Watson Direct – Revenue Requirement Page 1 

DOCKET NO. 42004 

APPLICATION OF SOUTHWESTERN 

PUBLIC SERVICE COMPANY FOR 

AUTHORITY TO CHANGE RATES 

AND TO RECONCILE FUEL AND 

PURCHASED POWER COSTS FOR 

THE PERIOD JANUARY 1, 2010 

THROUGH JUNE 30, 2012

§ 

§ 

§ 

§ 

§ 

§ 

§ 

PUBLIC UTILITY COMMISSION 

OF 

TEXAS 

DIRECT TESTIMONY 

of 

DANE A. WATSON 

on behalf of 

SOUTHWESTERN PUBLIC SERVICE COMPANY 

(Revenue Requirement) 

(Filename: WatsonRRDirect.doc) 

Table of Contents 

GLOSSARY OF ACRONYMS AND DEFINED TERMS................................................ 3

LIST OF ATTACHMENTS ............................................................................................... 4

I. WITNESS IDENTIFICATION AND QUALIFICATIONS .................................. 5

II. ASSIGNMENT AND SUMMARY OF TESTIMONY AND 

RECOMMENDATIONS .................................................................................................... 8

III. DEPRECIATION ANALYSIS PHILOSOPHY ................................................... 10

IV. SPS BOOK DEPRECIATION STUDY ............................................................... 13

A. SUMMARY OF THE SPS STUDY ....................................................................... 13

B. OVERVIEW OF DEPRECIATION STUDY METHOD .............................................. 15

C. PRODUCTION AND OTHER PRODUCTION PLANT .............................................. 17

1. LIFE OF ASSETS .................................................................................. 17

2. NET SALVAGE OF PRODUCTION AND OTHER PRODUCTION 

ASSETS ............................................................................................... 24

3. DEPRECIATION RATE FOR PRODUCTION AND OTHER 

PRODUCTION ASSETS .......................................................................... 28

D. TRANSMISSION, DISTRIBUTION, AND GENERAL PROPERTY ............................. 29

1. LIFE OF TRANSMISSION, DISTRIBUTION, AND GENERAL ASSETS ........ 29

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2. NET SALVAGE RATES TRANSMISSION, DISTRIBUTION, AND 

GENERAL ............................................................................................ 31

3. DEPRECIATION RATES FOR TRANSMISSION, DISTRIBUTION, AND 

GENERAL PROPERTY .......................................................................... 32

E. VINTAGE YEAR DEPRECIATION OF GENERAL PLANT ASSETS, FERC

ACCOUNTS 391-398........................................................................................ 35

V. CONCLUSION ..................................................................................................... 38

AFFIDAVIT ..................................................................................................................... 39

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GLOSSARY OF ACRONYMS AND DEFINED TERMS 

Acronym/Defined Term Meaning 

ALG Average Life Group 

AR-15 FERC Accounting Release 15 

Commission Public Utility Commission of Texas 

Depreciation Study SPS Texas Book Depreciation Accrual Rate 

Study at June 30, 2013 

EEI Edison Electric Institute 

Entergy Entergy Texas, Inc. 

FERC Federal Energy Regulatory Commission 

IEEE Institute of Electrical and Electronics Engineers 

SDP Society of Depreciation Professionals 

SPS Southwestern Public Service Company, a New 

Mexico Corporation 

SPR Simulated Plant Record Method 

TESCO Texas Electric Services Company 

Test Year July 1, 2012 through June 30, 2013

TXU Texas Utilities Electric Company and successor 

companies 

Xcel Energy Xcel Energy Inc. 

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LIST OF ATTACHMENTS 

Attachment Description 

DAW-RR-1 List of Appearances before Regulatory Bodies by 

Dane A. Watson. 

(Filename: DAW-RR-1.xls) 

DAW-RR-2 Southwestern Public Service Company – Texas 

Book Depreciation Accrural Rate Study at June 

30, 2013 

(Filename: DAW-RR-2.pdf) 

DAW-RR-3(CD) Workpapers to SPS Depreciation Study 

(Various native and pdf files provided on CD) 

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DIRECT TESTIMONY OF 

DANE A. WATSON

1 I. WITNESS IDENTIFICATION AND QUALIFICATIONS 

2 Q. Please state your name and business address. 

3 A. My name is Dane A. Watson. My business address is 1410 Avenue K, Suite 

4 1105B, Plano, Texas 75074. 

5 Q. By whom are you employed and in what position? 

6 A. I am a Partner of Alliance Consulting Group. Alliance Consulting Group 

7 provides consulting and expert services to the utility industry. 

8 Q. On whose behalf are you testifying in this proceeding? 

9 A. I am filing testimony on behalf of Southwestern Public Service Company 

10 (“SPS”), a wholly owned subsidiary of Xcel Energy Inc. (“Xcel Energy”). Xcel 

11 Energy is a registered holding company that owns several electric and natural gas 

utility companies.112 

13 Q. Please describe your educational background. 

14 A. I hold a Bachelor of Science degree in Electrical Engineering from the University 

15 of Arkansas at Fayetteville and a Master's Degree in Business Administration 

16 from Amberton University. 

 

1 Xcel Energy is the parent company of four 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; and SPS, a New Mexico Corporation. Xcel 

Energy’s natural gas pipeline subsidiary is WestGas InterState, Inc. 

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1 Q. Please describe your professional experience. 

2 A. Since graduation from college in 1985, I have worked in the area of depreciation 

3 and valuation. I founded Alliance Consulting Group in 2004 and am responsible 

4 for conducting depreciation, valuation, and certain accounting-related studies for 

5 clients in various industries. My duties related to depreciation studies include the 

6 assembly and analysis of historical and simulated data, conducting field reviews, 

7 determining service life and net salvage estimates, calculating annual 

8 depreciation, presenting recommended depreciation rates to utility management 

9 for its consideration, and supporting such rates before regulatory bodies. 

10 My prior employment from 1985 to 2004 was with Texas Utilities Electric 

11 Company and successor companies (“TXU”). During my tenure with TXU, I was 

12 responsible for, among other things, conducting valuation and depreciation 

13 studies for the domestic TXU companies. During that time, I served as Manager 

14 of Property Accounting Services and Records Management in addition to my 

15 depreciation responsibilities. 

16 I have twice been Chair of the Edison Electric Institute (“EEI”) Property 

17 Accounting and Valuation Committee and have been Chairman of EEI’s 

18 Depreciation and Economic Issues Subcommittee. I am a Registered Professional 

19 Engineer in the State of Texas and a Certified Depreciation Professional. I am a 

20 Senior Member of the Institute of Electrical and Electronics Engineers (“IEEE”) 

21 and served for several years as an officer of the Executive Board of the Dallas 

22 Section of IEEE. I am also currently Past-President of the Society of 

23 Depreciation Professionals. 

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1 Q. Do you hold any special certification as a depreciation expert? 

2 A. Yes. The Society of Depreciation Professionals (“SDP”) has established national 

3 standards for depreciation professionals. The SDP administers an examination 

4 and has certain required qualifications to become certified in this field. I met all 

5 requirements and hold a Certified Depreciation Professional certification. 

6 Q. Have you previously testified at any regulatory commission? 

7 A. Yes. I have conducted depreciation studies and filed testimony or testified on 

8 depreciation and valuation issues before the Public Utility Commission of Texas 

9 (“Commission”), the New Mexico Public Regulation Commission, and numerous 

10 other regulatory bodies as listed in my Attachment DAW-RR-1. 

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1 II. ASSIGNMENT AND SUMMARY OF TESTIMONY AND 

2 RECOMMENDATIONS 

3 Q. What is your assignment in this proceeding? 

4 A. The purpose of my testimony is to: 

5 • Discuss the recent SPS –Texas Book Depreciation Accrual Rate Study at 

6 June 30, 2013, completed for SPS assets (“Depreciation Study”); and 

7 • Support and justify the recommended depreciation rate changes for SPS 

8 assets for the period between July 1, 2012 and June 30, 2013 (“Test 

9 Year”), based on the results of the Depreciation Study. 

10 Q. Please summarize your conclusions regarding depreciation rate changes for 

11 SPS assets based on the results of the Depreciation Study. 

12 A. The Depreciation Study and analysis performed under my supervision fully 

13 support SPS’s proposed depreciation rates applied to June 30, 2013 depreciable 

14 plant balances for Production plant, Other Production plant, Transmission plant, 

15 Distribution plant (Texas only) and General Property plant. The Depreciation 

16 Study follows the Commission’s long-standing precedent for Average Life Group 

17 (“ALG”) straight-line depreciation. In this way, all customers are charged for 

18 their appropriate share of the capital expended for their benefit. In order to ensure 

19 intergenerational equities, the Commission should adopt the life, interim 

20 retirement characteristics, and net salvage parameters proposed in this study. The 

21 Depreciation Study supports a negative five percent net salvage for its Production 

22 and Other Production assets, instead of the positive five percent net salvage that is 

23 the currently approved rate for SPS. The positive five percent net salvage is not 

24 reflective of SPS’s recent experience and negative five percent net salvage is 

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1 supported by long-standing Commission precedent. The Depreciation Study also 

2 proposes updated service lives and accounts for increased removal costs for 

3 Transmission and Distribution assets in the proposed depreciation rates. SPS’s 

4 depreciation rates should be set at the levels supported in the Depreciation Study 

5 in order to recover SPS’s total investment in property over the estimated 

6 remaining life of the assets. 

7 Q. How is the Depreciation Study used to determine SPS’s depreciation expense 

8 for the Test Year? 

9 A. SPS uses depreciation rates determined in the Depreciation Study to calculate the 

10 appropriate depreciation expense for the Test Year. The information presented in 

11 the Depreciation Study is based on June 30, 2013 Test Year depreciable plant 

12 balances and all of the conclusions are based on those balances. SPS witness Lisa 

13 H. Perkett will discuss the impact of the new depreciation rates on SPS’s Test 

14 Year depreciation expense. 

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1 III. DEPRECIATION ANALYSIS PHILOSOPHY 

2 Q. Please describe the depreciation analysis philosophy reflected in the current 

3 Depreciation Study. 

4 A. The objective of any sound depreciation philosophy should be the matching of 

5 expense with revenue over the life of the asset. In general, the life of the asset is 

6 determined by several factors including the rate of physical deterioration, 

7 obsolescence, weather, maintenance, or (in some cases) the economic usefulness 

8 of an entire operating unit. The function of depreciation is to recognize the cost 

9 of an asset spread over its useful life. Book depreciation techniques should not 

10 accelerate or defer the recovery of an asset in comparison to its appropriate useful 

11 life. 

12 Q. What objective should the Commission strive to achieve in setting 

13 depreciation rates?

14 A. The objective of computing depreciation is to ensure that all customers using the 

15 assets pay their pro rata share for the investment, including the cost of retirement. 

16 This objective is achieved by allocating the cost or depreciable base of a group of 

17 assets over the service life of those assets, on a straight-line basis, by charging a 

18 portion of the consumption of the assets to each accounting period. 

19 Q. Is this objective consistent with Commission rules and historic practice? 

20 A. Yes. As evidenced by P.U.C. SUBST. R. 25.231(b)(1)(B) and the Commission’s 

21 prior rate decisions, the Commission has a long standing practice of establishing 

22 depreciation rates using the straight-line depreciation method based on the actual 

23 historic data of the utility. The straight-line method of depreciation operates by 

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1 collecting a pro rata share of the cost of the investment, including removal cost, 

2 from all customers that use the asset over its useful life. 

3 Q. What is the best evidence that the Commission can rely on to ensure that the 

4 cost of certain assets are ratably recovered over the service life of the asset? 

5 A. The best evidence is the actual experience of the specific group of assets being 

6 analyzed. This evidence is found in the Depreciation Study based on plant 

7 investment in service at June 30, 2013. 

8 Q. What happens when depreciation rates are not adjusted to reflect the actual 

9 life and retirement characteristics of the assets? 

10 A. When depreciation rates are set at a level that does not reflect the actual life and 

11 retirement characteristics of a utility’s assets, the cost of the asset will not be 

12 recovered on a pro rata basis from all customers that use the asset. For example, 

13 in instances where the net salvage rate for certain plant accounts is set at a level 

14 that is insufficient under current conditions to recover the cost of the asset, SPS 

15 will not accrue a reasonable level of removal cost over the useful life of the plant 

16 asset. This, in turn, means that future customers will have to pay a 

17 disproportionate share of the removal costs to make up for the payment deferrals. 

18 Q. Is the situation you just described at issue in this case? 

19 A. Yes. Currently, SPS is using a positive five percent net salvage for its Steam 

20 Production and Other Production assets. This net salvage percent was adopted in 

the Unanimous Stipulation in Docket No. 35763221 and remained unchanged in the 

 

2

In the Matter of the Application of Southwestern Public Service Company for Authority to 

Change Rates and 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).

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stipulations in the next two SPS rate cases in Docket Nos. 381473 and 40824.41 

2 Five percent positive net salvage is neither reflective of SPS’s recent experience 

3 nor the long-standing precedent of this Commission. My proposed depreciation 

4 rates return net salvage percentages to negative five percent net salvage rates for 

5 Steam and Other Production plant. 

6 Q. What actions should be taken in order to remedy the change in dismantling 

7 costs and other changes in life and net salvage? 

8 A. The Commission should approve SPS’s proposed depreciation rates which more 

9 accurately reflect service life and net salvage for SPS’s existing assets. The 

10 depreciation rates proposed in the Depreciation Study more accurately reflect 

11 SPS’s current experience and future expectations and also allow for the recovery 

12 of depreciation expense that has been under-accrued in the past. In addition, 

13 adoption of the proposed depreciation rates should ensure, going forward, that 

14 current SPS customers pay more of their pro-rata share of the investment over the 

15 remaining life of the investment. This ensures that future customers are not 

16 unduly burdened by having to pay a disproportionate share of any remaining 

17 investment balance for removal costs at the end of the asset’s life.

 

3

 In the Matter of the Application of Southwestern Public Service Company for Authority to 

Change Rates and to Reconcile Fuel and Purchased Power Costs for 2008 and 2009, Final Order 

Approving Stipulation, Docket No. 38147 (Mar. 25, 2011).

4

 In the Matter of the Application of Southwestern Public Service Company for Authority to 

Change Rates and to Reconcile Fuel and Purchased Power Costs for the Period January 1, 2010 Through 

June 30, 2012, Docket No. 40824 (Jun. 19, 2013). 

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1 IV. SPS BOOK DEPRECIATION STUDY 

2 A. Summary of the SPS Study 

3 Q. Have you prepared a Depreciation Study for SPS? 

4 A. Yes. I undertook a comprehensive analysis of annual depreciation for SPS that is 

5 based on SPS’s depreciable plant in service as of June 30, 2013. The 

6 Depreciation Study analyzed the property characteristics of SPS’s Production 

7 plant, Other Production plant, Transmission plant, Distribution plant, and General 

8 Property plant and proposes depreciation rates for these assets. The study is 

9 attached to my testimony as Attachment DAW-RR-2. 

10 Q. What depreciation rates are you recommending in this proceeding? 

11 A. My recommended depreciation rates for SPS are provided in Appendix A of the 

12 Depreciation Study. Based on updated service life and net salvage rates for SPS’s 

13 depreciable plant in-service as of June 30, 2013, I derived the appropriate 

14 depreciation rates for Production plant, Other Production plant, Transmission 

15 plant, Distribution plant (Texas only), and General Property plant. 

16 Q. When did the last change in SPS’s depreciation rates occur? 

17 A. The last change in SPS’s depreciation rates became effective on January 1, 2009. 

18 Those rates were established based on the stipulation agreement in SPS’s 2008 

rate case, Docket No. 35763.519 Under the stipulation agreement, the depreciation 

20 rates were the rates recommended by the Alliance of Xcel Municipalities. The 

 

5

 Docket No. 35763, Final Order at FoF 18.a (Jun. 2, 2009) and Unanimous Stipulation at § 4(a). 

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stipulation agreement in SPS’s 2010 rate case, in Docket Nos. 3814761 and 40824 

2 continued the use of the rates implemented in Docket No. 35763. 

3 Q. Did you present a depreciation study in Docket No. 35763? 

4 A. Yes. I presented a depreciation study in my direct testimony in that docket. I also 

5 presented a partially updated depreciation study in Docket No. 38147, but it was 

6 not a comprehensive update to my depreciation study in Docket No. 35763. I did 

7 present a comprehensive depreciation study in Docket No. 40824. However, that 

8 case was settled and the existing approved rates from Docket No. 35763 are still 

9 being applied. 

10 Q. What has changed since your last comprehensive depreciation study? 

11 Some life changes were indicated, but net salvage in most of SPS’s assets 

12 continues to be much more negative than those reflected in SPS’s current 

13 depreciation rates for several reasons. First, SPS has decided not to request actual 

14 experience and dismantling cost study estimates for all Production plant, but to 

15 request the Commission return to its long-standing precedent of negative five 

16 percent for all production plant net salvage. The negative five percent net salvage 

17 for Production plant and Other Production plant is supported by the dismantling 

18 cost study conducted by TLG Services for SPS’s 2012 rate case (Docket No. 

19 40824). Using the negative five percent net salvage would be a first step in 

20 setting production plant depreciation rates that will stop deferring the costs and 

21 aid SPS in recovering from current customers their pro rata share of costs that is 

22 currently serving these customers. 

 

6

 Docket No. 38147, Order at FoF 18.a (Mar. 25, 2011) and Unopposed Stipulation at §V(a). 

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1 Second, the removal costs for transmission and distribution plant 

2 continues to rise. Life and net salvage were examined for both functions and 

3 minor changes in life are recommended. Almost every account in Transmission 

4 and Distribution continues to exhibit increased cost of removal resulting in 

5 increasingly negative net salvage. SPS’s proposed depreciation rates in this case 

6 reflect this reality. 

7 Finally, SPS seeks to continue use of Vintage Group Amortization for its 

8 General Plant Assets in Federal Energy Regulatory Commission (“FERC”) 

9 Accounts 391-398. The only change in depreciation expense in these accounts 

10 will come from updated life and net salvage estimates for accounts in that group. 

11 B. Overview of Depreciation Study Method 

12 Q. What definition of depreciation did you use in preparing your Depreciation 

13 Study and testimony? 

14 A. The term “depreciation,” as I use it, is a system of accounting that distributes the 

15 cost of assets, less net salvage (if any), over the estimated useful life of the assets 

16 in a systematic and rational manner. It is a process of allocation, not valuation. 

17 Depreciation expense is systematically allocated to accounting periods over the 

18 life of the assets. The amount allocated to any one accounting period does not 

19 necessarily represent the loss or decrease in value that will occur during that 

20 particular period. Thus, depreciation is considered an expense or cost, rather than 

21 a loss or decrease in value. SPS accrues depreciation based on the original cost of 

22 all property included in each depreciable plant account. On retirement, the full 

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1 cost of depreciable property, less any net salvage amount, is charged to the 

2 depreciation reserve. 

3 Q. Please describe your Depreciation Study approach. 

4 A. I conducted the Depreciation Study in four phases, as shown in Attachment 

5 DAW-RR-2. The four phases are: Data Collection, Analysis, Evaluation, and 

6 Calculation. I began each of the studies by collecting the historical data to be 

7 used in the analysis. After the data had been assembled, I performed analyses to 

8 determine the life and net salvage percentage for the different property groups 

9 being studied. As part of the process for the study I conducted in Docket No. 

10 40824, I conferred with field personnel, engineers, and managers responsible for 

11 the installation, operation, and removal of the assets to gain their input into the 

12 operation, maintenance, and salvage of the assets. Because that process occurred 

13 recently, in 2012, that information was also used in this Depreciation Study. The 

14 information obtained from field personnel, engineers, and managerial personnel, 

15 combined with the study results, is then evaluated to determine how the results of 

16 the historical asset activity analysis, in conjunction with SPS’s expected future 

17 plans, should be applied. Using all of these resources, I then calculated the 

18 depreciation rate for each function. 

19 Q. What property is included in the Depreciation Study? 

20 A. There are five distinct classes of property in this study: Production, Other 

21 Production, Transmission, Distribution (Texas only), and General Property. The 

22 Production Plant functional group consists of all structures, boiler plant 

23 equipment, turbogenerator equipment, accessory electrical equipment, and other 

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1 miscellaneous assets used to generate electricity at SPS’s gas- and coal-fired 

2 power plants. The Other Production function consists of similar assets used at 

3 SPS’s combustion turbine facilities. The Transmission plant functional group 

4 consists of structures, substations, and transmission lines used in the transmission 

5 of energy to the distribution system. The Distribution plant functional group 

6 consists of structures, substations, transformers, meters, services, distribution 

7 lines, guard lights, and street lighting used in the distribution and end use of 

8 energy on the distribution system. The General plant functional group contains 

9 facilities associated with the overall operation of the business such as land and 

10 water rights, office equipment, and computers rather than with a specific 

11 transmission or distribution classification. 

12 Q. What depreciation methodology did you use? 

13 A. The ALG, straight-line, remaining-life depreciation system, was employed to 

14 calculate annual and accrued depreciation in the studies for all plant except small 

15 dollar item assets found in FERC Accounts 391-398. The ALG methodology is 

16 the same method used in prior studies and has been approved by this Commission 

17 in prior dockets both for SPS and other companies within Texas. 

18 C. Production and Other Production Plant 

19 1. Life of Assets 

20 Q. Please describe the methodology you used to determine life for Production 

21 and Other Production plant. 

22 A. For Production and Other Production plant, most components are expected to 

23 have a retirement date concurrent with the planned retirement date of the 

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1 generating unit. The terminal retirement date refers to the year that each facility 

2 will cease operations. The terminal retirement date along with the interim 

3 retirement characteristics of the individual assets that will retire prior to the 

4 facility ceasing operation, describe the pattern of retirement of the assets that 

5 comprise a generating unit. The estimated terminal retirement dates for the 

6 various generating units were determined based on consultation with SPS 

7 management, financial, and engineering staff and are shown in Attachment 

8 DAW-RR-2, Appendix D. Interim retirement curves were used to model the 

9 retirement of individual assets within primary plant accounts for each generating 

10 unit prior to the terminal retirement of the facility for all steam generating units. 

11 Other production facilities were not modeled with an interim retirement curve. 

12 Q. What is an interim retirement curve? 

13 A. An interim retirement curve projects how many of the assets or units within a 

14 facility that are currently in-service will retire each year prior to the final 

15 retirement of the whole facility, using historical analysis and judgment. The life 

16 span procedure assumes all assets are depreciated (straight-line) for the same 

17 number of periods and retire at the same time (the terminal retirement date). 

18 Adding interim retirement curves to the procedure reflects the fact that some of 

19 the assets at a power plant will not survive to the end of the life of the facility, but 

20 will be retired earlier than the terminal life of the facility and should be 

21 depreciated (straight-line) over a shorter time frame to match their projected lives. 

22 In this study, we analyzed each account separately to estimate an interim 

23 retirement curve for FERC Accounts 311-316. Assets in the Other Production 

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1 function have very limited retirements, so no interim retirement curve is 

2 incorporated for those units. 

3 Q. Has the Commission previously reflected interim retirements in depreciation 

4 rates? 

A. Yes. The Commission included interim retirements in Docket No. 15195.75 

6 Q. Has the Commission made any recent rulings regarding interim retirements? 

A. Yes. In the Entergy Texas, Inc. (“Entergy”) rate proceeding, Docket No. 39896;87 

8 the Commission excluded interim retirements in the depreciation rate 

9 computation. Specifically, the Commission found in its Order on Rehearing, 

10 Finding of Fact 100, that “[t]he retirement (actuarial) rate method, rather than the 

11 interim retirement method, should be used in the development of production plant 

12 depreciation rates.” Also in the Southwestern Electric Power Company rate 

proceeding, Docket No. 40443;913 the Commission stated in Finding of Fact 195, 

14 “[t]he rate at which interim retirements will be made is not known and 

15 measurable. Incorporation of interim retirements would best be done when those 

16 retirements are actually made. It is not reasonable to incorporate interim 

17 retirements, resulting in a reduction in the depreciation expense of $1 million on a 

18 Texas retail basis.” 

 

7 Application of Texas Utilities Electric Company for the Reconciliation of Fuel Costs, Docket No. 

15195 (Aug. 26, 1997).

8 Application of Entergy Texas Inc. for Authority to Change Rates, Reconcile Fuel Costs, and 

Obtain Deferred Accounting Treatment, Docket No. 39896 (Sep. 14, 2012). 

9

 Application of Southwestern Electric Power Company for Authority to Change Rates and 

Reconcile Fuel Costs, Docket No. 40443 (Oct. 10, 2013).

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1 Q. Do you agree that interim retirements should be excluded in the depreciation 

2 rate computation? 

3 A. No. It is critical to include interim retirements in the depreciation rate 

4 computation.

5 Q. Why is it critical to include interim retirements in the depreciation rate 

6 computation? 

7 A. Interim retirements model how plant assets are actually retired prior to a terminal 

8 retirement of an entire facility. To exclude interim retirements means that in the 

9 future all production investment will remain in service for depreciation purposes, 

10 until the facility retires, even though some of those assets will be functionally 

11 retired. 

12 Q. Please give an example of including interim retirements in the depreciation 

13 rate computation. 

14 A. Consider a plant facility costing $1,000,000 with a 10-year life and negative 10 

15 percent net salvage. In that situation, the accrual rate and capital recovery stream 

16 would be as shown below. 

17 Chart DAW-RR-1 

Year Plant Retirement Accrual 

Rate 

Annual 

Accrual 

Net 

Salvage 

Depreciation

Reserve 

1 1,000,000 11.00% 110,000 110,000 

2 1,000,000 11.00% 110,000 220,000 

3 1,000,000 11.00% 110,000 330,000 

4 1,000,000 11.00% 110,000 440,000 

5 1,000,000 11.00% 110,000 550,000 

6 1,000,000 11.00% 110,000 660,000 

7 1,000,000 11.00% 110,000 770,000 

8 1,000,000 11.00% 110,000 880,000 

9 1,000,000 11.00% 110,000 990,000 

10 1,000,000 1,000,000 11.00% 110,000 (100,000) 0 

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1 If there was an early retirement of 12 percent of the plant facility at age 6, then the 

2 capital recovery would be as follows: 

3 Chart DAW-RR-2 

4 In this situation, the company’s assets are not fully recovered, thus creating an 

5 intergenerational inequity that must be recovered from future customers. 

6 Q. What would be the effect of changing the depreciation accrual rate when the 

7 interim retirement occurs? 

8 A. If the depreciation rate is changed when the interim retirement occurs, the capital 

9 recovery pattern would change to the following: 

Year Plant Retirem

ent 

Accrual 

Rate 

Annual 

Accrual 

Net 

Salvage 

Depreciation

Reserve 

1 1,000,000 11.00% 110,000 110,000 

2 1,000,000 11.00% 110,000 220,000 

3 1,000,000 11.00% 110,000 330,000 

4 1,000,000 11.00% 110,000 440,000 

5 1,000,000 11.00% 110,000 550,000 

6 1,000,000 120,000 11.00% 110,000 (12,000) 528,000 

7 880,000 11.00% 96,800 624,800 

8 880,000 11.00% 96,800 721,600 

9 880,000 11.00% 96,800 818,400 

10 880,000 880,000 11.00% 96,800 (88,000) (52,800) 

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1 Chart DAW-RR-3 

Year Plant Retirement Accrual 

Rate 

Annual 

Accrual

Net 

Salvage 

Depreciation

Reserve 

1 1,000,000 11.00% 110,000 110,000 

2 1,000,000 11.00% 110,000 220,000 

3 1,000,000 11.00% 110,000 330,000 

4 1,000,000 11.00% 110,000 440,000 

5 1,000,000 11.00% 110,000 550,000 

6 1,000,000 120,000 11.00% 110,000 (12,000) 528,000 

7 880,000 12.50% 110,000 638,000 

8 880,000 12.50% 110,000 748,000 

9 880,000 12.50% 110,000 858,000 

10 880,000 880,000 12.50% 110,000 (88,000) 0 

2 Note that the annual accrual rate increases by 13.64 percent after the interim 

3 retirement occurs in order to fully recover the investment in the plant. 

4 Q. What would be the recovery pattern if interim retirements were included 

5 from the plant’s inception? 

6 A. The average service life would be modified to reflect an interim retirement. The 

7 calculations are as follows. 

8 Average service life = (120,000 x 4 +880,000 x 10)/ 1,000,000 = 9.52 

9 years. 

10 The accrual rate would be (1- net savage percent)/9.52 = 11.55%. 

11 The capital recovery stream would be as follows: 

RR2 - 404 of 421 01099
Watson Direct – Revenue Requirement Page 23 

1 Chart DAW-RR-4 

Year Plant Retirement Accrual 

Rate 

Annual 

Accrual

Net 

Salvage 

Depreciation

Reserve 

1 1,000,000 11.55% 115,546 115,546 

2 1,000,000 11.55% 115,546 231,092 

3 1,000,000 11.55% 115,546 346,639 

4 1,000,000 11.55% 115,546 462,185 

5 1,000,000 11.55% 115,546 577,731 

6 1,000,000 120,000 11.55% 115,546 (12,000) 561,277 

7 880,000 11.55% 101,681 662,958 

8 880,000 11.55% 101,681 764,639 

9 880,000 11.55% 101,681 866,319 

10 880,000 880,000 11.55% 101,681 (88,000) 0 

2 The important point from this example is that unless depreciation rates include a 

3 component for retirements that occur during the life of the plant, then the cost 

4 those assets will not be fully recovered when the plant is retired. Failing to 

5 address the reality of early retirement violates the matching principle and creates 

6 intergenerational inequity when assets that are retired and replaced over the 

7 plant’s operation are not recovered during the plant’s life. Additionally, reflecting 

8 the earlier retirements during the life of the assets allows the depreciation expense 

9 for all generations of customers (all else being equal) to be based on the same 

10 depreciation rate. 

11 Q. Have all production assets for SPS that have been placed in service remained 

12 in service until the plant finally retires? 

13 A. No. From 1977-2012, SPS has retired approximately $208 million in assets in the 

14 production function prior to final plant retirement. That is approximately 12 

15 percent of the plant in service in production for FERC Accounts 311-316 as of 

16 June 30, 2013. I recommend the Commission re-evaluate the interim retirement 

RR2 - 405 of 421 01100
Watson Direct – Revenue Requirement Page 24 

1 issue in this proceeding. The depreciation rates I propose for SPS production 

2 assets incorporate an interim retirement curve model that recognizes the reality 

3 that some assets will retire prior to plant retirement date. 

4 2. Net Salvage of Production and Other Production Assets 

5 Q. What is the significance of net salvage rates for SPS Plant assets? 

6 A. In general, net salvage values are the amount received for retired property 

7 (salvage) less any costs incurred to sell or remove the property (removal). When 

8 salvage exceeds removal (positive net salvage), the net salvage reduces the 

9 amount to be depreciated over time. When removal exceeds salvage (negative net 

10 salvage), the negative net salvage increases the amount to be depreciated. In this 

11 Depreciation Study, the net salvage percentages used is not based on actual 

12 experience and dismantling cost estimates but on this Commission’s 

13 long-standing precedent of negative five percent for each property account, except 

14 land and water rights accounts where a zero percent net salvage is used.

15 Q. What are the currently approved net salvage values for Production and 

16 Other Production assets? 

17 A. The currently approved net salvage rates for Production and Other Production are 

18 positive five percent, with zero percent net salvage for land rights accounts. 

19 Those rates were set in the stipulation agreement in Docket No. 35763. 

20 Q. What has been the Commission’s practice in approving net salvage 

21 percentages for Production and Other Production assets? 

22 A. The Commission has historically used negative five percent and zero percent net 

23 salvage rates for Production and Other Production, respectively. Most recently, 

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Watson Direct – Revenue Requirement Page 25 

1 the Commission approved a negative five percent net salvage for Production plant 

in Docket No. 39896, Entergy’s recent rate case.10 2 

3 Q. When was the negative five percent first used at the Commission? 

A. The Commission first used negative five percent in 1978 in Docket No. 190311 4 for 

5 Texas Electric Services Company (“TESCO”). The basis for the negative five 

6 percent was a study conducted by Electric Bond and Share Co. on two 

7 lignite-fueled generating units owned by what would eventually become TXU. 

8 The final order in Docket No. 1903 quoted the reason to change to the negative 

9 five percent net salvage for production as “to more clearly reflect actual 

10 retirement experience of its generating units [TESCO’s proposal of negative five 

11 percent] is a more accurate estimate of net salvage values that will be experienced 

12 in the future.” 

13 Q. What was the basis for the Commission’s approval of zero percent net 

14 salvage for Other Production Plant? 

15 A. In the mid-1980s, net salvage values for Other Production were based on the 

16 specific facts and circumstances surrounding the assets in that function. For 

17 example, the first assets in Other Production were small internal combustion 

18 engines (similar to a large car engine) with very little removal cost and no costs 

19 associated with environmental issues. The facts supported a zero percent net 

 

10 Docket No. 39896, Order on Rehearing, FoF 101 (Nov. 1, 2012). 

11

 Application of Texas Electric Service Company for Authority to Change Rates and Inquiry by 

Public Utility Commission of Texas into Certain Affiliated Transactions of Texas Electric Service 

Company, Texas Power and Light, and Dallas Power and Light Company, Docket No. 1903 (Apr. 20, 

1979). 

RR2 - 407 of 421 01102
Watson Direct – Revenue Requirement Page 26 

salvage at that time. In later cases such as Docket No. 11735,12 1 Texas Utilities 

2 Electric Company had only a very small number of assets related to leased 

3 combustion turbines in the Other Production function. Part of the lease cost was 

4 the removal of the combustion turbines at the end of the lease. Again, the facts at 

5 that time supported a zero percent net salvage for Other Production. In contrast, 

6 in today’s environment, suggesting that a zero percent net salvage rate for SPS is 

7 appropriate for its combustion turbine plants is not supportable by the facts 

8 surrounding the retirement and removal of those assets. 

9 Q. Earlier in your testimony, you stated that the TLG Production Dismantling 

10 Cost Study presented in SPS’s 2012 rate case (Docket No. 40824) supports 

11 SPS’s proposal to use negative five percent net salvage values for Production 

12 and Other Production plant. How does the TLG Production Dismantling 

13 Cost Study support SPS’s proposal? 

14 A. The TLG Production Dismantling Cost Study represents a more realistic 

15 projection of Production and Other Production terminal net salvage values for 

16 SPS than do the values reflected in SPS’s current net salvage rates. The TLG 

17 Production Dismantling Cost Study is a more accurate estimate of terminal net 

18 salvage values that SPS will experience in the future for the following three 

19 reasons: 

20 1. Over the years, dismantling costs have continued to increase as evidenced 

21 by companies filing increasingly negative net salvage studies. Vague 

22 suggestions of “productivity increases” have been far outweighed by the 

 

12. Application of Texas Utilities Electric Company for Authority to Change Rates, Docket No. 

11735 (Jan. 28, 1994). 

