5613 0 57 Load Dispatch - Sch/Con/Disp Serv 5614 0 58 Rel/Plan/Standards Dev Serv 56150 266,995 29,534 237,461 59 Trans Service Studies 56160 49,632 0 49,632 60 Generation Interconnection Studies 56170 1,413 0 1,413 61 Rel/Plan/Standards Dev Serv 5618 0 62 Station Equipment 562 748,921 32,995 715,927 63 Overhead s 563 265,882 34,259 231,622 64 Underground s 564 65 Miscellaneous 566 1,561,344 718,824 842,520 66 Rents 567 67 Total Transmission Operations 9,421,708 3,026,929 6,394,779 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 68,493 0 68,493 71 Structures 569 72 Station Equipment 570 1,282,175 0 1,282,175 73 Overhead s 571 127,697 6,379 121,318 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 1,478,365 6,379 1,471,986 77 RR16 - Page 288 of 426 07703
Page 146 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 10,900,073 3,033,308 7,866,765 93 94 Regional Market Expenses: 95 Operation Supervision 57510 132,062 132,062 0 96 DA & RT Mkt Admin 57520 36,196 35,372 824 97 Trans Rights Mkt Admin 5753 0 98 Cap Mkt Admin 5754 0 99 Ancillary Serv Mkt Admin 57550 8,208 7,384 824 100 Market Monitoring/Compliance 57560 51,839 51,839 0 101 Mkt Fac/Mon/Comp Serv 5757 0 102 Regional Market Rents 5758 0 103 Total Regional Market Expenses 228,306 226,658 1,648 104 105 Distribution Operations: 106 Supervision - H/S 580190 24,013 0 24,013 107 Supervision - Texas 580903 2,065,016 0 2,065,016 108 Supervision - New Mexico 580904 366,033 0 366,033 109 Supervision 580 1,291,143 653,182 637,961 110 Total Supervision 580 3,746,205 653,182 3,093,023 111 Load Dispatch - H/S 58119 0 112 Load Dispatch - Texas 581903 343,009 0 343,009 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 118,962 118,962 0 115 Total Load Dispatch 581 461,971 118,962 343,009 116 Station Equipment - H/S 58219 0 117 Station Equipment - Texas 582903 305,376 0 305,376 118 Station Equipment - New Mexico 582904 431 0 431 119 Station Equipment 582 306,642 0 306,642 RR16 - Page 289 of 426 07704
Page 147 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 120 Total Station Equipment 582 612,448 0 612,448 121 Overhead s - H/S 58319 0 122 Overhead s - Texas 583903 987,490 0 987,490 123 Overhead s - New Mexico 583904 396,422 0 396,422 124 Overhead s 583 41,545 38,841 2,704 125 Total Overhead s 583 1,425,456 38,841 1,386,615 126 Underground s - H/S 58419 0 127 Underground s - Texas 584903 83,293 0 83,293 128 Underground s - New Mexico 584904 15,348 0 15,348 129 Underground s 584 45 0 45 130 Total Underground s 584 98,686 0 98,686 131 Street Lighting - H/S 58519 0 132 Street Lighting - Texas 585903 767 0 767 133 Street Lighting - New Mexico 585904 4,953 0 4,953 134 Street Lighting 585 526,222 0 526,222 135 Total Street Lighting 585 531,942 0 531,942 136 Metering - H/S 58619 0 137 Metering - Texas 586903 1,694,870 0 1,694,870 138 Metering - New Mexico 586904 959,974 0 959,974 139 Metering 586 1,110,432 231,115 879,317 140 Total Metering 586 3,765,276 231,115 3,534,161 141 Customer Installations - H/S 58719 0 142 Customer Installations - Texas 587903 237,633 0 237,633 143 Customer Installations - New Mexico 587904 4,802 0 4,802 144 Customer Installations 587 730,666 0 730,666 145 Total Customer Installations 587 973,101 0 973,101 146 Miscellaneous - H/S 588190 65,917 0 65,917 147 Miscellaneous - Texas 588903 1,257,531 0 1,257,531 148 Miscellaneous - New Mexico 588904 667,368 0 667,368 149 Miscellaneous 588 865,912 37,322 828,590 150 Total Miscellaneous 588 2,856,728 37,322 2,819,407 151 Rents 58919 0 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 14,471,813 1,079,421 13,392,392 158 RR16 - Page 290 of 426 07705
Page 148 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 159 Distribution Maintenance: 160 Supervision So - H/S 59019 0 161 Supervision - TX 590903 59,373 0 59,373 162 Supervision - NM 590904 26,721 0 26,721 163 Supervision 590 176,988 15,624 161,364 164 Total Supervision 590 263,082 15,624 247,458 165 Structures So - H/S 59119 0 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 59219 0 171 Station Equipment - TX 592903 544,139 0 544,139 172 Station Equipment - NM 592904 12,981 0 12,981 173 Station Equipment 592 462,509 0 462,509 174 Total Station Equipment 592 1,019,629 0 1,019,629 175 Overhead s So - H/S 59319 0 176 Overhead s - TX 593903 2,423,476 0 2,423,476 177 Overhead s - NM 593904 896,179 0 896,179 178 Overhead s 593 96,224 24,585 71,639 179 Total Overhead s 593 3,415,879 24,585 3,391,294 180 Underground s So - H/S 59419 0 181 Underground s - TX 594903 87,322 0 87,322 182 Underground s - NM 594904 63,920 0 63,920 183 Underground s 594 4,878 0 4,878 184 Total Underground s 594 156,119 0 156,119 185 Transformers So - H/S 59519 0 186 Transformers - TX 595903 22,724 0 22,724 187 Transformers - NM 595904 54,234 0 54,234 188 Transformers 595 (0) 0 (0) 189 Total Transformers 595 76,957 0 76,957 190 Street Lighting So - H/S 59619 0 191 Street Lighting - TX 596903 6,829 0 6,829 192 Street Lighting - NM 596904 3,405 0 3,405 193 Street Lighting 596 26,975 0 26,975 194 Total Street Lighting 596 37,210 0 37,210 195 Metering So - H/S 59719 0 196 Metering - TX 597903 3,694 0 3,694 197 Metering - NM 597904 855 0 855 198 Metering 597 12,987 0 12,987 199 Total Metering 597 17,536 0 17,536 200 Miscellaneous So - H/S 59819 0 RR16 - Page 291 of 426 07706
Page 149 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 128 0 128 203 Miscellaneous 598 204 Total Miscellaneous 598 128 0 128 205 206 Total Distribution Maintenance 4,986,540 40,209 4,946,331 207 208 Total Distribution O&M 19,458,353 1,119,630 18,338,723 209 210 Customer Accounting Expense: 211 Supervision 901 24,115 24,090 25 212 Meter Reading 902 2,750,367 29,094 2,721,273 213 Billing & Cashiering 903 2,584,784 2,584,784 0 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 5,359,266 2,637,968 2,721,299 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 21,446 21,446 0 231 Customer Assistance - Other 908 2,105,067 405,429 1,699,638 232 Customer Assistance - Total 908 2,126,513 426,875 1,699,638 233 Advertisement 909 234 Miscellaneous 91 0 235 236 Total Customer Service Expense 2,126,513 426,875 1,699,638 237 RR16 - Page 292 of 426 07707
Page 150 of 270 Wage Adjustment Per Book Total XES SPS 50 BL BL BL No. Description Account Base Labor Base Labor Base Labor 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 174,173 24,948 149,226 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 174,173 24,948 149,226 245 246 Total Customer Service & Sales Expense 2,300,686 451,823 1,848,863 247 248 Total Customer Operations Expense 7,659,952 3,089,790 4,570,162 249 250 Administrative & General Expense: 251 Administrative Salaries 920 17,603,446 14,276,410 3,327,036 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 17,603,446 14,276,410 3,327,036 274 275 Total O&M Expense 99,961,893 30,108,721 69,853,172 RR16 - Page 293 of 426 07708
Page 151 of 270 Wage Adjustment No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor (17,980) (22,017) 276,077 1,654,917 18,002 10,980 428,159 10,980 (26,642) (479,721) 40,638 5,741,994 0 (343,806) 0 5,676,793 237,971 467,402 3,111,535 3,363,282 0 0 0 211,350 (367,162) 3,856,408 16,447,966 21,166 87,546 240,709 1,399,188 8,018 46,320 7,130 1,489,800 (43,013) 823,022 111,769 6,382,698 (18,703) 171,070 162,629 4,382,313 432,501 410,221 2,359,695 5,481,335 0 399,969 1,538,179 2,881,932 19,135,334 611,319 1,171,017 6,738,340 35,583,299 (1,365) (793) 2,034 0 0 7,753 75,904 10,338 381,318 (6,752) (36,861) 164,489 29,407 0 (364) 38,251 176,861 410,725 24 (164) 216 0 (3,812) 1,577 0 58,017 (3,672) 168,965 83,077 673,915 0 (7,460) 170,378 83,293 731,932 (7,824) 208,629 260,154 1,142,657 RR16 - Page 294 of 426 07709
Page 152 of 270 Wage Adjustment No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 179,647 (141,200) 563,312 260,337 59,706 (991) 1,643,968 0 0 0 0 0 239,354 (142,191) 2,207,280 260,337 842,849 1,237,455 9,205,774 36,986,293 (433,478) 341,413 1,432,169 2,878,162 0 13,787 0 18,596 0 27,095 923 367,955 1,780,378 0 0 (7,945) (182,065) 21,589 55,396 0 (45,427) 0 4,204 0 4,238 0 5,651 0 5,866 36,994 38,860 752,920 (5,611) (45,431) 28,648 186,192 0 485,463 146,145 1,204,287 988,666 0 85,176 256,791 3,112,104 6,651,570 0 23,179 0 91,672 0 0 114,772 0 1,396,947 597 1,679 6,977 122,997 0 0 597 139,631 6,977 1,611,617 RR16 - Page 295 of 426 07710
Page 153 of 270 Wage Adjustment No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 0 0 0 0 0 0 0 0 0 0 0 0 85,773 396,422 3,119,081 8,263,187 (17,507) 0 114,555 0 (5,583) (824) 29,789 0 0 0 (2,310) (824) 5,074 0 (6,775) 0 45,064 0 0 0 (32,176) (1,648) 194,482 0 0 (24,013) 0 0 0 (299,186) 0 1,765,831 0 49,755 0 415,788 40,011 146,864 693,193 784,825 40,011 (126,580) 693,193 2,966,443 0 0 431,227 0 774,236 0 7,520 0 126,481 0 7,520 431,227 126,481 774,236 0 0 28,506 0 333,882 0 814 0 1,245 0 2,296 0 308,938 RR16 - Page 296 of 426 07711
Page 154 of 270 Wage Adjustment No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 0 31,616 0 644,064 0 0 48,752 0 1,036,242 0 (39,940) 0 356,482 5,058 418 43,899 3,121 5,058 9,230 43,899 1,395,845 0 0 46,002 0 129,295 0 1,867 0 17,214 0 (27) 0 18 0 47,841 0 146,527 0 0 (767) 0 0 0 (2,200) 0 2,753 0 (116,897) 0 409,325 0 (119,864) 0 412,078 0 0 (19,819) 0 1,675,050 0 5,310 0 965,284 22,674 (50,653) 253,789 828,664 22,674 (65,162) 253,789 3,468,999 0 0 8,918 0 246,551 0 (2,521) 0 2,281 0 (103,674) 0 626,993 0 (97,276) 0 875,824 0 (65,917) 0 0 0 127,330 0 1,384,861 0 151,379 0 818,747 9,232 113,468 46,554 942,058 9,232 326,260 46,554 3,145,667 0 0 0 0 0 84,494 437,292 1,163,915 13,829,684 RR16 - Page 297 of 426 07712
Page 155 of 270 Wage Adjustment No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 0 0 3,926 0 63,298 0 1,757 0 28,478 13,583 20,010 29,207 181,375 13,583 25,693 29,207 273,151 0 0 0 0 0 0 0 154,228 0 698,367 0 8,789 0 21,771 0 16,984 0 479,494 0 180,002 0 1,199,631 0 0 839,190 0 3,262,666 0 148,234 0 1,044,413 2,303 17,438 26,889 89,077 2,303 1,004,862 26,889 4,396,156 0 0 (2,285) 0 85,037 0 (7,348) 0 56,572 0 (4,427) 0 451 0 (14,060) 0 142,059 0 0 (6,765) 0 15,958 0 9,799 0 64,032 0 0 3,034 0 79,991 0 0 (1,053) 0 5,777 0 (2,533) 0 872 0 (3,598) 0 23,376 0 (7,184) 0 30,025 0 0 (981) 0 2,713 0 (855) 0 0 0 (572) 0 12,415 0 (2,408) 0 15,128 0 RR16 - Page 298 of 426 07713
Page 156 of 270 Wage Adjustment No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 0 0 (128) 0 0 0 0 (128) 0 0 15,886 1,189,810 56,095 6,136,142 100,381 1,627,102 1,220,011 19,965,826 1,359 (25) 25,449 0 1,063 158,439 30,157 2,879,712 51,254 0 2,636,038 0 0 0 0 0 0 0 53,676 158,413 2,691,643 2,879,712 0 (4,427) 0 17,019 0 (188,770) 127,803 216,659 1,827,441 (193,196) 127,803 233,679 1,827,441 0 0 (193,196) 127,803 233,679 1,827,441 RR16 - Page 299 of 426 07714
Page 157 of 270 Wage Adjustment No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Adjustments to Per Book Base Labor Adjusted Base Labor XES SPS XES SPS Base Labor Base Labor Base Labor Base Labor 0 (24,948) 12,541 0 161,767 0 0 (24,948) 12,541 0 161,767 (218,144) 140,344 233,679 1,989,208 (164,468) 298,758 2,925,322 4,868,920 296,219 46,509 14,572,629 3,373,545 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 296,219 46,509 14,572,629 3,373,545 1,128,577 3,604,597 31,237,298 73,457,769 RR16 - Page 300 of 426 07715
Page 158 of 270 Wage Adjustment No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 8,282 49,648 57,930 12,845 329 13,174 1,219 172,260 173,479 0 170,304 170,304 93,346 100,898 194,244 115,692 493,439 609,131 7,221 41,976 49,197 214 44,694 44,908 3,353 191,481 194,834 4,879 131,469 136,348 70,791 164,440 235,231 86,458 574,060 660,518 202,150 1,067,499 1,269,649 61 0 61 310 11,440 11,750 4,935 882 5,817 5,306 12,322 17,628 6 0 6 0 1,741 1,741 2,492 20,217 22,710 2,499 21,958 24,457 7,805 34,280 42,084 RR16 - Page 301 of 426 07716
Page 159 of 270 Wage Adjustment No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 16,899 7,810 24,709 49,319 0 49,319 66,218 7,810 74,028 276,173 1,109,589 1,385,762 42,965 86,345 129,310 558 0 558 11,039 53,411 64,450 648 1,662 2,310 0 126 126 0 170 170 1,166 22,588 23,753 859 5,586 6,445 36,129 29,660 65,789 93,363 199,547 292,910 0 2,750 2,750 0 41,908 41,908 209 3,690 3,899 209 48,349 48,558 RR16 - Page 302 of 426 07717
Page 160 of 270 Wage Adjustment No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 93,572 247,896 341,468 3,437 0 3,437 894 0 894 152 0 152 1,352 0 1,352 5,834 0 5,834 0 52,975 52,975 0 12,474 12,474 20,796 23,545 44,341 20,796 88,993 109,789 0 23,227 23,227 3,794 0 3,794 3,794 23,227 27,022 0 10,016 10,016 0 37 37 0 9,268 9,268 RR16 - Page 303 of 426 07718
Page 161 of 270 Wage Adjustment No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 0 19,322 19,322 0 31,087 31,087 0 10,694 10,694 1,317 94 1,411 1,317 41,875 43,192 0 3,879 3,879 0 516 516 0 1 1 0 4,396 4,396 0 83 83 0 12,280 12,280 0 12,362 12,362 0 50,252 50,252 0 28,959 28,959 7,614 24,860 32,474 7,614 104,070 111,684 0 7,397 7,397 0 68 68 0 18,810 18,810 0 26,275 26,275 0 41,546 41,546 0 24,562 24,562 1,397 28,262 29,658 1,397 94,370 95,767 34,917 414,891 449,808 RR16 - Page 304 of 426 07719
Page 162 of 270 Wage Adjustment No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 0 1,899 1,899 0 854 854 876 5,441 6,317 876 8,195 9,071 0 20,951 20,951 0 653 653 0 14,385 14,385 0 35,989 35,989 0 97,880 97,880 0 31,332 31,332 807 2,672 3,479 807 131,885 132,691 0 2,551 2,551 0 1,697 1,697 0 14 14 0 4,262 4,262 0 479 479 0 1,921 1,921 0 2,400 2,400 0 173 173 0 26 26 0 701 701 0 901 901 0 81 81 0 372 372 0 454 454 RR16 - Page 305 of 426 07720
Page 163 of 270 Wage Adjustment No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 1,683 184,084 185,767 36,600 598,975 635,575 763 0 763 905 86,391 87,296 79,081 0 79,081 80,749 86,391 167,141 511 0 511 6,500 54,823 61,323 7,010 54,823 61,834 7,010 54,823 61,834 RR16 - Page 306 of 426 07721
Page 164 of 270 Wage Adjustment No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Wage Increase XES SPS Total 3.00% 3.00% XES+SPS Base Labor Base Labor Base Labor 0 4,853 4,853 0 4,853 4,853 7,010 59,676 66,687 87,760 146,068 233,827 437,179 101,206 538,385 437,179 101,206 538,385 937,119 2,203,733 3,140,852 RR16 - Page 307 of 426 07722