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Watson Direct – Revenue Requirement Page 27 

1 costs associated with complying with increasing environmental 

2 regulations and escalating labor costs required to remove generating plants 

3 from service. Companies have become more environmentally 

4 sophisticated since the late 1970s. The original 1978 study did not even 

5 consider the costs of removing asbestos, transit, and other environmental 

6 hazards that now have to be considered at a significant cost. 

7 2. The TLG Production Dismantling Cost Study represents a site-specific 

8 analysis of every Production facility owned by SPS. Site-specific data for 

9 SPS owned assets are far superior to data extrapolated from an analysis 

10 with a small sample size (only two lignite-fueled units) that are owned by 

11 another company. 

12 3. Utility assets typically have a long useful life. When those assets are 

13 retired, the cost to demolish and dispose will have increased significantly 

14 because of inflation. Ever changing environmental regulations and 

15 disposal requirements must also be factored into dismantling cost. 

16 However, SPS is requesting only to move from the current positive five percent to 

17 a negative five percent as a first step in reflecting the costs needed at the time of 

18 retirement of these facilities. 

19 Q. Is the use of the Commission precedent negative five percent a conservative 

20 representation of the dismantling costs SPS will incur at the end of the lives 

21 of its generating assets? 

22 A. Yes. The actual cost that SPS will eventually incur will be much higher and at 

23 future prices. Given that the generating units are expected to be in service a 

24 number of years before retirement and dismantling, the negative five percent used 

25 in the study is very conservative. If the estimated costs in 2012 dollars from the 

26 TLG dismantling study or the future costs for dismantling were used in the study, 

27 the resulting depreciation rates would be significantly higher than those 

28 recommended in this filing. 

RR2 - 409 of 421 01104
Watson Direct – Revenue Requirement Page 28 

1 Q. Why would using the TLG Dismantling Study Result in higher depreciation 

2 rates? 

3 A. The TLG study would reflect higher removal costs and therefore more negative 

4 net salvage. 

5 3. Depreciation Rate for Production and Other Production Assets 

6 Q. Please describe the results of the Depreciation Study for Production Plant. 

7 A. The results of the analysis conducted in the Depreciation Study, based on the 

8 service life of production assets and the revised net salvage rates, resulted in an 

9 increase to SPS’s depreciation rates for production plant. SPS’s present 

10 depreciation rates were compared to the Depreciation Study recommendations in 

11 Appendix B of Attachment DAW-RR-2. The rates proposed for Production assets 

12 would be an increase of approximately $22 million, or a 1.3 percent increase in 

13 annual depreciation rates, from SPS’s present depreciation rates. Ms. Perkett will 

14 discuss the effect of the proposed rates on SPS’s test-year depreciation expense. 

15 Q. Please describe the major changes that resulted in the increase. 

16 A. The major reason for the increase in depreciation rates is the reflection of a 

17 negative five percent net salvage compared to the positive five percent net salvage 

18 amounts embedded in current rates. P.U.C. SUBST. R. 25.231(b)(1)(B) requires 

19 SPS to ratably recover from customers the future cost to remove all assets 

20 currently in service on a straight-line basis over the life of the assets. This means 

21 that net salvage rates must be calculated in order to allow recovery in current rates 

22 of the expected cost to remove the assets that SPS currently has in service over 

23 the expected life of those assets. P.U.C. SUBST. R. 25.231(b)(1)(B) ensures that 

RR2 - 410 of 421 01105
Watson Direct – Revenue Requirement Page 29 

1 the cost of the asset, including removal cost, is collected from all customers, both 

2 current and future, that benefit from the use of the asset on an equitable basis. 

3 The Commission’s rules and historic practice of using straight-line depreciation to 

4 ensure the equitable recovery of removal costs for assets support SPS’s proposed 

5 depreciation rates and net salvage amounts. Without proper recognition of 

6 removal costs, the concept of straight-line depreciation is also violated as the rates 

7 will have to increase at the end of a unit’s life or after the plant has retired to 

8 ensure full recovery of costs. 

9 Q. Please describe the results of the Depreciation Study for Other Production 

10 plant. 

11 A. The results of the analysis conducted in the Depreciation Study, based on the 

12 service life and the revised net salvage rates, resulted in an increase to SPS’s 

13 depreciation rates for Other Production plant. SPS’s present depreciation rates 

14 were compared to the Depreciation Study recommendations in Appendix B of 

15 Attachment DAW-RR-2. The rates proposed for Other Production assets is an 

16 increase of approximately $865,000, or a 0.31 percent increase in annual 

17 depreciation rates, from SPS’s present depreciation rates. Ms. Perkett will discuss 

18 the effect of the proposed rates on SPS’s test-year depreciation expense. 

19 D. Transmission, Distribution, and General Property 

20 1. Life of Transmission, Distribution, and General Assets 

21 Q. What is the significance of an asset’s useful life in your Depreciation Study? 

22 A. An asset’s useful life is used to determine the remaining life over which the 

23 remaining cost (original cost plus or minus net salvage, minus accumulated 

RR2 - 411 of 421 01106
Watson Direct – Revenue Requirement Page 30 

1 depreciation) can be allocated to normalize the asset’s cost and spread it ratably 

2 over future periods. 

3 Q. How did you determine the average service lives for each account? 

4 A. The establishment of appropriate average service lives for each account within a 

5 functional group was determined by using either of two widely accepted 

6 depreciation analyses: actuarial analysis or Simulated Plant Record (“SPR”) 

7 methods. Because the vintaged data used in actuarial analysis contains more 

8 information than the un-aged data used in SPR analysis, actuarial analysis is the 

9 preferred analysis tool when there are a sufficient number of transaction years 

10 available to model an account. Mass distribution accounts did not contain 

11 vintaged transaction history, so SPR analysis was used for these accounts. Graphs 

12 and tables supporting the actuarial analysis and SPR analysis and the chosen Iowa 

13 Curves (which represent the percentage of property remaining in service at 

14 various age intervals) used to determine the average service lives for analyzed 

15 accounts are found in the SPS Depreciation Study (Attachment DAW-RR-2) and 

16 the workpapers filed in Attachment DAW-RR-3(CD). As detailed in the study, I 

17 relied on my judgment to incorporate any differences in the expected future life 

18 characteristics of the assets into the selection of lives. The objective of life 

19 selection is to estimate the future life characteristics of assets, not simply measure 

20 the historical life characteristics. More information can be found in the life 

21 analysis section of the SPS Depreciation Study in Attachment DAW-RR-2. 

RR2 - 412 of 421 01107
Watson Direct – Revenue Requirement Page 31 

1 Q. Does your Depreciation Study reflect any changes in the useful lives of the 

2 Transmission, Distribution, and General function assets from the lives 

3 embedded in the current depreciation rates? 

4 A. Yes. As shown in Appendix C of Attachment DAW-RR-2, 17 accounts have 

5 increases in life. The greatest change is an increase of 20 years in FERC Account 

6 366. There is one account, Account 393 Stores Equipment, where a decrease in 

7 life of 10 years is recommended. The lives for the other 14 accounts remained 

8 unchanged. 

9 2. Net Salvage Rates Transmission, Distribution, and General 

10 Q. How did you determine the net salvage rates that you used in your study for 

11 Transmission, Distribution, and General property? 

12 A. I examined the experience realized by SPS by observing the average net salvage 

13 rates for various bands (or combinations) of years. Using averages (such as the 

14 5-year average band) allows the smoothing of timing differences between when 

15 retirements, removal cost and salvage are booked and smoothes the natural 

16 variations between years. By looking at successive average bands, or “rolling 

17 bands,” an analyst can see trends in the data that would signal the future net 

18 salvage in the account. This examination, in combination with the feedback of 

19 SPS personnel related to any changes in operations or maintenance that would 

20 affect the future net salvage of SPS, allowed for the selection of the best estimate 

21 of future net salvage for each account. 

RR2 - 413 of 421 01108
Watson Direct – Revenue Requirement Page 32 

1 Q. Is this a reasonable method for determining net salvage rates? 

2 A. Yes. This methodology is commonly employed throughout the industry and is the 

3 method recommended in authoritative texts. 

4 Q. Does your Depreciation Study reflect any change in the net salvage values of 

5 the Transmission and Distribution property from the existing net salvage 

6 rates embedded in SPS’s current depreciation rates? 

7 A. Yes. The net salvage values for both Transmission and Distribution property 

8 continue to experience increasing cost of removal and declining gross salvage. 

9 The recommended net salvage values used in the calculation of the Transmission 

10 and Distribution depreciation rates, along with the current net salvage values for 

11 comparison, are listed in Attachment DAW-RR-2, Appendix C with detailed 

12 computation in Appendix E-2. Additionally, Attachment DAW-RR-2 contains a 

13 detailed net salvage analysis for Transmission and Distribution property, by 

14 account 

15 3. Depreciation Rates for Transmission, Distribution, and General 

16 Property 

17 Q. Please describe the results of the Depreciation Study for Transmission plant. 

18 A. The results of the analysis conducted in the Depreciation Study, based on the 

19 service life of transmission plant and the revised net salvage rates, resulted in an 

20 increase to SPS’s depreciation rates for transmission plant. SPS’s present 

21 depreciation rates as authorized by the Commission were compared to the 

22 Depreciation Study recommendations in Appendix B of Attachment DAW-RR-2. 

23 The rates proposed for Transmission assets is an increase of approximately 

24 $309,000, or an approximately 0.0228 percent increase in annual depreciation 

RR2 - 414 of 421 01109
Watson Direct – Revenue Requirement Page 33 

1 rates, from SPS’s present depreciation rates. Ms. Perkett will discuss the effect of 

2 the proposed rates on SPS’s test-year depreciation expense. 

3 Q. Please describe the results of the Depreciation Study for Distribution plant. 

4 A. The results of the analysis conducted in the Depreciation Study, based on the 

5 service life of distribution plant (Texas only) and the revised net salvage rates, 

6 resulted in a decrease to SPS’s depreciation rates for distribution plant. SPS’s 

7 present depreciation rates as authorized by the Commission were compared to the 

8 proposed Depreciation Study recommendations in Appendix B of Attachment 

9 DAW-RR-2. The rates proposed for Distribution assets is an increase of 0.10 

10 percent from SPS’s present depreciation rates. Ms. Perkett will discuss the effect 

11 of the proposed rates on SPS’s test-year depreciation expense. 

12 Q. Please describe the results of the Depreciation Study for FERC Accounts 

13 389-390 (land rights, and structures and improvements). 

14 A. The results of the analysis conducted in the Depreciation Study, based on the 

15 service life of FERC Accounts 389-390 and the revised net salvage rates, resulted 

16 in an increase to SPS’s depreciation rates for FERC Accounts 389-390. SPS’s 

17 present depreciation rates as authorized by the Commission were compared to the 

18 proposed Depreciation Study recommendations in Appendix B of Attachment 

19 DAW-RR-2. The rates proposed for FERC Accounts 389 - 390 would be an 

20 increase of $861,000, or an approximate 1.4 percent increase in annual 

21 depreciation rates, from SPS’s present depreciation rates. Ms. Perkett will discuss 

22 the effect of the proposed depreciation rates on SPS’s test-year depreciation 

23 expense. 

RR2 - 415 of 421 01110
Watson Direct – Revenue Requirement Page 34 

1 Q. Please describe the major changes that resulted in the changes in 

2 depreciation rates for electric Transmission and Distribution property. 

3 A. Changes in service life, gross salvage, gross removal costs, curve selection, and 

4 adjustments due to a theoretical reserve comparison are all factors that affect the 

5 calculation of the depreciation accrual. The proposed changes in the Depreciation 

6 Study analysis for Transmission and Distribution assets suggest adjustments that 

7 both increase and decrease the total accrual. However, one of the factors 

8 influenced the accrual calculation notably and consistently in one direction: most 

9 of the increase in depreciation expense for Transmission and Distribution assets 

10 can be attributed to the effect of changes to net salvage rates. 

11 In Docket No. 38147, the stipulation did not move net salvage rates to 

12 accurate levels. For nearly every Transmission and Distribution asset group, the 

13 residual value of assets has been decreasing while at the same time labor and 

14 disposal costs having been increasing. The effect on the calculation of net salvage 

15 is then two fold. There is a downward trend on gross salvage and an upward 

16 trend on the cost of removal that has been occurring for many years. When net 

17 salvage becomes increasingly negative, depreciation expense increases over 

18 previous levels. To remedy the shortfall caused by the current depreciation rates, 

19 the Commission should approve the net salvage parameters proposed in the 

20 Depreciation Study to provide SPS straight-line asset recovery and prevent 

21 intergenerational inequities. 

RR2 - 416 of 421 01111
Watson Direct – Revenue Requirement Page 35 

1 E. Vintage Year Depreciation of General Plant Assets, FERC 

2 Accounts 391-398 

3 Q. Please describe the Vintage Group methodology. 

4 A. For general plant assets in accounts 391-398, SPS is requesting to continue to use 

5 a vintage year accounting method approved by the FERC in Accounting Release 

6 Number 15 (“AR-15”), Vintage Year Accounting For General Plant Accounts, 

7 dated January 1, 1997. AR-15 allowed utilities to use a simplified method of 

8 accounting for general plant assets, excluding structures and improvements 

9 (referred to as “general plant”). The AR-15 release allowed high-volume, 

10 low-cost assets to be amortized over the associated useful life, eliminated the need 

11 to track individual assets, and allows a retirement to be booked at the end of the 

12 depreciable life. This method is often referred to as “amortization of general 

13 plant.” 

14 Adopting the method of accounting allowed in AR-15 changes the level of 

15 detail maintained in the asset records and performs the depreciation calculation at 

16 a vintage level rather than at a total account level. The plant asset balances will 

17 be maintained by vintage installed with the retirement being recorded when book 

18 depreciation has been completed. The empirical retirement data for actuarial or 

19 semi-actuarial analysis will no longer be reliable, however, the determination of 

20 useful life can be made appropriately with the use of market forces, manufacturer 

21 expected life, technological obsolescence, business planning, known causes of 

22 retirement, and changes in expected future utilization. 

23 The depreciation calculation uses a useful life applied to a vintage versus 

24 the entire account. The depreciation recovery is complete when the vintage 

RR2 - 417 of 421 01112
Watson Direct – Revenue Requirement Page 36 

1 accumulated depreciation is equal to the vintage plant adjusted for estimated 

2 salvage and removal costs. 

3 Q. Please describe the methodology or technique employed in analyzing the life 

4 of Vintage Group Property. 

5 A. Similar to the Transmission, Distribution, and General plant structure and 

6 improvement assets described above, vintage group property for these accounts 

7 was analyzed using actuarial analysis. Life parameters for other accounts in this 

8 group were derived from the stipulation agreement in Docket No. 35763. By 

9 evaluating the retirement forces and the impact on the current in-service property, 

10 an appropriate recovery period was determined. 

11 Q. Has the Commission approved Vintage Group amortization for other 

12 companies in Texas? 

13 A. Yes. In the most recently fully litigated cases regarding depreciation, the 

14 Commission approved vintage group amortization for Oncor Electric Delivery 

Company, LLC (Docket No. 3571713 15 ), CenterPoint Energy Houston Electric LLC 

(Docket No. 3833914 16 ), and Entergy (Docket No. 39896). 

17 Q. Please describe the results of the Vintage Group Depreciation Study. 

18 A. The vintage group depreciation analysis recommends slight adjustments to 

19 depreciation parameters for this group. SPS requests only a change to the service 

20 life of one account, FERC Account 393 Stores Equipment. The study also 

21 recommends a change to the net salvage percentages for five general plant 

 

13

 Application of Oncor Electric Delivery Company, LLC for Authority to Change Rates, Docket 

No. 35717 (Aug. 31, 2009).

RR2 - 418 of 421 01113
Watson Direct – Revenue Requirement Page 37 

1 accounts: FERC Account 391 Office Furniture and Equipment, Account 392 

2 Transportation Equipment, Account 394 Tools, Shop and Garage Equipment, 

3 Account 396 Power Operated Equipment, and Account 397 Communication 

4 Equipment. SPS’s present depreciation rates were compared to the Depreciation 

5 Study recommendations in Appendix B of Attachment DAW-RR-2. The rates 

6 proposed for Vintage Group property are an increase of $6.1 million, or 

7 approximately 3.7 percent increase in annual depreciation rates, from SPS’s 

8 present depreciation rates. It should be noted that $5.0 million of this increase is 

9 attributable to the reserve position and necessary recovery, which is shown on 

10 Appendix A-2. Ms. Perkett will discuss the effect of SPS’s proposed depreciation 

11 rates on SPS’s test-year depreciation expense. 

 

14

 Application of Centerpoint Energy Houston Electric, LLC for Authority to Change Rates,

Docket No. 38339 (May 12, 2011). 

RR2 - 419 of 421 01114
Watson Direct – Revenue Requirement Page 38 

1 V. CONCLUSION 

2 Q. Were Exhibits DAW-RR-1 through DAW-RR-3 prepared by you or under 

3 your direct supervision and control? 

4 A. Yes. 

5 Q. Does this conclude your pre-filed direct testimony? 

6 A. Yes. 

RR2 - 420 of 421 01115
RR2 - 421 of 421 01116
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

1

New Jersey Board of 

Public Utilities GR13111137 South Jersey Gas 2013 Gas Depreciation Study

2

Various FERC RP14-247-000 Sea Robin 2013 Gas Depreciation 

Study

3

Arkansas

Arkansas 

Public Service 

Commission

13-078-U

Arkansas 

Oklahoma 

Gas

2013 Gas Depreciation 

Study

4

Arkansas

Arkansas 

Public Service 

Commission

13-079-U Source Gas 

Arkansas 2013 Gas Depreciation Study

5

California

California 

Public Utilities 

Commission

Southern 

California 

Edison

2013

Electric 

Depreciation 

Study

6

North 

Carolina/South 

Carolina

FERC ER13-1313

Progress

Energy 

Carolina

2013

Electric 

Depreciation 

Study

7

Wisconsin

Public Service 

Commission 

of Wisconsin

4220-DU-108

Northern 

States PowerWisconsin2013

Electric, Gas and 

Common 

Transmission, 

Distribution and 

General

8

Texas

Public Utility 

Commission 

of Texas

41474 Sharyland 2013

Electric 

Depreciation 

Study

9

Kentucky

Kentucky 

Public Service 

Commission

2013-00148 Atmos Energy 

Corporation 2013 Gas Depreciation 

Study

10

Minnesota

Minnesota 

Public Utilities 

Commission

13-252

Minnesota 

Power 2013

Electric 

Depreciation 

Study

11

New Hampshire

New 

Hampshire 

Public Service 

Commission

DE 13-063 Liberty 

Utilities 2013

Electric 

Distribution and 

General

12

Texas

Railroad 

Commission 

of Texas

10235 West Texas 

Gas 2013 Gas Depreciation Study

13

North Dakota

North Dakota 

Public Service 

Commission

PU-12-0813 Northern 

States Power 2012

Electric, Gas and 

Common 

Transmission, 

Distribution and 

General

Attachment DAW-RR-1 

Page 1 of 10 

Docket: 42004

RR3 - 1 of 509 01117
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

14

Alaska

Regulatory 

Commission 

of Alaska

U-12-154

Alaska 

Telephone 

Company

2012 Telecommunicatio

ns Utility

15

New Mexico

New Mexico 

Public

Regulation 

Commission

12-00350-UT SPS 2012

Electric 

Depreciation 

Study

16

Colorado

Colorado 

Public Utilities 

Commission

12AL-1269ST Public Service 

of Colorado 2012

Gas and Steam 

Depreciation 

Study

17

Colorado

Colorado 

Public Utilities 

Commission

12AL-1268G Public Service 

of Colorado 2012

Gas and Steam 

Depreciation 

Study

18

Alaska

Regulatory 

Commission 

of Alaska

U-12-149

Municipal 

Power and 

Light City of 

Anchorage

2012

Electric 

Depreciation 

Study

19

Texas

Texas Public 

Utility 

Commission

40824 Xcel Energy 2012

Electric 

Depreciation 

Study

20

South Carolina

Public Service 

Commission 

of South 

Carolina

Docket 2012-384-

E

Progress 

Energy 

Carolina

2012

Electric 

Depreciation 

Study

21

Alaska

Regulatory 

Commission 

of Alaska

U-12-141

Interior 

Telephone 

Company

2012 Telecommunicatio

ns Utility

22

Michigan

Michigan 

Public Service 

Commission

U-17104

Michigan Gas 

Utilities 

Corporation

2012 Gas Depreciation 

Study

23

North Carolina

North Carolina 

Utilities 

Commission

E-2 Sub 1025

Progress 

Energy 

Carolina

2012

Electric 

Depreciation 

Study

24

Texas West Texas 

Gas 2012 Gas Depreciation Study

25

Texas

Texas Public 

Utility 

Commission

40606

Wind Energy 

Transmission 

Texas

2012

Electric 

Depreciation 

Study

26

Texas

Texas Public 

Utility 

Commission

40604 Crosss Texas 

Transmission 2012

Electric 

Depreciation 

Study

Attachment DAW-RR-1 

Page 2 of 10 

Docket: 42004

RR3 - 2 of 509 01118
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

27

Minnesota

Minnesota 

Public Utilities 

Commission

12-858

Northern 

States Power 2012

Electric, Gas and 

Common 

Transmission, 

Distribution and 

General

28

Texas

Railroad 

Commission 

of Texas

10170 Atmos MidTex 2012 Gas Depreciation 

Study

29

Texas

Railroad 

Commission 

of Texas

10174 Atmos West 

Texas 2012 Gas Depreciation Study

30

Texas

Railroad 

Commission 

of Texas

10182

CenterPoint 

Beaumont/ 

East Texas

2012 Gas Depreciation 

Study

31

Kansas

Kansas

Corporation 

Commission

12-KCPE-764-

RTS

Kansas City 

Power and 

Light

2012

Electric 

Depreciation 

Study

32

Nevada

Public Utility 

Commission 

of Nevada

12-04005 Southwest 

Gas 2012 Gas Depreciation Study

33

Texas

Railroad 

Commission 

of Texas

10147, 10170 Atmos MidTex 2012 Gas Depreciation 

Study

34

Kansas

Kansas

Corporation 

Commission

12-ATMG-564-

RTS Atmos Kansas 2012 Gas Depreciation Study

35

Texas

Texas Public 

Utility 

Commission

40020 Lone Star 

Transmission 2012

Electric 

Depreciation 

Study

36

Michigan

Michigan 

Public Service 

Commission

U-16938

Consumers 

Energy 

Company

2011 Gas Depreciation 

Study

37

Colorado

Public Utilities 

Commission 

of Colorado

11AL-947E Public Service 

of Colorado 2011

Electric 

Depreciation 

Study

38

Texas

Texas Public 

Utility 

Commission

39896 Entergy Texas 2011

Electric 

Depreciation 

Study

39

MultiState FERC ER12-212

American 

Transmission 

Company

2011

Electric 

Depreciation 

Study

Attachment DAW-RR-1 

Page 3 of 10 

Docket: 42004

RR3 - 3 of 509 01119
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

40

California

California 

Public Utilities 

Commission

A1011015

Southern 

California 

Edison

2011

Electric 

Depreciation 

Study

41

MultiState Atmos Energy 2011

Shared Services 

Depreciation 

Study

42

Mississippi

Mississippi 

Public Service 

Commission

2011-UN-184 Atmos Energy 2011 Gas Depreciation 

Study

43

Texas

Texas 

Commission 

on 

Environmental 

Quality

Matter 37050-R

Southwest 

Water 

Company

2011

WasteWater 

Depreciation 

Study

44

Texas

Texas 

Commission 

on 

Environmental 

Quality

Matter 37049-R

Southwest 

Water 

Company

2011

Water 

Depreciation 

Study

45

MultiState CenterPoint 2011 Shared Services 

Study

46

MultiState CenterPoint 2011

Depreciation 

Reserve Study 

(SAP)

47

Pennsylvania NA NA Safe Harbor 2011

Hydro 

Depreciation 

Study

48

Michigan

Michigan 

Public Service 

Commission

U-16536

Consumers 

Energy 

Company

2011 Wind Depreciation 

Rate Study

49

Texas

Public Utility 

Commission 

of Texas

38929 Oncor 2011

Electric 

Depreciation 

Study

50

Texas

Railroad 

Commission 

of Texas

10038 CenterPoint 

South TX 2010 Gas Depreciation Study

51

Multistate NA NA Constellation 

Energy 2010

Fossil Generation 

Depreciation 

Study

Attachment DAW-RR-1 

Page 4 of 10 

Docket: 42004

RR3 - 4 of 509 01120
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

52

Multistate NA NA

Constellation 

Energy 

Nuclear 

2010

Nuclear 

Generation 

Depreciation 

Study

53

Alaska

Regulatory 

Commission 

of Alaska

U-10-070

Inside Passage 

Electric 

Cooperative

2010

Electric 

Depreciation 

Study

54

Texas

Public Utility 

Commission 

of Texas

36633

City Public 

Service of San 

Antonio

2010

Electric 

Depreciation 

Study

55

Texas Texas Railroad 

Commission 10000

Atmos 

Pipeline 

Texas

2010 Gas Depreciation 

Study

56

Multi State – SE US FERC RP10-21-000 Florida Gas 

Transmission 2010 Gas Depreciation Study

57

Maine/ New 

Hampshire FERC 10-896

Granite State 

Gas 

Transmission

2010 Gas Depreciation 

Study

58

Texas 

Public Utility 

Commission 

of Texas

38480 Texas New 

Mexico Power 2010

Electric 

Depreciation 

Study

59

Texas 

Public Utility 

Commission 

of Texas

38339 CenterPoint 

Electric 2010

Electric 

Depreciation 

Study

60

California

California 

Public Utility 

Commission

A10071007

California 

American 

Water

2009-

2010

Water and Waste 

Water 

Depreciation 

Study

61

Texas Texas Railroad 

Commission 10041

Atmos 

Amarillo 2010 Gas Depreciation Study

62

Georgia

Georgia Public 

Service 

Commission

31647 Atlanta Gas 

Light 2010 Gas Depreciation Study

63

Texas 

Public Utility 

Commission 

of Texas

38147 Southwestern 

Public Service 2010 Electric Technical Update

64

Alaska

Regulatory 

Commission 

of Alaska

U-09-015

Alaska 

Electric Light 

and Power

2009-

2010

Electric 

Depreciation 

Study

Attachment DAW-RR-1 

Page 5 of 10 

Docket: 42004

RR3 - 5 of 509 01121
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

65

Michigan 

Michigan 

Public Service 

Commission

In Progress Edison Sault 2009

Electric 

Depreciation 

Study

66

Alaska

Regulatory 

Commission 

of Alaska

U-10-043

Utility 

Services of 

Alaska

2009-

2010

Water 

Depreciation 

Study

67

Tennessee

Tennessee 

Regulatory 

Authority

09-000183

AGL – 

Chattanooga 

Gas 

2009 Gas Depreciation 

Study

68

Michigan

Michigan 

Public Service 

Commission

U-16055

Consumers 

Energy/DTE 

Energy

2009-

2010

Ludington Pumped 

Storage 

Depreciation 

Study

69

Michigan

Michigan 

Public Service 

Commission

U-16054 Consumers 

Energy

2009-

2010

Electric 

Depreciation 

Study

70

Michigan

Michigan 

Public Service 

Commission

U-15963

Michigan Gas 

Utilities 

Corporation

2009 Gas Depreciation 

Study

71

New York

New York 

Public Service 

Commission

Key Span 2009

Generation 

Depreciation 

Study

72

Michigan

Michigan 

Public Service 

Commission

U-15989

Upper 

Peninsula 

Power 

Company

2009

Electric 

Depreciation 

Study

73

Texas

Railroad 

Commission 

of Texas

9869 Atmos Energy 2009

Shared Services 

Depreciation 

Study

74

Mississippi

Mississippi 

Public Service 

Commission

09-UN-334

CenterPoint 

Energy 

Mississippi

2009 Gas Depreciation 

Study

75

Texas

Railroad 

Commission 

of Texas

9902

CenterPoint 

Energy 

Houston

2009 Gas Depreciation 

Study

76

Iowa NA Cedar Falls 

Utility 2009

Telecommunicatio

ns, Water, and 

Cable Utility

77

Wyoming

Wyoming 

Public Service 

Commission

30022-148-GR10 Source Gas 2009-

2010

Gas Depreciation 

Study

Attachment DAW-RR-1 

Page 6 of 10 

Docket: 42004

RR3 - 6 of 509 01122
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

78

Colorado

Colorado 

Public Utilities 

Commission

09AL-299E Public Service 

of Colorado 2009

Electric 

Depreciation 

Study

79

Tennessee

Tennessee 

Regulatory 

Authority

11-00144 Piedmont 

Natural Gas 2009 Gas Depreciation Study

80

South Carolina

Public Service 

Commission 

of South 

Carolina

Piedmont 

Natural Gas 2009 Gas Depreciation Study

81

North Carolina

North Carolina 

Utilities 

Commission

Piedmont 

Natural Gas 2009 Gas Depreciation Study

82

Louisiana

Louisiana 

Public Service 

Commission

U-30689 Cleco 2008

Electric 

Depreciation 

Study

83

Texas

Public Utility 

Commission 

of Texas

35763 SPS 2008

Electric 

Production, 

Transmission, 

Distribution and 

General Plant 

Depreciation 

Study

84

Wisconsin Wisconsin 05-DU-101 WE Energies 2008

Electric, Gas, 

Steam and 

Common 

Depreciation 

Studies

85

Arizona NA NA Arizona

Public Service 2008 Fixed Asset Consulting

86

Multiple States NA NA Constellation 

Energy 2008

Generation 

Depreciation 

Study

87

North Dakota

North Dakota 

Public Service 

Commission

PU-07-776 Northern 

States Power 2008 Net Salvage

88

New Mexico

New Mexico 

Public

Regulation 

Commission

07-00319-UT SPS 2008 Testimony – 

Depreciation

Attachment DAW-RR-1 

Page 7 of 10 

Docket: 42004

RR3 - 7 of 509 01123
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

89

Multiple States

Railroad 

Commission 

of Texas

9762 Atmos Energy 2007-

2008

Shared Services 

Depreciation 

Study

90

Multiple States None

Tennessee 

Valley 

Authority

2007-

2008

Electric 

Generation and 

Transmission 

Depreciation 

Study

91

Colorado

Colorado 

Public Utilities 

Commission

Filed – no docket 

to date

Public Service 

of Colorado

2007-

2008

Electric 

Depreciation 

Study

92

Colorado

Colorado 

Public Utilities 

Commission

10AL-963G Public Service 

of Colorado

2007-

2008

Gas Depreciation 

Study

93

Minnesota

Minnesota 

Public Utilities 

Commission

E015/D-08-422 Minnesota 

Power

2007-

2008

Electric 

Depreciation 

Study

94

Texas

Public Utility 

Commission 

of Texas

35717 Oncor 2008

Electric 

Depreciation 

Study

95

Multiple States NA NA Constellation 

Energy 2007

Generation 

Depreciation 

Study

96

Texas

Public Utility 

Commission 

of Texas

34040 Oncor 2007

Electric 

Depreciation 

Study

97

Michigan

Michigan 

Public Service 

Commission

U-15629 Consumers 

Energy

2006-

2009

Gas Depreciation 

Study

98

Colorado

Colorado 

Public Utilities 

Commission

06-234-EG Public Service 

of Colorado 2006

Electric 

Depreciation 

Study

99

Multiple States Multiple NA CenterPoint 

Energy 2006

Shared Services 

Depreciation 

Study

100

Arkansas

Arkansas 

Public Service 

Commission

06-161-U

CenterPoint 

Energy – 

Arkla Gas

2006

Gas Distribution 

Depreciation 

Study and 

Removal Cost 

Study

Attachment DAW-RR-1 

Page 8 of 10 

Docket: 42004

RR3 - 8 of 509 01124
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

101

Nevada NA NA

Nevada

Power/Sierra 

Pacific

2006 ARO Consulting

102

Pennsylvania NA NA Safe Harbor 2006

Hydro 

Depreciation 

Study

103

Utah, Nevada, 

California NA NA

Intermountain 

Power 

Authority

2006

Generation 

Depreciation 

Study

104

Texas, New Mexico

Public Utility 

Commission 

of Texas

32766 Xcel Energy 2005-

2006

Electric 

Production, 

Transmission, 

Distribution and 

General Plant 

Depreciation 

Study

105

Texas

Railroad 

Commission 

of Texas

9670/9676 Atmos Energy 

Corp

2005-

2006

Gas Distribution 

Depreciation 

Study

106

Texas

Railroad 

Commission 

of Texas

9400 TXU Gas 2003-

2004

Gas Distribution 

Depreciation 

Study

107

Texas

Railroad 

Commission 

of Texas

9313 TXU Gas 2002

Gas Distribution 

Depreciation 

Study

108

Texas

Railroad 

Commission 

of Texas

9225 TXU Gas 2002

Gas Distribution 

Depreciation 

Study

109

Texas

Public Utility 

Commission 

of Texas

24060 TXU 2001 Line Losses

110

Texas

Public Utility 

Commission 

of Texas

23640 TXU 2001 Line Losses

111

Texas

Railroad 

Commission 

of Texas

9145-9148 TXU Gas 2000-

2001

Gas Distribution 

Depreciation 

Study

112

Texas

Public Utility 

Commission 

of Texas

22350 TXU 2000-

2001

Electric 

Depreciation 

Study, Unbundling 

Attachment DAW-RR-1 

Page 9 of 10 

Docket: 42004

RR3 - 9 of 509 01125
SOUTHWESTERN PUBLIC SERVICE COMPANY

LIST OF APPEARANCES BEFORE REGULATORY BODIES BY

DANE A. WATSON

Line

No. Asset Location Commission Docket (If 

Applicable) Company Year Description

113

Texas

Railroad 

Commission 

of Texas

8976 TXU Pipeline 1999

Pipeline 

Depreciation 

Study

114

Texas

Public Utility 

Commission 

of Texas

20285 TXU 1999

Fuel Company 

Depreciation 

Study

115

Texas

Public Utility 

Commission 

of Texas

18490 TXU 1998 Transition to 

Competition

116

Texas

Public Utility 

Commission 

of Texas

16650 TXU 1997 Customer 

Complaint

117

Texas

Public Utility 

Commission 

of Texas

15195 TXU 1996

Mining Company 

Depreciaiton 

Study

118

Texas

Public Utility 

Commission 

of Texas

12160 TXU 1993

Fuel Company 

Depreciation 

Study

119

Texas

Public Utility 

Commission 

of Texas

11735 TXU 1993

Electric 

Depreciation 

Study

Attachment DAW-RR-1 

Page 10 of 10 

Docket: 42004

RR3 - 10 of 509 01126
 

SOUTHWESTERN PUBLIC SERVICE 

COMPANY- TEXAS 

Book Depreciation Accrual Rate 

Study 

At June 30, 2013 

 

 

 

Attachment DAW-RR-2 

Page 1 of 140 

Docket: 42004

RR3 - 11 of 509 01127
2

SOUTHWESTERN PUBLIC SERVICE COMPANY-TEXAS 

DEPRECIATION RATE STUDY 

AT JUNE 30, 2013 

Table of Contents 

PURPOSE ....................................................................................................... 4

STUDY RESULTS .......................................................................................... 5

GENERAL DISCUSSION ............................................................................... 6

Definition .................................................................................................... 6

Basis of Depreciation Estimates .............................................................. 6

Survivor Curves ......................................................................................... 7

Life Span Procedure ................................................................................ 10

Interim Retirement Curves ...................................................................... 10

Actuarial Analysis ................................................................................... 11

Simulated Plant Record Procedure ........................................................ 12

Judgment ................................................................................................. 15

Theoretical Depreciation Reserve .......................................................... 16

DETAILED DISCUSSION ............................................................................. 17

Depreciation Study Process ................................................................... 17

Production Depreciation Calculation Process ...................................... 20

Transmission, Distribution and General Calculation Process ............ 21

Vintage Group Amortization ................................................................... 22

LIFE ANALYSIS ........................................................................................... 24

Steam Production, FERC Accounts 311-316 ......................................... 24

Other Production, FERC Accounts 340-346 .......................................... 32

Transmission Accounts, FERC Accounts 350-358 ............................... 33

Distribution Accounts, FERC Accounts 360-373 .................................. 42

SALVAGE ANALYSIS .................................................................................. 62

Salvage - Steam Production and Other Production Property .............. 63

Salvage - Transmission Property ........................................................... 64

Attachment DAW-RR-2 

Page 2 of 140 

Docket: 42004

RR3 - 12 of 509 01128
3

Salvage – Distribution Property ............................................................. 67

Salvage – General Property .................................................................... 71

APPENDIX A Computation of Depreciation Accrual Rates ..................... 75

APPENDIX B Comparison of Approved vs Proposed Accrual Rates ..... 83

APPENDIX C Comparison of Depreciation Parameters ........................... 86

APPENDIX D Retirement Data for all Generating Units ........................... 99

APPENDIX E Net Salvage Analysis by Account ..................................... 101

Attachment DAW-RR-2 

Page 3 of 140 

Docket: 42004

RR3 - 13 of 509 01129
4

PURPOSE

The purpose of this study is to develop functional depreciation rates for the 

depreciable production, transmission, distribution, and general property as 

recorded on the books of Southwestern Public Service Company (SPS or 

Company) as of June 30, 2013. The depreciation rates were designed to 

recover the total remaining undepreciated investment, adjusted for net salvage, 

over the remaining life of SPS’s property on a straight-line basis. Nondepreciable property and property that is amortized, such as intangible software, 

were excluded from this study. SPS is engaged in the generation, transmission, 

and distribution of electricity within Texas and New Mexico. Company-wide 

(Texas and New Mexico), SPS provides electricity to more than 380,000 

wholesale and retail customers. 

Assets for SPS at January 1, 2013 include: 4,306 megawatts of generation; 

6,805 conductor miles of 345 kV transmission lines with supporting structures; 

9,684 conductor miles of 230 kV transmission lines with supporting structures; 

11,479 conductor miles of 115 kV transmission line with supporting structures; 

22,067 conductor miles of less than 115 kV line and 426 transmission and 

distribution substations. In addition, SPS needs associated equipment such as 

feeders, primary switches, poles, conductor, line transformers, services, meters, 

and streetlights to serve its 380,000 customers. 

General property such as buildings, office furniture, transportation 

equipment, and other miscellaneous property is located throughout the 

Company’s service territory. 

Attachment DAW-RR-2 

Page 4 of 140 

Docket: 42004

RR3 - 14 of 509 01130
5

STUDY RESULTS

Recommended depreciation rates for all SPS depreciable property are shown 

in Appendix A. These rates translate into an annual depreciation accrual (total 

company) for Generation of $51.4 million and for Transmission, Distribution (Texas 

Only) and General plant of $69.9 million. These accruals are based on SPS's 

depreciable investment as of June 30, 2013 (test year) as shown in Appendix B. 

The annual depreciation expense calculated by the same method using the existing 

approved Texas depreciation rates was $28.4 million for Generation and $62.0 

million for Transmission, Distribution, and General plant. Appendix B shows the 

effect of the change in lives and curves on depreciation accrual by account. The 

proposed lives and curves on which these calculations are based are shown in 

Appendix C. Appendix D shows the Production unit retirement dates. Appendix E 

addresses the development of net salvage parameters for all plant accounts. 

 This study also recommends that SPS continue its depreciation process for 

general plant (excluding Accounts 389 and 390) of a general plant amortization 

process. Since Docket No. 35763, the Company has been using general plant 

amortization. In compliance with the Unanimous Stipulation in Commission Docket 

No. 35763, the Company is presenting updated estimates of life and net salvage for 

general plant. In this proceeding, the Company requests that the depreciation study 

parameters (life and net salvage) for general plant be approved. 

Attachment DAW-RR-2 

Page 5 of 140 

Docket: 42004

RR3 - 15 of 509 01131
6

GENERAL DISCUSSION

Definition

 The term "depreciation" as used in this study is considered in the accounting 

sense; that is, a system of accounting that distributes the cost of assets, less net 

salvage (if any), over the estimated useful life of the assets in a systematic and 

rational manner. It is a process of allocation, not valuation. This expense is 

systematically allocated to accounting periods over the life of the properties. The 

amount allocated to any one accounting period does not necessarily represent the 

loss or decrease in value that will occur during that particular period. The Company 

accrues depreciation on the basis of the original cost of all depreciable property 

included in each functional property group. At retirement, the full cost of depreciable 

property, less the net salvage value, is charged to the depreciation reserve. 

Basis of Depreciation Estimates

Annual and accrued depreciation were calculated in this study by the straightline, broad group, remaining-life depreciation system. In this system, the annual 

depreciation expense for each group is computed by dividing the original cost of the 

asset group less allocated depreciation reserve less estimated net salvage by its 

respective average remaining life. The resulting annual accrual amounts of all 

depreciable property within a function were accumulated and the total was divided 

by the original cost of all functional depreciable property to determine the 

depreciation rate. The calculated remaining lives and annual depreciation accrual 

rates were based on attained ages of plant in service and the estimated service life 

and salvage characteristics of each depreciable group, and were computed in a 

direct weighting by multiplying each vintage or account balance times its remaining 

life and dividing by the plant investment in service as of June 30, 2013. The 

computations of the annual functional depreciation rates are shown in Appendix A, 

and the weighted remaining life calculations are also shown in Appendix A. 

A variety of life estimation approaches were incorporated into analyses of 

SPS data. Both Simulated Plant Record (SPR) analysis and Actuarial Analysis are 

commonly used mortality analysis techniques for electric utility property. Historically, 

SPS has used SPR analysis to evaluate lives of most asset groups. Where vintaged 

Attachment DAW-RR-2 

Page 6 of 140 

Docket: 42004

RR3 - 16 of 509 01132
7

information is available, actuarial analysis was performed. Transmission, 

Distribution substation, and General property accounts were analyzed in this study 

using actuarial analysis. Mass Distribution accounts (account 364 – 373) were 

analyzed using SPR analysis. For the accounts using actuarial analysis, (i.e. 

Accounts 350-362 and 389-398) experience bands varied depending on the amount 

of data. The 1968-2012 experience band was the maximum used for accounts 352-

362 and general accounts 390-398. Judgment was used to a greater or lesser 

degree on all accounts. Each approach used in this study is more fully described in 

a later section. 

Survivor Curves

To fully understand depreciation projections in a regulated utility setting, there 

must be a basic understanding of survivor curves. Individual assets within a group 

do not normally have identical lives or investment amounts. The average life of a 

group can be determined by comparing actual experience against various survivor 

curves. A survivor curve represents the percentage of property remaining in service 

at various age intervals. The most widely used set of representative survivor curves 

are the Iowa Survivor Curves (Iowa Curves). The Iowa Curves are the result of an 

extensive investigation of life characteristics of physical property made at Iowa State 

College Engineering Experiment Station in the first half of the twentieth century. 

Through common usage, revalidation, and regulatory acceptance, these curves 

have become a descriptive standard for the life characteristics of industrial property. 

 An example of an Iowa Curve is shown below. 

Attachment DAW-RR-2 

Page 7 of 140 

Docket: 42004

RR3 - 17 of 509 01133
8

There are four families in the Iowa Curves which are distinguished by the 

relation of the age at the retirement mode (largest annual retirement frequency) and 

the average life. The four families are designated as “R”— Right, “S” — Symmetric, 

“L” — Left, and “O” — Origin Modal. First, for distributions with the mode age 

greater than the average life, an "R" designation (i.e., Right modal) is used. The 

family of “R” moded curves is shown below. 

Attachment DAW-RR-2 

Page 8 of 140 

Docket: 42004

RR3 - 18 of 509 01134
9

Second, an "S" designation (i.e., Symmetric modal) is used for the family 

whose mode age is symmetric about the average life. Third, an "L" designation (i.e., 

Left modal) is used for the family whose mode age is less than the average life. 

Fourth, a special case of left modal dispersion is the "O" or origin modal curve 

family. Within each curve family, numerical designations are used to describe the 

relative magnitude of the retirement frequencies at the mode. A "6" indicates that 

the retirements are not greatly dispersed from the mode (i.e., high mode frequency) 

while a "1" indicates a large dispersion about the mode (i.e., low mode frequency). 

For example, a curve with an average life of 30 years and an "L3" dispersion is a 

moderately dispersed, left modal curve that can be designated as a 30 L3 Curve. 

An SQ, or square, survivor curve occurs where no dispersion is present (i.e., units of 

common age retire simultaneously). 

Attachment DAW-RR-2 

Page 9 of 140 

Docket: 42004

RR3 - 19 of 509 01135
10

 For Production interim retirement curves, and Transmission, Distribution, and 

General Property accounts, a survivor curve pattern was selected based on 

analyses of historical data, as well as other factors, such as general changes 

relevant to the Company's operations. The blending of judgment concerning current 

conditions and future trends, along with the matching of historical data permits the 

depreciation analyst to make an informed selection of an account's average life and 

retirement dispersion pattern. Iowa Curves were used to depict the estimated 

survivor curves for each account. 

Life Span Procedure

 The life span procedure was used for production facilities for which most 

components are expected to have a retirement date concurrent with the planned 

retirement date of the generating unit. The terminal retirement date refers to the 

year that each unit will cease operations. The terminal retirement date, along with 

the interim retirement characteristics of the assets that will retire prior to the facility 

ceasing operation; describe the pattern of retirement of the assets that comprise a 

generating unit. The estimated terminal retirement dates for the various generating 

units were determined based on consultation with SPS management, financial, and 

engineering staff. Those estimated terminal retirement dates are shown in Appendix 

D. 

Interim Retirement Curves 

Interim retirement curves were used to model the retirement of individual 

assets within primary plant accounts for each steam generating unit prior to the 

terminal retirement of the facility. (No interim retirement curve was used with other 

production assets.) The life span procedure assumes all assets are depreciated 

(straight-line) for the same number of periods and retire at the same time (the 

terminal retirement date). Adding interim retirement curves to the procedure reflects 

the fact that some of the assets at a power plant will not survive to the end of the life 

of the facility and should be depreciated (straight-line) more quickly and retired 

earlier than the terminal life of the facility. The goal of interim retirement curves is to 

project how many of the assets that are currently in service will retire each year in 

the future using historical analysis and judgment. These curves were chosen based 

Attachment DAW-RR-2 

Page 10 of 140 

Docket: 42004

RR3 - 20 of 509 01136
11

primarily on an analysis of the historical retirement pattern of the generation assets 

and consultation with SPS personnel. Interim retirements for each plant account 

were modeled using Iowa Curves discussed above. By applying interim retirements, 

recognition is given to the obvious fact that generating units will have retirements of 

depreciable property before the end of their lives. 

Although interim retirements have been recognized in the study, interim 

additions (i.e. future additions) have been excluded from the study. The estimated 

amount of future additions might or might not occur. However, there is no 

uncertainty as to whether the full level of interim retirements will happen. The 

assets that are being modeled for retirement are already in rate base. Depreciation 

rates using interim retirements are known and measurable in the same way that 

setting depreciation rates for transmission or distribution property using Iowa Curves 

is known and measurable. There is no depreciable asset that is expected to live 

forever. All assets at a power plant will retire at some point. Interim retirements 

simply model when those retirements will occur in the same way that is done for 

transmission or distribution assets. Consistent with the depreciation rates submitted 

by the Company in Commission Docket No. 35763, we believe it is appropriate to 

include interim retirements in the development of depreciation rates for production 

plant and this study has incorporated an interim retirement component for 

production plant Accounts 311-316. 

Actuarial Analysis

Actuarial analysis (retirement rate method) was used in evaluating historical 

asset retirement experience where vintage data were available and sufficient 

retirement activity was present. In actuarial analysis, interval exposures (total 

property subject to retirement at the beginning of the age interval, regardless of 

vintage) and age interval retirements are calculated. The complement of the ratio of 

interval retirements to interval exposures establishes a survivor ratio. The survivor 

ratio is the fraction of property surviving to the end of the selected age interval, given 

that it has survived to the beginning of that age interval. Survivor ratios for all of the 

available age intervals were chained by successive multiplications to establish a 

series of survivor factors, collectively known as an observed life table. The 

Attachment DAW-RR-2 

Page 11 of 140 

Docket: 42004

RR3 - 21 of 509 01137
12

observed life table shows the experienced mortality characteristic of the account and 

may be compared to standard mortality curves such as the Iowa Curves. Many 

accounts were analyzed using this method. Placement bands were used to illustrate 

the composite history over a specific era, and experience bands were used to focus 

on retirement history for all vintages during a set period. Matching data in observed 

life tables for each experience and placement band to an Iowa Curve requires visual 

examination. As stated in Depreciation Systems by Wolf and Fitch, “the analyst 

must decide which points or sections of the curve should be given the most weight. 

Points at the end of the curve are often based on fewer exposures and may be 

given less weight than those points based on larger samples” (page 46). Some 

analysts chose to use mathematical fitting as a tool to narrow the population of 

curves using a least squares technique. Use of the least squares approach does 

not imply a statistical validity, however, because the underlying data does not meet 

criteria for independence between vintages and the same average price for property 

units through time. Thus, Depreciation Systems cautions, “... the results of 

mathematical fitting should be checked visually and the final determination of best fit 

made by the analyst” (page 48). This study uses the visual matching approach to 

match Iowa Curves, since mathematical fitting produces theoretically possible curve 

matches. Visual examination and experienced judgment allow the depreciation 

professional to make the final determination as to the best curve type. 

Detailed information for each account is shown later in this study and in 

workpapers. 

Simulated Plant Record Procedure

The SPR - Balances approach is one of the commonly accepted approaches 

to analyze mortality characteristics of utility property. SPR was applied to several 

accounts within the Distribution function due to the unavailability of vintaged 

transactional data. In this method, an Iowa Curve and average service life are 

selected as a starting point of the analysis and its survivor factors applied to the 

actual annual additions to give a sequence of annual balance totals. These 

simulated balances are compared with the actual balances by using both graphical 

and statistical analysis. Through multiple comparisons, the mortality characteristics 

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(as defined by an average life and Iowa Curve) that are the best match to the 

property in the account can be found. 

The Conformance Index (CI) is one measure used to evaluate various SPR 

analyses. CIs are also used to evaluate the "goodness of fit" between the actual 

data and the Iowa Curve being referenced. The sum of squares difference (SSD) is 

a summation of the difference between the calculated balances and the actual 

balances for the band or study year being analyzed. This difference is squared and 

then summed to arrive at the SSD. 

 Where n is the number of years in the test band. 

This calculation can then be used to develop other calculations, which the analyst 

feels might give a better indication for the “goodness of fit” for the representative 

curve under consideration. The residual measure (RM) is the square root of the 

average squared differences as developed above. The residual measure is 

calculated as follows: 

The CI is developed from the residual measure and the average observed plant 

balances for the band or study year being analyzed. The calculation of conformance 

index is shown below: 

 RM

Balances n / =CI i

n 1

The retirement experience index (REI) gives an indication of the maturity of the 

account and is the percent of the property retired from the oldest vintage in the band 

at the end of the study year. Retirement indices range from 0 percent to 100 

percent and an REI of 100 percent indicates that a complete curve was used. A 

retirement index less than 100 percent indicates that the survivor curve was 

truncated at that point. The originator of the SPR method, Alex Bauhan, suggests 

ranges of value for the CI and REI. The relationship for CI proposed by Bauhan is 

=SSD d(Calculate Balance Observed- Balance )

2

i i n 1

)

n

SSD (=RM

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shown below1

: 

CI Value 

Over 75 Excellent 

50 to 75 Good 

25 to 50 Fair 

Under 25 Poor 

The relationship for REI proposed by Bauhan2

 is shown below: 

REI Value 

Over 75 Excellent 

50 to 75 Good 

33 to 50 Fair 

17 to 33 Poor 

Under 17 Valueless 

Despite the fact there has not been empirical research to validate Bauhan’s 

conclusions, depreciation analysts have used these measures in analyzing SPR 

results for nearly 60 years, since the SPR method was developed.

 

1 Public Utility Depreciation Practices, p. 96. 

2 Public Utility Depreciation Practices, p. 97. 

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Each of these statistics provides the analyst with a different perspective of the 

comparison between a band of simulated or calculated balances and the observed 

or actual balances in the account being studied. Although one statistic is not 

necessarily superior over the others, the conformance index is the one many 

analysts use in depreciation studies. The depreciation analyst should carefully 

weigh the data from REIs to ensure that a mature curve is being used to estimate 

life. 

Statistics are useful in analyzing mortality characteristics of accounts as well 

as determining a range of service lives to be analyzed using the detailed graphical 

method. However, these statistics boil all the information down to one, or at most, 

a few numbers for comparison. Visual matching through comparison between 

actual and calculated balances expands the analysis by permitting the analyst to 

view many points of data at a time. The goodness of fit should be visually 

compared to plots of other Iowa Curve dispersions and average lives for the 

selection of the appropriate curve and life. Detailed information for each account is 

shown later in this study and in workpapers. 

Judgment

Any depreciation study requires informed judgment by the analyst 

conducting the study. A knowledge of the property being studied, company policies 

and procedures, general trends in technology and industry practice, and a sound 

basis of understanding depreciation theory are needed to apply this informed 

judgment. In this depreciation study, judgment was used in areas such as survivor 

curve modeling and selection, depreciation method selection, simulated plant 

record method analysis, and actuarial analysis. 

Where there are multiple factors, activities, actions, property characteristics, 

statistical inconsistencies, property mix in accounts or a multitude of other 

considerations that affect the analysis (potentially in various directions), judgment is 

used to take all of these considerations and synthesize them into a general 

direction or understanding of the characteristics of the property. Individually, no 

one consideration in these cases may have a substantial impact on the analysis, 

but overall, the collective effect of these considerations may shed light on the use 

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and characteristics of assets. Judgment may also be defined as deduction, 

inference, wisdom, common sense, or the ability to make sensible decisions. There 

is no single correct result from statistical analysis; hence, there is no answer absent 

judgment. 

Theoretical Depreciation Reserve

 The book accumulated provision for depreciation within each function was 

allocated among generation, transmission, distribution, and general accounts 

through the use of the theoretical depreciation reserve model. This study used a 

reserve model that relied on a prospective concept relating future retirement and 

accrual patterns for property, given current life and salvage estimates. 

 The theoretical reserve of a property group is developed from the estimated 

remaining life of the group, the total life of the group, and estimated net salvage. 

The theoretical reserve represents the portion of the group cost that would have 

been accrued if current forecasts were used throughout the life of the group for 

future depreciation accruals. The computation involves multiplying the vintage 

balances within the group by the theoretical reserve ratio for each vintage. The 

straight-line remaining-life theoretical reserve ratio at any given age (RR) is 

calculated as: 

Ratio) SalvageNet-(1* (Average Life) Service

Life) Remaining (Average -1=RR

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DETAILED DISCUSSION

Depreciation Study Process 

This depreciation study encompassed four distinct phases. The first phase 

involved data collection and field interviews. The second phase was where the 

initial data analysis occurred. The third phase was where the information and 

analysis was evaluated. After the first three stages were complete, the fourth 

phase began. This phase involved the calculation of deprecation rates and 

documenting the corresponding recommendations. 

During the Phase I data collection process, historical data was compiled 

from continuing property records and general ledger systems. Data was validated 

for accuracy by extracting and comparing to multiple financial system sources: 

Projects System (Construction ledger), Fixed Asset System (continuing property 

ledger), General Ledger, and interfaces from other operating systems. Audit of this 

data was validated against historical data from prior periods, historical general 

ledger sources, and field personnel discussions. This data was reviewed 

extensively so that it could be put in the proper format for a depreciation study. 

Further discussion on data review and adjustment is found in the Salvage 

Consideration section of this study. Also as part of the Phase I data collection 

process, numerous discussions were conducted with engineers and field operations 

personnel to obtain information that would be helpful in formulating life and salvage 

recommendations in this study. One of the most important elements in performing 

a proper depreciation study is to understand how the Company utilizes assets and 

the environment of those assets. Understanding industry and geographical norms 

for mortality characteristics are important factors in selecting life and salvage 

recommendations; however, care must be used not to apply them rigorously to any 

particular company since no two companies would have the same exact forces of 

retirement acting upon their assets. Interviews with engineering and operations 

personnel are important ways to allow the analyst to obtain information that is 

helpful when evaluating the output from the life and net salvage programs in 

relation to the Company’s actual asset utilization and environment. Information that 

was gleaned in these discussions is found both in the Detailed Discussion portions 

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of the Life Analysis and Salvage Analysis sections and also in workpapers. In 

addition, Alliance personnel possess a significant understanding of the property and 

its forces of retirement due to years of day-to-day exposure to property and 

operations of electric utility property. 

Phase 2 is where the SPR and actuarial analysis are performed. Phase 2 

and Phase 3 (to be discussed in the next paragraph) overlap to a significant 

degree. The detailed property records information is used in Phase 2 to develop 

observed life tables for life analysis and SPR graphs and statistics. It is possible 

that the analyst would cycle back to this phase based on the evaluation process 

performed in Phase 3. Net salvage analysis consists of compiling historical salvage 

and removal data by functional group and account to determine values and trends 

in gross salvage and removal cost. This information was then carried forward into 

Phase 3 for the evaluation process. 

Phase 3 is the evaluation process, which synthesizes analysis, interviews, 

and operational characteristics into a final selection of asset lives and net salvage 

parameters. The historical analysis from Phase 2 is further enhanced by the 

incorporation of recent or future changes in the characteristics or operations of 

assets that were revealed in Phase 1. The preliminary results are then reviewed by 

the depreciation analyst and discussed with accounting and operations personnel. 

Phases 2 and 3 allow the depreciation analyst to validate the asset characteristics 

as seen in the accounting transactions with actual Company operational 

experience. 

 Finally, Phase 4 involved the calculation of accrual rates, making 

recommendations and documenting the conclusions in a final report. The 

calculation of accrual rates is found in Appendix A. Recommendations for the 

various accounts are contained within the Detailed Discussion of this report. The 

depreciation study flow diagram shown as Figure 13 documents the steps used in 

conducting this study. Depreciation Systems on page 289 documents the same 

basic processes in performing a depreciation study. 

 

3 Introduction to Depreciation for Public Utilities and Other Industries, AGA EEI, 2013 

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Attachment DAW-RR-2 

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Production Depreciation Calculation Process

 Annual depreciation expense amounts for the Steam Production and Other 

Production accounts were calculated by the straight line, remaining life procedure. 

In a whole life representation, the annual accrual rate is computed by the following 

equation, 

Annual Accrual Rate = (100% - Net Salvage Percent) 

Average Service Life 

In the case of steam production facilities with a terminal life and interim retirement 

curve, each vintage within the group has a unique average service life and 

remaining life determined by computing the area under the truncated Iowa Curve 

coupled with the group’s terminal life. For other production, no interim retirement 

curve is used so there is no truncated survivor curve in that instance. 

 Use of the remaining life depreciation system adds a self-correcting 

mechanism, which accounts for any differences between theoretical and book 

depreciation reserve over the remaining life of the group. For each vintage 

modeled with an interim retirement curve and terminal life, 

Remaining Life (i) = Area Under Survivor Curve to the Right of Age (i) 

Survivors (i) 

And 

Average Service Life = 

Area Under Survivor Curve 

Survivors at Age Zero 

 With the straight line, remaining life, average life group system using Iowa Curves, 

composite remaining lives were calculated by computing a direct weighted average 

of each remaining life by vintage within the group. Within each group (plant 

account/ unit), for each plant account, the difference between the surviving 

investment, adjusted for estimated net salvage, and the allocated book depreciation 

reserve, was divided by the composite remaining life to yield the annual 

depreciation expense as noted in this equation. 

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Annual Depreciation Expense = Original Cost – Book Reserve – (Original Cost * Net Salvage %) 

Remaining Life 

where the net salvage percent represents future net salvage. 

 

 Within a group, the sum of the group annual depreciation expense amounts, 

as a percentage of the depreciable original cost investment summed, gives the 

annual depreciation rate as shown below: 

Annual Depreciation Rate = ∑Annual Depreciation Expense 

∑Original Cost 

These calculations are shown in Appendix A. The calculations of the theoretical 

depreciation reserve values and the corresponding remaining life calculations are 

shown in the workpapers. Book depreciation reserves are maintained on a plant 

account/unit level basis. Theoretical reserve computations were used to reallocate 

depreciation reserves by account and to compute remaining life for each group. 

Computations for other production assets mirror those shown above, with the 

exception that there is no interim survivor curve for other production assets. 

Transmission, Distribution and General Calculation Process 

Annual depreciation expense amounts for Transmission excluding 

Substations, Transmission Substations, Distribution Substation, Distribution 

excluding Substations, and General accounts were calculated by the straight line, 

average life group, remaining life procedure 

In a whole life representation, the annual accrual rate is computed by the 

following equation, 

Annual Accrual Rate = (100% - Net Salvage Percent) 

Average Service Life 

 Use of the remaining life depreciation system adds a self-correcting 

mechanism, which accounts for any differences between theoretical and book 

Attachment DAW-RR-2 

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depreciation reserve over the remaining life of the group. With the straight line, 

remaining life, average life group system using Iowa Curves, composite remaining 

lives were calculated according to standard broad group expectancy techniques, 

noted in the formula below: 

Composite Remaining Life = (∑Original Cost - Theoretical Reserve) 

∑Whole Life Annual Accrual 

 For each plant account, the difference between the surviving investment, 

adjusted for estimated net salvage, and the allocated book depreciation reserve, 

was divided by the composite remaining life to yield the annual depreciation 

expense as noted in this equation. 

Annual Depreciation Expense = Original Cost - Book Reserve - (Original Cost * Net Salvage %)

Composite Remaining Life 

 where the net salvage percent represents future net salvage. 

 Within a group, the sum of the group annual depreciation expense amounts, 

as a percentage of the depreciable original cost investment summed, gives the 

annual depreciation rate as shown below: 

Annual Depreciation Rate = ∑Annual Depreciation Expense 

∑Original Cost 

 These calculations are shown in Appendix A. The calculations of the 

theoretical depreciation reserve values and the corresponding remaining life 

calculations are shown in the workpapers for this study. Book depreciation 

reserves are maintained on a plant account level basis and theoretical reserve 

computation was used to compute composite remaining life for each account. 

Vintage Group Amortization 

The Company requests continued use of vintage group amortization for 

assets in account 391-398. Vintage group amortization has been approved in 

numerous jurisdictions and is described in FERC Accounting Release 15. Under 

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this proposal, assets in account 391-398 will be retired when they reach the 

average service life of the group. As agreed to in the Unanimous Stipulation from 

Commission Docket No. 35763, the Company has reviewed the life and net salvage 

parameters for all accounts in this group. In the life analysis and salvage analysis 

sections, recommended changes to each account describe the depreciation 

parameters requested for those accounts. The depreciation accrual for general 

plant will change to reflect the reserve position of the various accounts and small 

changes in life parameters and net salvage percentages. This will allow the 

Company to continue to track small dollar general plant items in a more cost 

efficient manner. As previously noted, the Company is requesting approval so no 

further justification of the proposed life and net salvage parameters be required in 

the future.

 

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LIFE ANALYSIS 

Steam Production, FERC Accounts 311-316 

Terminal Retirement Date

The terminal retirement date refers to the year in which a generating unit will 

be retired from service. The retirement can be for a number of reasons such as the 

physical end of the generating unit but will generally be driven by economic 

retirement of the unit. SPS personnel provided their estimated retirement dates for 

each generating unit. These dates are based on the current plans and investment 

in the generating units. Retirement dates for generating units can be found in 

Appendix D. As new investment is committed to these units or decisions made that 

units are not economically viable, these retirement dates may change. At this time, 

these retirement dates are the best estimate of the current lives remaining in the 

generating assets. 

Interim Retirement Curve 

Historical data used to develop interim retirement curves represent an 

aggregate of many property units in a group. Some of those assets may be long 

lived, and others may have a short life. The average of those is represented by an 

interim retirement curve for the group. A group can be a plant account or a 

functional group. The interim retirement curve is “truncated” (i.e. cut off) at the age 

the unit will retire. In other words, if one finds through the analysis that 10 percent 

of the property in an account will be retired and replaced prior to the end of the life 

of the unit, the interim retirement curve will model those retirements across the rest 

of the life of the unit. If a pump is only going to last 10 years but the unit is 

projected to last 20 years, the shorter life of the pump should affect the depreciation 

expense charged over the next 10 years. When analyzing a large pool of assets 

like power plant accounts, these shorter lived items can be accurately modeled 

together statistically. Thus, given that interim retirements will occur, this statistical 

analysis enables one to measure the interim retirement curves applicable to 

property groups. 

Some examples of “long lived” property that are projected to last until the 

Attachment DAW-RR-2 

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retirement of a unit are: Roads, Bridges, Railroad track, Intake/Discharge 

Structures, Structural Steel (and misc. steel), Cooling towers, Buildings, Cranes, 

Dams, Ponds, Basins, Canals, Foundations, Stacking and Reclaiming equipment, 

Surge Silos, Crushers, Transfer Towers, Fly Ash and Bottom Ash Systems, 

Precipitators, Bag Houses, Stack, Turbine (except blades) and Piping, Generator 

Cooling System, Vacuum Systems, Generator and Main Leads, Station 

Transformers, Conduits and Ducts, Station Grounding System, Start-up Diesel 

Generators, and Stores Equipment. 

Some examples of “shorter lived” property that are projected to retire prior to 

the retirement of the unit are: fences, security systems, , air compressors, fuel oil 

heaters, heating, ventilation and air conditioners, piping, motors, pumps, conveyors, 

, air preheaters, economizers, control equipment, feedwater heaters, boiler 

feedwater pumps, forced draft (FD) and induced draft (ID) fans, scrubbers, 

continuous emissions monitoring systems (CEM), turbine blades and buckets, 

turbine plant instruments, condensers, control equipment, station service 

switchgear, and universal power supply (UPS) batteries. 

SPS has only unaged data available for historical analysis in this category. 

For each generating unit within the group, annual additions, retirements, transfers, 

and balances were available from 1970 forward. Since the goal of the life analysis 

was to model retirement activity for non-terminal events, units which were retired 

(even though they may have been returned to service later), such as Moore County 

were not aggregated into the group. Assets from FERC Accounts 311-316 were 

analyzed for SPR analysis. Although some Conformance Indices (“CI”) were 

excellent, curves with Retirement Experience Indices (“REI”) in the excellent range 

had lives that were not reasonable for use as interim retirement curves for power 

plant property. For example, curves with excellent REIs had lives in the range of 

35-45 years for many of the bands. Curves that were in the more normal range for 

interim retirement curves had REIs only in the fair range. A further discussion of 

the selection of interim retirement curves for the steam generating accounts 311-

316 follows in the Detailed Discussion section. 

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PRODUCTION PLANT 

Production Accounts, FERC Accounts 311.0-316.0 

The company has eight Fossil Production generating sites included in this 

study: Cunningham, Harrington, Jones, Maddox, Moore County, Nichols, Plant X, 

and Tolk. Currently, authorized depreciation rates do not recognize that any assets 

will retire prior to the end of the life of the generating units. 

Historical data for all units was combined by account in accounts 311-316 to 

analyze historic activity and develop proposed interim retirement curves. This 

combined experience across various generating units was used as a representation 

of SPS’ retirement history for fossil production to model future retirement activity. 

Proposed interim retirement lives and dispersion curves to reflect the recognition 

that some assets at each plant will retire prior to the end of the life of the unit were 

analyzed at an account level for all generating assets within each account. 

Attachment DAW-RR-2 

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LIFE ANALYSIS 

The life analysis was performed on a calendar year-end basis, which is 

as of December 31, 2012. All data for plant balances given in the descriptions 

below is as of June 30, 2013. 

Steam Production 

FERC Account 311.0 Structures and Improvements (74 R2) 

This account consists of buildings, structures, fences, lighting systems, and 

other related assets at each power plant. Retirement dates for each unit are found 

in Appendix D. The current balance in this account is $216 million. The top ranked 

curve is a 74 R2 with excellent CI but poor REIs. After reviewing visual matches of 

various curves and considering the types of assets in this account, this study 

recommends a 74 R2 dispersion curve for interim retirements. A graph of the 

actual versus simulated balances is shown below. 

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FERC Account 312.0 Boiler Plant Equipment (58 R2) 

This account consists of boiler plant equipment, bag houses, preheaters and 

other related equipment. Retirement dates for each unit are found in Appendix D. 

The current balance in this account is $921 million. For bands 20 years and longer, 

the 58 R2 curve is the top ranked choice. After examining plots of simulated versus 

actual balances and taking into consideration the types of assets in this account, 

this study recommends a 58 R2 dispersion curve for interim retirements. A graph 

of the actual versus simulated balances is shown below. 

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FERC Account 314.0 Turbogenerator Equipment (71 R1.5) 

This account consists of turbogenerator equipment, stationary blades, 

turbine control systems, and other related assets at each power plant. Retirement 

dates for each unit are found in Appendix D. The current balance in this account is 

$447 million. Many of the top ranked curves produce lives that are much longer 

than used across the industry. However, the 71 R1.5 was in the top three ranked 

curves and after examining comparison of actual versus simulated balances and 

considering the characteristics of the assets in the account, this study recommends 

a 71 R1.5 dispersion curve. A graph of the actual versus simulated balances is 

shown below. 