Page 165 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 118,266 46,659 71,607 5 Fuel (Transportation & Handling) 0501F 65,684 65,684 0 6 Steam Expense 502 261,239 12,867 248,372 7 Electric Expense 505 240,223 0 240,223 8 Miscellaneous 506 575,549 461,178 114,371 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 1,260,961 586,388 674,573 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 88,633 35,647 52,986 16 Structures 511 59,025 (149) 59,174 17 Boilers 512 190,440 22,673 167,767 18 Electric Plant 513 153,921 26,502 127,419 19 Miscellaneous Plant 514 512,237 311,951 200,285 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 1,004,256 396,625 607,631 22 23 Total Steam Production O&M 2,265,217 983,012 1,282,205 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 585 560 25 27 Fuel Handling 547 28 Generation Expense 548 12,466 329 12,137 29 Miscellaneous 549 29,582 27,660 1,922 30 Rents 55 0 31 Total Combustion Turbine Production Operation 42,633 28,548 14,085 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 33 27 5 35 Structures 552 2,445 447 1,998 36 Electric Plant 553 33,438 12,899 20,539 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 35,917 13,374 22,543 39 40 Total Combustion Turbine Production O&M 78,550 41,922 36,628 41 RR16 - Page 308 of 426 07723
Page 166 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 42 System Control and Dispatch: 43 System Load Control 556 105,110 68,473 36,637 44 Other Expenditures 557 253,396 253,356 40 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 358,505 321,829 36,676 48 49 Total Non-Fuel Production O&M 2,702,272 1,346,763 1,355,509 50 51 Transmission Operations: 52 Supervision & Engineering 560 425,695 315,887 109,807 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 585 585 0 55 Load Dispatch - Monitor/Operate 56120 120,104 54,653 65,451 56 Load Dispatch - Transmission Serv/Sch 5613 0 57 Load Dispatch - Sch/Con/Disp Serv 5614 0 58 Rel/Plan/Standards Dev Serv 56150 12,184 3,373 8,811 59 Trans Service Studies 56160 344 0 344 60 Generation Interconnection Studies 56170 16 0 16 61 Rel/Plan/Standards Dev Serv 5618 0 62 Station Equipment 562 31,471 6,034 25,437 63 Overhead s 563 14,536 7,010 7,526 64 Underground s 564 65 Miscellaneous 566 143,451 111,151 32,299 66 Rents 567 67 Total Transmission Operations 748,385 498,695 249,691 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 2,111 0 2,111 71 Structures 569 72 Station Equipment 570 44,798 0 44,798 73 Overhead s 571 5,896 1,305 4,591 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 52,805 1,305 51,500 77 RR16 - Page 309 of 426 07724
Page 167 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 801,190 499,999 301,191 93 94 Regional Market Expenses: 95 Operation Supervision 57510 22,674 22,674 0 96 DA & RT Mkt Admin 57520 5,396 5,363 33 97 Trans Rights Mkt Admin 5753 0 98 Cap Mkt Admin 5754 0 99 Ancillary Serv Mkt Admin 57550 1,093 1,060 33 100 Market Monitoring/Compliance 57560 10,281 10,281 0 101 Mkt Fac/Mon/Comp Serv 5757 0 102 Regional Market Rents 5758 0 103 Total Regional Market Expenses 39,444 39,378 66 104 105 Distribution Operations: 106 Supervision - H/S 580190 1,119 0 1,119 107 Supervision - Texas 580903 87,521 0 87,521 108 Supervision - New Mexico 580904 15,278 0 15,278 109 Supervision 580 130,668 104,364 26,304 110 Total Supervision 580 234,586 104,364 130,222 111 Load Dispatch - H/S 58119 0 112 Load Dispatch - Texas 581903 9,910 0 9,910 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 19,164 19,164 0 115 Total Load Dispatch 581 29,074 19,164 9,910 116 Station Equipment - H/S 58219 0 117 Station Equipment - Texas 582903 11,851 0 11,851 118 Station Equipment - New Mexico 582904 17 0 17 119 Station Equipment 582 11,594 0 11,594 RR16 - Page 310 of 426 07725
Page 168 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 120 Total Station Equipment 582 23,462 0 23,462 121 Overhead s - H/S 58319 0 122 Overhead s - Texas 583903 29,981 0 29,981 123 Overhead s - New Mexico 583904 10,535 0 10,535 124 Overhead s 583 5,562 5,508 53 125 Total Overhead s 583 46,078 5,508 40,569 126 Underground s - H/S 58419 0 127 Underground s - Texas 584903 2,322 0 2,322 128 Underground s - New Mexico 584904 399 0 399 129 Underground s 584 2 0 2 130 Total Underground s 584 2,722 0 2,722 131 Street Lighting - H/S 58519 0 132 Street Lighting - Texas 585903 23 0 23 133 Street Lighting - New Mexico 585904 202 0 202 134 Street Lighting 585 21,932 0 21,932 135 Total Street Lighting 585 22,157 0 22,157 136 Metering - H/S 58619 0 137 Metering - Texas 586903 74,359 0 74,359 138 Metering - New Mexico 586904 41,860 0 41,860 139 Metering 586 70,095 34,532 35,563 140 Total Metering 586 186,314 34,532 151,782 141 Customer Installations - H/S 58719 0 142 Customer Installations - Texas 587903 9,559 0 9,559 143 Customer Installations - New Mexico 587904 219 0 219 144 Customer Installations 587 30,890 0 30,890 145 Total Customer Installations 587 40,668 0 40,668 146 Miscellaneous - H/S 588190 3,510 0 3,510 147 Miscellaneous - Texas 588903 53,175 0 53,175 148 Miscellaneous - New Mexico 588904 25,288 0 25,288 149 Miscellaneous 588 37,398 6,061 31,336 150 Total Miscellaneous 588 119,370 6,061 113,309 151 Rents 58919 0 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 704,430 169,630 534,800 158 RR16 - Page 311 of 426 07726
Page 169 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 159 Distribution Maintenance: 160 Supervision So - H/S 59019 0 161 Supervision - TX 590903 2,582 0 2,582 162 Supervision - NM 590904 1,102 0 1,102 163 Supervision 590 8,337 2,319 6,017 164 Total Supervision 590 12,020 2,319 9,701 165 Structures So - H/S 59119 0 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 59219 0 171 Station Equipment - TX 592903 19,052 0 19,052 172 Station Equipment - NM 592904 639 0 639 173 Station Equipment 592 20,308 0 20,308 174 Total Station Equipment 592 39,999 0 39,999 175 Overhead s So - H/S 59319 0 176 Overhead s - TX 593903 61,076 0 61,076 177 Overhead s - NM 593904 18,708 0 18,708 178 Overhead s 593 6,930 4,568 2,362 179 Total Overhead s 593 86,715 4,568 82,147 180 Underground s So - H/S 59419 0 181 Underground s - TX 594903 2,922 0 2,922 182 Underground s - NM 594904 1,775 0 1,775 183 Underground s 594 154 0 154 184 Total Underground s 594 4,851 0 4,851 185 Transformers So - H/S 59519 0 186 Transformers - TX 595903 878 0 878 187 Transformers - NM 595904 2,263 0 2,263 188 Transformers 595 (0) 0 (0) 189 Total Transformers 595 3,141 0 3,141 190 Street Lighting So - H/S 59619 0 191 Street Lighting - TX 596903 116 0 116 192 Street Lighting - NM 596904 89 0 89 193 Street Lighting 596 994 0 994 194 Total Street Lighting 596 1,199 0 1,199 195 Metering So - H/S 59719 0 196 Metering - TX 597903 184 0 184 197 Metering - NM 597904 28 0 28 198 Metering 597 477 0 477 199 Total Metering 597 689 0 689 200 Miscellaneous So - H/S 59819 0 RR16 - Page 312 of 426 07727
Page 170 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 4 0 4 203 Miscellaneous 598 204 Total Miscellaneous 598 4 0 4 205 206 Total Distribution Maintenance 148,618 6,887 141,731 207 208 Total Distribution O&M 853,048 176,517 676,531 209 210 Customer Accounting Expense: 211 Supervision 901 3,590 3,590 0 212 Meter Reading 902 111,552 4,911 106,641 213 Billing & Cashiering 903 389,810 389,810 0 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 504,952 398,311 106,641 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 3,578 3,578 0 231 Customer Assistance - Other 908 144,865 74,217 70,648 232 Customer Assistance - Total 908 148,443 77,795 70,648 233 Advertisement 909 234 Miscellaneous 91 0 235 236 Total Customer Service Expense 148,443 77,795 70,648 237 RR16 - Page 313 of 426 07728
Page 171 of 270 Adjustments to Incentive Per Book Total XES SPS 50 INC INC INC No. Description Account Incentive Incentive Incentive 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 12,092 5,706 6,386 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 12,092 5,706 6,386 245 246 Total Customer Service & Sales Expense 160,535 83,501 77,034 247 248 Total Customer Operations Expense 665,487 481,812 183,675 249 250 Administrative & General Expense: 251 Administrative Salaries 920 2,472,222 2,331,561 140,661 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 2,472,222 2,331,561 140,661 274 275 Total O&M Expense 7,533,663 4,876,031 2,657,633 RR16 - Page 314 of 426 07729
Page 172 of 270 Adjustments to Incentive No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 0 0 46,659 71,607 0 0 65,684 0 0 0 12,867 248,372 240,223 1 0 461,178 114,371 0 0 0 1 0 586,388 674,573 0 0 35,647 52,986 0 0 (149) 59,174 (9,461) 0 13,212 167,767 9,461 0 35,963 127,419 0 0 311,951 200,285 0 0 0 396,625 607,631 1 0 983,013 1,282,205 0 0 560 25 0 0 0 329 12,137 0 0 27,660 1,922 0 0 0 28,548 14,085 0 0 27 5 0 0 447 1,998 0 0 12,899 20,539 0 0 0 13,374 22,543 0 0 41,922 36,628 RR16 - Page 315 of 426 07730
Page 173 of 270 Adjustments to Incentive No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive (1,500) 0 66,973 36,637 (328) 0 253,028 40 (1,828) 0 320,002 36,676 (1,827) 0 1,344,936 1,355,509 0 0 315,887 109,807 0 0 0 585 0 0 0 54,653 65,451 0 0 0 0 3,373 8,811 344 16 0 0 0 6,034 25,437 0 0 7,010 7,526 0 0 0 111,151 32,299 0 0 0 498,695 249,691 2,111 0 44,798 (22) 0 1,283 4,591 0 0 (22) 0 1,283 51,500 RR16 - Page 316 of 426 07731
Page 174 of 270 Adjustments to Incentive No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 0 0 0 0 0 0 0 0 0 0 0 0 (22) 0 499,977 301,191 0 0 22,674 0 1,500 0 6,863 33 0 0 0 0 1,060 33 0 0 10,281 0 0 0 1,500 0 40,878 66 1,119 87,521 15,278 0 0 104,364 26,304 0 0 104,364 130,222 0 9,910 0 0 0 19,164 0 0 0 19,164 9,910 0 11,851 17 11,594 RR16 - Page 317 of 426 07732
Page 175 of 270 Adjustments to Incentive No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 23,462 0 29,981 10,535 0 0 5,508 53 0 0 5,508 40,569 0 2,322 399 2 2,722 0 23 202 21,932 22,157 0 74,359 41,860 (29) 0 34,503 35,563 (29) 0 34,503 151,782 0 9,559 219 30,890 40,668 3,510 53,175 25,288 0 0 6,062 31,336 0 0 6,062 113,309 0 0 0 0 0 (29) 0 169,601 534,800 RR16 - Page 318 of 426 07733
Page 176 of 270 Adjustments to Incentive No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 0 2,582 1,102 0 0 2,319 6,017 0 0 2,319 9,701 0 0 0 0 0 0 19,052 639 20,308 39,999 0 61,076 18,708 0 0 4,568 2,362 0 0 4,568 82,147 0 2,922 1,775 154 4,851 0 878 2,263 (0) 3,141 0 116 89 994 1,199 0 184 28 477 689 0 RR16 - Page 319 of 426 07734
Page 177 of 270 Adjustments to Incentive No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 0 4 0 4 0 0 6,887 141,731 (29) 0 176,488 676,531 0 0 3,590 0 0 0 4,912 106,641 (40) 0 389,770 0 0 0 0 0 0 0 (40) 0 398,271 106,641 0 0 0 0 0 0 0 3,578 0 (11,098) 0 63,119 70,648 (11,098) 0 66,697 70,648 0 0 (11,098) 0 66,697 70,648 RR16 - Page 320 of 426 07735
Page 178 of 270 Adjustments to Incentive No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Adjustments to Per Book Incentive Adjusted Incentive XES SPS XES SPS Incentive Incentive Incentive Incentive 0 0 0 5,706 6,386 0 0 0 0 5,706 6,386 (11,098) 0 72,403 77,034 (11,138) 0 470,674 183,675 (50,606) 0 2,280,955 140,661 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (50,606) 0 2,280,955 140,661 (62,122) 0 4,813,909 2,657,633 RR16 - Page 321 of 426 07736
Page 179 of 270 Adjustments to Incentive No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive (7,849) (13,274) (21,122) (11,049) 0 (11,049) (2,164) (46,040) (48,204) 0 (44,530) (44,530) (77,578) (21,201) (98,778) (98,640) (125,044) (223,684) (5,996) (9,822) (15,818) 25 (10,969) (10,944) (2,222) (31,099) (33,321) (6,050) (23,619) (29,669) (52,475) (37,126) (89,602) (66,719) (112,635) (179,354) (165,359) (237,679) (403,037) (94) (5) (99) (55) (2,250) (2,305) (4,653) (356) (5,009) (4,802) (2,611) (7,413) (5) (1) (6) (75) (370) (446) (2,170) (3,807) (5,977) (2,250) (4,179) (6,428) (7,052) (6,790) (13,842) RR16 - Page 322 of 426 07737
Page 180 of 270 Adjustments to Incentive No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive (11,266) (6,791) (18,057) (42,563) (7) (42,571) (53,829) (6,799) (60,628) (226,240) (251,267) (477,507) (53,137) (20,355) (73,492) (98) 0 (98) (9,194) (12,132) (21,326) (567) (1,633) (2,201) 0 (64) (64) 0 (3) (3) (1,015) (4,715) (5,730) (1,179) (1,395) (2,574) (18,697) (5,987) (24,685) (83,888) (46,284) (130,173) 0 (391) (391) 0 (8,304) (8,304) (216) (851) (1,067) (216) (9,546) (9,762) RR16 - Page 323 of 426 07738
Page 181 of 270 Adjustments to Incentive No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive (84,104) (55,831) (139,935) (3,814) 0 (3,814) (1,154) (6) (1,161) (178) (6) (184) (1,729) 0 (1,729) (6,876) (12) (6,889) 0 (207) (207) 0 (16,224) (16,224) 0 (2,832) (2,832) (17,556) (4,876) (22,432) (17,556) (24,139) (41,695) 0 (1,837) (1,837) (3,224) 0 (3,224) (3,224) (1,837) (5,061) 0 (2,197) (2,197) 0 (3) (3) 0 (2,149) (2,149) RR16 - Page 324 of 426 07739
Page 182 of 270 Adjustments to Incentive No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive 0 (4,349) (4,349) 0 (5,558) (5,558) 0 (1,953) (1,953) (927) (10) (936) (927) (7,520) (8,447) 0 (430) (430) 0 (74) (74) 0 (0) (0) 0 (505) (505) 0 (4) (4) 0 (37) (37) 0 (4,065) (4,065) 0 (4,107) (4,107) 0 (13,784) (13,784) 0 (7,759) (7,759) (5,804) (6,592) (12,396) (5,804) (28,135) (33,939) 0 (1,772) (1,772) 0 (41) (41) 0 (5,726) (5,726) 0 (7,538) (7,538) 0 (651) (651) 0 (9,857) (9,857) 0 (4,688) (4,688) (1,020) (5,809) (6,828) (1,020) (21,004) (22,023) (28,530) (99,134) (127,664) RR16 - Page 325 of 426 07740
Page 183 of 270 Adjustments to Incentive No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive 0 (479) (479) 0 (204) (204) (390) (1,115) (1,506) (390) (1,798) (2,188) 0 (3,532) (3,532) 0 (118) (118) 0 (3,764) (3,764) 0 (7,414) (7,414) 0 (11,322) (11,322) 0 (3,468) (3,468) (768) (438) (1,206) (768) (15,227) (15,996) 0 (542) (542) 0 (329) (329) 0 (29) (29) 0 (899) (899) 0 (163) (163) 0 (420) (420) 0 (582) (582) 0 (21) (21) 0 (16) (16) 0 (184) (184) 0 (222) (222) 0 (34) (34) 0 (5) (5) 0 (88) (88) 0 (128) (128) RR16 - Page 326 of 426 07741
Page 184 of 270 Adjustments to Incentive No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive 0 (1) (1) 0 (1) (1) (1,159) (26,272) (27,431) (29,688) (125,407) (155,095) (604) (0) (604) (826) (19,768) (20,594) (65,565) 0 (65,565) (66,996) (19,768) (86,763) (602) 0 (602) (10,618) (13,096) (23,713) (11,220) (13,096) (24,315) (11,220) (13,096) (24,315) RR16 - Page 327 of 426 07742
Page 185 of 270 Adjustments to Incentive No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Adjust to Target XES SPS Total 120.22% 122.75% XES+SPS Incentive Incentive Incentive (960) (1,184) (2,144) (960) (1,184) (2,144) (12,179) (14,280) (26,459) (79,175) (34,047) (113,222) (383,693) (26,074) (409,767) (383,693) (26,074) (409,767) (809,777) (492,638) (1,302,415) RR16 - Page 328 of 426 07743
Page 186 of 270 Adjustments to Incentive No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 0501F 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M 41 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive (6,947) (6,533) (13,480) (9,780) 0 (9,780) (1,916) (22,661) (24,577) 0 (21,918) (21,918) (68,665) (10,435) (79,100) (87,307) (61,547) (148,854) (5,307) (4,834) (10,142) 22 (5,399) (5,377) (1,967) (15,307) (17,274) (5,355) (11,626) (16,980) (46,446) (18,274) (64,720) (59,053) (55,440) (114,493) (146,360) (116,987) (263,347) (83) (2) (86) (49) (1,107) (1,156) (4,118) (175) (4,294) (4,250) (1,285) (5,536) (4) (0) (5) (67) (182) (249) (1,921) (1,874) (3,794) (1,991) (2,057) (4,048) (6,242) (3,342) (9,584) RR16 - Page 329 of 426 07744
Page 187 of 270 Adjustments to Incentive No. Description Account 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 56111 55 Load Dispatch - Monitor/Operate 56120 56 Load Dispatch - Transmission Serv/Sch 56130 57 Load Dispatch - Sch/Con/Disp Serv 56140 58 Rel/Plan/Standards Dev Serv 56150 59 Trans Service Studies 56160 60 Generation Interconnection Studies 56170 61 Rel/Plan/Standards Dev Serv 56180 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive (9,972) (3,343) (13,314) (37,673) (4) (37,677) (47,645) (3,346) (50,991) (200,247) (123,675) (323,922) (47,032) (10,019) (57,051) (87) 0 (87) (8,137) (5,972) (14,109) (502) (804) (1,306) 0 (31) (31) 0 (1) (1) (898) (2,321) (3,219) (1,044) (687) (1,730) (16,549) (2,947) (19,496) (74,250) (22,782) (97,032) 0 (193) (193) 0 (4,087) (4,087) (191) (419) (610) (191) (4,699) (4,890) RR16 - Page 330 of 426 07745
Page 188 of 270 Adjustments to Incentive No. Description Account 78 Wheeling: 79 Wheeling - Lamar HVDC Tie 0565P 80 Wheeling - PNM Reliability Purchase 0565P 81 Wheeling - Ancillary Services - Schedules 1, 2, & Facilities Charg 0565R 82 Wheeling - Ancillary Services - Schedules 3, 5 & 6 0565R 83 Wheeling - Schedules 7 & 8 - Point to Point 0565R 84 Wheeling - Schedule 9 Network Integration 0565T 85 Wheeling - Schedule 11 0565T 86 Wheeling - Schedule 12 - FERC Assessment 0565R 87 Wheeling - Other 0565T 88 89 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 57510 96 DA & RT Mkt Admin 57520 97 Trans Rights Mkt Admin 57530 98 Cap Mkt Admin 57540 99 Ancillary Serv Mkt Admin 57550 100 Market Monitoring/Compliance 57560 101 Mkt Fac/Mon/Comp Serv 57570 102 Regional Market Rents 57580 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 119 Station Equipment 582 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive (74,441) (27,480) (101,922) (3,376) 0 (3,376) (1,022) (3) (1,025) (158) (3) (161) (1,531) 0 (1,531) (6,086) (6) (6,092) 0 (102) (102) 0 (7,985) (7,985) 0 (1,394) (1,394) (15,539) (2,400) (17,939) (15,539) (11,881) (27,420) 0 (904) (904) (2,853) 0 (2,853) (2,853) (904) (3,757) 0 (1,081) (1,081) 0 (2) (2) 0 (1,058) (1,058) RR16 - Page 331 of 426 07746
Page 189 of 270 Adjustments to Incentive No. Description Account 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive 0 (2,141) (2,141) 0 (2,735) (2,735) 0 (961) (961) (820) (5) (825) (820) (3,702) (4,522) 0 (212) (212) 0 (36) (36) 0 (0) (0) 0 (248) (248) 0 (2) (2) 0 (18) (18) 0 (2,001) (2,001) 0 (2,022) (2,022) 0 (6,784) (6,784) 0 (3,819) (3,819) (5,137) (3,245) (8,382) (5,137) (13,848) (18,986) 0 (872) (872) 0 (20) (20) 0 (2,818) (2,818) 0 (3,710) (3,710) 0 (320) (320) 0 (4,852) (4,852) 0 (2,307) (2,307) (903) (2,859) (3,762) (903) (10,338) (11,241) (25,252) (48,795) (74,046) RR16 - Page 332 of 426 07747
Page 190 of 270 Adjustments to Incentive No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 200 Miscellaneous So - H/S 598190 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive 0 (236) (236) 0 (101) (101) (345) (549) (894) (345) (885) (1,230) 0 (1,738) (1,738) 0 (58) (58) 0 (1,853) (1,853) 0 (3,649) (3,649) 0 (5,573) (5,573) 0 (1,707) (1,707) (680) (216) (896) (680) (7,495) (8,175) 0 (267) (267) 0 (162) (162) 0 (14) (14) 0 (443) (443) 0 (80) (80) 0 (207) (207) 0 (287) (287) 0 (11) (11) 0 (8) (8) 0 (91) (91) 0 (109) (109) 0 (17) (17) 0 (3) (3) 0 (44) (44) 0 (63) (63) RR16 - Page 333 of 426 07748
Page 191 of 270 Adjustments to Incentive No. Description Account 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive 0 (0) (0) 0 (0) (0) (1,025) (12,931) (13,957) (26,277) (61,726) (88,003) (534) (0) (534) (731) (9,730) (10,461) (58,033) 0 (58,033) (59,298) (9,730) (69,028) (533) 0 (533) (9,398) (6,446) (15,844) (9,930) (6,446) (16,376) (9,930) (6,446) (16,376) RR16 - Page 334 of 426 07749
Page 192 of 270 Adjustments to Incentive No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930M 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Remove Financial Based Goals XES SPS Total 17.90% 11.20% Incentive Incentive Incentive (850) (583) (1,432) (850) (583) (1,432) (10,780) (7,029) (17,809) (70,078) (16,758) (86,837) (339,610) (12,834) (352,444) (339,610) (12,834) (352,444) (716,740) (242,479) (959,219) RR16 - Page 335 of 426 07750
Page 193 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 50 0 0 5 Fuel (Transportation & Handling) 501 1 0 6 Steam Expense 502 0 7 Electric Expense 505 0 8 Miscellaneous 506 5 1 0 0 9 Rent 507 0 10 Supplies and Expenses 508 0 11 Allowances 509 0 12 Total Steam Production Operation 16 1 0 0 13 14 Steam Production Maintenance: 15 Supervision & Engineering 51 0 0 16 Structures 511 0 17 Boilers 512-37,632-9,461 0 0 18 Electric Plant 513 37,632 9,461 0 0 19 Miscellaneous Plant 514 0 20 Steam Production (Nonmajor) 515 0 21 Total Steam Production Maintenance 0 22 23 Total Steam Production O&M 16 1 0 0 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 0 27 Fuel Handling 547 0 28 Generation Expense 548 0 29 Miscellaneous 549 0 30 Rents 55 0 0 31 Total Combustion Turbine Production Operation 0 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 0 35 Structures 552 0 36 Electric Plant 553 0 37 Miscellaneous Plant 554 0 38 Total Combustion Turbine Production Maintenance 0 39 40 Total Combustion Turbine Production O&M 0 RR16 - Page 336 of 426 07751
Page 194 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 41 42 System Control and Dispatch: 43 System Load Control 556 416-1,50 44 Other Expenditures 557-2,652-328 20,417 0 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch -2,236-1,828 20,417 0 48 49 Total Non-Fuel Production O&M -2,220-1,827 20,417 0 50 51 Transmission Operations: 52 Supervision & Engineering 560 14 0 53 Load Dispatch 561 0 54 Load Dispatch - Reliability 561.1 0 55 Load Dispatch - Monitor/Operate 561.2 0 56 Load Dispatch - Transmission Serv/Sch 561.3 0 57 Load Dispatch - Sch/Con/Disp Serv 561.4 0 58 Rel/Plan/Standards Dev Serv 561.5 0 59 Trans Service Studies 561.6 0 60 Generation Interconnection Studies 561.7 0 61 Rel/Plan/Standards Dev Serv 561.8 0 62 Station Equipment 562 0 63 Overhead s 563 0 64 Underground s 564 0 65 Miscellaneous 566 0 66 Rents 567 0 67 Total Transmission Operations 14 0 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 0 71 Structures 569 0 72 Station Equipment 57 0 0 73 Overhead s 571 0-22 0 0 74 Underground s 572 0 75 Miscellaneous 573 0 76 Total Transmission Maintenance 0-22 0 0 77 RR16 - Page 337 of 426 07752
Page 195 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 78 Wheeling: 79 Wheeling - Wholesale 0565W 80 Wheeling - Long Term Purchases 0565P 81 Wheeling - Reliability Purchases 0565T 82 Wheeling - Schedule 9 - Non SPS Zone Network 0565T 83 Wheeling - Schedule 11 - LT Purchases 0565P 84 Wheeling - Schedule 11 - Retail 0565R 85 Wheeling - Schedule 11 - Wholesale 0565W 86 Wheeling - Schedule 11 - K&M 0565T 87 Wheeling - Schedule 12 - Retail 0565R 88 Wheeling - Schedule 12 - Wholesale 0565W 89 Wheeling - ST Purchases 0565T 90 Total Wheeling 565 91 92 Total Transmission O&M 140-22 0 0 93 94 Regional Market Expenses: 95 Operation Supervision 575.1 0 96 DA & RT Mkt Admin 575.2 0 1,50 97 Trans Rights Mkt Admin 575.3 0 98 Cap Mkt Admin 575.4 0 99 Ancillary Serv Mkt Admin 575.5 0 100 Market Monitoring/Compliance 575.6 0 101 Mkt Fac/Mon/Comp Serv 575.7 0 102 Regional Market Rents 575.8 0 103 Total Regional Market Expenses 0 1,50 104 105 Distribution Operations: 106 Supervision - H/S 58019 0 0 107 Supervision - Texas 580903 0 108 Supervision - New Mexico 580904 0 109 Supervision 580-68 110 Total Supervision 580-68 111 Load Dispatch - H/S 58119 0 0 112 Load Dispatch - Texas 581903 0 113 Load Dispatch - New Mexico 581904 0 114 Load Dispatch 581 0 115 Total Load Dispatch 581 0 116 Station Equipment - H/S 58219 0 0 117 Station Equipment - Texas 582903 0 118 Station Equipment - New Mexico 582904 0 RR16 - Page 338 of 426 07753
Page 196 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 119 Station Equipment 582 0 120 Total Station Equipment 582 0 121 Overhead s - H/S 58319 0 0 122 Overhead s - Texas 583903 0 123 Overhead s - New Mexico 583904 0 124 Overhead s 583 0 125 Total Overhead s 583 0 126 Underground s - H/S 58419 0 0 127 Underground s - Texas 584903 0 128 Underground s - New Mexico 584904 0 129 Underground s 584 0 130 Total Underground s 584 0 131 Street Lighting - H/S 58519 0 0 132 Street Lighting - Texas 585903 0 133 Street Lighting - New Mexico 585904 0 134 Street Lighting 585 0 135 Total Street Lighting 585 0 136 Metering - H/S 58619 0 0 137 Metering - Texas 586903 0 138 Metering - New Mexico 586904 0 139 Metering 586-258 -29 0 0 140 Total Metering 586-258 -29 0 0 141 Customer Installations - H/S 58719 0 0 142 Customer Installations - Texas 587903 0 143 Customer Installations - New Mexico 587904 0 144 Customer Installations 587 0 145 Total Customer Installations 587 0 146 Miscellaneous - H/S 58819 0 0 147 Miscellaneous - Texas 588903 0 148 Miscellaneous - New Mexico 588904 0 149 Miscellaneous 588 1,079 150 Total Miscellaneous 588 1,079 151 Rents 58919 0 0 152 Rents - H/S 589903 0 153 Rents - Texas 589904 0 154 Rents - New Mexico 589 0 155 Total Rents 589 0 156 157 Total Distribution Operations 753 (29) 0 0 158 RR16 - Page 339 of 426 07754
Page 197 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 159 Distribution Maintenance: 160 Supervision So - H/S 59019 0 0 161 Supervision - TX 590903 0 162 Supervision - NM 590904 0 163 Supervision 59 0 0 164 Total Supervision 59 0 0 165 Structures So - H/S 59119 0 0 166 Structures - TX 591903 0 167 Structures - NM 591904 0 168 Structures 591 0 169 Total Structures 591 0 170 Station Equipment So - H/S 59219 0 0 171 Station Equipment - TX 592903 0 172 Station Equipment - NM 592904 0 173 Station Equipment 592 0 174 Total Station Equipment 592 0 175 Overhead s So - H/S 59319 0 0 176 Overhead s - TX 593903 0 177 Overhead s - NM 593904 0 178 Overhead s 593 0 179 Total Overhead s 593 0 180 Underground s So - H/S 59419 0 0 181 Underground s - TX 594903 0 182 Underground s - NM 594904 0 183 Underground s 594 0 184 Total Underground s 594 0 185 Transformers So - H/S 59519 0 0 186 Transformers - TX 595903 0 187 Transformers - NM 595904 0 188 Transformers 595 0 189 Total Transformers 595 0 190 Street Lighting So - H/S 59619 0 0 191 Street Lighting - TX 596903 0 192 Street Lighting - NM 596904 0 193 Street Lighting 596 0 194 Total Street Lighting 596 0 195 Metering So - H/S 59719 0 0 196 Metering - TX 597903 0 197 Metering - NM 597904 0 198 Metering 597 0 199 Total Metering 597 0 RR16 - Page 340 of 426 07755
Page 198 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 200 Miscellaneous So - H/S 59819 0 0 201 Miscellaneous - TX 598903 0 202 Miscellaneous - NM 598904 0 203 Miscellaneous 598 0 204 Total Miscellaneous 598 0 205 206 Total Distribution Maintenance 0 207 208 Total Distribution O&M 753-29 0 0 209 210 Customer Accounting Expense: 211 Supervision 901 9 212 Meter Reading 902 3 213 Billing & Cashiering 903-414 -40 117 0 214 Uncollectible Accounts 904 0 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 0 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 0 219 Total Miscellaneous 905 0 220 221 Total Customer Accounting Expense (401) (40) 117 0 222 223 224 Customer Service Expense: 225 Supervision 907 0 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908-48,654-11,465 0 0 232 Customer Assistance - Total 908-48,654-11,465 0 0 233 Advertisement 909 0 234 Miscellaneous 91 0 0 235 236 Total Customer Service Expense (48,654) (11,465) 0 0 237 RR16 - Page 341 of 426 07756
Page 199 of 270 Business Area Adjustments BL INC OC LTI No. Description Account Base Labor Incentive Other Comp Long Term Incentive 238 Sales Expense: 239 Sales Expense - Supv. 911 0 240 Demonstrations & Selling 912 0 241 Advertising Expense - Sales 913 0 242 Miscellaneous Sales Expense 916 0 243 244 Total Sales Expense 0 245 246 Total Customer Service & Sales Expense (48,654) (11,465) 0 0 247 248 Total Customer Operations Expense (49,055) (11,505) 117 0 249 250 Administrative & General Expense: 251 Administrative Salaries 920-187,847-29,411-119,809-1,308,488 252 Office Supplies & Expense 921 0 253 A&G Expense Transferred 922 0 254 Outside Services - Legal 923 0 255 Property Insurance 924 0 256 Injuries and Damages 925 0 257 Pensions & Benefits 926 0 258 Deferred Pensions & Benefits 92603 0 259 Regulatory Commission Expense - Texas 928 0 260 Regulatory Commission Expense - New Mexico 928 0 261 Regulatory Commission Expense - Wholesale 928 0 262 Regulatory Commission Expense - NERC Fees 928 0 263 Regulatory Commission Expense - Misc 928 0 264 Total Regulatory Commission Expense 928 0 265 Duplicate Charges - Electric 929 0 266 Miscellaneous 930.2 0 267 Rents - Retail Allocated 931 0 268 Rents - Other 931O 0 269 Rents 931 0 270 Maintenance of Structures 932 0 271 Maintenance of General Plant 935 0 272 Contributions &, Dues 273 Total Administrative & General Expense (187,847) (29,411) (119,809) (1,308,488) 274 275 Total O&M Expense (238,229) (41,294) (99,275) (1,308,488) RR16 - Page 342 of 426 07757