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FERC Account 315.0 Accessory Electric Equipment (64 L2.5) 

This account consists of power transformer, regulators and related assets at 

each power plant. Retirement dates for each unit are found in Appendix D. The 

current balance in this account is $73 million. In bands from 20 to 40 years, the 64 

L2.5 curve is the top choice. After reviewing plots of actual versus simulated 

balances and considering the characteristics of the assets in this account, this 

study recommends a 64 L2.5 dispersion curve. A graph of the actual versus 

simulated balances is shown below. 

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FERC Accounts 316.0 Miscellaneous Power Plant Equipment (56 S0) 

This account consists of tanks, pumps, work equipment, and other related 

assets at each power plant. Retirement dates for each unit are found in Appendix 

D. The current balance in this account is $31 million. In bands from 15 to 40 years, 

the 56 S05 curve is the top choice. After reviewing plots of actual versus simulated 

balances and examining the types of assets in the account, this study recommends 

a 56 S0 dispersion curve. A graph of the actual versus simulated balances is 

shown below. 

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Other Production, FERC Accounts 340-346 

Terminal Retirement Date

The terminal retirement date refers to the year in which a generating unit will 

be retired from service. The retirement can be for a number of reasons such as the 

physical end of the generating unit, but will generally be driven by economic 

retirement of the unit. SPS personnel provided their estimated retirement dates for 

each generating unit. These dates are based on the current plans and investment 

in the generating units. Retirement dates for generating units can be found in 

Appendix D. As new investment is committed to these units or decisions made that 

units are not economically viable, these retirement dates may change. At this time, 

these retirement dates are the best Company estimate of the current lives 

remaining in the generating assets. 

Interim Retirement Curve 

In examining data for Other Production, FERC Accounts 340-346, very few 

retirements have occurred over the available data since 1970. The only significant 

retirements excluded from the study were the terminal retirements of Celanese, 

Riverview, and Tucumcari. Given the lack of retirement data, no interim retirement 

curve was used in developing depreciation estimates for other production facilities.

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Transmission Accounts, FERC Accounts 350-358 

 SPS has a wide service territory across Texas and New Mexico. There are 

significant Transmission assets in substation equipment as well as poles and 

overhead conductor. During the late 1990s and early 2000s, (after the merger with 

Public Service Company of Colorado that created New Century Energies, Inc., but 

prior to the merger creating Xcel Energy) SPS data reflected a dramatic decrease 

in retirements (and in some cases no retirements) due to resource constraints 

causing retirements not to be made by the predecessor accounting group. Since 

that time, the Company has focused significant effort on bringing retirements up to 

date. In 2005, these “catch-up” retirements were placed in the year they would 

have originally retired. There were no further adjustments for “catch-up” 

retirements after 2006. 

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FERC Account 350 Transmission Depreciable Land Rights (80 R4) 

This account consists of land rights and easements associated with 

Transmission lines or Transmission substations. The account balance for this 

account is $62.6 million. The Unanimous Stipulation in Commission Docket No. 

35763 established a life of 70 years with a R4 dispersion. There is minimal 

retirement activity in this account, which did not produce sufficient data for an 

actuarial analysis. Since the lives of many accounts in the transmission function 

are lengthening, this study recommends a change to an 80 R4 dispersion for this 

account. 

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FERC Account 352 Transmission Substation Structures and Improvements 

(65 R4) 

 This account includes buildings, fencing and other structures found in a 

transmission substation. The account balance for this account is $41.8 million. 

The approved life and curve agreed to in the Unanimous Stipulation in Commission 

Docket No. 35763 is a 55 R4. Limited retirements make actuarial analysis difficult 

since few retirements have occurred in this account. Although a 65-year life is on 

the high side of what would be expected in the industry, a 65 year life is 

recommended with retention of the R4 dispersion. 

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FERC Account 353 Transmission Substation Equipment (57 R2.5) 

 This account contains a wide variety of transmission substation equipment, 

from circuit breakers to switchgear. The account balance for this account is $519.5 

million. The Unanimous Stipulation in Commission Docket No. 35763 established a 

life characteristic of R4 55. SPS has an excellent inspection and maintenance 

program related to substation equipment. This program detects and corrects 

problems with large substation components in a timely manner to keep equipment 

in service longer than without this program. This program would have a tendency 

to reduce early failures. It appears that because of this program, the indicated life 

of substation equipment has lengthened since the last study and is longer than the 

expectations of many other utilities in Texas. The 57 year life with the R2.5 

dispersion is a good match for all of the placement and experience band 

combinations. This study recommends moving to a 57 R2.5 for this account. 

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FERC Account 354 Transmission Towers and Fixtures (75 R3) 

This account consists of Transmission towers, which are used to transmit 

electricity at a voltage of 69 kV and above. The account balance for this account is 

$8.3 million. Most of the Transmission line assets are in FERC Account 355, Poles 

and Fixtures. Twenty-five miles out of 6500 miles of line are in this account. There 

are three short tower lines (one in town of 5 miles and two in Lubbock – 10 miles 

long each). The 5 mile long stretch was built in the 1940s and the 20 miles around 

Lubbock was built in the 1970s. There is very limited retirement data, the last 

retirement occurred in 1989. The prior depreciation study established a 75 R3 life 

which Company personnel feel appropriate for these assets. Judgment was used 

to retain the current life estimate of 75 R3. 

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FERC Account 355 Transmission Poles and Fixtures (54 R3) 

 This account consists of Transmission poles and fixtures, which are used to 

transmit electricity at a voltage of 69 kV and above. The account balance for this 

account is $502.3 million. The Unanimous Stipulation in Commission Docket No. 

35763 established a 40 year life with a R5 dispersion. After reviewing actuarial 

analyses results, the life of transmission poles is increasing from the prior 

depreciation study. That increase should be moderated by Company specific 

circumstances. The Company is beginning to use more steel than wood compared 

to the past. A number of lines are entirely made of steel, some with wood tangents 

and steel corners, and double circuit lines are now steel. The Company has in 

excess of 6,500 miles of transmission line with approximately 10% - 15% of the 

poles being steel. Some wood pole lines are in excess of 50 years old, although 

many of those poles have been replaced. Some of the oldest steel poles are 

approaching 40 years of age. The Company has issues with some lines where 

design and soil conditions are not optimal. A change from white cedar (which 

lasted longer) to Douglas fir was made. New growth trees will not last as long as 

old growth trees and 60% to 65% of existing wood poles are old growth. Many 

older wood transmission poles of an older design class will not take the weight of 

reconductoring. Most steel poles were on foundations and now 40% of steel poles 

are direct buried. Arms are replaced more often than poles. Viewing the overall 

band shows a shorter life of 40 years similar to the Company’s approved life. When 

viewing more recent placement and experience bands, life in this account is 

increasing and the dispersion is shifting from a high mode R to mid-range R 

dispersion. Based on the actuarial analysis of more recent placement and 

experience bands, as well as feedback from Company personnel, a 54 R3 life is 

recommended for this account. 

 

Attachment DAW-RR-2 

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Attachment DAW-RR-2 

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FERC Account 356 Transmission Overhead Conductor (49 R2.5) 

This account consists of Transmission overhead conductors, which are used 

to transmit electricity at voltages of 69 kV and above. The account balance for this 

account is $223.7 million. The Unanimous Stipulation in Commission Docket No. 

35763 established a life of 42 years with a R2.5 dispersion. The Company did not 

use dampers in the past and began using dampers 25 years ago. Company 

personnel found that wires were not lasting as long without dampers because of 

shattering at insulators, which they expect to continue seeing residual effects of not 

using dampers for many years. The Company will replace the wire in many 

instances when moving from single to double circuit conductor line, and more 

opportunities are occurring to upgrade lines. Company would expect a little shorter 

life for conductor than poles. Based on the actuarial analysis, the life indication is 

moving longer. Based on more recent experience bands and input from Company 

personnel, this study recommends a 49 year life with a R2.5 dispersion for this 

account. 

Attachment DAW-RR-2 

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FERC Account 357 Transmission Underground Conduit (75 R3) 

 This account consists of underground conduit used with two underground 

transmission lines in Amarillo. The account balance for this account is $255 

thousand. There has been no retirement activity over the study period, rendering 

both actuarial and SPR analysis of no aid in examining life characteristic. The 

Unanimous Stipulation in Commission Docket No. 35763 established a life of 75 

years with a R3 dispersion through judgment. This study recommends retaining the 

currently approved life of 75 years with a R3 dispersion for this account. 

FERC Account 358 Transmission Underground Conductor (45 R3) 

This account consists of underground conductor used in two underground 

transmission lines in Amarillo. The account balance for this account is $490 

thousand. The lines are low pressure, oil filled, paper wrapped 500 MCM copper 

cable. The Unanimous Stipulation in Commission Docket No. 35763 established a 

life of 45 years with a R3 dispersion through judgment. There has been no 

retirement activity over the study period, rendering both actuarial and SPR analysis 

of no aid in examining life characteristic. This study recommends retaining the 

currently approved life of 45 years with a R3 dispersion for this account. 

Attachment DAW-RR-2 

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Distribution Accounts, FERC Accounts 360-373 

 SPS has a wide service territory across two states after the sale of the 

Kansas/Oklahoma territory. There are significant Distribution assets in substation 

equipment, poles, overhead conductor, services, line transformers, meters, and 

street lighting. During the late 1990s and early 2000s, (prior to the merger creating 

Xcel Energy) SPS data reflected a dramatic decrease in retirements (and in some 

cases no retirements) due to resource constraints causing retirements not to be 

made by the predecessor accounting group. Since that time, Xcel Energy has 

focused significant effort on bringing retirements up to date. In this study, these 

“catch-up” retirements are placed in the year they would have originally retired. 

Since 2006, there has been no “catch-up” activity to adjust. For mass Distribution 

accounts, FERC Accounts 364 through 373, only unaged data is available. Life 

and net salvage for Distribution plant included total Company assets. To compute 

depreciation rates for this study, Texas only plant balances and depreciation 

reserves were used. 

FERC Account 360 Distribution Depreciable Land Rights (60 R4) 

This account consists of land rights and easements associated with 

Distribution property or Distribution substations. The total Company plant balance 

for this account is $4.5 million and the Texas only plant balance is $1.7 million. 

There was minimal retirement activity, which did not produce sufficient data for an 

actuarial or SPR analysis. The Unanimous Stipulation in Commission Docket No. 

35763 established a life of 60 years with a R4 dispersion. Judgment was used to 

retain a 60 year life with a R4 dispersion for this account. 

Attachment DAW-RR-2 

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FERC Account 361 Distribution Substation Structures and Improvements 

(60 R1.5) 

 This grouping contains fencing and other structures at a distribution 

substation. The total Company plant balance for this account is $7.5 million and 

the Texas only plant balance is $4.9 million. The Unanimous Stipulation in 

Commission Docket No. 35763 established a life for the combined Accounts 361 

and 362 of 52 years with a R2 dispersion. Generally, distribution substation 

structures do not last as long as facilities in Account 352 (Transmission – 

Structures and Improvements). There are still some wood structures across the 

SPS system. Based on visual matching and the mix of assets in this account, a 60 

R1.5 life is recommended for this account. 

Attachment DAW-RR-2 

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FERC Account 362 Distribution Substations (55 R1.5) 

 This grouping contains a wide variety of distribution substation equipment, 

from circuit breakers to switchgear. The total Company plant balance for this 

account is $158.7 million, and the Texas only plant balance is $98.9 million. The 

Unanimous Stipulation in Commission Docket No. 35763 established a life for the 

combined Accounts 361 and 362 of 52 years with a R2 dispersion. With more 

experience years, the accounts were separated for this study. Company personnel 

estimate the following lives, used for planning purposes, for components in this 

account: 50 years for transformers, 65 for breakers, 50 for regulators and 30 years 

for relay. Primary reasons for replacement are: failure, testing indicating elevated 

risk of failure, capacity increases (especially for circuit breakers), obsolescence, 

safety hazard related to catastrophic failure mode (and risk is increasing), and 

proactive replacements of aging assets. SPS has more radial substations in SPS 

than many companies. Based on visual matching and input from Company 

personnel, a 55 year life with a R1.5 dispersion is recommended for this account. 

Attachment DAW-RR-2 

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FERC Account 364 Distribution Poles, Towers, and Fixtures (52 R0.5) 

 This account contains poles and towers of various material types: wood, 

concrete, and steel. The total Company plant balance for this account is $196.7 

million, and the Texas only plant balance is $139.5 million. Most of the poles are 

made of wood but there are a few steel and concrete poles in highly specialized 

situations. The height ranges from 30 feet to 60 feet with 40 feet and 45 feet being 

prevalent. The Unanimous Stipulation in Commission Docket No. 35763 

established a life for this account of 40 years with a S1 dispersion. The Company 

has a pole testing program which began 3-4 years ago. The goal is to test 10% of 

the Company’s poles per year. Poles are given ratings: P1 (replace within 90 

days), P2 (replace within one year), and P3 (replace within 3 years or sleeve/band). 

 With this program, the P1s have a shorter life than might have occurred otherwise. 

 Capital spending has increased due to pole replacements. Accidents, general 

construction, storms, fires, relocations, and conversions from overhead to 

underground are all drivers of retirement. Company personnel expect the life to be 

longer than the currently approved 40 years. After reviewing SPR results and 

considering input from Company personnel, this study recommends moving to a 52 

year life with a R0.5 dispersion for this account. A plot of the actual versus 

simulated balances is shown below. 

Attachment DAW-RR-2 

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Attachment DAW-RR-2 

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FERC Account 365 Distribution Overhead Conductor (47 R0.5) 

This account consists of overhead conductor of various thickness, as well as 

various switches and reclosers. The total Company plant balance for this account 

is $188.3 million, and the Texas only plant balance is $132.7 million. The 

Unanimous Stipulation in Commission Docket No. 35763 established a life of 40 

years with a S1 dispersion. Upgrades, reconductoring, and storms are the largest 

causes of retirement. Even with storms, the Company will replace poles and lift 

existing conductor back on new poles when possible. Some smaller conductor is 

deteriorating at 35-40 years, but Company personnel do not believe the approved 

40 year life is indicative of current assets in this account. Conformance Indices 

(“CIs”) were low for all except the shortest bands. A low mode dispersion is 

reflected across all bands. After reviewing SPR results and considering input from 

Company personnel, this study recommends moving to a 47 year life with a R0.5 

dispersion for this account. A plot of the actual versus simulated balances is shown 

below. 

Attachment DAW-RR-2 

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FERC Account 366 Distribution Underground Conduit (60 R2.5) 

 This account consists of Distribution conduit, duct banks, vaults, manholes, 

and ventilating system equipment. The total Company plant balance for this 

account is $22.1 million, and the Texas only plant balance is $16.4 million. The 

Unanimous Stipulation in Commission Docket No. 35763 established a life for this 

account of 40 years with a R4 dispersion. High ranking curves have unacceptable 

Retirement Experience Indices (REIs) and the lives are outside of a reasonable 

range for this account. The R2.5 dispersion has a good REI and a CI in the good to 

excellent range. The various bands show the life increasing to 60 years. This study 

recommends moving from a 40 year life to a 60 year life with a R2.5 dispersion for 

this account. A plot of the actual versus simulated balances is shown below. 

 

Attachment DAW-RR-2 

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FERC Account 367 Distribution Underground Conductor (47 R1.5) 

This account consists of Distribution conductor, switches, and switchgear. 

The total Company plant balance for this account is $30.6 million, and the Texas 

only plant balance is $23.2 million. Docket No. 35763 established a life for this 

account of 41 years with a R2.5 dispersion. The R1.5 dispersion has one of the 

best rankings with an excellent REI. While the R1 curve has a higher CI, the R1.5 

provides a better REI with CIs that are in the same range. This study recommends 

moving from a 41 year life to a 47 year life with a R1.5 dispersion for this account. 

A plot of the actual versus simulated balances is shown below. 

Attachment DAW-RR-2 

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FERC Account 368 Distribution Line Transformer (45 R1) 

This account consists of line transformers, regulators, and capacitors. The 

total Company plant balance for this account is $167.5 million, and the Texas only 

plant balance is $140.1 million. The Unanimous Stipulation in Commission Docket 

No. 35763 established a life for this account of 45 years with a R1.5 dispersion. 

The Company has a number of live front pad mount transformers, which they will 

replace with dead front if transformer is replaced for other reasons. The split 

between overhead and pad mount transformers is 85% and 15%, respectively. 

Lightning and heat are big drivers for overhead replacements. Pads replacements 

are driven more by growth (capacity needs) or faults, and they also have more rust 

issues due to watering and chemicals. Transformers are not repaired (stopped 

repairing about 10 years ago) but retired. Company personnel expect to see a 

shorter life than in the past due to the discontinuation of the repair process and the 

quality of the materials now. Given input from Company personnel, this study 

recommends retaining the approved 45 year life while moving to a R1 dispersion for 

this account. A plot of the actual versus simulated balances is shown below. 

Attachment DAW-RR-2 

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FERC Account 369 Distribution Services (44 R2) 

This account includes all Distribution services, both overhead and 

underground. The total Company plant balance for this account is $71.4 million, 

and the Texas only plant balance is $49.2 million. The Unanimous Stipulation in 

Commission Docket No. 35763 established a life for this account of 42 years with a 

R2 dispersion. Services are split between 40% underground and 60% overhead. 

Life of overhead is impacted by vegetation, insulation failure, and load growth. 

Underground life would be impacted by dig-ins and age of cable. Company 

personnel expect the life to be lower than currently approved but best ranked and 

fits show a slight increase from the existing. All bands except the very youngest 

exhibited low CIs. To move in the direction of the trend indicated in the analysis but 

tempering by information provided by Company experts, this study recommends 

moving to a 44 year life with a R2 dispersion for this account. A plot of the actual 

versus simulated balances is shown below. 

Attachment DAW-RR-2 

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FERC Account 370 Distribution Meters (40 R2) 

 This account includes all Distribution meters. The total Company plant 

balance for this account is $62.1 million, and the Texas only plant balance is $48 

million. The Unanimous Stipulation in Commission Docket No. 35763 established a 

life for this account of 38 years with a R5 dispersion. Oil field and irrigation meters 

were changed to demand meters in 2006-2007 (about 14 thousand meters out of a 

population of 380 thousand). The Company has many electromechanical meters, 

but has begun to buy digital meters (over the past 10-15 years) with approximately 

20% of the meters being electronic now. The Company performs random tests of 

meters (exchange for electronic and bring old one in). The Company is 

experiencing slightly longer lives for electromechanical meters. The Company no 

longer repairs meters (stopped approximately 10 years ago) and discards any 

electromechanical meter. This has the effect of mitigating the life increase for 

electromechanical meters. Also mitigating the overall life for the account is the 

increasing balance of electronic meters in the account. Electronic meters will be 

reused if they test positive. Company personnel expect digital meters will not have 

as long a life as the electromechanical meters, with life of electronic meters to be in 

the 15-20 year life range compared to electromechanical meters lasting 30-40 

years or longer. As an increasing percentage of this account is converted to 

electronic meters, the life for this account is expected to decrease. For commercial 

meters, the related instrument transformers would have a longer life (around 30 

years). The commercial meters would be electronic and follow the same 15 to 20 

year life as other electronic meters. Based on the current asset make-up for this 

account, this study recommends moving to a 40 year life with a R2 dispersion for 

this account. A plot of the actual versus simulated balances is shown below. 

 

Attachment DAW-RR-2 

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Attachment DAW-RR-2 

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FERC Account 371 Installation on Customer Premises (Guard Lights) (25 

R0.5) 

This account consists of guard lights and guard light standards. The total 

Company plant balance for this account is $13.1 million, and the Texas only plant 

balance is $8.1 million. The Unanimous Stipulation in Commission Docket No. 

35763 established a life for this account of 18 years with a R2 dispersion. Since 

2006, the Company has stopped adding new guard lights but will maintain existing 

assets. All bands exhibited low CIs. The R0.5 dispersion has one of the best 

rankings with an excellent REI. This study recommends moving to a 25 year life 

with a R0.5 dispersion for this account. A plot of the actual versus simulated 

balances is shown below. 

 

Attachment DAW-RR-2 

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FERC Account 373 Distribution Street Lighting (41 R2) 

This account includes all Distribution streetlights, conductor, conduit, 

luminaire, and standards. The total Company plant balance for this account is 

$22.4 million, and the Texas only plant balance is $12.9 million. The Unanimous 

Stipulation in Commission Docket No. 35763 established a life for this account of 

38 years with a R3 dispersion. Over the last two or three years, the Company has 

gone to cobra style head HPS from mercury. The Federal Energy Policy Act of 

2005 required discontinuation of mercury vapor ballasts after Jan 2008 (2014 for 

bulbs). This will drive a retirement/replacement of all mercury equipment in the 

next few years. Company experts state that 70% of system is mercury. They 

anticipate that all assets except bulbs and ballasts (replacement is O&M) will last 

35 to 40 years. Head replacement (e.g. replacing Mercury vapor to HPS) is capital. 

 To move in the direction of this change and the indications starting in the 25 year 

band, this study recommends moving to a 41 year life with a R2 dispersion for this 

account. A plot of the actual versus simulated balances is shown below. 

Attachment DAW-RR-2 

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General Plant, FERC Accounts 389-398 

For general plant accounts 389-390, the Company proposes to continue using 

actuarial or semi-actuarial analysis. For all other general plant accounts (391-398), 

the Company proposes to continue the use of Accounting Release Number 15 

(“AR15”), which is a vintage year accounting method approved by the FERC, 

Vintage Year Accounting For General Plant Accounts, dated January 1, 1997. AR15 allowed utilities to use a simplified method of accounting for general plant 

assets, excluding structures and improvements (referred to as “general plant”). The 

AR-15 release allowed high volume, low cost assets to be amortized over their 

associated useful life, eliminated the need to track individual assets, and allowed a 

retirement to be booked at the end of the depreciable life. This method is often 

referred to as “amortization of general plant.” 

The Stipulation Agreement in Docket 35763 stated that “SPS shall fully 

justify the continued use of the assumed underlying amortization period reflected in 

the vintage group accounting in all future rate cases for each account”. In this 

proceeding, the Company requests that the lives and net salvage amounts 

proposed be approved and no further justification of those parameters will be 

required in subsequent proceedings. 

The plant asset balances are maintained by vintage installed with the 

retirement being recorded when book depreciation have been completed. The 

empirical retirement data for actuarial or semi-actuarial analysis will no longer be 

reliable, however, the determination of useful life can be made appropriately with 

the use of market forces, manufacturer expected life, technological obsolescence, 

business planning, known causes of retirement, and changes in expected future 

utilization. 

The depreciation calculation uses a useful life applied to a vintage versus the 

entire account. The depreciation recovery is complete when the vintage 

accumulated depreciation is equal to the vintage plant adjusted for estimated 

salvage and removal costs.

Attachment DAW-RR-2 

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FERC Account 389 General Plant Depreciable Land Rights (55 R4) 

This account consists of land rights and easements associated with general 

property or general structures and improvements. The plant balance for this 

account is $46 thousand. Currently land rights are depreciated over a 50-year life 

with a R4 dispersion. In many cases, the lives of individual land rights are tied to 

the structures that rest on them. Since this study proposes an increase in the life 

for Account 390, Structures and Improvements, an increase of 5 years in the life for 

this account is recommended. Therefore, a 55-year life with a R4 dispersion is 

recommended. 

Attachment DAW-RR-2 

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FERC Account 390 General Structures and Improvements (52 R1.5) 

This account consists of general structures and improvements for buildings, 

including roofing, plumbing, and air conditioning systems. The plant balance for 

this account is $61.2 million. The Unanimous Stipulation in Commission Docket 

No. 35763 established a life of 45 years with a R2 dispersion. Company personnel 

provided estimates of various building components: roofs at 20 years, HVAC 

systems (which would include boilers, cooling towers, chillers, etc.) at 15 years, big 

chillers at 30 years, and parking lots at 15-20 years. The average age of buildings 

is over 20-30 years (newest was built in 1996-7), while others are 40 years or older. 

 (For example, the Amarillo Customer Service Center was built in 1968). Complete 

renovations generally occur on older buildings (20-30 years old). The Company 

reviews its office assets at each 20 year refresh cycle. Actuarial analysis shows a 

52 year life with a R1.5 dispersion is one of the best matches. This study 

recommends moving from a 45 R2 to a 52 year life with a slightly flatter R1.5 

dispersion for this account. 

Attachment DAW-RR-2 

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GENERAL PLANT AMORTIZED ACCOUNTS 

FERC Account 391 Office Furniture and Equipment (25 SQ) 

This account consists of miscellaneous office furniture such as desks, chairs, 

filing cabinets, and tables used for general utility service. There is approximately 

$10.3 million in this account, and after retirement of fully accrued assets the plant 

balance is $8.5 million. This study recommends retention of a 25 year life with a 

SQ dispersion. The currently approved dispersion is L1.5. 

FERC Account 391 Computer Equipment (5 SQ) 

This account consists of network computer equipment used for general utility 

service. There is approximately $19.5 million in this account, and after retirement 

of fully accrued assets the plant balance is $18.70 million. The account has an 

approved life of 5 years with a SQ dispersion and is retained. The currently 

approved dispersion is R2. 

FERC Account 392 Transportation Equipment (11 SQ) 

This account consists of automobiles, trucks, trailers, and other 

transportation equipment that is a licensed vehicle. There is approximately $68.6 

million in this account. However, after AR 15 retirements are made due to assets 

exceeding their recommended life, the balance in this account will be $49.2 million. 

 The Unanimous Stipulation in Commission Docket No. 35763 established a life of 

11 years with a L3 dispersion. This study recommends retention of the 11 year life 

with a SQ dispersion. 

FERC Account 393 Stores Equipment (35 SQ) 

This account consists of stores equipment used for general utility service. 

There is approximately $460 thousand in this account. However, after AR 15 

retirements are made due to assets exceeding their recommended life, the balance 

in this account will be approximately $391 thousand. This account currently has an 

approved life of 45 years with a R2.5 dispersion curve. This study recommends 

Attachment DAW-RR-2 

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moving the life to 35 SQ consistent with Account 394. 

FERC Account 394 Tools, Shop, and Garage Equipment (35 SQ) 

This account consists of various items or tools used in shop and garages 

such as air compressors, grinders, mixers, hoists, and cranes. There is 

approximately $20.2 million in this account. However, after AR 15 retirements are 

made due to assets exceeding their recommended life, the balance in this account 

will move to $19.9 million. This account has an approved life of 35 years with a 

S0.5 dispersion curve. This study recommends the currently approved 35 year life 

with a SQ dispersion. 

FERC Account 395 Laboratory Equipment (25 SQ) 

 This account consists of laboratory equipment used in general utility service. 

There is approximately $10.7 million in this account. However, after AR 15 

retirements are made due to assets exceeding their recommended life, the balance 

in this account will move to $8.1 million. This study recommends retention of the 25 

year life and with a SQ dispersion. The currently approved dispersion is R1. 

FERC Account 396 Power Operated Equipment (18 SQ) 

This account consists of power-operated equipment such as bulldozers, 

forklifts, pile drivers, and tractors. There is approximately $9.8 million in this 

account. However, after AR 15 retirements are made due to assets exceeding their 

recommended life, the balance in this account will be $8.6 million. The Unanimous 

Stipulation in Commission Docket No. 35763 established a life of 18 years with a L2 

dispersion. This study recommends the currently approved 18 year life with a SQ 

dispersion. 

FERC Account 397 Communication Equipment (23 SQ) 

This account consists of miscellaneous communication equipment used in 

general utility service. There is approximately $53.6 million in this account. 

However, after AR 15 retirements are made due to assets exceeding their 

Attachment DAW-RR-2 

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recommended life, the balance in this account will move to $43.7 million. This 

account currently has a R4 curve and a life of 23 years. This study recommends 

the currently approved 23 year life with a SQ dispersion. 

FERC Account 397 Communication Equipment – EMS (23 SQ) 

This account consists of Energy Management System (EMS) communication 

equipment used in general utility service. The EMS equipment provides an overall 

data collection network to monitor and manage load demand on the energy grid. 

There is approximately $3.3 million in this account. This account currently has a R4 

curve and a life of 23 years. This study recommends the currently approved 23 

year life with a SQ dispersion. 

FERC Account 398 Miscellaneous Equipment (24 SQ) 

 This account consists of miscellaneous equipment used in general utility 

service. There is approximately $2.8 million in this account. However, after AR 15 

retirements are made due to assets exceeding their recommended life, the balance 

in this account will move to $2.6 million. This study recommends retention of the 24 

year life and an SQ dispersion. The currently approved dispersion is L0.5. 

Attachment DAW-RR-2 

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SALVAGE ANALYSIS 

When a capital asset is retired, physically removed from service, and finally 

disposed of, terminal retirement is said to have occurred. The residual value of a 

terminal retirement is called gross salvage. Net salvage is the difference between 

the gross salvage (what the asset was sold for) and the removal cost (cost to 

remove and dispose of the asset). 

Gross salvage and cost of removal related to retirements are recorded to the 

general ledger in the accumulated provision for depreciation at the time retirements 

occur within the system. 

Net salvage data by plant account for Transmission, Distribution, and General 

Plant is shown in Appendix E. Removal cost percentages are calculated by 

dividing the current cost of removal by the original installed cost of the asset. Some 

plant assets can experience significant negative removal cost percentages due to 

the timing of the addition versus the retirement. For example, a Transmission asset 

in FERC Account 356 with a current installed cost of $500 (2012) would have had 

an installed cost of $64.754 in 1967. A removal cost of $50 for the asset calculated 

(incorrectly) on current installed cost would only have a negative 10 percent 

removal cost ($50/$500). However, a correct removal cost calculation would show 

a negative 77 percent removal cost for that asset ($50/$64.75). Inflation from the 

time of installation of the asset until the time of its removal must be taken into 

account in the calculation of the removal cost percentage because the depreciation 

rate, which includes the removal cost percentage, will be applied to the original 

installed cost of assets. 

 

4 Using the Handy-Whitman Bulletin No. 177, E-4, line 37, $64.75 = $500 x 72/ 556, 

Attachment DAW-RR-2 

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Salvage - Steam Production and Other Production Property 

 The concept behind the net salvage cost component of depreciation rates for 

power plants is different from that of Transmission or Distribution assets. Power 

plants are discrete units that will need to be dismantled after the end of their useful 

lives. Because of this, instead of statistically analyzing the historical cost for 

salvaging and removing assets with rolling and shrinking bands, engineering 

studies are conducted to determine the cost to dismantle the individual units or 

plants. 

 The current net salvage rates for Steam Production and Other Production are 

five percent positive. The current net salvage rates do not factor in the projected 

dismantling costs for SPS facilities. The current net salvage rates are significantly 

lower than the detailed engineering studies performed by TLG Services, Inc. (TLG) 

at SPS’s request. The most current Fossil Power Plant Dismantling Cost Study for 

SPS was completed in 2012 by TLG and presented in PUC Docket 40824. 

However, despite the recent dismantling cost study and the individual experience 

and analysis of this study, the Company has decided to use the long standing 

precedent of the Texas Commission and return to a negative five percent net 

salvage for all Production assets. As recently as Docket 39896 (filed in 2011, Final 

Order in 2012) for Entergy Texas, the Commission returned a decision retaining the 

precedent of negative five percent net salvage for Production assets. While the 

actual experience and projected dismantling costs are much more negative, moving 

from the currently approved positive five net salvage parameters for Steam and 

Other Production adopted in the Unanimous Stipulation for Docket No. 35763 

would be a first step in setting depreciation rates that are more reflective of SPS 

actual experience and expectations. 

Attachment DAW-RR-2 

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Salvage - Transmission Property 

Increasing levels of removal cost are experienced in nearly all accounts in this 

function. Moving averages, which smooth out yearly fluctuations between 

retirements and net salvage, are used to examine data over the 1968 to 2012 

period (or newer depending on the account) and determine net salvage estimates 

for each account. Detailed analysis and results by account are shown in Appendix 

E-2 and individual account results are discussed below. 

FERC Account 350 Transmission Depreciable Land Rights (0 percent) 

 Retirement activity has been very limited in this account. Since land rights 

intrinsically have no removal costs (removal costs are attributed to the property on 

the land) and have no salvage value, a 0 percent net salvage was assigned to this 

account. 

FERC Account 352 Transmission Substation Structures and Improvements 

(Negative 15 percent) 

 The currently approved net salvage estimate for this account is negative 20 

percent. In the 2007 transaction year, a moving average existed of negative 187 

and negative 130 for the 5-year and 10-year bands, respectively. In the 2012 

transaction year, a negative 12 and negative 16 percent exist for the 5-year and 10-

year bands, respectively. There is little removal cost reflected in this account for 

the last several years. Due to less negative net salvage indications in more recent 

years, even though the 10 year bands statistics show a more negative net salvage, 

this study recommends moving toward those indications with a net salvage 

estimate of negative 15 percent for this account until more information is available. 

FERC Account 353 Transmission Station Equipment (Negative 19 percent) 

 The currently approved net salvage estimate for this account is negative 5 

percent. In the most recent period, a moving average of negative 19 percent exists 

for the 5-year and a negative 18 percent exists for the 10-year band. The most 

recent years are fairly consistent and more indicative of future net salvage 

Attachment DAW-RR-2 

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RR3 - 74 of 509 01190
65

expectations. Therefore, this study recommends a move to a negative 19 percent 

for this account. 

FERC Account 354 Transmission Tower and Fixtures (Negative 5 percent) 

 The currently approved net salvage estimate for this account is 0 percent. 

There has been no salvage or removal recorded in this account in recent years. 

Given the small level of retirements and the lack of net salvage transactional data, 

this study recommends reflecting a small amount of removal cost with a 5 percent 

negative net salvage estimate for this account. 

FERC Account 355 Transmission Poles and Fixtures (Negative 60 percent) 

 The currently approved net salvage estimate for this account is negative 20 

percent. In the most recent period, a moving average of negative 425 and negative 

368 percent exists for the 5-year and 10-year bands, respectively. Throughout 

much of the history, a negative 60 percent or greater has been experienced in this 

account. There is a significant level of retirements for this conclusion. This study 

recommends moving to the indications but limiting the change to a negative 60 

percent net salvage estimate for this account at this time. 

FERC Account 356 Transmission Overhead Conductor (Negative 30 percent) 

 The currently approved net salvage estimate for this account is negative 10 

percent. In the most recent period, a moving average of negative 67 and negative 

38 percent exists for the 5-year and 10-year bands, respectively. Since 1999, this 

account has generally experienced net salvage significantly more negative than 

negative 10 percent. The last 5 to 15 years is a more appropriate indicator of future 

net salvage for this account. This study recommends a negative 30 percent net 

salvage estimate for this account. 

FERC Account 357 Transmission Underground Conduit (0 percent) 

 The current net salvage estimate for this account is 0 percent. There has 

Attachment DAW-RR-2 

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RR3 - 75 of 509 01191
66

been only one year, 2012, with retirements recorded during the study period. While 

this single year indicates cost of removal will exceed any salvage, there is not 

enough data to change the existing 0 percent net salvage estimate at this time and 

is retained. 

FERC Account 358 Transmission Underground Conductor and Devices (0 

percent) 

 The current net salvage estimate for this account is 0 percent. There has 

been only two years, 2011 and 2012, with retirements recorded during the study 

period. While these years indicate cost of removal will exceed any salvage, there is 

not enough data to change the existing 0 percent net salvage estimate at this time 

and is retained. 

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 76 of 509 01192
67

Salvage – Distribution Property 

 Increasing levels of removal cost are experienced in all accounts in this 

function. The salvage received for retired assets has decreased over that time 

while the removal cost of assets has increased dramatically. Also, asset lives have 

generally lengthened since the last depreciation study, which has the effect of 

increasing the net removal cost (creating a more negative net salvage percentage) 

for the assets. Detailed analysis and results by account are shown in Appendix E-2 

and individual account results are discussed below. 

FERC Account 360 Distribution Depreciable Land Rights (0 percent) 

 Retirement activity has been very limited in this account. Since land rights 

intrinsically have no removal costs (removal costs are attributed to the property on 

the land) and have no salvage value, a 0 percent net salvage estimate is retained 

for this account. 

FERC Account 361 Distribution Substation Structures and Improvements 

(Negative 10 percent) 

 The current net salvage estimate for this account is negative 15 percent. 

Transactional history shows a negative net salvage in all years. In the most recent 

period, a moving average of negative 4 and negative 9 percent exists for the 5-year 

and 10-year bands, respectively. Based on the transactional history, a negative 

15% net salvage is indicated for numerous years but has started to show some 

change. Since there is a low level of retirements in this account, a comparison of 

salvage and removal cost for account 352 was done since the equipment in both 

accounts are similar. Because of the changes reflected in account 352 as well, a 

proposed net salvage estimate of negative 10 percent is supported and 

recommended for Account 361. 

FERC Account 362 Distribution Substation Equipment (Negative 15 percent) 

 The current net salvage estimate for this account is negative 10 percent. In 

the most recent period, a moving average of negative 15 percent exists for both the 

5-year and 10-year bands. After examining Company history, a negative 15 

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 77 of 509 01193
68

percent net salvage estimate is recommended for this account. 

FERC Account 364 Distribution Poles, Towers, and Fixtures (Negative 50 

percent) 

 The current net salvage estimate for this account is negative 25 percent. In 

the most recent period, a moving average of negative 108 percent exists for both 

the 5-year and 10-year bands. Although other utilities have approved levels of 

negative net salvage in that range, such a significant change would cause a drastic 

increase in SPS’s depreciation expense for this account. To conservatively treat 

net salvage, but move in the direction of the experience, a negative 50 percent net 

salvage estimate is recommended which mitigates the increase in net salvage while 

very conservatively modeling Company experience. 

FERC Account 365 Distribution Overhead Conductor and Devices (Negative 

35 percent) 

 The current net salvage estimate for this account is negative 20 percent. In 

the most recent period, a moving average of negative 46 and negative 35 percent 

exists for the 5-year and 10-year bands, respectively. A negative 35 percent net 

salvage estimate is recommended which models recent and long term Company 

experience.

FERC Account 366 Distribution Underground Conduit (Negative 20 percent) 

 The current net salvage estimate for this account is negative 10 percent. This 

account has demonstrated erratic levels of net salvage. In the most recent period, 

a moving average of negative 74 and negative 64 percent exists for the 5-year and 

10-year bands, respectively. To model net salvage in the future a negative 20 

percent net salvage estimate is retained for this account at this time. 

FERC Account 367 Distribution Underground Conductor and Devices 

(Negative 20 percent) 

 The currently approved net salvage estimate for this account is negative 5 

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 78 of 509 01194
69

percent. This account has demonstrated erratic levels of net salvage. In the most 

recent period, a moving average of negative 27 percent and negative 20 percent 

exists for the 5-year and 10-year bands, respectively. To model net salvage toward 

the indications, a negative 20 percent estimate is recommended for this account. 

FERC Account 368 Distribution Line Transformers (Negative 10 percent) 

 The currently approved net salvage estimate for this account is negative 5 

percent. Line transformer gross salvage proceeds have become smaller, while 

removal costs have risen. In the most recent period, a moving average of negative 

28 and negative 20 percent exists for the 5-year and 10-year bands, respectively. 

Some erratic experience indicated since 2003, so we recommend limiting the 

change to a negative 10 percent net salvage estimate for this account at this time.

FERC Account 369 Distribution Services (Negative 40 percent) 

 The currently approved net salvage estimate for this account is negative 40 

percent. In the most recent period, a moving average of negative 39 percent and 

45 percent exists for the 5-year and 10-year bands, respectively. A negative 40 

percent net salvage is retained for this account.

FERC Account 370 Distribution Meters (Negative 10 percent) 

 The currently approved net salvage estimate for this account is negative 5 

percent. In the most recent period, a moving average of negative 6 and negative 

10 percent exists for the 5-year and 10-year bands, respectively. To model net 

salvage in the future, a negative 10 percent net salvage estimate is recommended 

for this account. 

FERC Account 371 Distribution Installation on Customers’ Premises 

(Negative 20 percent) 

 The currently approved net salvage estimate for this account is negative 15 

percent. In the most recent period, a moving average of negative 46 percent and 

Attachment DAW-RR-2 

Page 69 of 140 

Docket: 42004

RR3 - 79 of 509 01195
70

negative 23 percent exists for the 5-year and 10-year intervals, respectively. Most 

recent experience suggests more negative net salvage is occurring, but the 7-and 

10-year moving averages indicate negative net salvage around 20 percent. Due to 

the variation in the experience we recommend moving toward the indications of the 

longer bands, a negative 20 percent net salvage for this account at this time. 

FERC Account 373 Distribution Street Lighting (Negative 45 percent) 

 The currently approved net salvage estimate for this account is negative 30 

percent. Transactional history shows diminishing positive salvage for this account, 

with a sharp increase in removal cost since 2004. In the most recent period, a 

moving average of negative 63 percent and negative 62 percent exists for the 5-

year and 10-year intervals, respectively. However, experience is somewhat erratic 

so we recommend moving toward the more negative indications, but limiting the 

change to a negative 45 percent net salvage for this account at this time.

Attachment DAW-RR-2 

Page 70 of 140 

Docket: 42004

RR3 - 80 of 509 01196
71

Salvage – General Property 

Most accounts in the general function currently have a 0 percent net salvage 

value. For general plant accounts 391-398, the Company will continue the use of 

AR15 using the study recommended net salvage parameters. Detailed analysis 

and results by account are shown in Appendix E-2 and individual account results 

are discussed below. 

FERC Account 389 Land Rights (0 percent) 

 The currently approved net salvage estimate for this account is 0 percent. 

Land rights generally have no salvage value at retirement and none is shown in the 

analysis. A 0 percent net salvage estimate is recommended to be retained for this 

account. 

FERC Account 390 Structures and Improvements (negative 10 percent) 

The currently approved net salvage estimate for this account is 0 percent. 

This account consists of all general plant structures, which may range from 

buildings to building components such as HVAC systems or roofs. In 2003, a 

consolidation of facilities occurred which produced a large positive salvage. This is 

a one-time event related to merger activity and Company cost reduction initiatives. 

This is not anticipated to recur. The most recent 5 and 10 year moving average 

show negative 33 and 24 percent net salvage, respectively. This study 

recommends moving toward the negative net salvage indications, but limiting it to a 

negative 10 percent for this account. 

FERC Account 391 Office Furniture and Equipment (0 percent) 

This account consists of gross salvage and cost of removal for 

miscellaneous office furniture such as desks, chairs, filing cabinets, and tables used 

for general utility service. The currently approved net salvage estimate for this 

account is positive 2 percent. The average net salvage has been declining for the 

last several years. The most recent 5 and 10 year moving averages show negative 

Attachment DAW-RR-2 

Page 71 of 140 

Docket: 42004

RR3 - 81 of 509 01197
72

15 percent and a positive 1 percent net salvage, respectively. To model net 

salvage in the future, a 0 percent net salvage estimate is recommended for this 

account. 

FERC Account 391 Computer Equipment (0 percent) 

This account consists of gross salvage and cost of removal for network 

computer equipment used for general utility service. The currently approved net 

salvage estimate for this account is 0 percent. Activity is only recorded since 2006 

with some indication that some salvage and cost of removal are possible. Overall 

indications are negligible. Therefore, retaining a 0 percent net salvage estimate is 

requested for this account. 

FERC Account 392 Transportation Equipment (0 percent) 

 The currently approved net salvage estimate for this account is positive 20 

percent. The Company has gone to a like kind exchange program for the last four 

years and will continue this in the future. This study recommends moving to 0 

percent net salvage estimate for this account.

FERC Account 393 Stores Equipment (0 percent) 

This account consists of gross salvage and cost of removal for stores 

equipment used for general utility service. The currently approved net salvage 

estimate for this account is 0 percent. This kind of equipment seldom produces any 

gross salvage. To model net salvage in the future, a 0 percent net salvage is 

retained for this account. 

FERC Account 394 Tools, Shop, and Garage Equipment (0 percent) 

This account consists of gross salvage and cost of removal for various items 

or tools used in shop and garages such as air compressors, grinders, mixers, 

hoists, and cranes. The currently approved net salvage estimate for this account is 

0 percent. Since 2007 only one year, 2012 has had any salvage. Most recent 5-

Attachment DAW-RR-2 

Page 72 of 140 

Docket: 42004

RR3 - 82 of 509 01198
73

yer average is less than 1 percent. To model net salvage in the future, a 0 percent 

net salvage estimate is retained. 

FERC Account 395 Laboratory Equipment (0 percent) 

This account consists of gross salvage and cost of removal for laboratory 

equipment used in general utility service. The currently approved net salvage 

estimate for this account is 0 percent. The most recent 5-year and 10-year net 

salvage percentages are 3 percent and 0 percent, respectively. To model net 

salvage in the future, a 0 percent net salvage estimate is retained for this account. 

FERC Account 396 Power Operated Equipment (0 percent) 

The currently approved net salvage estimate for this account is positive 10 

percent. Proceeds for used power operated equipment have declined since 1998. 

The average net salvage has been declining for the last several years. The most 

recent 5-year and 10-year net salvage percentages are 0 percent and 5 percent, 

respectively. To model net salvage in the future, a 0 percent net salvage estimate 

is recommended for this account. 

FERC Account 397 Communication Equipment (negative 4 percent) 

This account consists of gross salvage and cost of removal for 

miscellaneous communication equipment used in general utility service. The 

currently approved net salvage estimate for this account is 0 percent. The most 

recent 5-year and 10-year net salvage percentage is negative 4 percent for both 

bands. To model net salvage in the future, a negative 4 percent net salvage 

estimate is retained for this account. 

FERC Account 397 Communication Equipment – EMS (negative 4 percent) 

This account consists of gross salvage and cost of removal for 

miscellaneous communication equipment used in general utility service. The 

currently approved net salvage estimate for this account is 0 percent. Based on 

other communication assets and activity, a negative 4 percent net salvage estimate 

Attachment DAW-RR-2 

Page 73 of 140 

Docket: 42004

RR3 - 83 of 509 01199
74

is recommended for this account. 

FERC Account 398 Miscellaneous Equipment (0 percent) 

This account consists of gross salvage and cost of removal for 

miscellaneous equipment used in general utility service. The currently approved 

net salvage estimate for this account is 0 percent. The most recent 5-year and 10-

year net salvage percentages are negative 2 percent and negative 8 percent, 

respectively. Expectations are that salvage and cost of removal will offset each 

other. To model net salvage in the future, a 0 percent net salvage estimate is 

retained for this account. 

Attachment DAW-RR-2 

Page 74 of 140 

Docket: 42004

RR3 - 84 of 509 01200
75

APPENDIX A 

Computation of Depreciation Accrual Rates 

Attachment DAW-RR-2 

Page 75 of 140 

Docket: 42004

RR3 - 85 of 509 01201
Appendix A-1

Page 1 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

 E310 Land and Water Rights

Land Rights NM 73,071 59,157 0.00% - 13,914 13.87 1,003 1.3732%Land Rights TX 1,098,015 419,770 0.00% - 678,245 21.24 31,929 2.9079%

Water Rights TX 5,661,722 1,972,242 0.00% - 3,689,480 25.93 142,284 2.5131%

Total/Composite 6,832,808 2,451,169 - 4,381,639 175,216 2.5643%

 E311 Structures and Improvements

Cunningham Unit 1 2,359,689 2,096,194 -5.00% (117,984) 381,480 8.58 44,485 1.8852%

Cunningham Unit 2 1,724,271 1,392,316 -5.00% (86,214) 418,169 11.43 36,585 2.1218%Common Facilities 5,704,489 2,579,966 -5.00% (285,224) 3,409,748 11.83 288,204 5.0522%

Harrington Unit 1 6,898,314 4,477,369 -5.00% (344,916) 2,765,861 21.13 130,921 1.8979%

Harrington Unit 2 5,489,425 3,157,326 -5.00% (274,471) 2,606,570 23.02 113,229 2.0627%Harrington Unit 3 8,990,239 5,193,906 -5.00% (449,512) 4,245,845 24.56 172,844 1.9226%

Common Facilities 25,059,481 9,201,425 -5.00% (1,252,974) 17,111,030 25.68 666,405 2.6593%

Jones Unit 1 4,397,303 2,962,406 -5.00% (219,865) 1,654,762 16.97 97,519 2.2177%

Jones Unit 2 1,848,254 1,274,260 -5.00% (92,413) 666,407 19.37 34,408 1.8616%

Common Facilities 7,679,937 1,940,407 -5.00% (383,997) 6,123,527 40.72 150,378 1.9581%

Maddox 3,802,397 2,065,155 -5.00% (190,120) 1,927,362 16.30 118,251 3.1099%Moore County 2,234,606 2,346,337 -5.00% (111,730) 0 0.00 0 0.0000%

Nichols Unit 1 1,863,517 1,672,675 -5.00% (93,176) 284,018 6.79 41,834 2.2449%

Nichols Unit 2 1,108,535 924,420 -5.00% (55,427) 239,542 9.58 25,005 2.2557%

Nichols Unit 3 1,583,161 1,118,756 -5.00% (79,158) 543,562 15.89 34,214 2.1611%

Common Facilities 48,229,149 19,922,156 -5.00% (2,411,457) 30,718,451 16.63 1,847,708 3.8311%

Plant X Unit 1 1,262,983 1,171,185 -5.00% (63,149) 154,947 5.78 26,786 2.1208%

Plant X Unit 2 1,021,771 849,541 -5.00% (51,089) 223,319 5.77 38,674 3.7850%

Plant X Unit 3 1,026,455 957,088 -5.00% (51,323) 120,690 7.71 15,644 1.5241%

Plant X Unit 4 1,171,925 908,458 -5.00% (58,596) 322,063 13.14 24,513 2.0917%

Common Facilities 7,278,035 4,175,500 -5.00% (363,902) 3,466,437 13.68 253,369 3.4813%

Tolk 1 31,757,357 17,822,047 -5.00% (1,587,868) 15,523,177 24.85 624,795 1.9674%

Tolk 2 18,065,191 9,640,499 -5.00% (903,260) 9,327,951 26.60 350,692 1.9413%

Common Facilities 25,475,823 4,797,721 -5.00% (1,273,791) 21,951,893 27.89 787,028 3.0893%

Total/Composite 216,032,307 102,647,112 (10,801,615) 124,186,810 5,923,490 2.7419%

 E312 Boiler Plant Equipment

Cunningham Unit 1 8,036,295 4,494,342 -5.00% (401,815) 3,943,768 8.60 458,800 5.7091%

Cunningham Unit 2 15,745,196 8,367,136 -5.00% (787,260) 8,165,320 11.32 721,270 4.5809%

Common Facilities 5,989,933 2,813,333 -5.00% (299,497) 3,476,097 11.76 295,597 4.9349%

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Attachment DAW-RR-2 

Page 76 of 140 

Docket: 42004

RR3 - 86 of 509 01202
Appendix A-1

Page 2 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Harrington Unit 1 98,674,418 46,468,053 -5.00% (4,933,721) 57,140,086 20.61 2,773,030 2.8103%

Harrington Unit 2 101,317,208 49,787,206 -5.00% (5,065,860) 56,595,862 22.00 2,572,304 2.5389%

Harrington Unit 3 109,586,505 55,359,875 -5.00% (5,479,325) 59,705,955 23.31 2,560,973 2.3369%

Common Facilities 11,969,732 4,995,493 -5.00% (598,487) 7,572,726 24.49 309,259 2.5837%

Jones Unit 1 15,098,036 9,844,241 -5.00% (754,902) 6,008,697 15.97 376,232 2.4919%

Jones Unit 2 15,414,797 8,805,887 -5.00% (770,740) 7,379,650 18.40 400,991 2.6013%

Common Facilities 12,389,645 2,824,888 -5.00% (619,482) 10,184,240 37.98 268,139 2.1642%

Maddox 16,854,321 7,210,308 -5.00% (842,716) 10,486,729 15.90 659,505 3.9130%

Moore County 6,956,559 7,304,387 -5.00% (347,828) 0 0.00 0 0.0000%

Nichols Unit 1 10,768,380 7,463,943 -5.00% (538,419) 3,842,856 6.83 562,760 5.2260%

Nichols Unit 2 11,453,730 7,034,612 -5.00% (572,686) 4,991,804 9.54 523,333 4.5691%

Nichols Unit 3 19,283,460 10,884,899 -5.00% (964,173) 9,362,735 15.59 600,665 3.1149%

Common Facilities 5,429,433 2,610,580 -5.00% (271,472) 3,090,325 16.29 189,704 3.4940%

Plant X Unit 1 6,139,953 5,195,337 -5.00% (306,998) 1,251,614 5.74 217,972 3.5501%

Plant X Unit 2 15,924,804 12,361,067 -5.00% (796,240) 4,359,977 5.82 749,485 4.7064%

Plant X Unit 3 8,311,338 6,266,708 -5.00% (415,567) 2,460,197 7.55 325,813 3.9201%

Plant X Unit 4 17,623,177 10,607,032 -5.00% (881,159) 7,897,304 13.04 605,501 3.4358%

Common Facilities 2,393,751 1,425,591 -5.00% (119,688) 1,087,847 13.51 80,507 3.3632%

Tolk 1 185,312,555 92,504,741 -5.00% (9,265,628) 102,073,443 23.42 4,358,528 2.3520%

Tolk 2 207,358,402 98,713,573 -5.00% (10,367,920) 119,012,750 25.12 4,737,477 2.2847%

Common Facilities 12,953,505 5,502,394 -5.00% (647,675) 8,098,787 25.59 316,435 2.4429%

Total/Composite 920,985,134 468,845,624 (46,049,257) 498,188,767 24,664,280 2.6780%

 E314 Turbogenerators

Cunningham Unit 1 6,208,852 4,504,092 -5.00% (310,443) 2,015,203 8.66 232,708 3.7480%

Cunningham Unit 2 10,776,709 7,183,315 -5.00% (538,835) 4,132,229 11.48 359,959 3.3402%

Common Facilities 110,764 72,827 -5.00% (5,538) 43,474 11.66 3,727 3.3652%

Harrington Unit 1 32,751,533 17,837,081 -5.00% (1,637,577) 16,552,029 21.21 780,528 2.3832%

Harrington Unit 2 34,045,309 18,268,645 -5.00% (1,702,265) 17,478,929 22.87 764,376 2.2452%

Harrington Unit 3 46,541,946 22,360,193 -5.00% (2,327,097) 26,508,851 24.67 1,074,447 2.3086%

Common Facilities 2,945,008 1,196,196 -5.00% (147,250) 1,896,063 25.16 75,368 2.5592%

Jones Unit 1 14,282,412 9,629,025 -5.00% (714,121) 5,367,508 16.70 321,469 2.2508%

Jones Unit 2 16,040,048 9,166,745 -5.00% (802,002) 7,675,305 19.40 395,702 2.4670%

Common Facilities 7,752,772 2,465,602 -5.00% (387,639) 5,674,809 38.89 145,929 1.8823%

Maddox 10,947,004 5,612,349 -5.00% (547,350) 5,882,005 16.01 367,407 3.3562%

Moore County 4,116,289 4,322,103 -5.00% (205,814) 0 0.00 0 0.0000%

Nichols Unit 1 9,687,117 7,563,513 -5.00% (484,356) 2,607,960 6.78 384,377 3.9679%

Nichols Unit 2 9,701,296 7,194,152 -5.00% (485,065) 2,992,210 9.59 312,071 3.2168%

Nichols Unit 3 16,874,852 10,820,221 -5.00% (843,743) 6,898,374 15.95 432,436 2.5626%

Attachment DAW-RR-2 

Page 77 of 140 

Docket: 42004

RR3 - 87 of 509 01203
Appendix A-1

Page 3 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Common Facilities 3,255,092 1,639,191 -5.00% (162,755) 1,778,655 16.36 108,691 3.3391%

Plant X Unit 1 4,616,997 4,250,785 -5.00% (230,850) 597,063 5.83 102,445 2.2189%

Plant X Unit 2 6,735,026 5,830,474 -5.00% (336,751) 1,241,303 5.85 212,348 3.1529%

Plant X Unit 3 7,717,542 5,906,298 -5.00% (385,877) 2,197,122 7.72 284,562 3.6872%

Plant X Unit 4 12,651,057 7,761,564 -5.00% (632,553) 5,522,046 13.29 415,529 3.2845%

Common Facilities 1,411,239 647,318 -3.00% (42,337) 806,258 13.59 59,325 4.2037%

Tolk 1 74,983,135 41,224,499 -5.00% (3,749,157) 37,507,794 24.46 1,533,138 2.0446%

Tolk 2 100,862,241 49,700,654 -5.00% (5,043,112) 56,204,699 24.67 2,278,334 2.2589%

Common Facilities 12,318,687 2,956,601 -5.00% (615,934) 9,978,020 27.46 363,341 2.9495%

Total/Composite 447,332,927 248,113,444 (22,338,422) 221,557,905 11,008,218 2.4609%

 E315 Accessory Electric Equipment

Cunningham Unit 1 870,854 585,405 -5.00% (43,543) 328,992 8.34 39,460 4.5312%

Cunningham Unit 2 5,287,374 2,141,924 -5.00% (264,369) 3,409,819 11.89 286,885 5.4259%

Common Facilities 783,399 528,760 -5.00% (39,170) 293,808 11.60 25,322 3.2324%

Harrington Unit 1 7,196,939 3,930,357 -5.00% (359,847) 3,626,429 20.04 180,950 2.5143%

Harrington Unit 2 4,984,262 2,709,239 -5.00% (249,213) 2,524,236 21.52 117,284 2.3531%

Harrington Unit 3 4,886,074 2,944,207 -5.00% (244,304) 2,186,171 22.35 97,820 2.0020%

Common Facilities 500,287 223,202 -5.00% (25,014) 302,099 25.16 12,006 2.3999%

Jones Unit 1 1,245,589 792,958 -5.00% (62,279) 514,910 15.92 32,336 2.5961%

Jones Unit 2 1,818,208 762,854 -5.00% (90,910) 1,146,264 19.17 59,806 3.2893%

Common Facilities 2,395,339 407,547 -5.00% (119,767) 2,107,559 40.44 52,122 2.1760%

Maddox 6,587,507 2,136,011 -5.00% (329,375) 4,780,871 16.61 287,858 4.3698%

Moore County 502,038 527,140 -5.00% (25,102) 0 0.00 0 0.0000%

Nichols Unit 1 2,051,335 1,544,081 -5.00% (102,567) 609,821 6.76 90,211 4.3977%

Nichols Unit 2 1,038,609 724,519 -5.00% (51,930) 366,020 9.30 39,373 3.7909%

Nichols Unit 3 1,567,504 1,119,744 -5.00% (78,375) 526,135 14.47 36,351 2.3190%

Common Facilities 2,243,228 981,022 -5.00% (112,161) 1,374,367 16.42 83,726 3.7324%

Plant X Unit 1 612,697 421,034 -5.00% (30,635) 222,297 5.75 38,665 6.3107%

Plant X Unit 2 613,416 576,181 -5.00% (30,671) 67,905 5.57 12,194 1.9879%

Plant X Unit 3 976,256 627,984 -5.00% (48,813) 397,085 7.88 50,415 5.1642%

Plant X Unit 4 1,813,628 1,107,849 -5.00% (90,681) 796,460 13.01 61,204 3.3747%

Common Facilities 124,534 57,454 -5.00% (6,227) 73,307 13.87 5,287 4.2450%

Tolk 1 15,215,167 9,017,588 -5.00% (760,758) 6,958,338 22.73 306,080 2.0117%

Tolk 2 9,514,468 5,229,550 -5.00% (475,723) 4,760,641 24.60 193,554 2.0343%

Total/Composite 72,828,709 39,096,609 (3,641,435) 37,373,535 2,108,909 2.8957%

 E316 Miscellaneous Power Plant Equipment

Cunningham Unit 1 65,280 25,231 -5.00% (3,264) 43,314 8.84 4,901 7.5071%Cunningham Unit 2 89,971 38,773 -5.00% (4,499) 55,696 11.60 4,802 5.3370%

Attachment DAW-RR-2 

Page 78 of 140 

Docket: 42004

RR3 - 88 of 509 01204
Appendix A-1

Page 4 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Common Facilities 1,488,477 1,047,530 -5.00% (74,424) 515,371 11.21 45,990 3.0897%

Harrington Unit 1 966,993 542,815 -5.00% (48,350) 472,527 19.55 24,173 2.4998%

Harrington Unit 2 1,511,634 920,344 -5.00% (75,582) 666,873 20.42 32,655 2.1602%

Harrington Unit 3 1,863,106 1,010,612 -5.00% (93,155) 945,650 22.10 42,797 2.2971%

Common Facilities 2,629,324 1,289,032 -5.00% (131,466) 1,471,758 22.77 64,641 2.4585%

Jones Unit 1 756,086 562,057 -5.00% (37,804) 231,833 15.25 15,200 2.0104%

Jones Unit 2 630,194 422,717 -5.00% (31,510) 238,986 17.53 13,636 2.1638%

Common Facilities 3,232,531 1,073,340 -5.00% (161,627) 2,320,817 33.61 69,055 2.1362%

Maddox 906,065 418,704 -5.00% (45,303) 532,664 15.80 33,721 3.7217%

Moore County 125,788 132,077 -5.00% (6,289) 0 0.00 0 0.0000%Nichols Unit 1 269,204 191,479 -5.00% (13,460) 91,185 6.74 13,521 5.0225%

Nichols Unit 2 79,414 71,412 -5.00% (3,971) 11,972 9.00 1,331 1.6758%

Nichols Unit 3 310,212 163,785 -5.00% (15,511) 161,937 15.39 10,520 3.3912%

Common Facilities 2,358,509 1,321,895 -5.00% (117,925) 1,154,540 15.55 74,255 3.1484%

Plant X Unit 1 - -5.00% - 0Plant X Unit 2 52,890 41,773 -5.00% (2,644) 13,762 5.88 2,341 4.4266%

Plant X Unit 3 977,798 720,291 -5.00% (48,890) 306,397 7.76 39,496 4.0393%

Plant X Unit 4 130,500 60,136 -5.00% (6,525) 76,889 13.36 5,757 4.4113%

Common Facilities 1,528,753 878,232 -5.00% (76,438) 726,959 12.98 55,991 3.6626%

Tolk 1 721,430 371,118 -5.00% (36,072) 386,384 22.44 17,219 2.3868%

Tolk 2 3,513,536 1,903,669 -5.00% (175,677) 1,785,544 23.45 76,150 2.1673%

Common Facilities 7,205,198 3,391,785 -5.00% (360,260) 4,173,672 24.02 173,792 2.4120%

Total/Composite 31,412,891 16,598,805 (1,570,645) 16,384,730 821,944 2.6166%

Total Steam Production 1,695,424,777 877,752,765 (84,401,374) 902,073,386 44,702,058 2.6366% E340 Land and Water Rights

Land Rights TX - Riverview 676 676 0.00% - - 0.00 - 0.0000%

Total/Composite 676 675.80 - - - 0.0000%

 E341 Structures and Improvements

Carlsbad 240,088 229,297 -5.00% (12,004) 22,796 12.50 1,824 0.7596%

Cunningham 492,893 194,539 -5.00% (24,645) 322,999 27.50 11,745 2.3829%

Jones Unit 3 4,754,439 266,021 -5.00% (237,722) 4,726,141 43.50 108,647 2.2852%Jones Unit 4 5,039,734 35,055 -5.00% (251,987) 5,256,666 45.50 115,531 2.2924%

Maddox 1,602,856 1,305,322 -5.00% (80,143) 377,677 7.50 50,357 3.1417%

Quay County 869,075 12,157 -5.00% (43,454) 900,373 22.50 40,017 4.6045%

Riverview - -

Total/Composite 12,999,087 2,042,391 (649,954) 11,606,651 328,121 2.5242%

 E342 Fuel Holders and Accessory Equipment

Attachment DAW-RR-2 

Page 79 of 140 

Docket: 42004

RR3 - 89 of 509 01205
Appendix A-1

Page 5 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Blackhawk 3,598,114 2,370,685 -5.00% (179,906) 1,407,334 11.50 122,377 3.4011%

Cunningham 1,211,937 283,330 -5.00% (60,597) 989,203 27.50 35,971 2.9681%

Jones Unit 3 - - -5.00% - 0 0.00 0Jones Unit 4 - -5.00% - 0 0

Maddox 512,886 512,224 -5.00% (25,644) 26,307 7.50 3,508 0.6839%

Quay County 1,575 617 -5.00% (79) 1,037 22.50 46 2.9259%

Riverview - - -5.00% - 0

Total/Composite 5,324,512 3,166,856 (266,226) 2,423,881 161,902 3.0407%

 E343 Prime Movers

Carlsbad 2,265,393 1,574,984 -5.00% (113,270) 803,678 12.50 64,294 2.8381%

Cunningham 51,683,647 22,160,251 -5.00% (2,584,182) 32,107,579 27.50 1,167,548 2.2590%

Jones Unit 3 - - -5.00% - 0 0.00 0

Jones Unit 4 -5.00% - 0 0Quay County 4,620,155 3,235,884 -5.00% (231,008) 1,615,279 22.50 71,790 1.5538%

Total/Composite 58,569,196 26,971,119 (2,928,460) 34,526,536 1,303,633 2.2258%

 E344 Generators

Carlsbad 409,729 335,042 -5.00% (20,486) 95,173 12.50 7,614 1.8583%

Cunningham 3,108,157 830,715 -5.00% (155,408) 2,432,850 27.50 88,467 2.8463%

Jones Unit 3 66,307,969 3,710,067 -5.00% (3,315,398) 65,913,300 43.50 1,515,248 2.2852%

Jones Unit 4 64,441,989 448,245 -5.00% (3,222,099) 67,215,844 45.50 1,477,271 2.2924%

Maddox 15,142,409 14,290,257 -5.00% (757,120) 1,609,272 7.50 214,570 1.4170%

Quay County 16,514,330 1,184,984 -5.00% (825,716) 16,155,062 22.50 718,003 4.3478%

Riverview - - -5.00% - 0

Total/Composite 165,924,582 20,799,310 (8,296,229) 153,421,501 4,021,173 2.4235%

 E345 Accessory Electric Equipment

Carlsbad 239,463 222,945 -5.00% (11,973) 28,491 12.50 2,279 0.9518%

Cunningham 5,882,584 2,223,348 -5.00% (294,129) 3,953,365 27.50 143,759 2.4438%

Jones Unit 3 10,412,594 582,606 -5.00% (520,630) 10,350,618 43.50 237,945 2.2852%

Jones Unit 4 9,809,380 68,232 -5.00% (490,469) 10,231,617 45.50 224,871 2.2924%

Maddox 1,372,859 1,087,705 -5.00% (68,643) 353,798 7.50 47,173 3.4361%

Quay County 2,728,668 379,772 -5.00% (136,433) 2,485,330 22.50 110,459 4.0481%

Riverview -Total/Composite 30,445,548 4,564,607 (1,522,277) 27,403,218 766,486 2.5176%

 E346 Miscellaneous Power Plant Equipment

Carlsbad 2,398 2,253 -5.00% (120) 265 12.50 21 0.8830%

Cunningham 1,183,177 287,625 -5.00% (59,159) 954,711 27.50 34,717 2.9342%

Jones Unit 3 1,594,020 89,189 -5.00% (79,701) 1,584,533 43.50 36,426 2.2852%

Jones Unit 4 1,013,942 7,053 -5.00% (50,697) 1,057,587 45.50 23,244 2.2924%

Maddox 86,486 85,258 -5.00% (4,324) 5,552 7.50 740 0.8559%

Quay County 611,049 67,269 -5.00% (30,552) 574,332 22.50 25,526 4.1774%

Attachment DAW-RR-2 

Page 80 of 140 

Docket: 42004

RR3 - 90 of 509 01206
Appendix A-1

Page 6 of 6

Allocated

Plant Reserve Net Net Annual

FERC Balance Balance Salvage Salvage Unaccrued Remaining Annual Accrual

Account Description 06/30/2013 06/30/2013 % Amount Balance Life Accrual %

(1) (2) (3) (4) (5) (6) (7) (8)

Southwestern Public Service Company

Texas

Computation of Depreciation Accrual Rates

June 30, 2013

Riverview - -

Total/Composite 4,491,071 538,646 (224,554) 4,176,979 120,674 2.6870%

#DIV/0!