Page 200 of 270 Business Area Adjustments No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 501 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 343 of 426 07758
Page 201 of 270 Business Area Adjustments No. Description Account 41 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 561.1 55 Load Dispatch - Monitor/Operate 561.2 56 Load Dispatch - Transmission Serv/Sch 561.3 57 Load Dispatch - Sch/Con/Disp Serv 561.4 58 Rel/Plan/Standards Dev Serv 561.5 59 Trans Service Studies 561.6 60 Generation Interconnection Studies 561.7 61 Rel/Plan/Standards Dev Serv 561.8 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 344 of 426 07759
Page 202 of 270 Business Area Adjustments No. Description Account 78 Wheeling: 79 Wheeling - Wholesale 0565W 80 Wheeling - Long Term Purchases 0565P 81 Wheeling - Reliability Purchases 0565T 82 Wheeling - Schedule 9 - Non SPS Zone Network 0565T 83 Wheeling - Schedule 11 - LT Purchases 0565P 84 Wheeling - Schedule 11 - Retail 0565R 85 Wheeling - Schedule 11 - Wholesale 0565W 86 Wheeling - Schedule 11 - K&M 0565T 87 Wheeling - Schedule 12 - Retail 0565R 88 Wheeling - Schedule 12 - Wholesale 0565W 89 Wheeling - ST Purchases 0565T 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 575.1 96 DA & RT Mkt Admin 575.2 97 Trans Rights Mkt Admin 575.3 98 Cap Mkt Admin 575.4 99 Ancillary Serv Mkt Admin 575.5 100 Market Monitoring/Compliance 575.6 101 Mkt Fac/Mon/Comp Serv 575.7 102 Regional Market Rents 575.8 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 345 of 426 07760
Page 203 of 270 Business Area Adjustments No. Description Account 119 Station Equipment 582 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 346 of 426 07761
Page 204 of 270 Business Area Adjustments No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 347 of 426 07762
Page 205 of 270 Business Area Adjustments No. Description Account 200 Miscellaneous So - H/S 598190 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 INJ INS PEN Injuries Insurance Pension & Benefits RR16 - Page 348 of 426 07763
Page 206 of 270 Business Area Adjustments No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930.2 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense INJ INS PEN Injuries Insurance Pension & Benefits -517 0 0 0-37,468-40,792 (517) (37,468) (40,792) (517) (37,468) (40,792) RR16 - Page 349 of 426 07764
Page 207 of 270 Business Area Adjustments No. Description Account 1 Operating & Maintenance Expenses: 2 3 Steam Production Operation: 4 Supervision & Engineering 500 5 Fuel (Transportation & Handling) 501 6 Steam Expense 502 7 Electric Expense 505 8 Miscellaneous 506 9 Rent 507 10 Supplies and Expenses 508 11 Allowances 509 12 Total Steam Production Operation 13 14 Steam Production Maintenance: 15 Supervision & Engineering 510 16 Structures 511 17 Boilers 512 18 Electric Plant 513 19 Miscellaneous Plant 514 20 Steam Production (Nonmajor) 515 21 Total Steam Production Maintenance 22 23 Total Steam Production O&M 24 25 Combustion Turbine Production Operation: 26 Supervision & Engineering 546 27 Fuel Handling 547 28 Generation Expense 548 29 Miscellaneous 549 30 Rents 550 31 Total Combustion Turbine Production Operation 32 33 Combustion Turbine Production Maintenance: 34 Supervision & Engineering 551 35 Structures 552 36 Electric Plant 553 37 Miscellaneous Plant 554 38 Total Combustion Turbine Production Maintenance 39 40 Total Combustion Turbine Production O&M Total Total Total Labor Adj Non-Labor Adjustments 0-267 -267 10 2,389 2,400 0-16 -16 6 10,508 10,514 17 12,613 12,630-47,093-30 -47,124 47,093-15 47,078 0-226 -226 0-271 -271 17 12,342 12,359 0-3 -3 0-7 -7 0-9 -9 0-9 -9 RR16 - Page 350 of 426 07765
Page 208 of 270 Business Area Adjustments No. Description Account 41 42 System Control and Dispatch: 43 System Load Control 556 44 Other Expenditures 557 45 Other Expenditures - New Mexico 557NM 46 Other Expenditures - Texas 557TX 47 Total System Control and Dispatch 48 49 Total Non-Fuel Production O&M 50 51 Transmission Operations: 52 Supervision & Engineering 560 53 Load Dispatch 561 54 Load Dispatch - Reliability 561.1 55 Load Dispatch - Monitor/Operate 561.2 56 Load Dispatch - Transmission Serv/Sch 561.3 57 Load Dispatch - Sch/Con/Disp Serv 561.4 58 Rel/Plan/Standards Dev Serv 561.5 59 Trans Service Studies 561.6 60 Generation Interconnection Studies 561.7 61 Rel/Plan/Standards Dev Serv 561.8 62 Station Equipment 562 63 Overhead s 563 64 Underground s 564 65 Miscellaneous 566 66 Rents 567 67 Total Transmission Operations 68 69 Transmission Maintenance: 70 Supervision & Engineering 568 71 Structures 569 72 Station Equipment 570 73 Overhead s 571 74 Underground s 572 75 Miscellaneous 573 76 Total Transmission Maintenance 77 Total Total Total Labor Adj Non-Labor Adjustments -1,084-1,364-2,448 17,438-3,490 13,948 0 0 16,354-4,854 11,500 16,370 7,479 23,849 140-2,674-2,534 0-191 -191 0-4 -4 0-48 -48 0-1,017-1,017 140-3,934-3,794-22 13,459 13,436 0-105 -105-22 13,353 13,331 RR16 - Page 351 of 426 07766
Page 209 of 270 Business Area Adjustments No. Description Account 78 Wheeling: 79 Wheeling - Wholesale 0565W 80 Wheeling - Long Term Purchases 0565P 81 Wheeling - Reliability Purchases 0565T 82 Wheeling - Schedule 9 - Non SPS Zone Network 0565T 83 Wheeling - Schedule 11 - LT Purchases 0565P 84 Wheeling - Schedule 11 - Retail 0565R 85 Wheeling - Schedule 11 - Wholesale 0565W 86 Wheeling - Schedule 11 - K&M 0565T 87 Wheeling - Schedule 12 - Retail 0565R 88 Wheeling - Schedule 12 - Wholesale 0565W 89 Wheeling - ST Purchases 0565T 90 Total Wheeling 565 91 92 Total Transmission O&M 93 94 Regional Market Expenses: 95 Operation Supervision 575.1 96 DA & RT Mkt Admin 575.2 97 Trans Rights Mkt Admin 575.3 98 Cap Mkt Admin 575.4 99 Ancillary Serv Mkt Admin 575.5 100 Market Monitoring/Compliance 575.6 101 Mkt Fac/Mon/Comp Serv 575.7 102 Regional Market Rents 575.8 103 Total Regional Market Expenses 104 105 Distribution Operations: 106 Supervision - H/S 580190 107 Supervision - Texas 580903 108 Supervision - New Mexico 580904 109 Supervision 580 110 Total Supervision 580 111 Load Dispatch - H/S 581190 112 Load Dispatch - Texas 581903 113 Load Dispatch - New Mexico 581904 114 Load Dispatch 581 115 Total Load Dispatch 581 116 Station Equipment - H/S 582190 117 Station Equipment - Texas 582903 118 Station Equipment - New Mexico 582904 Total Total Total Labor Adj Non-Labor Adjustments 118 9,419 9,537 0-2,107-2,107 1,500 0 1,500 1,500-2,107-607 -68 1,267 1,199-68 1,267 1,199 0-3 -3 0-3 -3 RR16 - Page 352 of 426 07767
Page 210 of 270 Business Area Adjustments No. Description Account 119 Station Equipment 582 120 Total Station Equipment 582 121 Overhead s - H/S 583190 122 Overhead s - Texas 583903 123 Overhead s - New Mexico 583904 124 Overhead s 583 125 Total Overhead s 583 126 Underground s - H/S 584190 127 Underground s - Texas 584903 128 Underground s - New Mexico 584904 129 Underground s 584 130 Total Underground s 584 131 Street Lighting - H/S 585190 132 Street Lighting - Texas 585903 133 Street Lighting - New Mexico 585904 134 Street Lighting 585 135 Total Street Lighting 585 136 Metering - H/S 586190 137 Metering - Texas 586903 138 Metering - New Mexico 586904 139 Metering 586 140 Total Metering 586 141 Customer Installations - H/S 587190 142 Customer Installations - Texas 587903 143 Customer Installations - New Mexico 587904 144 Customer Installations 587 145 Total Customer Installations 587 146 Miscellaneous - H/S 588190 147 Miscellaneous - Texas 588903 148 Miscellaneous - New Mexico 588904 149 Miscellaneous 588 150 Total Miscellaneous 588 151 Rents 589190 152 Rents - H/S 589903 153 Rents - Texas 589904 154 Rents - New Mexico 589 155 Total Rents 589 156 157 Total Distribution Operations 158 Total Total Total Labor Adj Non-Labor Adjustments 0-2 -2 0-2 -2-287 0-287 -287 0-287 1,079 10,440 11,519 1,079 10,440 11,519 724 11,702 12,427 RR16 - Page 353 of 426 07768
Page 211 of 270 Business Area Adjustments No. Description Account 159 Distribution Maintenance: 160 Supervision So - H/S 590190 161 Supervision - TX 590903 162 Supervision - NM 590904 163 Supervision 590 164 Total Supervision 590 165 Structures So - H/S 591190 166 Structures - TX 591903 167 Structures - NM 591904 168 Structures 591 169 Total Structures 591 170 Station Equipment So - H/S 592190 171 Station Equipment - TX 592903 172 Station Equipment - NM 592904 173 Station Equipment 592 174 Total Station Equipment 592 175 Overhead s So - H/S 593190 176 Overhead s - TX 593903 177 Overhead s - NM 593904 178 Overhead s 593 179 Total Overhead s 593 180 Underground s So - H/S 594190 181 Underground s - TX 594903 182 Underground s - NM 594904 183 Underground s 594 184 Total Underground s 594 185 Transformers So - H/S 595190 186 Transformers - TX 595903 187 Transformers - NM 595904 188 Transformers 595 189 Total Transformers 595 190 Street Lighting So - H/S 596190 191 Street Lighting - TX 596903 192 Street Lighting - NM 596904 193 Street Lighting 596 194 Total Street Lighting 596 195 Metering So - H/S 597190 196 Metering - TX 597903 197 Metering - NM 597904 198 Metering 597 199 Total Metering 597 Total Total Total Labor Adj Non-Labor Adjustments 0-317 -317 0-317 -317 RR16 - Page 354 of 426 07769
Page 212 of 270 Business Area Adjustments No. Description Account 200 Miscellaneous So - H/S 598190 201 Miscellaneous - TX 598903 202 Miscellaneous - NM 598904 203 Miscellaneous 598 204 Total Miscellaneous 598 205 206 Total Distribution Maintenance 207 208 Total Distribution O&M 209 210 Customer Accounting Expense: 211 Supervision 901 212 Meter Reading 902 213 Billing & Cashiering 903 214 Uncollectible Accounts 904 215 Uncollectible Accounts 904907 216 Total Uncollectible Accounts 904 217 Customer Deposit Interest - Texas 218 Miscellaneous 905 219 Total Miscellaneous 905 220 221 Total Customer Accounting Expense 222 223 224 Customer Service Expense: 225 Supervision 907 226 Customer Assistance - Historic EE Amortization - Texas 0908HDSMTX 227 Customer Assistance - EE Tracker Amortization - Texas 0908DSMTX 228 Customer Assistance - EE - New Mexico 0908DSMNM 229 Customer Assistance - ICO Credits 0908ICO 230 Customer Assistance - Saver Switch & EE Labor 0908SVR 231 Customer Assistance - Other 908 232 Customer Assistance - Total 908 233 Advertisement 909 234 Miscellaneous 910 235 236 Total Customer Service Expense 237 Total Total Total Labor Adj Non-Labor Adjustments 0 (317) (317) 724 11,386 12,110 9-118 -109 4 6,037 6,041-337 12,100 11,763 0 0 0 0 (324) 18,019 17,695 0 0 0 0 0-60,119 1,358-58,762-60,119 1,358-58,762 0-7 -7 (60,119) 1,351 (58,768) RR16 - Page 355 of 426 07770
Page 213 of 270 Business Area Adjustments No. Description Account 238 Sales Expense: 239 Sales Expense - Supv. 911 240 Demonstrations & Selling 912 241 Advertising Expense - Sales 913 242 Miscellaneous Sales Expense 916 243 244 Total Sales Expense 245 246 Total Customer Service & Sales Expense 247 248 Total Customer Operations Expense 249 250 Administrative & General Expense: 251 Administrative Salaries 920 252 Office Supplies & Expense 921 253 A&G Expense Transferred 922 254 Outside Services - Legal 923 255 Property Insurance 924 256 Injuries and Damages 925 257 Pensions & Benefits 926 258 Deferred Pensions & Benefits 92603 259 Regulatory Commission Expense - Texas 928 260 Regulatory Commission Expense - New Mexico 928 261 Regulatory Commission Expense - Wholesale 928 262 Regulatory Commission Expense - NERC Fees 928 263 Regulatory Commission Expense - Misc 928 264 Total Regulatory Commission Expense 928 265 Duplicate Charges - Electric 929 266 Miscellaneous 930.2 267 Rents - Retail Allocated 931 268 Rents - Other 931O 269 Rents 931 270 Maintenance of Structures 932 271 Maintenance of General Plant 935 272 Contributions &, Dues 273 Total Administrative & General Expense 274 275 Total O&M Expense Total Total Total Labor Adj Non-Labor Adjustments (60,119) 1,351 (58,768) (60,443) 19,370 (41,073) -1,645,555 0-1,645,555 0-105,611-105,611 0-226,802-226,802-517 59,802 59,285-78,260 0-78,260 0-21 -21 0-21 -21 0-10,554-10,554 0-8,037-8,037 0-8,037-8,037 0 1 1 0-832 -832 (1,724,332) (292,054) (2,016,385) (1,766,063) (246,508) (2,012,570) RR16 - Page 356 of 426 07771
TUCO Fuel Handling & Margins No. Description Amount Attachment DAB-RR-2 Page 214 of 270 1 Operating Expenses for calendar year 2002-as amended 1,050,000 2 Increase by 5% per Margin Agreement eff. 01/01/03 1,102,500 3 Increase by 5% per Margin Agreement eff. 01/01/04 1,157,625 4 Increase by 5% per Margin Agreement eff. 01/01/05 1,215,506 5 Increase by 5% per Margin Agreement eff. 01/01/06 1,276,282 6 Increase by 5% per Margin Agreement eff. 01/01/07 1,340,096 7 Increase by 5% per Margin Agreement eff. 01/01/08 1,407,100 8 Increase by 5% per Margin Agreement eff. 01/01/09 1,477,455 9 Increase by 5% per Margin Agreement eff. 01/01/10 1,551,328 10 Change per Agreement (eff. 01/01/12 ) 1,527,360 11 Increase by 2.5% per Margin Agreement eff. 01/01/13 1,565,544 12 Margin increase of 2.5% effective 01/01/14 1,604,683 13 Estimate Margin increase of 2.5% effective 01/01/15 1,644,800 14 15 Projected Increase 40,117 RR16 - Page 357 of 426 07772
Environmental Chemical Costs Adjustment Attachment DAB-RR-2 Page 215 of 270 Costs for chemicals to meet emissions standards are now recovered through the fuel clause starting June 10, 2014. The following chemical costs are removed from base rate recovery No. Description Account Amount 1 Chemicals - Mercury Sorbent 502-3 Chemicals - ARKAY 502 127,083 3 Total 127,083 RR16 - Page 358 of 426 07773
Page 216 of 270 Summary of Ongoing REC Costs No. Description A B C = A - B D E = C * D Less Gross Annual Wholesale Net Annual Total Annual Generation Transfers Generation REC Price REC Costs (MWh) (MWh) (MWh) ($/MWh) ($) 1 Llano 278,376 78,961 199,415 $ 0.95 $ 189,445 2 Wildorado 670,468 147,972 522,496 $ 5.00 2,612,479 3 Spinning Spur 728,148 207,351 520,797 $ 0.95 494,757 4 1,676,992 434,284 1,242,708 3,296,681 RR16 - Page 359 of 426 07774