Total Other Production 277,754,672 58,083,605 (13,887,700) 233,558,766 6,701,988 2.4129%

Total Production 1,973,179,448 935,836,370 (98,289,073) 1,135,632,152 51,404,046 2.6051%Transmission350 Land Rights 62,564,024 8,034,857.73 0.00% - 54,529,166 69.58 783,733 1.2527%

352 Structures & Improvements 41,772,491 13,130,071.38 -15.00% (6,265,874) 34,908,293 46.97 743,126 1.7790%

353 Station Equipment 519,493,078 114,682,753.83 -19.00% (98,703,685) 503,514,009 46.27 10,881,681 2.0947%354 Towers & Fixtures 8,263,825 2,267,895.93 -5.00% (413,191) 6,409,120 55.11 116,293 1.4073%

355 Poles & Fixtures 502,260,235 130,952,433.31 -60.00% (301,356,141) 672,663,942 45.07 14,924,131 2.9714%

356 Overhead Conductors & Devices 223,715,141 70,615,141.27 -30.00% (67,114,542) 220,214,541 36.93 5,963,170 2.6655%357 Underground Conduit 255,073 134,274.36 0.00% - 120,799 34.94 3,457 1.3553%

358 Underground Conductor & Devices 489,717 234,266.69 0.00% - 255,450 23.16 11,030 2.2523%

Total Transmission 1,358,813,583 340,051,694.51 (473,853,433) 1,492,615,322 33,426,623 2.4600%

Distribution Texas Only360 Land Rights 1,719,148 456,071.62 0.00% - 1,263,076 45.31 27,879 1.6217%

361 Structures & Improvements 4,921,783 1,437,879.28 -10.00% (492,178) 3,976,082 45.29 87,794 1.7838%

362 Station Equipment 98,948,650 27,684,422.32 -15.00% (14,842,298) 86,106,526 42.65 2,019,058 2.0405%364 Poles, Towers & Fixtures 139,455,232 45,925,302.97 -50.00% (69,727,616) 163,257,545 41.46 3,937,655 2.8236%365 Overhead Conductors & Devices 132,658,666 37,525,087.65 -35.00% (46,430,533) 141,564,111 37.91 3,734,366 2.8150%366 Underground Conduit 16,425,003 6,036,346.40 -20.00% (3,285,001) 13,673,658 43.04 317,725 1.9344%

367 Underground Conductor & Devices 23,183,047 7,294,361.43 -20.00% (4,636,609) 20,525,295 35.62 576,177 2.4853%

368 Line Transformers 140,143,332 39,220,753.44 -10.00% (14,014,333) 114,936,911 34.43 3,338,220 2.3820%

369 Services 49,206,245 22,086,238.70 -40.00% (19,682,498) 46,802,504 30.98 1,510,882 3.0705%

370 Meters 47,999,178 19,955,030.88 -10.00% (4,799,918) 32,844,064 26.04 1,261,121 2.6274%371 Installations on Customers' Premises 8,129,480 4,624,035.88 -20.00% (1,625,896) 5,131,340 14.06 364,956 4.4893%373 Street Lighting & Signal Systems 12,872,741 6,172,460.19 -45.00% (5,792,733) 12,493,014 28.48 438,608 3.4073%

Total Distribution Texas Only 675,662,504 218,417,990.78 (185,329,613) 642,574,126 17,614,441 2.6070%

General389 Land Rights 45,967 4,928.13 0.00% - 41,039 31.25 1,313 2.8572%

390 Structures & Improvements 61,238,258 6,025,340.16 -10.00% (6,123,826) 61,336,744 36.76 1,668,388 2.7244%

Total General 61,284,226 6,030,268.29 (6,123,826) 61,377,783 1,669,701 2.7245%

Total Depreciable Plant 4,068,939,761 1,500,336,323.60 (763,595,945) 3,332,199,383 104,114,810 2.5588%

Attachment DAW-RR-2 

Page 81 of 140 

Docket: 42004

RR3 - 91 of 509 01207
Appendix A-2

Page 1 of 1

Plant Allocated Theoretical Amortize

Balance Reserve Reserve Reserve Remaining Reserve

Description 06/30/2013 06/30/2013 06/30/2013 Difference Life Difference

391 Office Furniture & Equipment 10,313,040 $ 4,468,657 $ 6,345,727 $ (1,877,070) $ 17.04 110,138 $ 

391 Computer Equipment 19,504,756 3,823,876 8,836,868 (5,012,992) 2.94 1,703,829

392 Transportation Equipment 68,567,866 43,048,453 53,020,190 (9,971,737) 7.79 1,279,688393 Stores Equipment 460,265 204,051 351,687 (147,636) 15.96 9,252

394 Tools, Shop & Garage Equipment 20,153,166 1,829,872 4,764,137 (2,934,265) 27.56 106,456

395 Laboratory Equipment 10,736,875 6,634,225 9,949,679 (3,315,453) 10.35 320,190396 Power Operated Equipment 9,818,955 2,959,770 4,215,993 (1,256,223) 14.22 88,336

397 Communication Equipment 53,630,064 28,498,530 43,367,205 (14,868,675) 11.07 1,343,472

397 Communication Equipment - EMS 3,300,457 98,798 323,416 (224,618) 20.83 10,782

398 Miscellaneous Equipment 2,823,585 861,874 1,640,409 (778,535) 13.51 57,641

Total General Amortized 199,309,028 92,428,107 132,815,312 (40,387,205) 5,029,783

Excluding Fully Accrued Assets

Plant Allocated Accrual

Balance Reserve Amortization Amortization Annual For Reserve Total Amortization

Account Description 06/30/2013 06/30/2013 Life Net Salvage % Amortization Difference Amortization Rate

391 Office Furniture & Equipment 8,491,525 2,729,358 25.00 0% 339,661 110,138 449,799 5.2970%

391 Computer Equipment 18,695,295 3,233,988 5.00 0% 3,739,059 1,703,829 5,442,888 29.1137%

392 Transportation Equipment 49,236,663 24,154,021 11.00 0% 4,476,060 1,279,688 5,755,749 11.6900%393 Stores Equipment 390,707 140,961 35.00 0% 11,163 9,252 20,415 5.2251%

394 Tools, Shop & Garage Equipment 19,883,544 1,688,775 35.00 0% 568,101 106,456 674,557 3.3925%395 Laboratory Equipment 8,148,910 4,191,480 25.00 0% 325,956 320,190 646,146 7.9292%396 Power Operated Equipment 8,615,343 1,811,182 18.00 0% 478,630 88,336 566,966 6.5809%397 Communication Equipment 43,749,192 17,505,043 23.00 -4% 1,978,224 1,343,472 3,321,696 7.5926%397 Communication Equipment - EMS 3,300,457 104,458 23.00 -4% 149,238 10,782 160,020 4.8484%398 Miscellaneous Equipment 2,563,867 636,256 24.00 0% 106,828 57,641 164,468 6.4149%

Total General Amortized 163,075,503 $ 56,195,522 $ 12,172,921 $ 5,029,783 $ 17,202,705 $ 

Southwestern Public Service Company

Texas

Computation of Annual Amortization Rate

June 30, 2013

Attachment DAW-RR-2 

Page 82 of 140 

Docket: 42004

RR3 - 92 of 509 01208
83

APPENDIX B 

Comparison of Approved vs Proposed Accrual Rates

Attachment DAW-RR-2 

Page 83 of 140 

Docket: 42004

RR3 - 93 of 509 01209
Appendix B

Page 1 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

 E310 Land and Water Rights Land Rights NM 73,071 1.7900 % 1,308 1.3732% 1,003 (305)

0 

Land Rights TX 1,098,015 3.4300 % 37,662 2.9079% 31,929 (5,733)

0 

Water Rights TX 5,661,722 2.4100 % 136,448 2.5131% 142,284 5,836

Total/Composite 6,832,808 2.5673 % 175,417 2.5643% 175,216 (201)

 E311 Structures and Improvements

Cunningham Unit 1 2,359,689 - % - 1.8852% 44,485 44,485Cunningham Unit 2 1,724,271 0.0800 % 1,379 2.1218% 36,585 35,205

Common Facilities 5,704,489 3.4600 % 197,375 5.0522% 288,204 90,828

0 

Harrington Unit 1 6,898,314 0.6300 % 43,459 1.8979% 130,921 87,462

Harrington Unit 2 5,489,425 0.7800 % 42,818 2.0627% 113,229 70,412

Harrington Unit 3 8,990,239 0.7400 % 66,528 1.9226% 172,844 106,316

Common Facilities 25,059,481 2.0000 % 501,190 2.6593% 666,405 165,216

0 

Jones Unit 1 4,397,303 1.0200 % 44,852 2.2177% 97,519 52,666

Jones Unit 2 1,848,254 0.4900 % 9,056 1.8616% 34,408 25,351

Common Facilities 7,679,937 2.7500 % 211,198 1.9581% 150,378 (60,820)

0 

Maddox 3,802,397 1.5500 % 58,937 3.1099% 118,251 59,313

0 

Moore County 2,234,606 7.6600 % 171,171 0.0000% 0 (171,171)

0 

Nichols Unit 1 1,863,517 - % - 2.2449% 41,834 41,834

Nichols Unit 2 1,108,535 - % - 2.2557% 25,005 25,005

Nichols Unit 3 1,583,161 - % - 2.1611% 34,214 34,214

Common Facilites 48,229,149 3.5700 % 1,721,781 3.8311% 1,847,708 125,928

0 

Plant X Unit 1 1,262,983 - % - 2.1208% 26,786 26,786

Plant X Unit 2 1,021,771 - % - 3.7850% 38,674 38,674

Plant X Unit 3 1,026,455 - % - 1.5241% 15,644 15,644

Plant X Unit 4 1,171,925 - % - 2.0917% 24,513 24,513

Common Facilities 7,278,035 2.4700 % 179,767 3.4813% 253,369 73,601

0 

Tolk 1 31,757,357 0.9800 % 311,222 1.9674% 624,795 313,573

Tolk 2 18,065,191 0.9000 % 162,587 1.9413% 350,692 188,105

Common Facilities 25,475,823 2.2500 % 573,206 3.0893% 787,028 213,822

Total/Composite 216,032,307 1.9888 % 4,296,527 2.7419% 5,923,490 1,626,963

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Attachment DAW-RR-2 

Page 84 of 140 

Docket: 42004

RR3 - 94 of 509 01210
Appendix B

Page 2 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

 E312 Boiler Plant Equipment

Cunningham Unit 1 8,036,295 1.2100 % 97,239 5.7091% 458,800 361,561

Cunningham Unit 2 15,745,196 0.6200 % 97,620 4.5809% 721,270 623,650

Common Facilities 5,989,933 4.5000 % 269,547 4.9349% 295,597 26,050

0 

Harrington Unit 1 98,674,418 1.3100 % 1,292,635 2.8103% 2,773,030 1,480,395

Harrington Unit 2 101,317,208 1.1500 % 1,165,148 2.5389% 2,572,304 1,407,156

Harrington Unit 3 109,586,505 1.2200 % 1,336,955 2.3369% 2,560,973 1,224,017

Common Facilities 11,969,732 2.0500 % 245,380 2.5837% 309,259 63,880

0 

Jones Unit 1 15,098,036 1.0500 % 158,529 2.4919% 376,232 217,702

Jones Unit 2 15,414,797 0.6400 % 98,655 2.6013% 400,991 302,336

Common Facilities 12,389,645 2.3900 % 296,113 2.1642% 268,139 (27,974)

0 

Maddox 16,854,321 1.4700 % 247,759 3.9130% 659,505 411,747

0 

Moore County 6,956,559 4.9800 % 346,437 0.0000% 0 (346,437)

0 

Nichols Unit 1 10,768,380 4.0400 % 435,043 5.2260% 562,760 127,718

Nichols Unit 2 11,453,730 3.1500 % 360,792 4.5691% 523,333 162,541

Nichols Unit 3 19,283,460 0.6700 % 129,199 3.1149% 600,665 471,466

Common Facilites 5,429,433 2.4400 % 132,478 3.4940% 189,704 57,226

0 

Plant X Unit 1 6,139,953 5.2700 % 323,576 3.5501% 217,972 (105,604)

Plant X Unit 2 15,924,804 5.4100 % 861,532 4.7064% 749,485 (112,047)

Plant X Unit 3 8,311,338 1.7800 % 147,942 3.9201% 325,813 177,871

Plant X Unit 4 17,623,177 1.8400 % 324,266 3.4358% 605,501 281,234

Common Facilities 2,393,751 2.6800 % 64,153 3.3632% 80,507 16,355

0 

Tolk 1 185,312,555 0.8400 % 1,556,625 2.3520% 4,358,528 2,801,902

Tolk 2 207,358,402 0.9700 % 2,011,377 2.2847% 4,737,477 2,726,101

Common Facilities 12,953,505 1.3800 % 178,758 2.4429% 316,435 137,676

Total/Composite 920,985,134 1.3223 % 12,177,757 2.6780% 24,664,280 12,486,524

 E314 Turbogenerators

Cunningham Unit 1 6,208,852 1.7700 % 109,897 3.7480% 232,708 122,811

Cunningham Unit 2 10,776,709 0.8904 % 95,956 3.3402% 359,959 264,004

Common Facilities 110,764 1.9500 % 2,160 3.3652% 3,727 1,567

0 

Harrington Unit 1 32,751,533 1.1600 % 379,918 2.3832% 780,528 400,610

Harrington Unit 2 34,045,309 1.0300 % 350,667 2.2452% 764,376 413,709

Harrington Unit 3 46,541,946 1.1900 % 553,849 2.3086% 1,074,447 520,598

Common Facilities 2,945,008 1.8000 % 53,010 2.5592% 75,368 22,358

0 

Attachment DAW-RR-2 

Page 85 of 140 

Docket: 42004

RR3 - 95 of 509 01211
Appendix B

Page 3 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Jones Unit 1 14,282,412 0.2400 % 34,278 2.2508% 321,469 287,191

Jones Unit 2 16,040,048 0.5600 % 89,824 2.4670% 395,702 305,878

Common Facilities 7,752,772 2.3100 % 179,089 1.8823% 145,929 (33,160)

0 

Maddox 10,947,004 0.8900 % 97,428 3.3562% 367,407 269,979

0 

Moore County 4,116,289 6.9000 % 284,024 0.0000% 0 (284,024)

0 

Nichols Unit 1 9,687,117 0.2300 % 22,280 3.9679% 384,377 362,097

Nichols Unit 2 9,701,296 0.4800 % 46,566 3.2168% 312,071 265,505

Nichols Unit 3 16,874,852 0.8200 % 138,374 2.5626% 432,436 294,063

Common Facilites 3,255,092 2.6800 % 87,236 3.3391% 108,691 21,455

0 

Plant X Unit 1 4,616,997 - % - 2.2189% 102,445 102,445

Plant X Unit 2 6,735,026 1.0600 % 71,391 3.1529% 212,348 140,957

Plant X Unit 3 7,717,542 - % - 3.6872% 284,562 284,562

Plant X Unit 4 12,651,057 0.9800 % 123,980 3.2845% 415,529 291,548

Common Facilities 1,411,239 0.7000 % 9,879 4.2037% 59,325 49,446

0 

Tolk 1 74,983,135 0.8500 % 637,357 2.0446% 1,533,138 895,782

Tolk 2 100,862,241 0.9500 % 958,191 2.2589% 2,278,334 1,320,143

Common Facilities 12,318,687 2.1000 % 258,692 2.9495% 363,341 104,649

Total/Composite 447,332,927 1.0248 % 4,584,047 2.4609% 11,008,218 6,424,171

 E315 Accessory Electric Equipment

Cunningham Unit 1 870,854 21.0800 % 183,576 4.5312% 39,460 (144,116)

Cunningham Unit 2 5,287,374 0.7800 % 41,242 5.4259% 286,885 245,643

Common Facilities 783,399 3.0500 % 23,894 3.2324% 25,322 1,429

0 

Harrington Unit 1 7,196,939 0.9600 % 69,091 2.5143% 180,950 111,859

Harrington Unit 2 4,984,262 1.0400 % 51,836 2.3531% 117,284 65,448

Harrington Unit 3 4,886,074 0.8900 % 43,486 2.0020% 97,820 54,334

Common Facilities 500,287 2.0700 % 10,356 2.3999% 12,006 1,650

0 

Jones Unit 1 1,245,589 0.5200 % 6,477 2.5961% 32,336 25,859

Jones Unit 2 1,818,208 0.1700 % 3,091 3.2893% 59,806 56,715

Common Facilities 2,395,339 2.7500 % 65,872 2.1760% 52,122 (13,750)

0 

Maddox 6,587,507 1.0200 % 67,193 4.3698% 287,858 220,666

0 

Moore County 502,038 4.2200 % 21,186 0.0000% 0 (21,186)

0 

Nichols Unit 1 2,051,335 3.5800 % 73,438 4.3977% 90,211 16,773

Nichols Unit 2 1,038,609 - % - 3.7909% 39,373 39,373

Nichols Unit 3 1,567,504 - % - 2.3190% 36,351 36,351

Attachment DAW-RR-2 

Page 86 of 140 

Docket: 42004

RR3 - 96 of 509 01212
Appendix B

Page 4 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Common Facilites 2,243,228 2.8000 % 62,810 3.7324% 83,726 20,915

0 

Plant X Unit 1 612,697 - % - 6.3107% 38,665 38,665

Plant X Unit 2 613,416 - % - 1.9879% 12,194 12,194

Plant X Unit 3 976,256 - % - 5.1642% 50,415 50,415

Plant X Unit 4 1,813,628 0.6100 % 11,063 3.3747% 61,204 50,141

Common Facilities 124,534 1.1700 % 1,457 4.2450% 5,287 3,829

0 

Tolk 1 15,215,167 0.7900 % 120,200 2.0117% 306,080 185,881

Tolk 2 9,514,468 0.8400 % 79,922 2.0343% 193,554 113,632

Total/Composite 72,828,709 1.2855 % 936,188 2.8957% 2,108,909 1,172,721

 E316 Miscellaneous Power Plant Equipment

Cunningham Unit 1 65,280 - % - 7.5071% 4,901 4,901

Cunningham Unit 2 89,971 4.2600 % 3,833 5.3370% 4,802 969Common Facilities 1,488,477 1.2600 % 18,755 3.0897% 45,990 27,235

0 

Harrington Unit 1 966,993 1.5600 % 15,085 2.4998% 24,173 9,088Harrington Unit 2 1,511,634 0.4600 % 6,954 2.1602% 32,655 25,701

Harrington Unit 3 1,863,106 1.0000 % 18,631 2.2971% 42,797 24,166

Common Facilities 2,629,324 1.4200 % 37,336 2.4585% 64,641 27,305

0 

Jones Unit 1 756,086 - % - 2.0104% 15,200 15,200

Jones Unit 2 630,194 0.0100 % 63 2.1638% 13,636 13,573

Common Facilities 3,232,531 1.4000 % 45,255 2.1362% 69,055 23,799

0 

Maddox 906,065 2.3400 % 21,202 3.7217% 33,721 12,519

0 

Moore County 125,788 1.3700 % 1,723 0.0000% 0 (1,723)

0 

Nichols Unit 1 269,204 0.9500 % 2,557 5.0225% 13,521 10,963

Nichols Unit 2 79,414 - % - 1.6758% 1,331 1,331

Nichols Unit 3 310,212 0.4100 % 1,272 3.3912% 10,520 9,248Common Facilites 2,358,509 1.3900 % 32,783 3.1484% 74,255 41,472

0 

Plant X Unit 1 0Plant X Unit 2 52,890 9.1500 % 4,839 4.4266% 2,341 (2,498)

Plant X Unit 3 977,798 4.7800 % 46,739 4.0393% 39,496 (7,242)

Plant X Unit 4 130,500 4.3900 % 5,729 4.4113% 5,757 28

Common Facilities 1,528,753 1.4400 % 22,014 3.6626% 55,991 33,977

0 

Tolk 1 721,430 0.9400 % 6,781 2.3868% 17,219 10,438

Tolk 2 3,513,536 0.8000 % 28,108 2.1673% 76,150 48,041

Common Facilities 7,205,198 1.3300 % 95,829 2.4120% 173,792 77,963

- 0

Attachment DAW-RR-2 

Page 87 of 140 

Docket: 42004

RR3 - 97 of 509 01213
Appendix B

Page 5 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Total/Composite 31,412,891 1.3227 % 415,490 2.6166% 821,944 406,454

Total Steam Production 1,695,424,777 1.3321 % 22,585,426 2.6366% 44,702,058 22,116,632

 E340 Land and Water Rights

Land Rights TX - Riverview 676 12.4100 % 84 0.0000% 0 (84)

Total/Composite 676 12.4100 % 84 0.0000% 0 (84)

 E341 Structures and Improvements

Carlsbad 240,088 - % - 0.7596% 1,824 1,824

Cunningham 492,893 2.1000 % 10,351 2.3829% 11,745 1,395

Jones Unit 3 4,754,439 2.0826 % (2) 99,016 2.2852% 108,647 9,631

Jones Unit 4 5,039,734 2.1112 % (4) 106,399 2.2924% 115,531 9,132

Maddox 1,602,856 5.1800 % 83,028 3.1417% 50,357 (32,671)Quay County 869,075 2.9675 % (5) 25,790 4.6045% 40,017 14,227Total/Composite 12,999,087 2.4970 % 324,583 2.5242% 328,121 3,537

 E342 Fuel Holders and Accessory Equipment

Blackhawk 3,598,114 4.4444 % 159,915 3.4011% 122,377 (37,538)Cunningham 1,211,937 2.1100 % 25,572 2.9681% 35,971 10,399Jones Unit 3 0 2.0826 % (2) - 0 -

Jones Unit 4 0 2.1112 % (4) 0 -

Maddox 512,886 0.1100 % 564 0.6839% 3,508 2,943

Quay County 1,575 2.9675 % (5) 47 2.9259% 46 (1)

Total/Composite 5,324,512 3.4951 % 186,097 3.0407% 161,902 (24,196)

 E343 Prime Movers

Carlsbad 2,265,393 1.6100 % 36,473 2.8381% 64,294 27,821

Cunningham 51,683,647 2.1000 % 1,085,357 2.2590% 1,167,548 82,192Jones Unit 3 0 2.0826 % (2) - 0 -Jones Unit 4 0 2.1112 % (4)Quay County 4,620,155 2.9675 % (5) 137,103 1.5538% 71,790 (65,313)

Total/Composite 58,569,196 2.1495 % 1,258,933 2.2258% 1,303,633 44,700

 E344 Generators

Carlsbad 409,729 - % - 1.8583% 7,614 7,614

Cunningham 3,108,157 2.6800 % 83,299 2.8463% 88,467 5,169

Jones Unit 3 66,307,969 2.0826 % (2) 1,380,930 2.2852% 1,515,248 134,319

Attachment DAW-RR-2 

Page 88 of 140 

Docket: 42004

RR3 - 98 of 509 01214
Appendix B

Page 6 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Jones Unit 4 64,441,989 2.1112 % (4) 1,360,499 2.2924% 1,477,271 116,772

Maddox 15,142,409 0.0000 % - 1.4170% 214,570 214,570

Quay County 16,514,330 2.9675 % (5) 490,063 4.3478% 718,003 227,940

Total/Composite 165,924,582 1.9978 % 3,314,790 2.4235% 4,021,173 706,383

 E345 Accessory Electric Equipment

Carlsbad 239,463 - % - 0.9518% 2,279 2,279

Cunningham 5,882,584 2.1700 % 127,652 2.4438% 143,759 16,107

Jones Unit 3 10,412,594 2.0826 % (2) 216,853 2.2852% 237,945 21,093

Jones Unit 4 9,809,380 2.1112 % (4) 207,096 2.2924% 224,871 17,775

Maddox 1,372,859 1.5600 % 21,417 3.4361% 47,173 25,756

Quay County 2,728,668 2.9675 % (5) 80,973 4.0481% 110,459 29,486

Total/Composite 30,445,548 2.1481 % 653,990 2.5176% 766,486 112,496

 E346 Miscellaneous Power Plant Equipment

Carlsbad 2,398 - % - 0.8830% 21 21

Cunningham 1,183,177 2.0800 % 24,610 2.9342% 34,717 10,107

Jones Unit 3 1,594,020 2.0826 % (2) 33,197 2.2852% 36,426 3,229

Jones Unit 4 1,013,942 2.1112 % (4) 21,406 2.2924% 23,244 1,837

Maddox 86,486 1.7400 % 1,505 0.8559% 740 (765)Quay County 611,049 2.9675 % (5) 18,133 4.1774% 25,526 7,393

Total/Composite 4,491,071 2.2011 % 98,851 2.6870% 120,674 21,823

Total Other Production 277,754,672 2.1016 % 5,837,329 2.4129% 6,701,988 864,659

Total Production 1,973,179,448 1.4405 % 28,422,755 2.6051% 51,404,046 22,981,290

Transmission350 Land Rights 62,564,024 1.1900 % 744,512 1.2527% 783,733 39,222

352 Structures & Improvements 41,772,491 2.2200 % 927,349 1.7790% 743,126 (184,224)

353 Station Equipment 519,493,078 1.8400 % 9,558,673 2.0947% 10,881,681 1,323,009

354 Towers & Fixtures 8,263,825 1.3000 % 107,430 1.4073% 116,293 8,864

355 Poles & Fixtures 502,260,235 3.2700 % 16,423,910 2.9714% 14,924,131 (1,499,778)

356 Overhead Conductors & Devices 223,715,141 2.3900 % 5,346,792 2.6655% 5,963,170 616,378

357 Underground Conduit 255,073 0.9500 % 2,423 1.3553% 3,457 1,034

358 Underground Conductor & Devices 489,717 1.2500 % 6,121 2.2523% 11,030 4,909

Total Trans 1,358,813,583 2.4372 % 33,117,210 2.4600% 33,426,623 309,413

Attachment DAW-RR-2 

Page 89 of 140 

Docket: 42004

RR3 - 99 of 509 01215
Appendix B

Page 7 of 7

Plant Approved (1) Depreciation Proposed Depreciation Depreciation

Balance Accrual Accrual Accrual Accrual Accrual

Account Description 41455.00 Rates Note Approved Rates Rates Proposed Difference

Southwestern Public Service Company

Texas

Comparison Of Approved vs. Proposed Accrual Rates

June 30, 2013

Distribution Texas Only360 Land Rights 1,719,148 1.4300 % 24,584 1.6217% 27,879 3,295361 Structures & Improvements 4,921,783 2.2100 % 108,771 1.7838% 87,794 (20,978)362 Station Equipment 98,948,650 1.9900 % 1,969,078 2.0405% 2,019,058 49,979364 Poles, Towers & Fixtures 139,455,232 2.5800 % 3,597,945 2.8236% 3,937,655 339,710365 Overhead Conductors & Devices 132,658,666 2.6100 % 3,462,391 2.8150% 3,734,366 271,975366 Underground Conduit 16,425,003 2.8300 % 464,828 1.9344% 317,725 (147,103)367 Underground Conductor & Devices 23,183,047 2.5300 % 586,531 2.4853% 576,177 (10,354)368 Line Transformers 140,143,332 2.1900 % 3,069,139 2.3820% 3,338,220 269,081369 Services 49,206,245 2.5900 % 1,274,442 3.0705% 1,510,882 236,440370 Meters 47,999,178 3.0600 % 1,468,775 2.6274% 1,261,121 (207,654)371 Installations on Customers' Premises 8,129,480 4.6100 % 374,769 4.4893% 364,956 (9,813)373 Street Lighting & Signal Systems 12,872,741 4.1600 % 535,506 3.4073% 438,608 (96,898)Total Distribution Texas Only 675,662,504 2.5067 % 16,936,759 2.6070% 17,614,441 677,682General389 Land Rights 45,967 1.2900 % 593 2.8572% 1,313 720390 Structures & Improvements 61,238,258 1.3200 % 808,345 2.7244% 1,668,388 860,043390 Structures & Improvements - Tower Lease 0 - % (3) - 0 -390 Structures & Improvements - Remodel Lease 4,216,154 - % (3) - 0 -391 Office Furniture & Equipment 8,491,525 3.8000 % 322,678 5.2970% 449,799 127,121391 Computer Equipment 18,695,295 20.0000 % 3,739,059 29.1137% 5,442,888 1,703,829392 Transportation Equipment 49,236,663 6.3400 % 3,121,604 11.6900% 5,755,749 2,634,144393 Stores Equipment 390,707 2.0900 % 8,166 5.2251% 20,415 12,249394 Tool, Shop & Garage Equipment 19,883,544 2.7200 % 540,832 3.3925% 674,557 133,725395 Laboratory Equipment 8,148,910 4.6000 % 374,850 7.9292% 646,146 271,297396 Power Operated Equipment 8,615,343 6.1900 % 533,290 6.5809% 566,966 33,677397 Communication Equipment 43,749,192 5.1000 % 2,231,209 7.5926% 3,321,696 1,090,488397 Communication Equipment - EMS 3,300,457 5.1000 % 168,323 4.8484% 160,020 (8,303)398 Miscellaneous Equipment 2,563,867 4.1400 % 106,144 6.4149% 164,468 58,324Total General 228,575,883 5.2303 % 11,955,093 8.2565% 18,872,406 6,917,313Total Plant 4,236,231,418 2.1347 % 90,431,817 2.8638% 121,317,515 30,885,698(1) Approved rates from PUC Docket No. 35763, set forth in Exhibit A to the Stipulation, unless noted otherwise. Some transmission, distribution & general rate information (curves, Life, etc) was from PUC Docket No. 32766, Exhibit C, to the Stipulation. (2) Approved rates for Jones Unit 3 are from PUC Docket No. 40824(3) Assets amortized over the lease term.(4) Approved rates for Jones 4 are from PUC Docket No. 40824(5) Approved rates for Quay County are from PUC Docket No. 40824

Attachment DAW-RR-2 

Page 90 of 140 

Docket: 42004

RR3 - 100 of 509 01216
86

APPENDIX C 

Comparison of Depreciation Parameters

Attachment DAW-RR-2 

Page 91 of 140 

Docket: 42004

RR3 - 101 of 509 01217
Appendix C-1

Page 1 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Steam Production E310 Land and Water Rights

Land Rights NM Composite 0% Composite 0%Land Rights TX Composite 0% Composite 0%Water Rights TX Composite 0% Composite 0%

 E311 Structures and Improvements

Cunningham Unit 1 2014 NA 5% 2022 74 R2 -5%Cunningham Unit 2 2025 NA 5% 2025 74 R2 -5%Common Facilities 2025 NA 5% 2025 74 R2 -5%Harrington Unit 1 2036 NA 5% 2036 74 R2 -5%Harrington Unit 2 2038 NA 5% 2038 74 R2 -5%Harrington Unit 3 2040 NA 5% 2040 74 R2 -5%Common Facilities 2040 NA 5% 2040 74 R2 -5%Jones Unit 1 2031 NA 5% 2031 74 R2 -5%Jones Unit 2 2034 NA 5% 2034 74 R2 -5%Common Facilities 2034 NA 5% 2058 74 R2 -5%Maddox 2030 NA 5% 2030 74 R2 -5%Moore County 2014 NA 5% 2013 74 R2 -5%Nichols Unit 1 2020 NA 5% 2020 74 R2 -5%Nichols Unit 2 2022 NA 5% 2023 74 R2 -5%Nichols Unit 3 2030 NA 5% 2030 74 R2 -5%Common Facilites 2030 NA 5% 2030 74 R2 -5%Plant X Unit 1 2014 NA 5% 2019 74 R2 -5%Plant X Unit 2 2014 NA 5% 2019 74 R2 -5%Plant X Unit 3 2020 NA 5% 2021 74 R2 -5%Plant X Unit 4 2027 NA 5% 2027 74 R2 -5%Common Facilities 2027 NA 5% 2027 74 R2 -5%Tolk 1 2042 NA 5% 2042 74 R2 -5%Tolk 2 2045 NA 5% 2045 74 R2 -5%Common Facilities 2045 NA 5% 2045 74 R2 -5%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

Attachment DAW-RR-2 

Page 92 of 140 

Docket: 42004

RR3 - 102 of 509 01218
Appendix C-1

Page 2 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

 E312 Boiler Plant Equipment

Cunningham Unit 1 2014 NA 5% 2022 58 R2 -5%Cunningham Unit 2 2025 NA 5% 2025 58 R2 -5%Common Facilities 2025 NA 5% 2025 58 R2 -5%Harrington Unit 1 2036 NA 5% 2036 58 R2 -5%Harrington Unit 2 2038 NA 5% 2038 58 R2 -5%Harrington Unit 3 2040 NA 5% 2040 58 R2 -5%Common Facilities 2040 NA 5% 2040 58 R2 -5%Jones Unit 1 2031 NA 5% 2031 58 R2 -5%Jones Unit 2 2034 NA 5% 2034 58 R2 -5%Common Facilities 2034 NA 5% 2058 58 R2 -5%Maddox 2030 NA 5% 2030 58 R2 -5%Moore County 2014 NA 5% 2013 58 R2 -5%

Nichols Unit 1 2020 NA 5% 2020 58 R2 -5%

Nichols Unit 2 2022 NA 5% 2023 58 R2 -5%

Nichols Unit 3 2030 NA 5% 2030 58 R2 -5%

Common Facilites 2030 NA 5% 2030 58 R2 -5%

Plant X Unit 1 2014 NA 5% 2019 58 R2 -5%Plant X Unit 2 2014 NA 5% 2019 58 R2 -5%Plant X Unit 3 2020 NA 5% 2021 58 R2 -5%Plant X Unit 4 2027 NA 5% 2027 58 R2 -5%Common Facilities 2027 NA 5% 2027 58 R2 -5%Tolk 1 2042 NA 5% 2042 58 R2 -5%Tolk 2 2045 NA 5% 2045 58 R2 -5%Common Facilities 2045 NA 5% 2045 58 R2 -5%

Attachment DAW-RR-2 

Page 93 of 140 

Docket: 42004

RR3 - 103 of 509 01219
Appendix C-1

Page 3 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

 E314 Turbogenerators

Cunningham Unit 1 2014 NA 5% 2022 71 R1.5 -5%Cunningham Unit 2 2025 NA 5% 2025 71 R1.5 -5%Common Facilities 2025 NA 5% 2025 71 R1.5 -5%Harrington Unit 1 2036 NA 5% 2036 71 R1.5 -5%Harrington Unit 2 2038 NA 5% 2038 71 R1.5 -5%Harrington Unit 3 2040 NA 5% 2040 71 R1.5 -5%Common Facilities 2040 NA 5% 2040 71 R1.5 -5%Jones Unit 1 2031 NA 5% 2031 71 R1.5 -5%Jones Unit 2 2034 NA 5% 2034 71 R1.5 -5%Common Facilities 2034 NA 5% 2058 71 R1.5 -5%Maddox 2030 NA 5% 2030 71 R1.5 -5%Moore County 2014 NA 5% 2013 71 R1.5 -5%

Nichols Unit 1 2020 NA 5% 2020 71 R1.5 -5%

Nichols Unit 2 2022 NA 5% 2023 71 R1.5 -5%

Nichols Unit 3 2030 NA 5% 2030 71 R1.5 -5%

Common Facilites 2030 NA 5% 2030 71 R1.5 -5%

Plant X Unit 1 2014 NA 5% 2019 71 R1.5 -5%Plant X Unit 2 2014 NA 5% 2019 71 R1.5 -5%Plant X Unit 3 2020 NA 5% 2021 71 R1.5 -5%Plant X Unit 4 2027 NA 5% 2027 71 R1.5 -5%Common Facilities 2027 NA 5% 2027 71 R1.5 -5%Tolk 1 2042 NA 5% 2042 71 R1.5 -5%Tolk 2 2045 NA 5% 2045 71 R1.5 -5%Common Facilities 2045 NA 5% 2045 71 R1.5 -5%