Page 217 of 270 Summary of REC Tracker Balances No. Description Amount 1 REC Tracker Layer 2 Annual Amortization (1) 801,411 2 3 REC Tracker Layer 3 Annual Amortization (1) 2,035,159 4 5 Annual Amortization 2,836,570 6 7 Tracker Interest (Sept. 1, 2013 - Jun. 30, 2014) (2) 12,652 8 9 Total REC Tracker Expense 2,849,222 (1) REC Tracker Amortization Period September 2013 - February 2017 (2) Interest Rate is 0.21% for 2013 and 0.15% for 2014 RR16 - Page 360 of 426 07775
REC Tracker Reconciliation Attachment DAB-RR-2 Page 218 of 270 No. Description Dollars 1 Additions to the REC Tracker: 2 Projected Balance at 6/30/13 per Docket No. 40824 $ 9,927,994 3 Actual Balance at 6/30/13 $ 10,148,058 4 Difference between Actual and Projected Balance $ 220,064 5 6 Reductions to the REC Tracker After 6/30/13: 7 Accounting Corrections $ (5,108) 8 Sales $ (1,050,525) 9 Wholesale Transfers $ (373,787) 10 Total Reductions to the REC Tracker $ (1,429,420) 11 12 Final REC Tracker Adjustments (Negative is a Reduction) $ (1,209,356) 13 14 Monthly Amortization Impact (Based on 42 month amortization) $ (28,794) 15 16 Annual Amortization Impact $ (345,530) RR16 - Page 361 of 426 07776
Summary of SPP Admin Fees and Assessments Attachment DAB-RR-2 Page 219 of 270 No. Description Account Amount 1 Per Book 561.4 3,806,674 2 3 Eliminate Wholesale Schedule 1A Fee (1,054,121) 4 Impact Due to Rate Change 281,006 5 6 ProForma Schedule 1A Fee (Retail Only) 561.4 3,033,559 7 8 Per Book 561.8 2,022,295 9 10 Eliminate Wholesale Schedule 1A Fee (560,002) 11 Impact Due to Rate Change 149,284 12 13 ProForma Schedule 1A Fee (Retail Only) 561.8 1,611,578 14 15 Per Book 575.7 6,066,886 16 17 Eliminate Wholesale Schedule 1A Fee (1,680,005) 18 Impact Due to Rate Change 447,853 19 20 ProForma Schedule 1A Fee (Retail Only) 575.7 4,834,734 21 22 TOTAL Admin Fee (Retail Only) 9,479,871 RR16 - Page 362 of 426 07777
Wheeling Expense Eliminations Attachment DAB-RR-2 Page 220 of 270 No. Description Amount 1 Eliminate Schedule 9 Charges (24,828,360) 2 Eliminate PNM Charges (3,292,873) 3 Eliminate Wholesale Ancillary Charges - Sch 1, Sch 2, facilities (1,153,757) 4 Eliminate Wholesale Ancillary Charges - Sch 3, 5 & 6 (1,653,421) 5 Eliminate Per Book Schedule 11 (54,595,476) 6 Eliminate Wholesale Schedule 12 FERC Assessment 6,575 RR16 - Page 363 of 426 07778
Base Plan Schedule 11 Charges for 2014 Attachment DAB-RR-2 Page 221 of 270 SPS Load No. Description Total Ratio SPS Share 1 SPP Base Plan Region Wide ATRR 196,669,793 13.09% 25,736,694 2 3 SPP Balanced Portfolio Region Wide ATRR 100,126,354 13.09% 13,102,781 4 5 Balanced Portfolio Transfer Payment 61,574,844 11.56% 7,116,627 6 7 SPP Zonal ATRR 38,008,924 100.00% 38,008,924 8 9 Total SPP Schedule 11 Charges 83,965,026 RR16 - Page 364 of 426 07779
Page 222 of 270 Annualize Lamar DC Tie No. Description Account Amount 1 Per Book 0565P 8,475,178 2 3 Known and Measurable Change to PSCo Tie Transmission Rates 0565P 8,865,360 4 5 Adjustment 0565P 390,182 RR16 - Page 365 of 426 07780
Page 223 of 270 Schedule 9 Adjustments No. Description Amount 1 Include Lea County Schedule 9 Expenses 388,000 2 Include Imbalance Penalty Distribution (57) 3 Total Schedule 9 Adjustments 387,943 RR16 - Page 366 of 426 07781
Eliminate O&M on Transmission Sold Attachment DAB-RR-2 Page 224 of 270 No. Description Account Amount 1 Outside Services and Transaction Costs 566 1,062 2 Vegetation Management Expenses 571 6,664 3 Outside Services and Transaction Costs 921 172,469 RR16 - Page 367 of 426 07782
Page 225 of 270 Customer Deposit Interest No. Description Texas 1 Customer Deposit Balance 8,136,028 2 3 Texas Customer Deposit Interest Rate 0.09% 4 5 Customer Deposit Interest 7,322 RR16 - Page 368 of 426 07783
Page 226 of 270 Calculation of EE Costs No. Description Amount 1 Prior EE Costs 2 3 10-Year amortization amount per year (1) 1,155,696 4 5 Ending Balance June 30, 2014 5,200,633 6 7 Twelve Months Ended June 30, 2013 Carrying costs at 7.07% 367,685 (1) Per Unanimous Stipulation Agreement in PUC Docket No. 35763 (2008 SPS Texas Rate Case). The amount was reduced in November 2010 for the sale of Lubbock Assets RR16 - Page 369 of 426 07784
Page 227 of 270 Pro Forma ICO Credits For Rate Year July 1, 2015 - June 30, 2016 No. Description Amount 1 Per Book ICO Credits 190,534 2 3 ICO Credits included in request 190,534 RR16 - Page 370 of 426 07785
Page 228 of 270 Wholesale Account Manager Costs Bus. Area Bus. Area Bus. Area Bus. Area Bus. Area Bus. Area XES Billed Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments No. FERC Description Base Labor Incentive Other Labor Total Labor Non Labor Per Book Base Labor Incentive Other Labor Total Labor Non Labor Total 1 908 Customer Assistance 48,654 11,465 60,119 2,411 62,530 (48,654) (11,465) (60,119) (1,670) (61,790) 2 925 Injuries and Damages 108 108 108 (108) (108) (108) 3 926 Pensions & Benefits 15,618 15,618 15,618 (15,079) (15,079) (15,079) 4 931 Rents (1) - - - - 5 408 Payroll Taxes (2) - 4,523 4,523 - (4,523) (4,523) 6 427 Other Deductions (3) - 3,315 3,315 - - 7 - - 8 Total 48,654 11,465 15,725 75,845 10,249 86,094 (48,654) (11,465) (15,186) (75,306) (6,194) (81,500) (1) Included in Rents - Other (2) Eliminated in cost of service as part of adjustment to payroll taxes for all labor adjustments (3) Account not included in Texas Cost of Service RR16 - Page 371 of 426 07786
Page 229 of 270 Wholesale Account Manager Costs No. FERC Description 1 908 Customer Assistance 2 925 Injuries and Damages 3 926 Pensions & Benefits 4 931 Rents (1) 5 408 Payroll Taxes (2) 6 427 Other Deductions (3) 7 8 Total XES Billed Remaining in Test Year Direct Billed Total Wholesale Acct Mgr Adj Base Labor Incentive Other Labor Total Labor Non Labor Total Non Labor Labor Non Labor Total - - - - 740 740 178-918 918 - - - - - - - - - - - 539 539-539 539-539 - - - - - - 7,565-7,565 7,565 - - - - - - - - - - - - - 3,315 3,315-3,315 3,315 - - - - - 539 539 4,055 4,594 7,743 539 11,798 12,337 RR16 - Page 372 of 426 07787
Adjustment to Eliminate Prior Period EECRF Costs Attachment DAB-RR-2 Page 230 of 270 No. Description Account Base Labor Incentive Other Labor Total Labor Non Labor Total 1 Customer Assistance 908 (3,100) (367) (3,468) 400 (3,067) 2 Injuries and Damages 925 (7) (7) (7) 3 Pensions & Benefits 926 (1,081) (1,081) (1,081) 4 Rents 931 - (1,422) (1,422) 5 Payroll Taxes (1) 408.1 - (258) (258) 6 Total (3,100) (367) (1,088) (4,555) (1,280) (5,835) (1) Eliminated in cost of service as part of adjustment to payroll taxes for all labor adjustments RR16 - Page 373 of 426 07788
Page 231 of 270 Long-Term Incentive Bus. Area Remaining Total No. Description Account XES Adjustments XES SPS Adjustment 1 Restricted Stock Units 2 Administrative Salaries 0920 1,507,481 (1,248,720) 258,761 435,308 694,069 3 Total Restricted Stock Units 1,507,481 (1,248,720) 258,761 435,308 694,069 4 5 Performance Share Plan 6 Administrative Salaries 0920 59,767 (59,767) (0) 1,137 1,137 7 Total Performance Share Plan 59,767 (59,767) (0) 1,137 1,137 8 9 Total Long-Term Incentive 10 Administrative Salaries 0920 1,567,248 (1,308,488) 258,761 436,446 695,206 11 Total Long-Term Incentive 1,567,248 (1,308,488) 258,761 436,446 695,206 RR16 - Page 374 of 426 07789
Page 232 of 270 Aviation Adjustment Equivalent Base Other Total Total Commercial Total No. Description Account Labor Incentive Labor Labor Non Labor Per Book Airfare Adjustment 1 A&G Salaries and Wages 920 (90,530) (14,632) (105,162) (105,162) (105,162) 2 Office Supplies & Equipment 921 0 (391,716) (391,716) 60,910 (330,806) 3 Outside Services 923 0 (7,409) (7,409) (7,409) 4 Property Insurance 924 0 (5,016) (5,016) (5,016) 5 Injuries & Damages 925 (204) (204) (204) (204) 6 Pension & Benefits 926 (30,040) (30,040) (30,040) (30,040) 7 Maintenance of General Plant 935 0 (120,127) (120,127) (120,127) 8 Payroll Taxes (1) 408.1 0 (7,335) (7,335) (7,335) 9 Other Deductions (2) 426.5 0 10 11 Total (90,530) (14,632) (30,245) (135,407) (531,602) (667,009) 60,910 (606,098) (1) Eliminated in cost of service as part of adjustment to payroll taxes for all labor adjustments (2) Account not included in Texas Cost of Service RR16 - Page 375 of 426 07790
Page 233 of 270 Xcel Foundation No. Description Account Base Labor Incentive XES Billed Other Labor Total Labor Non Labor Per Book 1 A&G Salaries and Wages 920 95,399 15,121 4091.13 114,611 114,611 2 Office Supplies & Equipment 921 0 20,699 20,699 3 Outside Services 923 0 11,783 11,783 4 Injuries & Damages 925 215 215 215 5 Pension & Benefits 926 31,077 31,077 31,077 6 Rent 931 0 7,986 7,986 7 Maintenance of General Plant 935 0 31 31 8 Payroll Taxes (1) 408 7,799 7,799 9 Other Deductions (2) 426 125,109 125,109 10 11 Total 95,399 15,121 35,383 145,903 173,406 319,309 (1) Eliminated in cost of service as part of adjustment to payroll taxes for all labor adjustments (2) Account not included in Texas Cost of Service RR16 - Page 376 of 426 07791
Page 234 of 270 Xcel Foundation No. Description Account 1 A&G Salaries and Wages 920 2 Office Supplies & Equipment 921 3 Outside Services 923 4 Injuries & Damages 925 5 Pension & Benefits 926 6 Rent 931 7 Maintenance of General Plant 935 8 Payroll Taxes (1) 408 9 Other Deductions (2) 426 10 11 Total Bus. Area Bus. Area Bus. Area Bus. Area Bus. Area Bus. Area Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Base Labor Incentive Other Labor Labor Non Labor Total (54,500) (8,559) (63,059) (63,059) (6,732) (6,732) 0 (122) (122) (122) (17,749) (17,749) (17,749) -7986.36 (7,986) 0 (4,458) (4,458) 0 (54,500) (8,559) (17,871) (80,930) (19,176) (100,107) RR16 - Page 377 of 426 07792
Page 235 of 270 Xcel Foundation No. Description Account 1 A&G Salaries and Wages 920 2 Office Supplies & Equipment 921 3 Outside Services 923 4 Injuries & Damages 925 5 Pension & Benefits 926 6 Rent 931 7 Maintenance of General Plant 935 8 Payroll Taxes (1) 408 9 Other Deductions (2) 426 10 11 Total XES Billed Remaining in Test Year Direct Total Xcel Foundation Adj Base Labor Incentive Other Labor Labor Non Labor Total Non Labor Labor Non Labor Total 40,898 6,563 4,091 51,552 0 51,552 51,552 0 51,552 0 13,966 13,966 36,172 0 50,138 50,138 0 11,783 11,783 6203.37 0 17,986 17,986 0 0 92 92 0 92 92 0 92 0 0 13,328 13,328 0 13,328 13,328 0 13,328 6,451 0 6,451 6,451 0 31 31 0 31 31 0 3,341 3,341 0 3,341 3,341 0 125,109 125,109 6419.85 0 131,529 131,529 40,898 6,563 17,512 64,973 154,229 219,202 55,246 64,973 209,475 274,448 RR16 - Page 378 of 426 07793
Eliminate Accounting Corrections Attachment DAB-RR-2 Page 236 of 270 No. Description Account Amount 1 Other Compensation 920 (59,802) 2 Injuries and Damages 925 (119,604) 3 4 Total (179,406) RR16 - Page 379 of 426 07794
SPP Letter of Credit Fee Attachment DAB-RR-2 Page 237 of 270 No. Description Account Amount 1 Service fee on Letter of Credit for SPP 921 403,021 2 Per Book Fees on SPP Letter of Credit 921 101,778 3 4 Adjustment 921 301,243 RR16 - Page 380 of 426 07795
Page 238 of 270 Eliminate Self-Insured Workers Compensation Costs Adjusted No. Description Account Per Book Adjustment Test Year 1 Insurance Premiums 925 1,144,747 1,144,747 2 FAS 112 Worker's Compensation 925 (271,725) 271,725-3 Other 925 3,049 3,049 4 5 Total 876,071 271,725 1,147,796 RR16 - Page 381 of 426 07796
Eliminate FAS 88 Costs Attachment DAB-RR-2 Page 239 of 270 No. Description Account Amount 1 Self Insure Workers Compensation 198,918 RR16 - Page 382 of 426 07797
Adjustment to Active Healthcare Expenses - FERC 926 Attachment DAB-RR-2 Page 240 of 270 Adjusted No. Description Per Book Test Year Adjustment 1 Active Healthcare Expenses 2 Affiliate Charges 2,313 0 (2,313) 3 SPS Direct Charges 9,325,774 10,098,789 773,015 4 XES Charges to SPS 3,884,900 4,256,135 371,235 5 6 Total 13,212,986 14,354,924 1,141,938 RR16 - Page 383 of 426 07798
Amortization of Deferred Pension & OPEB Costs Attachment DAB-RR-2 Page 241 of 270 No. Month Amortization of 12/31/2012 Balance (amounts deferred in 2011 & 2012) Amortization of 5/31/2014 Balance Costs Deferred / (Add'l Expense) Total Costs Deferred and Amortization 1 Costs Deferred as of December 31, 2012 6,600,000 6,600,000 2 January 2013 358,333 358,333 3 February 2013 358,333 358,333 4 March 2013 358,333 358,333 5 April 2013 358,333 358,333 6 May 2013 (275,000) 254,455 (20,545) 7 June 2013 (275,000) 254,455 (20,545) 8 Deferral and Amortization of Costs as of June 30, 2013 (550,000) 8,542,244 7,992,244 9 July 2013 (275,000) 254,455 (20,545) 10 August 2013 (275,000) 254,455 (20,545) 11 September 2013 (275,000) 254,455 (20,545) 12 October 2013 (275,000) 254,455 (20,545) 13 November 2013 (275,000) 254,455 (20,545) 14 December 2013 (275,000) 254,455 (20,545) 15 January 2014 (275,000) 39,206 (235,794) 16 February 2014 (275,000) 39,206 (235,794) 17 March 2014 (275,000) 39,206 (235,794) 18 April 2014 (275,000) 39,206 (235,794) 19 May 2014 (275,000) 39,206 (235,794) 20 June 2014 (275,000) 39,206 (235,794) 21 Deferral and Amortization of Costs as of June 30, 2014 (3,850,000) 10,304,214 6,454,214 22 July 2014 (275,000) 39,206 (235,794) 23 August 2014 (275,000) 39,206 (235,794) 24 September 2014 (275,000) 39,206 (235,794) 25 October 2014 (275,000) 39,206 (235,794) 26 November 2014 1,375,000 (1,115,001) (788,028) (528,029) 27 December 2014 - (185,834) (98,666) (284,500) 28 Total Deferral and Amortization of Costs thru Dec 2014 (3,575,000) (1,300,835) 9,574,345 4,698,511 29 January 2015 (185,834) (185,834) 30 February 2015 (185,834) (185,834) 31 March 2015 (185,834) (185,834) 32 April 2015 (185,834) (185,834) 33 May 2015 (185,834) (185,834) 34 June 2015 (185,834) (185,834) 35 Total Deferral and Amortization of Costs thru June 2015 (3,575,000) (2,415,836) 9,574,345 3,583,510 RR16 - Page 384 of 426 07799
Adjustment to 401k Match Expense - FERC 926 Attachment DAB-RR-2 Page 242 of 270 No. Description SPS XES Total 1 April 2014 401k O&M Expense 135,390 66,611 2 May 2014 401k O&M Expense 132,882 70,968 3 June 2014 401k O&M Expense 164,866 116,837 4 Less: June YTD True-up (34,314) (45,577) 5 Add: 3 Months of June True-up 17,157 22,789 6 Total 3 Month Accrual 415,980 231,628 7 4 4 8 Annualized Accrual 1,663,922 926,510 9 Escalation Percent 3.00% 3.00% 10 2015 401K with Escalator Due to Budgeted 3% Merit Increase 1,713,840 954,306 11 Amount in the Test Year 1,642,532 917,447 12 Amount of 401k Match Adjustment 71,308 36,859 108,166 RR16 - Page 385 of 426 07800