Attachment DAW-RR-2 

Page 94 of 140 

Docket: 42004

RR3 - 104 of 509 01220
Appendix C-1

Page 4 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

 E315 Accessory Electric Equipment

Cunningham Unit 1 2014 NA 5% 2022 64 L2.5 -5%Cunningham Unit 2 2025 NA 5% 2025 64 L2.5 -5%Common Facilities 2025 NA 5% 2025 64 L2.5 -5%Harrington Unit 1 2036 NA 5% 2036 64 L2.5 -5%Harrington Unit 2 2038 NA 5% 2038 64 L2.5 -5%Harrington Unit 3 2040 NA 5% 2040 64 L2.5 -5%Common Facilities 2040 NA 5% 2040 64 L2.5 -5%Jones Unit 1 2031 NA 5% 2031 64 L2.5 -5%Jones Unit 2 2034 NA 5% 2034 64 L2.5 -5%Common Facilities 2034 NA 5% 2058 64 L2.5 -5%Maddox 2030 NA 5% 2030 64 L2.5 -5%Moore County 2014 NA 5% 2013 64 L2.5 -5%Nichols Unit 1 2020 NA 5% 2020 64 L2.5 -5%Nichols Unit 2 2022 NA 5% 2023 64 L2.5 -5%Nichols Unit 3 2030 NA 5% 2030 64 L2.5 -5%Common Facilites 2030 NA 5% 2030 64 L2.5 -5%Plant X Unit 1 2014 NA 5% 2019 64 L2.5 -5%Plant X Unit 2 2014 NA 5% 2019 64 L2.5 -5%Plant X Unit 3 2020 NA 5% 2021 64 L2.5 -5%Plant X Unit 4 2027 NA 5% 2027 64 L2.5 -5%Common Facilities 2027 NA 5% 2027 64 L2.5 -5%Tolk 1 2042 NA 5% 2042 64 L2.5 -5%Tolk 2 2045 NA 5% 2045 64 L2.5 -5%

Attachment DAW-RR-2 

Page 95 of 140 

Docket: 42004

RR3 - 105 of 509 01221
Appendix C-1

Page 5 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

 E316 Miscellaneous Power Plant Equipment

Cunningham Unit 1 2014 NA 5% 2022 56 S0 -5%Cunningham Unit 2 2025 NA 5% 2025 56 S0 -5%Common Facilities 2025 NA 5% 2025 56 S0 -5%Harrington Unit 1 2036 NA 5% 2036 56 S0 -5%Harrington Unit 2 2038 NA 5% 2038 56 S0 -5%Harrington Unit 3 2040 NA 5% 2040 56 S0 -5%Common Facilities 2040 NA 5% 2040 56 S0 -5%Jones Unit 1 2031 NA 5% 2031 56 S0 -5%Jones Unit 2 2034 NA 5% 2034 56 S0 -5%Common Facilities 2034 NA 5% 2058 56 S0 -5%Maddox 2030 NA 5% 2030 56 S0 -5%Moore County 2014 NA 5% 2013 56 S0 -5%Nichols Unit 1 2020 NA 5% 2020 56 S0 -5%Nichols Unit 2 2022 NA 5% 2023 56 S0 -5%Nichols Unit 3 2030 NA 5% 2030 56 S0 -5%Common Facilites 2030 NA 5% 2030 56 S0 -5%Plant X Unit 1 2014 NA 5% 2019 56 S0 -5%Plant X Unit 2 2014 NA 5% 2019 56 S0 -5%Plant X Unit 3 2020 NA 5% 2021 56 S0 -5%Plant X Unit 4 2027 NA 5% 2027 56 S0 -5%Common Facilities 2027 NA 5% 2027 56 S0 -5%Tolk 1 2042 NA 5% 2042 56 S0 -5%Tolk 2 2045 NA 5% 2045 56 S0 -5%Common Facilities 2045 NA 5% 2045 56 S0 -5%

Attachment DAW-RR-2 

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Appendix C-1

Page 6 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

Other Production E340 Land and Water Rights

Land Rights TX - Riverview 2014 NA 0% 2013 NA 0%

 E341 Structures and Improvements

Carlsbad 2025 NA 5% 2025 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Maddox 2020 NA 5% 2020 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

 E342 Fuel Holders and Accessory Equipment

Blackhawk NA NA NA 2024 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Maddox 2020 NA 5% 2020 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

 E343 Prime Movers

Carlsbad 2025 NA 5% 2025 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

Attachment DAW-RR-2 

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Appendix C-1

Page 7 of 7

FERC 

Acct

Acct 

Description Unit

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

% Note

Retirement 

Date

Interim 

Retirement 

Curve

Net Salvage 

%

Southwestern Public Service Company - Texas

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

 E344 Generators

Carlsbad 2025 NA 5% 2025 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Maddox 2020 NA 5% 2020 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

 E345 Accessory Electric Equipment

Carlsbad 2025 NA 5% 2025 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Maddox 2020 NA 5% 2020 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

 E346 Miscellaneous Power Plant Equipment

Carlsbad 2025 NA 5% 2025 NA -5%Cunningham 2040 NA 5% 2040 NA -5%Jones Unit 3 2056 NA 5% (2) 2056 NA -5%Jones Unit 4 NA NA 5% 2058 NA -5%Maddox 2020 NA 5% 2020 NA -5%Quay County 2035 NA 5% 2035 NA -5%Riverview 2014 NA 5% 2013 NA -5%

(1) Approved rates from PUC Docket No. 35763, set forth in Exhibit A to the Stipulation, unless noted otherwise. Some transmission, distribution & general rate information (curves, Life, etc) was from PUC Docket No. 32766, Exhibit C, to the Stipulation. (2) Approved rates for Jones Unit 3 are from PUC Docket No. 39681

Attachment DAW-RR-2 

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Appendix C-2

Page 1 of 1

Account Description

Average 

Service Life Iowa Curve

Net Salvage 

%

Average 

Service Life Iowa Curve

Net Salvage 

%

Transmission350 Land and Land Rights 70 R4 0% 80 R4 0%352 Structures and Improvements 55 R4 -20% 65 R4 -15%353 Station Equipment 55 R4 -5% 57 R2.5 -19%354 Towers and Fixtures 75 R3 0% 75 R3 -5%355 Poles and Fixtures 40 R5 -20% 54 R3 -60%356 Overhead Conductor 42 R2.5 -10% 49 R2.5 -30%357 Underground Conduit 75 R3 0% 75 R3 0%358 Underground Conductor and Devices 45 R3 0% 45 R3 0%Distribution360 Land and Land Rights 60 R4 0% 60 R4 0%361 Structures and Improvements 52 R2 -15% 60 R1.5 -10%362 Station Equipment 52 R2 -10% 55 R1.5 -15%364 Poles, Towers, and Fixtures 40 S1 -25% 52 R0.5 -50%365 Overhead Conductor and Devices 40 S1 -20% 47 R0.5 -35%366 Underground Conduit 40 R4 -10% 60 R2.5 -20%367 Underground Conductor and Devices 41 R2.5 -5% 47 R1.5 -20%368 Line Transformers 45 R1.5 -5% 45 R1 -10%369 Services 42 R2 -40% 44 R2 -40%370 Meters 38 R5 -5% 40 R2 -10%371 Installations on Customers' Premises 18 R2 -15% 25 R0.5 -20%373 Street Lighting 38 R3 -30% 41 R2 -45%General389 Land and Land Rights 50 R4 0% 55 R4 0%390 Structures and Improvements 45 R2 0% 52 R1.5 -10%391 Office Furniture and Equipment 25 L1.5 2% 25 SQ 0%391 Computer Equipment 5 R2 0% 5 SQ 0%392 Transportation Equipment 11 L3 20% 11 SQ 0%393 Stores Equipment 45 R2.5 0% 35 SQ 0%394 Tool, Shop, and Garage Equipment 35 S0.5 0% 35 SQ 0%395 Laboratory Equipment 25 R1 0% 25 SQ 0%396 Power Operated Equipment 18 L2 10% 18 SQ 0%397 Communication Equipment 23 R4 0% 23 SQ -4%397 Communication Equipment - EMS 23 R4 0% 23 SQ -4%398 Miscellaneous Equipment 24 L0.5 0% 24 SQ 0%

Southwestern Public Service Company - Texas

Transmission, Distribution, and General Plant 

Comparison of Depreciation Parameters 

June 30, 2013

Approved (1) Proposed

(1) Approved rates from PUC Docket No. 35763, set forth in Exhibit A to the Stipulation, unless noted otherwise. Some transmission, distribution & general rate information (curves, Life, etc) was from PUC Docket No. 32766, Exhibit C, to the Stipulation. 

Attachment DAW-RR-2 

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RR3 - 109 of 509 01225
99

APPENDIX D

Retirement Data for all Generating Units 

Attachment DAW-RR-2 

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Appendix D

Page 1 of 1

Unit Name

Net Dependable 

Capacity (MW) Location

In-service 

Date

Service 

Life

Depreciation 

Retirement 

Date

Depreciation 

Retirement 

Date

Service 

Life

Remaining Life 

as of June 30, 

2013

Change in 

Service Life

Steam Production - Gas/Oil

Jones Unit 1 243 Lubbock, TX 1971 60 2031 2031 60 18.5 0

Jones Unit 2 243 Lubbock, TX 1974 60 2034 2034 60 21.5 0

Plant X Unit 1 48 Earth, TX 1952 62 2014 2019 67 6.5 5Plant X Unit 2 102 Earth, TX 1953 61 2014 2019 66 6.5 5

Plant X Unit 3 103 Earth, TX 1955 65 2020 2021 66 8.5 1

Plant X Unit 4 189 Earth, TX 1964 63 2027 2027 63 14.5 0

Steam Production - Gas

Cunningham Unit 1 71 Hobbs, NM 1957 57 2014 2022 65 9.5 8

Cunningham Unit 2 196 Hobbs, NM 1965 60 2025 2025 60 12.5 0

Maddox Unit 1 118 Hobbs, NM 1967 63 2030 2030 63 17.5 0

Moore Unit 3 48 Amarillo, TX 1954 60 2014 2013 59 0.0 (1)

Nichols Unit 1 107 Amarillo, TX 1960 60 2020 2020 60 7.5 0

Nichols Unit 2 106 Amarillo, TX 1962 60 2022 2023 61 10.5 1

Nichols Unit 3 244 Amarillo, TX 1968 62 2030 2030 62 17.5 0

Steam Production - Coal

Harrington Unit 1 347 Amarillo, TX 1976 60 2036 2036 60 23.5 0

Harrington Unit 2 347 Amarillo, TX 1978 60 2038 2038 60 25.5 0

Harrington Unit 3 347 Amarillo, TX 1980 60 2040 2040 60 27.5 0

Tolk Unit 1 540 Muleshoe, TX 1982 60 2042 2042 60 29.5 0

Tolk Unit 2 540 Muleshoe, TX 1985 60 2045 2045 60 32.5 0

Other Production - CT

Blackhawk Hobbs, NM 1999 NA NA 2024 25 11.5 NA

Carlsbad Unit 1 11 Carlsbad, NM 1968 57 2025 2025 57 12.5 0

Cunningham Unit 3 109 Hobbs, NM 1997 43 2040 2040 43 27.5 0

Cunningham Unit 4 109 Hobbs, NM 1997 43 2040 2040 43 27.5 0

Jones Unit 3 169 Lubbock, TX 2011 45 2056 2056 45 43.5 0

Jones Unit 4 169 Lubbock, TX 2013 NA NA 2058 45 45.5 NA

Maddox Unit 2 60 Hobbs, NM 1975 45 2020 2020 45 7.5 0

Maddox Unit 3 Note (1) Hobbs, NM 1963 57 2020 2020 57 7.5 0

Quay County 23 Borger, TX 2013 NA NA 2035 22 22.5 NA

Riverview Unit 4 23 Amarillo, TX 1940 74 2014 2013 73 0.0 (1)

Southwestern Public Service Company

Texas

Retirement Data for all Generating Units

June 30, 2013

Current Proposed

Attachment DAW-RR-2 

Page 101 of 140 

Docket: 42004

RR3 - 111 of 509 01227
101

APPENDIX E

Net Salvage Analysis by Account 

Attachment DAW-RR-2 

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Appendix E-1

Page 1 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

311 1977 34,548 1,400 2,015 (615) -1.78% 311 1978 72,604 20,282 11,526 8,756 12.06% 7.60% 311 1979 17,598 14,839 12,917 1,922 10.92% 11.84% 8.07% 311 1980 579 - 50 (50) -8.64% 10.30% 11.71% 7.99%311 1981 47,947 533 38,855 (38,322) -79.93% -79.08% -55.12% -19.96% -16.34%311 1982 5,339 - 632 (632) -11.84% -73.10% -72.41% -51.89% -19.66% -16.20%311 1983 20,795 4,335 18,927 (14,592) -70.17% -58.25% -72.28% -71.79% -56.01% -26.03% -21.83%311 1984 28,060 382 5,836 (5,454) -19.44% -41.03% -38.16% -57.76% -57.49% -47.48% 6.85% -21.54%

311 1985 105,038 683 20,152 (19,469) -18.54% -18.73% -25.68% -25.21% -37.87% -37.79% -33.99% -22.77% -20.59%311 1986 8,347,607 99,675 254,484 (154,809) -1.85% -2.06% -2.12% -2.29% -2.29% -2.73% -2.73% -2.70% -2.58% -2.57%311 1987 11,450 8,381 37,237 (28,856) -252.02% -2.20% -2.40% -2.46% -2.62% -2.63% -3.06% -3.06% -3.03% -2.91%

311 1988 81,734 1,655 154,797 (153,142) -187.37% -195.31% -3.99% -4.17% -4.22% -4.38% -4.38% -4.80% -4.80% -4.77%311 1989 6,906 13,624 31,578 (17,954) -259.98% -193.02% -199.77% -4.20% -4.38% -4.42% -4.58% -4.59% -5.01% -5.01%311 1990 62,635 1,469 42,260 (40,791) -65.12% -84.48% -140.07% -147.94% -4.65% -4.82% -4.86% -5.02% -5.03% -5.44%311 1991 97,288 2,388 18,772 (16,384) -16.84% -35.75% -45.03% -91.84% -98.89% -4.79% -4.95% -5.00% -5.15% -5.16%311 1992 73,444 - 19,465 (19,465) -26.50% -21.00% -32.84% -39.37% -76.93% -82.95% -4.97% -5.13% -5.18% -5.33%311 1993 284,101 65 67,547 (67,482) -23.75% -24.32% -22.72% -27.85% -30.91% -52.01% -55.72% -5.56% -5.71% -5.76%311 1994 10,292 - 3,061 (3,061) -29.74% -23.96% -24.47% -22.87% -27.89% -30.89% -51.64% -55.29% -5.59% -5.74%

311 1995 (1,548,787) - 21,250 (21,250) 1.37% 1.58% 7.32% 9.42% 11.78% 16.50% 18.38% 36.42% 40.00% -7.04%

311 1996 74,580 - 61,401 (61,401) -82.33% 5.61% 5.86% 12.98% 15.61% 18.73% 24.28% 26.37% 46.74% 50.78%

311 1997 3,063 - - - 0.00% -79.08% 5.62% 5.87% 13.02% 15.65% 18.79% 24.36% 26.46% 46.91%

311 1998 28,250 - 17,263 (17,263) -61.11% -55.13% -74.29% 6.92% 7.19% 14.84% 17.67% 21.10% 27.00% 29.18%311 1999 500 - - - 0.00% -60.05% -54.26% -73.94% 6.93% 7.19% 14.85% 17.67% 21.11% 27.02%

311 2000 - - - - NA NA NA NA NA NA NA NA NA NA311 2001 - - - - NA NA NA NA NA NA NA NA NA NA

311 2002 1,921,674 112,436 224,600 (112,164) -5.84% -5.84% -5.84% -5.84% -6.64% -6.63% -9.41% -44.25% -43.94% -36.53%

311 2003 1,149,026 81 856 (775) -0.07% -3.68% -3.68% -3.68% -3.68% -4.20% -4.20% -6.03% -13.07% -13.18%

311 2004 8,000 321 - 321 4.01% -0.04% -3.66% -3.66% -3.66% -3.66% -4.18% -4.18% -6.01% -12.99%311 2005 1,191,214 - 364,575 (364,575) -30.61% -30.37% -15.54% -11.18% -11.18% -11.18% -11.17% -11.50% -11.49% -12.70%311 2006 - - - - NA NA NA NA NA NA NA NA NA NA311 2007 87,570 - 395,628 (395,628) -451.78% -451.78% -59.45% -59.05% -31.23% -20.03% -20.03% -20.03% -20.03% -20.29%

311 2008 1,377,139 - 123,623 (123,623) -8.98% -35.45% -35.45% -33.28% -33.17% -23.19% -17.38% -17.38% -17.38% -17.37%

311 2009 - - - - NA NA NA NA NA NA NA NA NA NA311 2010 - - - - NA NA NA NA NA NA NA NA NA NA311 2011 2,282,274 - 1,123,146 (1,123,146) -49.21% -49.21% -49.21% -34.07% -43.83% -43.83% -40.64% -40.57% -32.93% -26.44%

311 2012 1,236,630 - 598,160 (598,160) -48.37% -48.92% -48.92% -48.92% -37.68% -44.96% -44.96% -42.19% -42.13% -35.54%

312 1977 97,421 632 669 (37) -0.04%

312 1978 2,397 86,205 13,194 73,011 3045.93% 73.11%

312 1979 3,918 - 5,011 (5,011) -127.90% 1076.80% 65.52%

312 1980 35,075 - 23,596 (23,596) -67.27% -73.36% 107.28% 31.96%

312 1981 4,479 - 875 (875) -19.54% -61.87% -67.82% 94.90% 30.35%

312 1982 29,975 50 1,000 (950) -3.17% -5.30% -36.56% -41.43% 56.14% 24.55%

312 1983 58,938 286 20,368 (20,082) -34.07% -23.65% -23.46% -35.42% -38.16% 16.69% 9.67%

312 1984 161,495 18,143 2,541 15,602 9.66% -2.03% -2.17% -2.47% -10.31% -11.88% 6.85% 9.67%

312 1985 275,342 - 33,502 (33,502) -12.17% -4.10% -7.66% -7.41% -7.51% -11.22% -12.02% 0.80% 0.68%

312 1986 27,745,379 275,392 603,338 (327,946) -1.18% -1.29% -1.23% -1.30% -1.30% -1.30% -1.38% -1.40% -1.14% -1.14%

312 1987 3,724,645 12,266 321,463 (309,197) -8.30% -2.02% -2.11% -2.05% -2.11% -2.11% -2.12% -2.19% -2.20% -1.97%

312 1988 1,104,884 555 461,333 (460,778) -41.70% -15.94% -3.37% -3.44% -3.38% -3.43% -3.43% -3.44% -3.50% -3.52%

312 1989 762,283 23,542 218,235 (194,693) -25.54% -35.11% -17.25% -3.88% -3.95% -3.88% -3.93% -3.93% -3.93% -4.00%

312 1990 1,314,783 361 196,576 (196,215) -14.92% -18.82% -26.77% -16.81% -4.30% -4.36% -4.29% -4.34% -4.34% -4.34%

312 1991 1,571,441 3,927 170,679 (166,752) -10.61% -12.58% -15.28% -21.43% -15.66% -4.57% -4.63% -4.56% -4.61% -4.61%312 1992 1,135,991 - 215,798 (215,798) -19.00% -14.13% -14.39% -16.17% -20.96% -16.05% -5.01% -5.06% -5.00% -5.04%312 1993 2,381,160 202,090 217,921 (15,831) -0.66% -6.59% -7.83% -9.29% -11.01% -15.11% -13.00% -4.75% -4.80% -4.74%

312 1994 886,246 - 319,090 (319,090) -36.00% -10.25% -12.51% -12.01% -12.53% -13.77% -17.14% -14.58% -5.43% -5.48%

312 1995 53,916 (43,957) 518,294 (562,251) -1042.83% -93.74% -27.01% -24.97% -21.23% -20.10% -20.61% -23.14% -18.87% -6.81%

312 1996 1,797,536 (4,163) 507,097 (511,260) -28.44% -57.98% -50.87% -27.51% -25.97% -22.88% -21.74% -22.03% -24.01% -20.04%

312 1997 352,731 - 88,976 (88,976) -25.23% -27.91% -52.74% -47.94% -27.37% -25.93% -22.99% -21.87% -22.14% -24.04%

312 1998 1,735,206 - 212,081 (212,081) -12.22% -14.42% -20.91% -34.89% -35.10% -23.72% -23.08% -21.10% -20.38% -20.71%312 1999 1,632,853 - - - 0.00% -6.30% -8.09% -14.72% -24.67% -26.22% -19.34% -19.30% -18.12% -17.79%

312 2000 - - - - NA NA NA NA NA NA NA NA NA NA

312 2001 - - - - NA NA NA NA NA NA NA NA NA NA

312 2002 4,114,156 4,759,433 4,599,274 160,158 3.89% 3.89% 3.89% 2.79% -0.69% -1.80% -6.77% -12.54% -14.50% -11.96%

312 2003 2,732,253 344,690 573,225 (228,535) -8.36% -1.00% -1.00% -1.00% -0.81% -2.75% -3.50% -7.12% -11.62% -13.24%

312 2004 - 1,921 - 1,921 NA NA NA NA NA NA NA NA NA NA

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

Attachment DAW-RR-2 

Page 103 of 140 

Docket: 42004

RR3 - 113 of 509 01229
Appendix E-1

Page 2 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

312 2005 13,275,811 2,634 3,216,099 (3,213,465) -24.21% -24.19% -21.49% -16.30% -16.30% -16.30% -15.08% -14.87% -15.02% -15.96%

312 2006 60,000 18,895 2,341 16,554 27.59% -23.97% -23.96% -21.31% -16.17% -16.17% -16.17% -14.96% -14.76% -14.91%

312 2007 13,718,213 40,510 2,551,077 (2,510,567) -18.30% -18.10% -21.10% -21.09% -19.92% -17.03% -17.03% -17.03% -16.25% -16.06%

312 2008 8,687,037 (38,510) 832,041 (870,552) -10.02% -15.09% -14.98% -18.40% -18.40% -17.69% -15.60% -15.60% -15.60% -15.03%312 2009 5,651,075 - 3,696,259 (3,696,259) -65.41% -31.85% -25.23% -25.11% -24.82% -24.82% -23.80% -21.44% -21.44% -21.44%312 2010 2,663,204 - 340,234 (340,234) -12.78% -48.55% -28.86% -24.15% -24.05% -24.09% -24.09% -23.17% -20.98% -20.98%312 2011 14,985,032 - 4,576,145 (4,576,145) -30.54% -27.86% -36.97% -29.65% -26.24% -26.17% -25.73% -25.73% -24.96% -23.16%312 2012 7,660,989 - 2,678,484 (2,678,484) -34.96% -32.03% -30.01% -36.47% -30.67% -27.49% -27.43% -26.79% -26.79% -26.06%314 1977 990 863 137 726 73.33% 314 1978 1,147,423 185,765 251,078 (65,313) -5.69% -5.62% 314 1979 - - - - NA NA NA

314 1980 141,840 (6) 13,526 (13,532) -9.54% -9.54% -6.12% -6.05%

314 1981 500 - - - 0.00% -9.51% -9.51% -6.11% -6.05%314 1982 23,361 - 2,829 (2,829) -12.11% -11.86% -9.87% -9.87% -6.22% -6.16%

314 1983 5,462 - 1,737 (1,737) -31.80% -15.84% -15.57% -10.57% -10.57% -6.33% -6.27%

314 1984 73,301 350 16,480 (16,130) -22.01% -22.68% -20.27% -20.17% -14.00% -14.00% 6.85% -7.09%

314 1985 68,127 - 23,769 (23,769) -34.89% -28.21% -28.35% -26.12% -26.04% -18.55% -18.55% -8.45% -8.39%

314 1986 18,618,499 392,302 447,187 (54,885) -0.29% -0.42% -0.51% -0.51% -0.53% -0.53% -0.60% -0.60% -0.89% -0.88%

314 1987 150,674 100,115 181,116 (81,001) -53.76% -0.72% -0.85% -0.93% -0.94% -0.95% -0.95% -1.02% -1.02% -1.28%

314 1988 2,457,245 11,962 413,555 (401,593) -16.34% -18.50% -2.53% -2.64% -2.70% -2.71% -2.72% -2.72% -2.76% -2.76%

314 1989 1,957,890 52,848 80,396 (27,548) -1.41% -9.72% -11.17% -2.44% -2.53% -2.59% -2.60% -2.61% -2.61% -2.65%

314 1990 581,478 23,440 172,523 (149,083) -25.64% -6.96% -11.57% -12.81% -3.00% -3.10% -3.15% -3.16% -3.17% -3.17%

314 1991 160,218 2,113 161,284 (159,171) -99.35% -41.56% -12.44% -14.30% -15.42% -3.65% -3.74% -3.79% -3.80% -3.81%

314 1992 2,904,056 31,034 248,018 (216,984) -7.47% -12.28% -14.41% -9.86% -11.84% -12.61% -4.06% -4.14% -4.19% -4.20%

314 1993 2,748,461 384,640 348,580 36,060 1.31% -3.20% -5.85% -7.65% -6.19% -8.50% -9.12% -3.56% -3.64% -3.68%

314 1994 468,203 208 556,949 (556,741) -118.91% -16.19% -12.05% -14.28% -15.24% -12.17% -13.08% -13.62% -5.36% -5.43%

314 1995 (2,283,785) 308 270,791 (270,484) 11.84% 45.56% -84.81% -26.27% -29.20% -28.75% -20.56% -19.41% -19.97% -6.78%

314 1996 751,140 (1,000) 303,323 (304,323) -40.51% 37.50% 106.30% -65.05% -28.61% -30.99% -30.41% -22.62% -21.04% -21.53%

314 1997 3,000,000 - - - 0.00% -8.11% -39.17% -58.46% -23.39% -17.30% -18.99% -19.46% -16.02% -16.08%

314 1998 25,000 - 440 (440) -1.76% -0.01% -8.07% -38.55% -57.74% -23.27% -17.25% -18.94% -19.40% -15.99%

314 1999 50,000 - - - 0.00% -0.59% -0.01% -7.97% -37.30% -56.30% -23.03% -17.13% -18.82% -19.29%

314 2000 - - - - NA NA NA NA NA NA NA NA NA NA

314 2001 - - - - NA NA NA NA NA NA NA NA NA NA314 2002 2,665,854 282,755 1,422,841 (1,140,086) -42.77% -42.77% -42.77% -41.98% -41.61% -19.87% -22.26% -40.76% -48.59% -30.12%

314 2003 543,948 59,262 379,273 (320,011) -58.83% -45.49% -45.49% -45.49% -44.79% -44.46% -23.24% -25.08% -42.83% -49.65%

314 2004 - - - - NA NA NA NA NA NA NA NA NA NA314 2005 9,204,755 - 2,342,687 (2,342,687) -25.45% -25.45% -27.31% -30.63% -30.63% -30.63% -30.51% -30.45% -24.55% -25.29%

314 2006 53,000 - 14,108 (14,108) -26.62% -25.46% -25.46% -27.31% -30.61% -30.61% -30.61% -30.49% -30.44% -24.56%314 2007 1,129,269 5,000 901,674 (896,674) -79.40% -77.04% -31.32% -31.32% -32.69% -34.67% -34.67% -34.67% -34.54% -34.48%314 2008 2,013,199 - 88,888 (88,888) -4.42% -31.36% -31.28% -26.95% -26.95% -28.29% -30.77% -30.77% -30.77% -30.67%

314 2009 242,567 - 205,894 (205,894) -84.88% -13.07% -35.20% -35.07% -28.07% -28.07% -29.33% -31.59% -31.59% -31.59%

314 2010 - - - - NA NA NA NA NA NA NA NA NA NA314 2011 2,208,916 - 1,101,807 (1,101,807) -49.88% -49.88% -53.34% -31.28% -41.00% -40.86% -31.31% -31.31% -32.28% -33.83%

314 2012 3,213,367 - 2,354,232 (2,354,232) -73.26% -63.74% -63.74% -64.64% -48.85% -52.77% -52.61% -38.77% -38.77% -39.36%

Attachment DAW-RR-2 

Page 104 of 140 

Docket: 42004

RR3 - 114 of 509 01230
Appendix E-1

Page 3 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

315 1977 24,050 4,164 2,480 1,684 7.00% 315 1978 (1,386) 87,319 6,888 80,431 -5803.10% 362.31% 315 1979 50,466 - 5,512 (5,512) -10.92% 152.65% 104.75% 315 1980 28,482 - 787 (787) -2.76% -7.98% 95.58% 74.61%315 1981 2,170 - 389 (389) -17.93% -3.84% -8.24% 92.49% 72.68%315 1982 32,955 4,922 1,696 3,226 9.79% 8.08% 3.22% -3.03% 68.30% 57.52%315 1983 401 - 525 (525) -130.92% 8.10% 6.51% 2.38% -3.48% 67.60% 56.97%315 1984 15,786 259 1,783 (1,524) -9.65% -12.66% 2.40% 1.54% 0.00% -4.23% 6.85% 50.09%315 1985 - - - - NA NA NA NA NA NA NA NA NA

315 1986 6,578,252 132,123 165,027 (32,904) -0.50% -0.50% -0.52% -0.53% -0.48% -0.48% -0.49% -0.57% 0.63% 0.65%

315 1987 33,857 7,807 27,558 (19,751) -58.34% -0.80% -0.80% -0.82% -0.83% -0.77% -0.78% -0.79% -0.86% 0.33%

315 1988 19,422 915 89,106 (88,191) -454.08% -202.60% -2.12% -2.12% -2.14% -2.15% -2.09% -2.10% -2.10% -2.16%

315 1989 (3,217) 14,786 11,317 3,469 -107.83% -522.81% -208.69% -2.07% -2.07% -2.09% -2.10% -2.04% -2.04% -2.05%

315 1990 33,637 1,111 1,693 (582) -1.73% 9.49% -171.15% -125.52% -2.07% -2.07% -2.09% -2.10% -2.04% -2.04%

315 1991 36,586 - 1,887 (1,887) -5.16% -3.52% 1.49% -100.88% -88.91% -2.09% -2.09% -2.11% -2.11% -2.06%

315 1992 79,200 - 584 (584) -0.74% -2.13% -2.04% 0.28% -53.00% -53.90% -2.07% -2.07% -2.09% -2.10%

315 1993 142,508 2,089 19,913 (17,824) -12.51% -8.30% -7.86% -7.15% -6.03% -34.27% -36.65% -2.29% -2.29% -2.30%

315 1994 47,831 - 3,866 (3,866) -8.08% -11.40% -8.26% -7.89% -7.28% -6.32% -30.75% -33.15% -2.33% -2.33%

315 1995 (341,910) - 4,544 (4,544) 1.33% 2.86% 17.31% 37.06% 80.22% 1363.69% 481.26% -811.03% -279.16% -2.52%

315 1996 167,296 - 12,175 (12,175) -7.28% 9.57% 16.24% -244.25% -41.08% -31.08% -25.11% -23.46% -69.58% -67.81%

315 1997 125,000 - 18,621 (18,621) -14.90% -10.54% 71.23% 2199.23% -40.53% -26.20% -23.20% -20.71% -19.73% -47.27%315 1998 - - - - NA NA NA NA NA NA NA NA NA NA

315 1999 - - - - NA NA NA NA NA NA NA NA NA NA

315 2000 - - - - NA NA NA NA NA NA NA NA NA NA315 2001 - - - - NA NA NA NA NA NA NA NA NA NA315 2002 162,096 - 10,240 (10,240) -6.32% -6.32% -6.32% -6.32% -6.32% -10.05% -9.03% -40.52% -30.84% -22.21%315 2003 4,857 27,644 27,974 (330) -6.80% -6.33% -6.33% -6.33% -6.33% -6.33% -10.00% -9.01% -39.13% -30.14%

315 2004 - - - - NA NA NA NA NA NA NA NA NA NA315 2005 1,182,108 - 123,787 (123,787) -10.47% -10.47% -10.46% -9.96% -9.96% -9.96% -9.96% -9.96% -10.38% -10.06%315 2006 6,500 - 985 (985) -15.15% -10.50% -10.50% -10.48% -9.98% -9.98% -9.98% -9.98% -9.98% -10.40%

315 2007 8,174 - 647,092 (647,092) -7916.22% -4416.42% -64.49% -64.49% -64.26% -57.37% -57.37% -57.37% -57.37% -57.37%

315 2008 1,063,751 - 18,039 (18,039) -1.70% -62.05% -61.77% -34.94% -34.94% -34.88% -32.98% -32.98% -32.98% -32.98%

315 2009 7,910 - 101,912 (101,912) -1288.46% -11.19% -71.03% -70.70% -39.31% -39.31% -39.24% -37.05% -37.05% -37.05%

315 2010 - - - 0 NA NA NA NA NA NA NA NA NA NA

315 2011 528,208 0 214,540 (214,540) -40.62% -40.62% -59.03% -20.91% -61.04% -60.86% -39.56% -39.56% -39.50% -37.69%315 2012 78,552 0 164,088 (164,088) -208.89% -62.40% -62.40% -78.18% -29.71% -67.93% -67.73% -44.19% -44.19% -44.12%

Attachment DAW-RR-2 

Page 105 of 140 

Docket: 42004

RR3 - 115 of 509 01231
Appendix E-1

Page 4 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

316 1977 594 - - - 0.00%

316 1978 13,034 27,522 4,156 23,366 179.27% 171.46%

316 1979 13,526 2,172 1,710 462 3.42% 89.71% 87.75%

316 1980 4,259 16,797 3,731 13,066 306.79% 76.06% 119.71% 117.45%

316 1981 9,844 - 50 (50) -0.51% 92.29% 48.78% 90.61% 89.30%

316 1982 4,321 50 447 (397) -9.19% -3.16% 68.49% 40.94% 81.02% 79.97%

316 1983 48,082 711 100 611 1.27% 0.41% 0.26% 19.89% 17.11% 39.82% 39.57%

316 1984 12,968 480 632 (152) -1.17% 0.75% 0.09% 0.02% 16.46% 14.56% 6.85% 34.61%

316 1985 46,750 394 843 (449) -0.96% -1.01% 0.01% -0.35% -0.36% 10.01% 9.37% 23.86% 23.77%

316 1986 617,778 6,252 12,601 (6,349) -1.03% -1.02% -1.03% -0.87% -0.92% -0.92% 0.84% 0.89% 3.91% 3.90%

316 1987 15,803 576 2,214 (1,638) -10.37% -1.26% -1.24% -1.24% -1.08% -1.12% -1.11% 0.61% 0.66% 3.62%

316 1988 17,521 18 5,260 (5,242) -29.92% -20.65% -2.03% -1.96% -1.95% -1.74% -1.78% -1.77% -0.08% -0.02%