Adjust PUCT Regulatory Fees to Present Revenue Attachment DAB-RR-2 Page 243 of 270 No. Description Amount 1 Total Test Year Present Revenue 967,633,057 2 3 PUCT Regulatory Fee $0.001667 4 5 PUCT Fee at Present Revenue 1,613,044 6 7 Per Book PUCT Fees 1,521,218 8 9 Adjustment 91,827 RR16 - Page 386 of 426 07801
Page 244 of 270 Test Year Rate Case Amortization No. Description Account Amount 1 Per Book Rate Case Amortization: 2 2012 Rate Case - Docket No. 40824 928 1,370,858 3 EECRF Case Expense Amortization 928 31,658 4 5 Total 1,402,517 RR16 - Page 387 of 426 07802
Rate Case Expenses Estimate Attachment DAB-RR-2 Page 245 of 270 No. Description Amount 1 Total 2014 Rate Case Expenses 4,345,400 2 3 Unamortized Balance of Rate Case Expenses in Docket No. 40824 at June 30, 2015 784,724 4 5 Unamortized Balance of Rate Case Expenses in Docket No. 42004 at June 30, 2015 1,737,216 6 7 Total Rate Case Expenses 6,867,340 8 9 Less: Unamortized Balance of Lubbock Gain (2,226,277) 10 11 Less: Unamortized Balance of TUCO Audit Refund (83,753) 12 13 Total to be Amortized 4,557,311 14 15 Annual Amortization 4,557,311 RR16 - Page 388 of 426 07803
Page 246 of 270 Charitable Contributions & Organization Memberships/Dues No. Description Amount 1 Advertising 1,372,964 2 Contributions/Donations 1,242,300 3 Organization Memberships/Dues 527,827 4 5 Total (1) 3,143,092 6 7 Dollar Limitation on Expenses 2,902,899 8 9 Less Advertising in FERC 908 (2) 1,834 10 Less Advertising in FERC 909 (2) 344,948 11 12 Amount included in Request 2,556,117 (1) Per Schedule G-4 (2) Per Schedule G-4.1 RR16 - Page 389 of 426 07804
Page 247 of 270 Depreciation Expense - Financial Rules to Texas Rules Adjustment No. Description Account Financial Rules Texas Rules Adjustment 1 Steam Production 403 36,124,293 21,730,987 (14,393,306) 2 Steam Production Land Rights 040422 29,853 37,662 7,809 3 Steam Production Water Rights 040422 127,911 136,622 8,710 4 Total Steam Production: 403 36,282,058 21,905,271 (14,376,787) 5 Other Production 403 7,851,376 5,994,361 (1,857,015) 6 Other Production Land Rights 040422 22 10 (12) 7 Total Other Production: 403 7,851,398 5,994,371 (1,857,027) 8 Transmission Plant 403 31,529,855 33,933,028 2,403,172 9 Transmission Land Rights 040422 1,034,363 814,918 (219,445) 10 Total Transmission: 403 32,564,218 34,747,946 2,183,728 11 Texas Distribution Plant 403 17,303,869 17,303,870 0 12 Texas Distribution Land Rights 040422 25,407 25,407 0 13 New Mexico Distribution Plant 403 8,589,010 8,589,010 0 14 NM Distribution Land Rights 040422 43,864 43,864 0 15 Total Distribution Plant: 403 25,962,151 25,962,151 0 16 Intangible Plant 040422 6,979,493 7,380,086 400,592 17 Intangible Software-CRS 040422 1,585,372 1,585,372 0 18 Total Intangible Plant: 040422 8,564,865 8,965,458 400,592 19 General Plant Land Rights 040422 701 593 (108) 20 General Plant - Call Center 403 227,468 186,733 (40,735) 21 General Plant 403 9,228,256 9,017,357 (210,899) 22 Total General Plant: 403 9,456,425 9,204,684 (251,741) 23 24 Total Electric Plant in Service 120,681,115 106,779,880 (13,901,235) RR16 - Page 390 of 426 07805
Page 248 of 270 Depreciation Expense - Annualization Adjustment Per Book Annualized No. Description Account Texas Rules Texas Rules Adjustment 1 Steam Production 403 21,730,987 21,950,224 219,237 2 Steam Production Land Rights 040422 37,662 38,970 1,308 3 Steam Production Water Rights 040422 136,622 136,567 (55) 4 Total Steam Production: 403 21,905,271 22,125,761 220,490 5 Other Production 403 5,994,361 6,091,554 97,193 6 Other Production Land Rights 040422 10 84 74 7 Total Other Production: 403 5,994,371 6,091,638 97,267 8 Transmission Plant 403 33,933,028 37,986,094 4,053,066 9 Transmission Land Rights 040422 814,918 886,089 71,170 10 Total Transmission: 403 34,747,946 38,872,182 4,124,236 11 Texas Distribution Plant 403 17,303,870 17,763,586 459,716 12 Texas Distribution Land Rights 040422 25,407 25,887 479 13 New Mexico Distribution Plant 403 8,589,010 7,309,678 (1,279,333) 14 NM Distribution Land Rights 040422 43,864 45,126 1,263 15 Total Distribution Plant: 403 25,962,151 25,144,277 (817,874) 16 Intangible Plant 040422 7,380,086 10,623,493 3,243,407 17 Intangible Software-CRS 040422 1,585,372 1,585,372 0 18 Total Intangible Plant: 040422 8,965,458 12,208,865 3,243,407 19 General Plant Land Rights 040422 593 593 0 20 General Plant - Call Center 403 186,733 191,173 4,439 21 General Plant 403 9,017,357 12,438,048 3,420,691 22 Adjust Capitalized Transportation Depreciation 403 0 (867,062) (867,062) 23 Adjusted General Plant 403 9,204,684 11,762,752 2,558,068 24 25 Total Electric Plant in Service 106,779,880 116,205,475 9,425,595 RR16 - Page 391 of 426 07806
Page 249 of 270 Depreciation Expense - New Rates Adjustment New Annualized Depreciation No. Description Account Texas Rules Rates Adjustment 1 Steam Production 403 21,950,224 41,040,084 19,089,860 2 Steam Production Land Rights 040422 38,970 35,625 (3,345) 3 Steam Production Water Rights 040422 136,567 123,530 (13,037) 4 Total Steam Production: 403 22,125,761 41,199,239 19,073,477 5 Other Production 403 6,091,554 7,281,260 1,189,706 6 Other Production Land Rights 040422 84 0 (84) 7 Total Other Production: 403 6,091,638 7,281,260 1,189,622 8 Transmission Plant 403 37,986,094 39,153,439 1,167,345 9 Transmission Land Rights 040422 886,089 935,212 49,123 10 Total Transmission: 403 38,872,182 40,088,650 1,216,468 11 Texas Distribution Plant 403 17,763,586 18,989,328 1,225,742 12 Texas Distribution Land Rights 040422 25,887 25,477 (410) 13 New Mexico Distribution Plant 403 7,309,678 7,712,898 403,220 14 NM Distribution Land Rights 040422 45,126 44,412 (715) 15 Total Distribution Plant: 403 25,144,277 26,772,114 1,627,837 16 Intangible Plant 040422 10,623,493 10,623,493 0 17 Intangible Software-CRS 040422 1,585,372 1,585,372 0 18 Total Intangible Plant: 040422 12,208,865 12,208,865 0 19 General Plant Land Rights 040422 593 1,133 540 20 General Plant - Call Center 403 191,173 316,888 125,715 21 General Plant 403 12,438,048 15,209,620 2,771,572 22 Adjust Capitalized Transportation Depreciation 403 (867,062) (1,188,586) (321,524) 23 Adjusted General Plant 403 11,762,752 14,339,055 2,576,303 24 25 Total Electric Plant in Service 116,205,475 141,889,183 25,683,708 RR16 - Page 392 of 426 07807
Page 250 of 270 Depreciation Expense - Annualization Adjustment Plant @ 6/30/14 Plant @ 12/31/14 New New Depreciation Depreciation No. Description Account Rates Rates Adjustment 1 Steam Production 403 41,040,084 41,585,875 545,791 2 Steam Production Land Rights 040422 35,625 35,625 0 3 Steam Production Water Rights 040422 123,530 123,530 0 4 Total Steam Production: 403 41,199,239 41,745,029 545,791 5 Other Production 403 7,281,260 7,401,632 120,371 6 Other Production Land Rights 040422 7 Total Other Production: 403 7,281,260 7,401,632 120,371 8 Transmission Plant 403 39,153,439 47,990,419 8,836,981 9 Transmission Land Rights 040422 935,212 1,100,391 165,179 10 Total Transmission: 403 40,088,650 49,090,811 9,002,160 11 Texas Distribution Plant 403 18,989,328 19,494,489 505,161 12 Texas Distribution Land Rights 040422 25,477 25,677 200 13 New Mexico Distribution Plant 403 7,712,898 8,099,664 386,766 14 NM Distribution Land Rights 040422 44,412 46,390 1,979 15 Total Distribution Plant: 403 26,772,114 27,666,220 894,106 16 Intangible Plant 040422 10,623,493 13,979,304 3,355,811 17 Intangible Software-CRS 040422 1,585,372 1,585,372 0 18 Total Intangible Plant: 040422 12,208,865 15,564,676 3,355,811 19 General Plant Land Rights 040422 1,133 1,133 0 20 General Plant - Call Center 403 316,888 316,888 0 21 General Plant 403 15,209,620 17,508,470 2,298,850 22 Adjust Capitalized Transportation Depreciation 403 (1,188,586) (1,188,586) 0 23 Total General Plant: 403 14,339,055 16,637,905 2,298,850 24 25 Total Electric Plant in Service 141,889,183 158,106,272 16,217,089 RR16 - Page 393 of 426 07808
Page 251 of 270 Property Tax Expense No. Texas New Mexico Oklahoma Kansas Total 1 Plant in Service at 12/31/13 3,689,719,842 858,580,606 29,825,132 55,645,496 4,633,771,076 2 2014 Property Tax 26,900,000 4,400,000 500,000 500,000 32,300,000 3 PT as a % of Plant 0.73% 0.51% 1.68% 0.90% 4 Plant in Service at 6/30/14 3,843,288,829 922,535,600 77,749,729 56,527,063 4,900,101,221 5 Property Tax Expense 28,019,599 4,727,753 1,303,426 507,921 34,558,699 6 7 Per Book Property Tax 27,506,086 8 9 Adjustment 7,052,613 RR16 - Page 394 of 426 07809
Page 252 of 270 Property Tax Expense No. Texas New Mexico Oklahoma Kansas Total 1 Plant in Service at 12/31/13 3,689,719,842 858,580,606 29,825,132 55,645,496 4,633,771,076 2 2014 Property Tax 26,900,000 4,400,000 500,000 500,000 32,300,000 3 PT as a % of Plant 0.73% 0.51% 1.68% 0.90% 4 Plant in Service at 12/31/14 4,177,489,254 1,031,072,529 40,756,940 77,350,300 5,326,669,022 5 Property Tax Expense 30,456,096 5,283,976 683,265 695,027 37,118,364 6 7 Property Tax Expense for Plant in Service @ 6/30/14 34,558,699 8 9 Adjustment 2,559,665 RR16 - Page 395 of 426 07810
Page 253 of 270 Calculation of Payroll Tax Adjustment No. Description Amount 1 Payroll Tax Expense 7,860,609 2 3 O&M Labor Expense - Subject to Payroll Tax (1) 110,204,952 4 5 Rate ( 1 Divided by 3) 7.13% 6 7 Labor Adjustments - Subject to Payroll Tax (2) 3,503,012 8 9 Payroll Tax Adjustment ( 5 Multiplied by 7) 249,765 Note 1: O&M Labor Expense - Per Book 147,240,699 Exclude: FERC 925 - Injuries and Damages 876,073 FERC 926 - Pensions & Benefits 34,621,643 FERC 92603 - Deferred Pensions & Benefits 1,538,030 O&M Labor Expense - Subject to Payroll Tax 110,204,952 Note 2: Labor Adjustments 6,869,114 Exclude Adjustments for : FERC 925 - Injuries and Damages 390,523 FERC 926 - Pensions & Benefits 930,099 FERC 92603 - Deferred Pensions & Benefits 2,045,479 Labor Adjustments - Subject to Payroll Tax 3,503,012 RR16 - Page 396 of 426 07811
Page 254 of 270 Texas Franchise Fees - TY Adjusted Franchise Fee Revenue No. Description Amount 1 Franchise Fees at Present Rates $ 9,875,957 2 3 Test Year Actuals Per Book $ 9,294,948 4 5 Adjustment $ 581,009 RR16 - Page 397 of 426 07812
Page 255 of 270 Gross Up of Taxes Other Than Income Items Franchise Fees Texas Texas Gross No. Description Texas (1) Franchise Tax Receipts Tax 1 Per Book 9,294,948 3,380,717 6,267,967 2 3 Adjustments 581,009 0 0 4 5 Adjusted Balance 9,875,957 3,380,717 6,267,967 6 7 Grossed Up Amount for Revenue Requirement 11,081,812 3,625,726 6,970,402 8 9 Adjustment ( 7 minus 5) 1,205,855 245,009 702,435 (1) Amount includes franchise fee for Miscellaneous Service Revenues RR16 - Page 398 of 426 07813
Page 256 of 270 Schedule Ms No. Description Amount Adjusted Amount 1 Plant Related: 2 Post Test Year Adjustments - Permanent 3 Production 498,933 498,933 4 Transmission (4,089,260) (4,089,260) 5 Texas Distribution Plant: (44,113) (44,113) 6 New Mexico Distribution Plant: (18,127) (18,127) 7 Intangible Plant (474,536) (474,536) 8 General Plant - Call Center - - 9 General Plant (91,754) (91,754) 10 (4,218,857) (4,218,857) 11 12 Post Test Year Adjustments - Temporary 13 Production 2,334,086 2,334,086 14 Transmission (85,810,088) (85,810,088) 15 Texas Distribution Plant: (7,710,889) (7,710,889) 16 New Mexico Distribution Plant: (3,168,569) (3,168,569) 17 Intangible Plant 540,905 540,905 18 General Plant - Call Center (295,455) (295,455) 19 General Plant 920,491 920,491 20 (93,189,520) (93,189,520) 21 22 Depreciation Adjustments - Permanent 23 Production 185,309 185,309 24 Transmission 433,827 433,827 25 Texas Distribution Plant: 15,792 15,792 26 New Mexico Distribution Plant: 6,489 6,489 27 Intangible Plant 205,184 205,184 28 General Plant 80,670 80,670 29 927,270 927,270 30 31 Depreciation Adjustments - Temporary 32 Production 4,827,896 4,827,896 33 Transmission 16,092,766 16,092,766 34 Texas Distribution Plant: 1,191,979 1,191,979 35 New Mexico Distribution Plant: 489,809 489,809 36 Intangible Plant 6,795,166 6,795,166 37 General Plant 7,100,270 7,100,270 38 36,497,886 36,497,886 39 RR16 - Page 399 of 426 07814
Page 257 of 270 Schedule Ms No. Description Amount Adjusted Amount 40 AFUDC, Avoided Cost - Permanent 41 Production 522,585 522,585 42 Transmission 12,297,687 12,297,687 43 Texas Distribution Plant: 1,016,550 1,016,550 44 New Mexico Distribution Plant: 417,722 417,722 45 Intangible Plant 1,776,278 1,776,278 46 General Plant 197,013 197,013 47 16,227,835 16,227,835 48 49 AFUDC, Avoided Cost - Temporary 50 Production (43,871,709) (43,871,709) 51 Transmission (28,730,344) (28,730,344) 52 Texas Distribution Plant: 4,471,199 4,471,199 53 New Mexico Distribution Plant: 1,837,311 1,837,311 54 Intangible Plant 398,525 398,525 55 General Plant (417,523) (417,523) 56 (66,312,541) (66,312,541) 57 58 Sharyland - Permanent 59 Production - 60 Transmission 161,785 161,785 61 Texas Distribution Plant: - 62 New Mexico Distribution Plant: - 63 Intangible Plant - 64 General Plant - 65 161,785 161,785 66 67 Sharyland - Temporary 68 Production - 69 Transmission 12,595,820 12,595,820 70 Texas Distribution Plant: - 71 New Mexico Distribution Plant: - 72 Intangible Plant - 73 General Plant - 74 12,595,820 12,595,820 75 RR16 - Page 400 of 426 07815
Page 258 of 270 Schedule Ms No. Description Amount Adjusted Amount 76 Recap - Permanent 77 Production 1,206,827 1,206,827 78 Transmission 8,804,039 8,804,039 79 Texas Distribution Plant: 988,228 988,228 80 New Mexico Distribution Plant: 406,084 406,084 81 Intangible Plant 1,506,926 1,506,926 82 General Plant - Call Center - - 83 General Plant 185,929 185,929 84 Total Plant Permanent 13,098,033 13,098,033 85 86 Recap - Temporary 87 Production (36,709,727) (36,709,727) 88 Transmission (85,851,847) (85,851,847) 89 Texas Distribution Plant: (2,047,712) (2,047,712) 90 New Mexico Distribution Plant: (841,449) (841,449) 91 Intangible Plant 7,734,596 7,734,596 92 General Plant - Call Center (295,455) (295,455) 93 General Plant 7,603,238 7,603,238 94 Total Plant Temporary (110,408,355) (110,408,355) 95 96 Non-Plant: 97 REC Amortization (excl tracker interest) 2,836,570 2,836,570 98 99 Historic EE Amortization (excl interest) 1,155,696 1,155,696 100 101 Unamortized Rate Case Expense Amortization 102 Amount from Docket No. 40824 at June 30, 2015 784,724 784,724 103 Amount from Docket No. 42004 at June 30, 2015 1,737,216 1,737,216 104 105 Unamortized Pension/OPEB Reg Asset Amortization 3,583,510 3,583,510 106 107 Total Non-Plant 10,097,716 RR16 - Page 401 of 426 07816
Lubbock Sale Amortization Adjustment Attachment DAB-RR-2 Page 259 of 270 No. Description Amount 1 Eliminate Per Book Amortization 4,898,862 RR16 - Page 402 of 426 07817
Misc. Revenue - Increase in Meter Tampering Fee Attachment DAB-RR-2 Page 260 of 270 No. Description Amount 1 Increase in Meter Tampering Fee $ 80 2 3 Number of Customers 239 4 5 Increase in Meter Tampering Revenues 19,120 RR16 - Page 403 of 426 07818
Page 261 of 270 Substation Lease Revenues Adustment No. Description Lease Charge per Month Test Year Amount Annualized Increase/ (Decrease) 1 New Substation Lease (1) 3,628 14,513 43,539 29,026 2 3 Adjustment 29,026 (1) Lease started March 2014 RR16 - Page 404 of 426 07819
Schedule 7 Firm Point to Point Revenue Adjustments Attachment DAB-RR-2 Page 262 of 270 No. Description Account Amount 1 Per Book 456.05 (4,086,694) 2 3 Adjust Per Book Revenue for 2015 Rates (642,812) 4 Eliminate 2011 PTP Transmission Resettlement 310,522 5 Eliminate 2010 PTP Resettlement 2,838 6 Eliminate 2009 PTP Resettlement 1,889 7 Total Adjustment (327,563) 8 9 Total 456.05 456.05 (4,414,257) RR16 - Page 405 of 426 07820
Schedule 8 Firm Point to Point Revenue Adjustments Attachment DAB-RR-2 Page 263 of 270 No. Description Account Amount 1 Per Book 456.06 (782,943) 2 3 Adjust Per Book Revenue for 2015 Rates (130,287) 4 Total Adjustment (130,287) 5 6 Total 456.06 456.06 (913,230) RR16 - Page 406 of 426 07821
Eliminate Out of Period Adjustments to Schedule 1 Revenue Attachment DAB-RR-2 Page 264 of 270 No. Description Account Amount 1 Per Book 456.12 (2,029,014) 2 3 Through and Out Resettlement Accrual 673,095 4 Amortization of 2012 Attach O True Up - Sch 1 75,320 5 Total Adjustment 748,415 6 7 Total 456.12 456.12 (1,280,599) RR16 - Page 407 of 426 07822
Page 265 of 270 Transmission Revenue Adjustment No. Description Account Per Book Adjustments 1 Eliminate Network Transmission Revenue 2 Schedule 9 -Network 45607 (40,574,055) 40,574,055 3 4 Eliminate Offsystem Wheeling 5 FERC Pass-thru 45626 286,506 (286,506) 6 7 Eliminate Test Period Schedule 11 Network Base Plan Revenues 8 Transmission Expansion Plan 45673 (52,405,377) 52,405,377 RR16 - Page 408 of 426 07823
Page 266 of 270 FERC 456.42 - Texas - Out of Period Adjustments No. Description Amount 1 Out-of-Period Amount related to Lubbock (1) 527 2 Out-of-Period Related to Sharyland (2) (5,222,262) 3 Out-of-Period Related to TUCO (3) 638,281 4 Total (4,583,454) (1) - Amounts related to true-ups for the sale of Lubbock assets. Amounts are not ongoing and are excluded from the cost of service. (2) - Amounts related to refund of the Sharyland Gain Amounts are not ongoing and are excluded from the cost of service. (3) - Amounts related to TUCO audit refund. Amounts are not ongoing and are excluded from the cost of service. RR16 - Page 409 of 426 07824
Base Plan Schedule 11 Revenue for 2014 Attachment DAB-RR-2 Page 267 of 270 No. Description Total 1 SPS Schedule 11 Revenue (76,230,194) RR16 - Page 410 of 426 07825
Page 268 of 270 Revenue Credit for Wholesale Incremental Capacity Contracts Central No. Description Account Valley Farmers Roosevelt Total 1 Revenue Credit Expected in 2014: 2 Backup Sales Fixed Charge 447 240,576 82,944 58,080 381,600 3 4 Planning Reserve 447 346,441 119,462 83,624 549,527 5 6 Adjustment 587,017 202,406 141,704 931,127 RR16 - Page 411 of 426 07826
Allocation Factors Attachment DAB-RR-2 Page 269 of 270 No. Description Allocator Texas All Others 1 Demand - 12 Coincident Peak - Production (kw) 12CP-PROD 0.52407819 0.47592181 2 2,117,877 1,923,270 3 4 Demand - 12 Coincident Peak - Transmission (kw) 12CP-TRAN 0.46390517 0.53609483 5 2,124,969 2,455,642 6 7 Retail Tranmssion RETAIL-TRAN 0.73060658 0.26939342 8 2,124,969 783,531 9 10 Demand - Non Coincident Peak - Distribution - TX Only (kw) NCP-DIST 0.99941018 0.00058982 11 2,048,564 1,209 12 13 Input KWH excluding Celanese (Energy @ Source Allocation) ENERGY 0.54899407 0.45100593 14 15,129,281,002 12,428,905,420 15 16 Retail Input KWH including Celanese (Energy @ Source Allocation) RETAIL-ENERGY 0.73557667 0.26442333 17 15,129,281,002 5,438,637,455 18 19 Year-end Customers CUST-YE 0.33333333 0.66666667 20 1 2 21 22 Year-end Meters MET-YE 0.33333333 0.66666667 23 1 2 24 25 Average Customers CUST-AVG 0.68043470 0.31956530 26 265,483 124,684 27 28 Adjusted Average Customers CUST-ADJ 0.33333333 0.66666667 29 1 2 30 31 Average Customers - Retail CUST-RET 0.68044865 0.31955135 32 265,483 124,676 33 34 Customer Deposits DEPOSITS 0.78953166 0.21046834 35 (8,136,028) (2,168,851) 36 37 Total O&M Expense TOM 0.56781710 0.43218290 38 251,760,946 191,622,927 39 40 Total O&M excluding Fuel & Purchased Power TOMXFP 0.56781710 0.43218290 41 251,760,946 191,622,927 42 43 Plant in Service - Production, Transmission, Distribution PIS-PTD 0.53788827 0.46211173 44 2,676,433,058 2,299,382,968 45 46 Plant in Service Retail - Production, Transmission, Distribution PISRET-PTD 0.72174603 0.27825397 47 2,676,433,058 1,031,842,347 48 49 Plant in Service - General PIS-GEN 0.58878683 0.41121317 50 179,301,865 125,225,775 51 52 Plant in Service - Intangible PIS-INT 0.60017480 0.39982520 53 63,248,839 42,135,191 54 RR16 - Page 412 of 426 07827
Allocation Factors Attachment DAB-RR-2 Page 270 of 270 No. Description Allocator Texas All Others 55 Plant in Service - Production PIS-PROD 0.52407819 0.47592181 56 1,069,434,318 971,166,383 57 58 Plant in Service - Distribution PIS-DIST 0.70145406 0.29854594 59 693,628,800 295,215,436 60 61 Plant in Service - Transmission PIS-TRAN 0.46926814 0.53073186 62 913,369,940 1,033,001,149 63 64 Plant in Service - Net PIS-NET 0.53664433 0.46335567 65 1,912,905,539 1,651,663,100 66 67 Plant in Service - Electric PIS-ELEC 0.54198503 0.45801497 68 2,918,983,762 2,466,743,934 69 70 Plant in Service - Retail PIS-RET 0.72071187 0.27928813 71 1,912,905,539 741,283,487 72 73 Construction Work in Progress CWIP 0.00000000 0.00000000 74 0-75 76 Labor - Production, Transmission, Distribution LAB-PTD 0.57593038 0.42406962 77 48,798,321 35,931,228 78 79 Labor Excluding A&G LABXAG 0.58544898 0.41455102 80 54,706,847 38,737,414 81 82 Total Labor LABOR 0.59508852 0.40491148 83 91,708,978 62,400,830 84 85 Hobbs/Seminole Customers CUST-H/S 0.18811601 0.81188399 86 3,321 14,333 87 88 Retail Revenue REV-RET 0.62013138 0.37986862 89 (512,886,811) (314,174,729) 90 91 Wholesale Revenue REV-WHL 92 0 93 94 Rate Base Excluding Cash Working Capital RBXCWC 0.53063292 0.46936708 95 1,582,308,433 1,399,618,199 96 97 All Texas Retail TX 1.00000000 0.00000000 98 1-99 100 All New Mexico Retail NM 0.00000000 1.00000000 101 0 1 102 103 All Wholesale WHLS 0.00000000 1.00000000 104 0 1 105 106 No Allocation N/A 0.00000000 0.00000000 RR16 - Page 413 of 426 07828
Attachment DAB-RR-3 Page 1 of 9 Lead Lag Study General Description A lead lag study is a widely used and acceptable method for developing the Cash Working Capital (CWC) component of rate base in connection with the determination of revenue requirements in public utility rate case proceedings. The underlying objective is to measure the average length of time between the utility s provision of service and subsequent payment by customers (revenue lag), and between the incurrence of costs necessary for the provision of service and subsequent payment by the utility (expense lead). The measurement is in days. The lead lag study does not produce the computed cash working capital allowance. It provides the factors resulting from the revenue lag and various expense leads used in the Cost of Service Study model. Total cash working capital is the sum of the net working capital required or provided for each includible element of cost of service. The CWC factors are calculated with this formula. (Composite Revenue Lag - Applicable Expense lead) / 365 days = CWC factor The CWC factor is applied to the appropriate test year expense amount. A positive result indicates a CWC requirement. A positive result represents an investor source of capital. A negative result indicates, on average, cash is received from customers before the Company must pay the applicable expense. A negative result represents a non-investor source of capital. The CWC results of each appropriate expense are added together. This total CWC requirement is included in rate base. A positive CWC requirement is added to rate base. A negative CWC requirement is deducted from rate base. To complete a lead lag study, a twelve-month period of time is used. Revenue receipts and payment disbursements are analyzed. The revenue receipts are from electric sales. The payment disbursements are placed in categories such as fuel, purchased power, labor, payroll taxes, O&M expenses, property tax, federal and state income taxes, sales tax paid and franchise fees paid. RR16 - Page 414 of 426 07829
Attachment DAB-RR-3 Page 2 of 9 Revenue Lag The revenue lag is the average time period from the date that customers receive service from the company and the date they pay for those services. Revenue lag is measured in days and is calculated for each rate group. Data for calculating revenue lags comes from the actual billing and payment history of customers as captured in the company s billing system. The rate groups were split into census and sample groups, depending on the rate class population and billing information available. The census groups, which were the rate classes with fewer than 1,200 accounts, contained all the customers and all revenue with metered consumption or lighting loads in that rate class. The average lag days for the remaining rate classes were estimated using a random sample for each rate class. The mean and standard deviation from the 2013 Southwestern Public Service Lag Study were used as a proxy to determine estimated sample sizes to achieve a 95% confidence that the mean lag day would be within + 5% of the estimated mean at the sample rate class level. (Table 1, which is found in WP/E-4(V)(CONF), page 1). To account for missing data and ensure that a narrow confidence interval was obtained for all rate classes, the calculated sample size was increased by 50% for the sampled rate groups. It is important to remember that these proxy variables (namely the 2013 mean and standard deviation) were used to determine sample sizes only. Once actual values for the 2014 mean and standard deviation were calculated from the new sample, they were used in all analysis. After the census and sample data was extracted, lag days were calculated for each invoice. All Debtors with an Account Status code indicating the account was in receivership, pending writeoff, written off or bankrupt were excluded from the analysis. Each payment or transaction date that was applied to an invoice was used in the calculation of lag days. The calculation for the revenue lag is: Service Period = Invoice To Date Invoice From Date + 1 Midpoint Date = Invoice From Date + Service Period / 2 Lag Days = Payment Date Midpoint Date +.5 An average lag day value for each rate group was calculated and weighted based on each rate group s percent of total revenue shown in Table 2, located in WP/E-4(V)(CONF), page 2. The sum of these weighted means equals the overall average lag days shown in Table 3. Standard deviation and confidence intervals were also calculated and are also shown in Table 3. Table 3. Revenue Lag Statistics for Retail Electric Number Weighted Weighted Variance 95% 99% of Average of Lag Confidence 95% Confidence 99% Invoices Lag Days Days Interval Precision Interval Precision 86,807 35.834 0.006863 0.16236720 0.453106% 0.21331405 0.595280% RR16 - Page 415 of 426 07830
Attachment DAB-RR-3 Page 3 of 9 Expense Leads The expense lead is the average time period from the receipt of goods or services by the utility to the date the utility pays for the goods and services. Expense lead is measured in days. Costs may be incurred over a period of time (i.e. month, year). The expense lead is measured from the midpoint of the service period to the bank clear date of payment. A separate expense lead is computed for each major category of operating expenses or account class (fuel, labor, payroll taxes, taxes, etc.). This expense lead is compared to the overall composite revenue lag to determine whether working capital is required from the company s investors (net revenue lag), or provided by the company s customers (net expense lead). Expenses leads are broken into a service period, midpoint date and lead days. The calculations for these are: Service Period = To Service Date From Service Date + 1 Midpoint Date = From Service Date + Service Period / 2 Lead Days = Payment Date Midpoint Date +.5 The From Service Date is the first day goods or services were received. The To Service Date is the last day goods or services were received. If goods or services were received on just one day, the From Service Date and the To Service Date are the same. For those expense account classes with invoices, the invoices were reviewed for service date information. If no information about the service dates was available, the invoice date was used. After service dates were determined, the lead day values are calculated. The expense lead day value is measured from the midpoint of the dates the service was received to the date the cash was disbursed. Expense leads are calculated using statistical samples for some expense categories, while other expense categories have statutory payment dates that are strictly adhered to for payment. The expense categories where statistical sampling was done are those with invoices generated from vendors including: fuel gas for generation, fuel coal, fuel oil for generation, purchased power and operations & maintenance expenses. For those expense categories where statistical sampling was done, the sample population had to be determined. Appropriate general ledger accounts for each expense category are reviewed to obtain the accounts payable records population. Only records that were actually paid can be used for the expense lead. A transaction was included if it was expensed to an account included in the expense category during the test period and paid. Once the population is determined, the population is reviewed to determine if the entire population ( census group ) or a statistical sample will determine the expense lead. Once records are selected for the census group or sample, invoices are viewed to determine dates the goods and/or services were received. Payment dates are generally included in the record. Once all service dates are determined and midpoint dates and lead days are calculated, the sample is ready for the overall expense lead mean to be determined. RR16 - Page 416 of 426 07831
Attachment DAB-RR-3 Page 4 of 9 Fuel, Purchased Power and Operations & Maintenance Gas for Generation Gas for generation purchases are invoiced monthly. Since there are many records in this account class, a statistical sample was selected to calculate the lead day analysis. Coal and Rail Transportation The expense lead is calculated on the purchases made for inventory replenishment during the test period. Coal for generation is purchased from one vendor. The vendor owns the coal inventory used by SPS. SPS is billed monthly for the coal used in the prior month. The coal SPS buys is charged to expense. Since there are only 12 invoices in this account class, all invoices were selected to calculate the lead day analysis. Oil for Generation The expense lead is calculated on the purchases made for inventory replenishment during the test period. Purchases are invoiced as shipments are made. Since there were few records in this account class, all invoices were selected to calculate the lead day analysis. Purchased Power Purchased power is purchased from many vendors. Purchases are invoiced monthly. Since there are many records in this account class, a statistical sample was selected to calculate the lead day analysis. Other Non-Labor Operations & Maintenance Expense Other non-fuel operations and maintenance (O&M) expense encompasses the non-labor O&M expense for production, transmission, distribution, customer operations and administrative and general expenses. This category has a large volume of transactions. As a result, a statistical sample was selected to calculate the lead day analysis. RR16 - Page 417 of 426 07832
Attachment DAB-RR-3 Page 5 of 9 Expense Sample Results In order to estimate the average expense lead days for the Company, expenses were divided by account class. The lead days for the Fuel Coal and Fuel Oil account classes were calculated exactly based on test year expense amounts and actual lead days. A random sample was used to estimate the average lead time for the expenses from the remaining account classes. For all account classes, the expenses were grouped together by payment reference number, which combined those expenses that were paid together into payment groups. Each population was split into two strata, with the largest expense payments in each population included in the first stratum and the remaining expense payments in the second stratum. All elements in the first stratum were included in the sample, to reduce the uncertainty of the overall estimate. Since the second group contained records that varied widely in size (dollars), the company used random sampling with the probability proportional to size, known as pps sampling. Random pps sampling, with replacement, gives an unbiased estimate of the mean. The sample described above, including the stratification scheme and the associated sample sizes, was designed to achieve a 90% confidence interval that was approximately +/10% of the mean lead day value. The mean and the variance by account class from the 2013 Southwestern Public Service Company Lead Study were used as a proxy to determine sample size. A minimum of 30 sample points was required and at least twenty percent of the calculated sample size of the second stratum was added to account for missing data and unknown differences between the 2013 and 2014 data (Table 4). It is important to remember that the estimates were used for planning purposes only. Once actual values for the mean and variance were calculated from the new sample, they were used in all analysis. Table 4. Census or Sample Size by Expense Category Census or Sample 2013 Mean Lead Days 2013 Variance Lead Days Stratum 1 Percent of Expense Category Stratum 2 with 20% Alternates Expense Category Total Invoices Stratum 1 Size Stratum 2 Size Fuel Coal 12 Census N/A N/A N/A N/A N/A N/A 12 Fuel Oil 9 Census N/A N/A N/A N/A N/A N/A 9 Fuel Gas 612 Sample 39.60 12.907 141 75.10% 91 110 251 O&M 11,199 Sample 43.94 709.641 250 59.84% 84 101 351 Purchased Power 506 Sample 34.07 30.93 80 75.27% 97 117 197 Total Census or Sample RR16 - Page 418 of 426 07833
Attachment DAB-RR-3 Page 6 of 9 Once the payment date, payment due date, and service dates were determined for all available expense items, lead day values were calculated for each payment and a weighted lead day value was calculated for each payment reference number. A mean and variance were calculated by stratum and then a weighted mean and the associated stratified variance were calculated for the entire account class. The variance of this estimator was also calculated, which was then used to calculate a 90% confidence interval and a 95% confidence interval for the account class mean (Table 5). Table 5. Statistics by Expense Category Weighted Average Lead 90% Confidence Interval 95% Confidence Interval Expense Category Record Count Weighted Variance 90% Precision 95% Precision Fuel Gas 341 39.652 0.005 0.122 0.307% 0.145 0.366% Fuel Coal 12 31.125 0.000 0.000 0.000% 0.000 0.000% Fuel Oil 9 39.778 0.000 0.000 0.000% 0.000 0.000% Purchased Power 330 35.973 0.001 0.059 0.165% 0.071 0.196% O&M 500 43.463 2.745 2.726 6.271% 3.247 7.472% Labor Payroll expenses are separated into two groups, Regular Payroll and Incentive Compensation. Employer taxes are discussed in the Taxes section of this study. Regular Payroll There are two types of payrolls at the Company, Semi-monthly and Bi-weekly. Semi-monthly payrolls are paid twice a month. The first pay period covers the first through the fifteenth of the month with the pay date on the fifteenth or the prior business day. The second pay period of the month covers the sixteenth through the end of the month with the pay date on the last business day of the month. Bi-weekly payrolls run from Monday through Sunday with a pay date the following Friday or prior business day. Employees are paid either by a direct deposit to their bank or by a check mailed to their home. Checks are mailed so that receipt is on or before the pay date. For net pay, the expense lead period is measured from the midpoint of the payroll period to the paycheck/pay advice issue date for net pay. For payroll deductions, the expense lead period is measured from the midpoint of the payroll period to the date funds are remitted to the vendor. RR16 - Page 419 of 426 07834
Attachment DAB-RR-3 Page 7 of 9 To determine the average expense leads for each of the payrolls, payroll reports showing the breakdown of gross payroll by withholding tax (FICA Withheld, Federal Income Tax Withheld, State Income Tax Withheld) or employee deduction (Union Dues, 401k deductions and Other Deductions) were obtained. This payroll information was summarized by type of payroll by pay period. The summary dollar information was used to dollar-weight the components of gross pay (net pay, taxes withheld, other employee deductions) in the calculations of average expense lead of each component. Next, an average expense lead for each gross pay component was computed. The lead for net pay and each of the various withholdings was computed for each of the two payroll types. For net pay, the actual payroll check clear date was used to calculate the expense lead. For tax withholdings the actual payment dates that correspond with the dates required by the IRS or state statute were used to calculate the expense lead. Other Employee Deductions were summarized by type of payroll by pay period. Deductions having the same payment date were grouped together. Then the scheduled payment date was used to calculate the expense lead of that group. Once expense leads for all the groups were determined, the average Other Employee Deductions expense lead was determined by dollar-weighting the various group expense leads. Other Employee Deductions are a component for Regular Payroll. Incentive Compensation Incentive compensation is processed similarly to Regular Payroll. Separate payrolls, Semimonthly and Bi-weekly, are run for incentive compensation. Other employee deductions are treated similar to regular payroll. The Incentive Compensation was dollar weighted by its components. Tax Expense Leads The average expense leads computed for the various tax categories are based on actual amounts paid during the test year and the payment dates presently required by statute. Property Taxes Statutory payment dates are used to determine the property tax lead days. Employer Payroll Taxes FICA matching and employer unemployment taxes are included in this section. The Employer FICA Tax expense lead is the same as the FICA tax withheld expense lead in the payroll expense lead. The statutory payment dates for the taxes are used to calculate the unemployment tax expense lead days. RR16 - Page 420 of 426 07835
Attachment DAB-RR-3 Page 8 of 9 Franchise Fees Paid As consideration for franchise rights granted to the Company, the Company pays a franchise fee to furnish, sell, transmit and distribute electricity. The Company charges a franchise fee to its customers. The fees are considered a pass through from customers to the city. The company collects the fees and remits them to the city. Sales and Use Taxes The Company pays both sales and use taxes. Sales tax occurs in two instances. The first instance occurs when the Company bills customers for sales tax in connection with sales of taxable goods and services. This type of sales tax is not an expense to the Company. The Company is the collection agent and remits the sales tax to the state. The second instance of sales tax occurs when the Company makes purchases of taxable goods and services from vendors that are required to charge the tax and remit it to the state. The tax paid in this instance is considered an expense to the Company. The use tax is a complement of the sales tax and designed to level the playing field for companies that are required to collect the sales tax. It typically occurs in a situation where a taxable purchase is made by the Company from a vendor that is not required to collect a sales tax, usually because the vendor lacks a physical presence (nexus) in the taxing jurisdiction. Here, the Company must self-assess and pay the use tax directly to the state. Use tax is an expense to the Company. Sales tax and use tax are remitted together. The statutory payment dates were used in the calculation of the sales tax expense lead. State sales and use tax are on a monthly reporting basis. New Mexico gross receipts tax and compensating tax are due the 25 th of the following month. If the 25 th falls on a Saturday, Sunday or legal holiday, the tax is due the next business day. Texas sales and use tax is due the 20 th of the following month. If the 20 th falls on a Saturday, Sunday or legal holiday, the tax is due the next business day. Texas Gross Margin (Franchise) Tax Expense Texas has a franchise tax (privilege tax) paid in lieu of an income tax. It is based on the higher of net worth or taxable income. The tax is paid for a calendar year based on a calculation of 1% on the Texas margin of the prior calendar year. The May estimated payment is 90% of the current year liability or 100% of the prior year liability, to avoid penalties and interest for underpayment of the estimate. The August estimated/extension payment is supposed to be 100% of the current year liability less any amount paid in May, to avoid the penalties and interest for underpayment. With the May and August estimated/extension payments, the report due date is November 15 th. Otherwise the report is due May 15 th following the calendar year. RR16 - Page 421 of 426 07836
Attachment DAB-RR-3 Page 9 of 9 The Texas Franchise Tax is commonly referred to as the Texas Gross Margin Tax or Texas Margin Tax because under the current liability calculation the tax is levied on the margin. The margin is calculated as Texas gross revenue less cost-of-goods-sold, or payroll, or 70% of gross revenue. The margin is calculated each of the three ways and then the liability is based on which ever calculation yields the lowest amount. SPS has always used the margin as revenue less COGS. Texas Gross Receipts Tax A tax calculated on electric sales to cities. The rate is based on the city size. The tax is payable in advance for the current calendar quarter based on taxable receipts for the previous quarter. Federal and State Income Taxes The expense leads computed for Federal and State Income Taxes reflect corporate payment dates and required minimum estimate payment levels. By law, required minimum estimated payments during the tax year are 100% for Federal and partial payments for New Mexico with the final payment the following year. Corporate policy is consistent across all state jurisdictions. Xcel Energy makes four estimated payments during the tax year of 25% each for 100%. The payment dates are April 15, June 15, September 15 and December 15. RR16 - Page 422 of 426 07837
Attachment DAB-RR-4 Page 1 of 3 RR16 - Page 423 of 426 07838
Attachment DAB-RR-4 Page 2 of 3 RR16 - Page 424 of 426 07839
Attachment DAB-RR-4 Page 3 of 3 RR16 - Page 425 of 426 07840
Attachment DAB-RR-5(CD) Page 1 of 1 RR16 - Page 426 of 426 07841