316 1989 77,924 756 1,382 (626) -0.80% -6.15% -6.75% -1.90% -1.84% -1.83% -1.65% -1.69% -1.68% -0.14%

316 1990 153,519 1,850 2,376 (526) -0.34% -0.50% -2.57% -3.03% -1.63% -1.60% -1.59% -1.45% -1.48% -1.48%

316 1991 82,484 75 995 (920) -1.12% -0.61% -0.66% -2.21% -2.58% -1.59% -1.56% -1.55% -1.43% -1.46%

316 1992 29,819 (47,361) 2,334 (49,695) -166.66% -45.07% -19.24% -15.06% -15.78% -15.55% -6.53% -6.28% -6.22% -5.89%

316 1993 614,629 6,078 19,048 (12,970) -2.11% -9.72% -8.75% -7.28% -6.75% -7.17% -7.22% -4.84% -4.73% -4.71%

316 1994 461,987 204 36,959 (36,755) -7.96% -4.62% -8.99% -8.44% -7.51% -7.15% -7.42% -7.45% -5.54% -5.44%

316 1995 78,482 545 4,789 (4,244) -5.41% -7.59% -4.67% -8.75% -8.25% -7.40% -7.05% -7.32% -7.35% -5.53%

316 1996 40,193 (946) 1,073 (2,018) -5.02% -5.28% -7.41% -4.68% -8.63% -8.15% -7.33% -7.00% -7.26% -7.29%

316 1997 116,022 38 14,064 (14,026) -12.09% -10.27% -8.64% -8.19% -5.34% -8.93% -8.47% -7.68% -7.36% -7.59%

316 1998 38,336 - 3,373 (3,373) -8.80% -11.27% -9.98% -8.67% -8.22% -5.44% -8.92% -8.48% -7.71% -7.39%

316 1999 49,950 - - - 0.00% -3.82% -8.52% -7.94% -7.33% -7.70% -5.24% -8.61% -8.20% -7.48%316 2000 - - - - NA NA NA NA NA NA NA NA NA NA

316 2001 - - - - NA NA NA NA NA NA NA NA NA NA

316 2002 261,881 23,531 34,250 (10,719) -4.09% -4.09% -4.09% -3.44% -4.02% -6.03% -5.95% -5.88% -6.80% -5.06%

316 2003 15,937 17,231 17,231 - 0.00% -3.86% -3.86% -3.86% -3.27% -3.85% -5.83% -5.77% -5.72% -6.69%

316 2004 - 480 - 480 NA NA NA NA NA NA NA NA NA NA

316 2005 2,209,012 23,221 19,629 3,592 0.16% 0.18% 0.18% -0.27% -0.27% -0.27% -0.26% -0.39% -0.89% -0.95%

316 2006 7,424 3,656 186 3,470 46.73% 0.32% 0.34% 0.34% -0.13% -0.13% -0.13% -0.12% -0.25% -0.76%

316 2007 206 9,628 9,042 585 284.86% 53.15% 0.35% 0.37% 0.36% -0.10% -0.10% -0.10% -0.10% -0.23%

316 2008 84,956 (9,628) 1,960 (11,587) -13.64% -12.92% -8.14% -0.17% -0.15% -0.15% -0.55% -0.55% -0.55% -0.54%

316 2009 - - - - NA NA NA NA NA NA NA NA NA NA

316 2010 - - - - NA NA NA NA NA NA NA NA NA NA

316 2011 437,672 - 113,573 (113,573) -25.95% -25.95% -25.95% -23.95% -23.83% -22.84% -4.29% -4.27% -4.25% -4.23%

316 2012 8,547 - 789 (789) -9.23% -25.63% -25.63% -25.63% -23.71% -23.59% -22.62% -4.31% -4.29% -4.26%

Attachment DAW-RR-2 

Page 106 of 140 

Docket: 42004

RR3 - 116 of 509 01232
Appendix E-1

Page 5 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

341 1978 25,025 338 4,480 (4,142) -16.55% 341 1979 - - - - NA NA

341 1980 - - - - NA NA NA

341 1981 - - - - NA NA NA NA341 1982 3,311 - - - 0.00% 0.00% 0.00% 0.00% -14.62%

341 1983 - - - - NA NA NA NA NA NA

341 1984 - - - - NA NA NA NA NA NA NA341 1985 - - - - NA NA NA NA NA NA 6.85% NA

341 1986 128,015 571 1,524 (953) -0.74% -0.74% -0.74% -0.74% -0.73% -0.73% -0.73% -0.73% -3.26%

341 1987 9,203 - 2,625 (2,625) -28.52% -2.61% -2.61% -2.61% -2.61% -2.55% -2.55% -2.55% -2.55% -4.66%

341 1988 - - 916 (916) NA NA NA NA NA NA NA NA NA NA

341 1989 - - 2,270 (2,270) NA NA NA NA NA NA NA NA NA NA341 1990 - 2,017 - 2,017 NA NA NA NA NA NA NA NA NA NA

341 1991 54,882 - 14,007 (14,007) -25.52% -21.85% -25.98% -27.65% -27.78% -9.76% -9.76% -9.76% -9.76% -9.60%

341 1992 - 17,931 - 17,931 NA NA NA NA NA NA NA NA NA NA

341 1993 - - - - NA NA NA NA NA NA NA NA NA NA

341 1994 - - - - NA NA NA NA NA NA NA NA NA NA341 1995 25,000 - 1,700 (1,700) -6.80% -6.80% -6.80% 64.92% 2.78% 5.31% 2.47% 1.32% -1.76% -1.16%

341 1996 2,500 - 300 (300) -12.00% -7.27% -7.27% -7.27% 57.93% 2.34% 4.78% 2.03% 0.92% -2.04%

341 1997 - - - - NA NA NA NA NA NA NA NA NA NA

341 1998 - - - - NA NA NA NA NA NA NA NA NA NA341 1999 - - - - NA NA NA NA NA NA NA NA NA NA

341 2000 - - - - NA NA NA NA NA NA NA NA NA NA

341 2001 - - - - NA NA NA NA NA NA NA NA NA NA

341 2002 - - - - NA NA NA NA NA NA NA NA NA NA

341 2003 4,500 5,600 6,966 (1,366) -30.35% -30.35% -30.35% -30.35% -30.35% -30.35% -30.35% -23.79% -10.52% -10.52%

341 2004 - - - - NA NA NA NA NA NA NA NA NA NA

341 2005 3,000 - 27,480 (27,480) -916.01% -916.01% -384.61% -384.61% -384.61% -384.61% -384.61% -384.61% -384.61% -291.46%

341 2006 - - - - NA NA NA NA NA NA NA NA NA NA

341 2007 - - - - NA NA NA NA NA NA NA NA NA NA

341 2008 2,773 - - - 0.00% 0.00% 0.00% -476.04% -476.04% -280.80% -280.80% -280.80% -280.80% -280.80%

341 2009 - - - - NA NA NA NA NA NA NA NA NA NA341 2010 - - - - NA NA NA NA NA NA NA NA NA NA341 2011 236,807 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -11.33% -11.33% -11.67% -11.67%

341 2012 - - - - NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -11.33% -11.33% -11.67%

Attachment DAW-RR-2 

Page 107 of 140 

Docket: 42004

RR3 - 117 of 509 01233
Appendix E-1

Page 6 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

342 1978 63,139 9,262 1,456 7,806 12.36% 342 1979 - - - - NA NA

342 1980 - - - - NA NA NA

342 1981 - - - - NA NA NA NA342 1982 - - - - NA NA NA NA NA

342 1983 - - - - NA NA NA NA NA NA

342 1984 - - - - NA NA NA NA NA NA NA

342 1985 - - - - NA NA NA NA NA NA 6.85% NA

342 1986 383,939 2,054 6,708 (4,654) -1.21% -1.21% -1.21% -1.21% -1.21% -1.21% -1.21% -1.21% 0.71%

342 1987 22,865 - 6,521 (6,521) -28.52% -2.75% -2.75% -2.75% -2.75% -2.75% -2.75% -2.75% -2.75% -0.72%

342 1988 - - - - NA NA NA NA NA NA NA NA NA NA342 1989 - - - - NA NA NA NA NA NA NA NA NA NA

342 1990 - - - - NA NA NA NA NA NA NA NA NA NA

342 1991 - - - - NA NA NA NA NA NA NA NA NA NA

342 1992 - - - - NA NA NA NA NA NA NA NA NA NA

342 1993 - - - - NA NA NA NA NA NA NA NA NA NA

342 1994 - - - - NA NA NA NA NA NA NA NA NA NA

342 1995 (383,939) - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.81% -48.87%

342 1996 - - - - NA NA NA NA NA NA NA NA NA NA

342 1997 - - - - NA NA NA NA NA NA NA NA NA NA

342 1998 - - - - NA NA NA NA NA NA NA NA NA NA

342 1999 - - - - NA NA NA NA NA NA NA NA NA NA342 2000 - - - - NA NA NA NA NA NA NA NA NA NA342 2001 - - - - NA NA NA NA NA NA NA NA NA NA342 2002 6,000 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

342 2003 - - - - NA NA NA NA NA NA NA NA NA NA

342 2004 - - - - NA NA NA NA NA NA NA NA NA NA342 2005 3,811 6,214 84,748 (78,535) -2060.80% -2060.80% -2060.80% -800.48% -800.48% -800.48% -800.48% -800.48% -800.48% -800.48%342 2006 - - - - NA NA NA NA NA NA NA NA NA NA

342 2007 - - - - NA NA NA NA NA NA NA NA NA NA

342 2008 - - - - NA NA NA NA NA NA NA NA NA NA

342 2009 - - - - NA NA NA NA NA NA NA NA NA NA

342 2010 - - - - NA NA NA NA NA NA NA NA NA NA

342 2011 7,622 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -686.93% -686.93% -686.93% -450.50%

342 2012 - - - - NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -686.93% -686.93% -686.93%

Attachment DAW-RR-2 

Page 108 of 140 

Docket: 42004

RR3 - 118 of 509 01234
Appendix E-1

Page 7 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

343 1978 77,840 1,051 13,932 (12,881) -16.55% 343 1979 - - - - NA NA

343 1980 - - - - NA NA NA

343 1981 - - - - NA NA NA NA343 1982 - - - - NA NA NA NA NA

343 1983 - - - - NA NA NA NA NA NA

343 1984 - - - - NA NA NA NA NA NA NA

343 1985 - - - - NA NA NA NA NA NA 6.85% NA

343 1986 5,391,843 26,962 82,432 (55,470) -1.03% -1.03% -1.03% -1.03% -1.03% -1.03% -1.03% -1.03% -1.25%

343 1987 93,748 - 26,746 (26,746) -28.53% -1.50% -1.50% -1.50% -1.50% -1.50% -1.50% -1.50% -1.50% -1.71%

343 1988 - - 15,134 (15,134) NA NA NA NA NA NA NA NA NA NA

343 1989 - - 37,508 (37,508) NA NA NA NA NA NA NA NA NA NA

343 1990 - 21,000 11,399 9,601 NA NA NA NA NA NA NA NA NA NA

343 1991 4,000 54,000 2,474 51,526 1288.15% 1528.18% 590.48% 212.13% -18.68% -1.34% -1.34% -1.34% -1.34% -1.34%

343 1992 - - - - NA NA NA NA NA NA NA NA NA NA343 1993 - - - - NA NA NA NA NA NA NA NA NA NA343 1994 - - - - NA NA NA NA NA NA NA NA NA NA343 1995 (2,728,291) - - - 0.00% 0.00% 0.00% 0.00% -1.89% -2.24% -0.87% -0.31% 0.69% -2.67%343 1996 75,000 - 38,259 (38,259) -51.01% 1.44% 1.44% 1.44% 1.44% -0.50% -0.86% 0.55% 1.12% 2.21%

343 1997 - - - - NA NA NA NA NA NA NA NA NA NA

343 1998 - - - - NA NA NA NA NA NA NA NA NA NA343 1999 - - - - NA NA NA NA NA NA NA NA NA NA

343 2000 - - - - NA NA NA NA NA NA NA NA NA NA

343 2001 - - - - NA NA NA NA NA NA NA NA NA NA

343 2002 - - - - NA NA NA NA NA NA NA NA NA NA

343 2003 - - - - NA NA NA NA NA NA NA NA NA NA

343 2004 - - - - NA NA NA NA NA NA NA NA NA NA

343 2005 270,549 127,081 52,808 74,273 27.45% 27.45% 27.45% 27.45% 27.45% 27.45% 27.45% 27.45% 27.45% 10.42%

343 2006 - - - - NA NA NA NA NA NA NA NA NA NA343 2007 - - 696 (696) NA NA NA NA NA NA NA NA NA NA

343 2008 10,564 - - - 0.00% -6.58% -6.58% 26.17% 26.17% 26.17% 26.17% 26.17% 26.17% 26.17%

343 2009 - - - - NA NA NA NA NA NA NA NA NA NA

343 2010 - - - - NA NA NA NA NA NA NA NA NA NA

343 2011 13,392 - 1,725 (1,725) -12.88% -12.88% -12.88% -7.20% -10.11% -10.11% 24.40% 24.40% 24.40% 24.40%343 2012 463,594 - 17,812 (17,812) -3.84% -4.10% -4.10% -4.10% -4.01% -4.15% -4.15% 7.13% 7.13% 7.13%

Attachment DAW-RR-2 

Page 109 of 140 

Docket: 42004

RR3 - 119 of 509 01235
Appendix E-1

Page 8 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

344 1983 10,000 80 - 80 0.80% 344 1984 - - - - NA NA

344 1985 - - - - NA NA NA

344 1986 2,701,212 4,961 15,495 (10,534) -0.39% -0.39% -0.39% -0.39%

344 1987 - 250,912 78,370 172,542 NA NA NA NA NA

344 1988 - - 7,738 (7,738) NA NA NA NA NA NA

344 1989 11,300 - 19,171 (19,171) -169.65% -238.13% 1288.79% 4.98% 4.98% 4.98% 4.97%

344 1990 (1,100,945) - 9,954 (9,954) 0.90% 2.67% 3.38% -12.45% 7.77% 7.77% 6.85% 7.72%

344 1991 5,900 - 10,202 (10,202) -172.92% 1.84% 3.63% 4.34% -11.58% 7.11% 7.11% 7.11% 7.07%

344 1992 840,154 1,274 12,479 (11,205) -1.33% -2.53% 12.30% 20.74% 23.92% -46.91% 4.22% 4.22% 4.22% 4.21%

344 1993 386,000 - 484,976 (484,976) -125.64% -40.47% -41.10% -393.82% -376.04% -381.47% -260.31% -13.41% -13.41% -13.41%

344 1994 30,000 25,000 16,238 8,762 29.21% -114.47% -38.80% -39.43% -315.05% -305.52% -310.01% -209.93% -12.96% -12.96%

344 1995 (443,930) 2,581 11,739 (9,157) 2.06% 0.10% 1737.82% -61.14% -61.94% 182.71% 197.37% 200.22% 136.67% -15.71%

344 1996 15,650 - 6,621 (6,621) -42.31% 3.68% 1.76% 4006.47% -60.78% -61.58% 195.89% 212.03% 215.05% 147.62%

344 1997 - - - - NA NA NA NA NA NA NA NA NA NA

344 1998 471,415 12,396 2,843 9,553 2.03% 2.03% 0.60% -14.43% 3.47% -105.08% -37.99% -38.60% -251.56% -247.27%

344 1999 - - - - NA NA NA NA NA NA NA NA NA NA

344 2000 - - - - NA NA NA NA NA NA NA NA NA NA

344 2001 - - - - NA NA NA NA NA NA NA NA NA NA

344 2002 223,000 20,521 20,521 - 0.00% 0.00% 0.00% 0.00% 1.38% 1.38% 0.41% -2.34% 0.86% -70.72%

344 2003 50,000 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 1.28% 1.28% 0.39% -1.97% 0.73%

344 2004 - - - - NA NA NA NA NA NA NA NA NA NA

344 2005 2,115,028 270,919 50,258 220,660 10.43% 10.43% 10.19% 9.24% 9.24% 9.24% 9.24% 8.05% 8.05% 7.78%

344 2006 - - - - NA NA NA NA NA NA NA NA NA NA

344 2007 - - 8,082 (8,082) NA NA NA NA NA NA NA NA NA NA344 2008 129,377 - 4,217 (4,217) -3.26% -9.51% -9.51% 9.28% 9.28% 9.08% 8.28% 8.28% 8.28% 8.28%

344 2009 293,404 - 56,942 (56,942) -19.41% -14.47% -16.38% -16.38% 5.97% 5.97% 5.85% 5.39% 5.39% 5.39%

344 2010 - - - - NA NA NA NA NA NA NA NA NA NA

344 2011 2,140,905 - 12,442 (12,442) -0.58% -0.58% -2.85% -2.87% -3.19% -3.19% 2.97% 2.97% 2.94% 2.81%

344 2012 6,566 - 460 (460) -7.01% -0.60% -0.60% -2.86% -2.88% -3.20% -3.20% 2.96% 2.96% 2.93%

Attachment DAW-RR-2 

Page 110 of 140 

Docket: 42004

RR3 - 120 of 509 01236
Appendix E-1

Page 9 of 9

2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

FERC Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Activity Retirement Salvage Costs Salvage Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage % Salvage %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Production and Other Production Interim Net Salvage

Accounts 311 - 346

345 1978 43,873 593 7,853 (7,260) -16.55% 345 1979 - - - - NA NA

345 1980 - - - - NA NA NA

345 1981 - - - - NA NA NA NA345 1982 - - - - NA NA NA NA NA

345 1983 - - - - NA NA NA NA NA NA

345 1984 - - - - NA NA NA NA NA NA NA

345 1985 - - - - NA NA NA NA NA NA 6.85% NA

345 1986 506,672 5,004 9,879 (4,875) -0.96% -0.96% -0.96% -0.96% -0.96% -0.96% -0.96% -0.96% -2.20%

345 1987 - - - - NA NA NA NA NA NA NA NA NA NA345 1988 - - 2,017 (2,017) NA NA NA NA NA NA NA NA NA NA345 1989 - - 4,998 (4,998) NA NA NA NA NA NA NA NA NA NA345 1990 - - - - NA NA NA NA NA NA NA NA NA NA

345 1991 201,985 - 51,667 (51,667) -25.58% -25.58% -28.05% -29.05% -29.05% -8.97% -8.97% -8.97% -8.97% -8.97%

345 1992 - 65,795 - 65,795 NA NA NA NA NA NA NA NA NA NA

345 1993 47,787 - 4,188 (4,188) -8.76% 128.92% 3.98% 3.98% 1.98% 1.17% 1.17% -0.26% -0.26% -0.26%345 1994 - - - - NA NA NA NA NA NA NA NA NA NA

345 1995 (168,617) 10,629 - 10,629 -6.30% -6.30% -5.33% -59.78% 25.34% 25.34% 19.19% 16.70% 16.70% 1.48%

345 1996 - - - - NA NA NA NA NA NA NA NA NA NA

345 1997 - - - - NA NA NA NA NA NA NA NA NA NA

345 1998 - - - - NA NA NA NA NA NA NA NA NA NA345 1999 - - - - NA NA NA NA NA NA NA NA NA NA

345 2000 - - - - NA NA NA NA NA NA NA NA NA NA

345 2001 - - - - NA NA NA NA NA NA NA NA NA NA

345 2002 47,102 - 1,460 (1,460) -3.10% -3.10% -3.10% -3.10% -3.10% -3.10% -3.10% -7.55% -7.55% -6.76%

345 2003 - - - - NA NA NA NA NA NA NA NA NA NA

345 2004 - - - - NA NA NA NA NA NA NA NA NA NA

345 2005 106,123 - 40,271 (40,271) -37.95% -37.95% -37.95% -27.23% -27.23% -27.23% -27.23% -27.23% -27.23% -27.23%

345 2006 - - - - NA NA NA NA NA NA NA NA NA NA

345 2007 - - 17,699 (17,699) NA NA NA NA NA NA NA NA NA NA

345 2008 65,766 - - - 0.00% -26.91% -26.91% -33.73% -33.73% -33.73% -27.14% -27.14% -27.14% -27.14%

345 2009 - - - - NA NA NA NA NA NA NA NA NA NA

345 2010 - - - - NA NA NA NA NA NA NA NA NA NA

345 2011 713,067 - 3,076 (3,076) -0.43% -0.43% -0.43% -0.39% -2.67% -2.67% -6.90% -6.90% -6.90% -6.71%

345 2012 26,115 - 1,309 (1,309) -5.01% -0.59% -0.59% -0.59% -0.54% -2.74% -2.74% -6.84% -6.84% -6.84%

346 1986 133,119 702 2,266 (1,564) -1.17%

346 1987 - - - - NA NA

346 1988 - - 77 (77) NA NA NA

346 1989 - - 192 (192) NA NA NA NA

346 1990 - - - - NA NA NA NA NA346 1991 - - - - NA NA NA NA NA NA346 1992 - - - - NA NA NA NA NA NA NA346 1993 - - - - NA NA NA NA NA NA 6.85% NA346 1994 - - - - NA NA NA NA NA NA NA NA NA346 1995 (118,750) - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.16% 0.23% 0.23% -12.76%

346 1996 - - - - NA NA NA NA NA NA NA NA NA NA346 1997 - - - - NA NA NA NA NA NA NA NA NA NA346 1998 - - - - NA NA NA NA NA NA NA NA NA NA

346 1999 - - - - NA NA NA NA NA NA NA NA NA NA

346 2000 - - - - NA NA NA NA NA NA NA NA NA NA

346 2001 - - - - NA NA NA NA NA NA NA NA NA NA

346 2002 500 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

346 2003 - - - - NA NA NA NA NA NA NA NA NA NA

346 2004 - - - - NA NA NA NA NA NA NA NA NA NA

346 2005 7,944 - - - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

346 2006 - - - - NA NA NA NA NA NA NA NA NA NA

346 2007 - - - - NA NA NA NA NA NA NA NA NA NA

346 2008 - - - - NA NA NA NA NA NA NA NA NA NA

346 2009 - - - - NA NA NA NA NA NA NA NA NA NA

346 2010 - - - - NA NA NA NA NA NA NA NA NA NA

346 2011 5,459 - 307 (307) -5.62% -5.62% -5.62% -5.62% -5.62% -5.62% -2.29% -2.29% -2.29% -2.21%

346 2012 - - - - NA -5.62% -5.62% -5.62% -5.62% -5.62% -5.62% -2.29% -2.29% -2.29%

Attachment DAW-RR-2 

Page 111 of 140 

Docket: 42004

RR3 - 121 of 509 01237
Appendix E-2

Page 1 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

350 1995 ‐                             ‐                   ‐                  0 NA NA

350 1996 ‐                             ‐                   ‐                  0 NA NA NA350 1997 ‐                             ‐                   ‐                  0 NA NA NA NA350 1998 ‐                             ‐                   ‐                  0 NA NA NA NA NA350 1999 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA350 2000 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA350 2001 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA350 2002 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA350 2003 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2004 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2005 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2006 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2007 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2008 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2009 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA350 2010 26,242                       ‐                   5 (5) ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02% ‐0.02%350 2011 11,387                       ‐                   ‐                  0 0.00% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01%350 2012 ‐                             ‐                   ‐                  0 NA 0.00% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01% ‐0.01%352 1985 ‐ 738 402 336 NA352 1986 5,542 3,892 5,350 (1,458) ‐26.31% ‐20.25%352 1987 ‐                    ‐                  0 NA ‐26.31% ‐20.25%352 1988 14,358 1,109 2,983 (1,874) ‐13.05% ‐13.05% ‐16.74% ‐15.06%352 1989 14,128 3,395 19,942 (16,547) ‐117.12% ‐64.67% ‐64.67% ‐58.42% ‐57.43%352 1990 5,206 39 4,790 (4,751) ‐91.26% ‐110.16% ‐68.78% ‐68.78% ‐62.78% ‐61.92%352 1991 4,538 186 4,604 (4,418) ‐97.36% ‐94.10% ‐107.72% ‐72.17% ‐72.17% ‐66.36% ‐65.59%352 1992 7,708 821 6,187 (5,366) ‐69.62% ‐79.90% ‐83.29% ‐98.42% ‐71.74% ‐71.74% ‐66.85% ‐66.20%352 1993 2,353 58 4,972 (4,914) ‐208.84% ‐102.18% ‐100.68% ‐98.20% ‐106.08% ‐78.42% ‐78.42% ‐73.06% ‐72.43%352 1994 1,296 16 163 (147) ‐11.34% ‐138.70% ‐91.81% ‐93.39% ‐92.87% ‐102.59% ‐76.67% ‐76.67% ‐71.60% ‐71.00%352 1995 7,128 5,969 1,532 4,437 62.25% 50.93% ‐5.79% ‐32.40% ‐45.21% ‐53.70% ‐74.85% ‐59.21% ‐59.21% ‐56.28%352 1996 6,107 3,232 10,574 (7,342) ‐120.23% ‐21.95% ‐21.00% ‐47.18% ‐54.21% ‐60.93% ‐65.53% ‐80.57% ‐65.14% ‐65.14%352 1997 153                            ‐                   ‐                  0 0.00% ‐117.29% ‐21.70% ‐20.78% ‐46.76% ‐53.88% ‐60.62% ‐65.24% ‐80.32% ‐64.98%352 1998 74                               ‐                   ‐                  0 0.00% 0.00% ‐115.91% ‐21.58% ‐20.68% ‐46.55% ‐53.72% ‐60.46% ‐65.10% ‐80.19%352 1999 2,452                         ‐                   ‐                  0 0.00% 0.00% 0.00% ‐83.56% ‐18.25% ‐17.73% ‐40.72% ‐48.89% ‐55.80% ‐60.79%352 2000 408                            ‐                   ‐                  0 0.00% 0.00% 0.00% 0.00% ‐79.85% ‐17.80% ‐17.32% ‐39.89% ‐48.17% ‐55.09%352 2001 655 ‐                   ‐                  0 0.00% 0.00% 0.00% 0.00% 0.00% ‐74.54% ‐17.11% ‐16.70% ‐38.62% ‐47.05%352 2002 16,819 11,578 36,493 (24,915) ‐148.13% ‐142.58% ‐139.33% ‐122.53% ‐122.08% ‐121.17% ‐120.95% ‐82.31% ‐79.69% ‐87.81%352 2003 456                            ‐                   3,290 (3,290) ‐722.25% ‐163.27% ‐157.31% ‐153.81% ‐135.67% ‐135.18% ‐134.20% ‐131.05% ‐90.83% ‐87.93%352 2004 163                            ‐                   ‐                  0 0.00% ‐531.69% ‐161.74% ‐155.89% ‐152.45% ‐134.61% ‐134.13% ‐133.16% ‐130.27% ‐90.39%352 2005 2,130                         ‐                   500 (500) ‐23.46% ‐21.79% ‐137.89% ‐146.70% ‐141.94% ‐139.13% ‐124.35% ‐123.96% ‐123.14% ‐122.54%352 2006 ‐                             ‐                   864 (864) NA ‐64.06% ‐59.50% ‐169.35% ‐151.11% ‐146.22% ‐143.33% ‐128.10% ‐127.69% ‐126.85%352 2007 ‐                             ‐                   481 (481) NA NA ‐86.65% ‐80.48% ‐186.85% ‐153.57% ‐148.60% ‐145.66% ‐130.18% ‐129.77%352 2008 17,315                       ‐                   63 (63) ‐0.37% ‐3.14% ‐8.14% ‐9.82% ‐9.73% ‐25.91% ‐81.65% ‐80.22% ‐79.36% ‐74.54%352 2009 14,160                       ‐                   1,278 (1,278) ‐9.02% ‐4.26% ‐5.79% ‐8.54% ‐9.48% ‐9.44% ‐18.92% ‐61.50% ‐60.72% ‐60.25%352 2010 5,187                         ‐                   1,753 (1,753) ‐33.80% ‐15.67% ‐8.44% ‐9.75% ‐12.11% ‐12.73% ‐12.68% ‐20.88% ‐58.94% ‐58.27%352 2011 4,070                         ‐                   1,852 (1,852) ‐45.50% ‐38.94% ‐20.85% ‐12.14% ‐13.32% ‐15.45% ‐15.85% ‐15.78% ‐23.19% ‐58.04%352 2012 62,481                       ‐                   7,028 (7,028) ‐11.25% ‐13.34% ‐14.82% ‐13.87% ‐11.60% ‐12.07% ‐12.90% ‐13.12% ‐13.10% ‐16.15%

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

Attachment DAW-RR-2 

Page 112 of 140 

Docket: 42004

RR3 - 122 of 509 01238
Appendix E-2

Page 2 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

353 1968 86,645 20,289 6,835 13,454 15.53%353 1969 35,251 12,604 2,041 10,563 29.97% 19.70%353 1970 47,239 13,454 3,705 9,749 20.64% 24.62% 19.96%353 1971 35,333 10,162 4,907 5,255 14.87% 18.17% 21.70% 19.08%353 1972 130,731 8,326 8,661 (335) ‐0.26% 2.96% 6.88% 10.15% 11.54%353 1973 44,652 3,240 1,135 2,105 4.71% 1.01% 3.33% 6.50% 9.32% 10.74%353 1974 79,396 9,776 7,986 1,790 2.25% 3.14% 1.40% 3.04% 5.50% 7.82% 9.27%353 1975 92,488 9,370 6,644 2,726 2.95% 2.63% 3.06% 1.81% 3.02% 4.95% 6.85% 8.21%353 1976 100,899 7,274 12,539 (5,265) ‐5.22% ‐1.31% ‐0.27% 0.43% 0.23% 1.30% 3.02% 4.70% 6.14%353 1977 135,956 25,423 14,358 11,065 8.14% 2.45% 2.59% 2.52% 2.74% 2.07% 2.80% 4.06% 5.36% 6.48%353 1978 71,821 20,219 11,284 8,935 12.44% 9.63% 4.77% 4.35% 4.01% 4.07% 3.20% 3.80% 4.88% 6.02%353 1979 218,855 41,381 8,555 32,826 15.00% 14.37% 12.38% 9.02% 8.11% 7.45% 7.28% 6.16% 6.49% 7.19%353 1980 27,600 9,400 1,625 7,775 28.17% 16.47% 15.56% 13.34% 9.97% 8.97% 8.23% 8.03% 6.83% 7.13%353 1981 306,434 11,815 14,907 (3,092) ‐1.01% 1.40% 6.78% 7.43% 7.56% 6.06% 5.76% 5.49% 5.46% 4.84%353 1982 121,198 898 6,437 (5,539) ‐4.57% ‐2.02% ‐0.19% 4.74% 5.48% 5.89% 4.75% 4.60% 4.44% 4.45%353 1983 92,197 34,586 32,161 2,425 2.63% ‐1.46% ‐1.19% 0.29% 4.49% 5.17% 5.58% 4.57% 4.44% 4.30%353 1984 326,201 16,915 77,709 (60,794) ‐18.64% ‐13.95% ‐11.84% ‐7.92% ‐6.78% ‐2.42% ‐1.50% ‐0.49% ‐0.83% ‐0.60%353 1985 213,440 25,883 25,201 682 0.32% ‐11.14% ‐9.13% ‐8.40% ‐6.26% ‐5.39% ‐1.97% ‐1.22% ‐0.38% ‐0.68%353 1986 431,524 16,350 43,822 (27,472) ‐6.37% ‐4.15% ‐9.02% ‐8.01% ‐7.66% ‐6.29% ‐5.66% ‐3.06% ‐2.45% ‐1.71%353 1987 361,122 183,383 45,115 138,268 38.29% 13.98% 11.08% 3.80% 3.73% 3.08% 2.40% 2.78% 4.05% 4.33%353 1988 183,485 12,713 29,797 (17,084) ‐9.31% 22.25% 9.60% 7.94% 2.22% 2.24% 1.76% 1.35% 1.70% 2.98%353 1989 2,638,935 1,452,462 205,677 1,246,785 47.25% 43.57% 42.97% 37.08% 35.03% 30.82% 30.21% 29.24% 27.26% 27.26%353 1990 519,391 146,934 90,986 55,948 10.77% 41.25% 38.47% 38.45% 33.78% 32.13% 28.59% 28.09% 27.28% 25.61%353 1991 780,433 137,725 149,752 (12,027) ‐1.54% 3.38% 32.77% 30.90% 31.49% 28.17% 27.01% 24.28% 23.92% 23.31%353 1992 988,831 151,810 65,706 86,104 8.71% 4.19% 5.68% 27.94% 26.60% 27.37% 24.91% 24.05% 21.89% 21.62%353 1993 550,668 25,254 123,495 (98,241) ‐17.84% ‐0.79% ‐1.04% 1.12% 23.34% 22.28% 23.24% 21.26% 20.59% 18.76%353 1994 468,192 72,916 53,093 19,823 4.23% ‐7.70% 0.38% ‐0.16% 1.56% 21.83% 20.90% 21.87% 20.11% 19.52%353 1995 548,607 21,969 87,177 (65,208) ‐11.89% ‐4.46% ‐9.16% ‐2.25% ‐2.08% ‐0.35% 18.99% 18.21% 19.24% 17.76%353 1996 786,120 34,269 105,493 (71,224) ‐9.06% ‐10.22% ‐6.47% ‐9.13% ‐3.85% ‐3.41% ‐1.83% 15.96% 15.34% 16.40%353 1997 527,061 639,692 90,871 548,821 104.13% 36.37% 22.15% 18.55% 11.59% 10.86% 8.78% 8.98% 21.91% 21.19%353 1998 182,513                     ‐                   7,002 (7,002) ‐3.84% 76.36% 31.46% 19.83% 16.92% 10.67% 10.19% 8.30% 8.54% 21.32%353 1999 810,529                     ‐                   ‐                  0 0.00% ‐0.71% 35.64% 20.41% 14.20% 12.80% 8.44% 8.50% 7.11% 7.42%353 2000 72,863                       ‐                   ‐                  0 0.00% 0.00% ‐0.66% 34.01% 19.78% 13.85% 12.52% 8.28% 8.37% 7.02%353 2001 177,190                     ‐                   4,845 (4,845) ‐2.73% ‐1.94% ‐0.46% ‐0.95% 30.33% 18.22% 12.90% 11.76% 7.81% 7.98%353 2002 806,030 1,000,131 1,281,171 (281,040) ‐34.87% ‐29.08% ‐27.07% ‐15.32% ‐14.29% 9.93% 5.49% 3.06% 3.18% 0.83%353 2003 264,550                     ‐                   11,888 (11,888) ‐4.49% ‐27.36% ‐23.86% ‐22.55% ‐13.97% ‐13.17% 8.59% 4.77% 2.58% 2.74%353 2004 6,904 (110)                  ‐                  (110) ‐1.59% ‐4.42% ‐27.20% ‐23.74% ‐22.44% ‐13.93% ‐13.14% 8.57% 4.75% 2.57%353 2005 1,513,619                 ‐                   190,071 (190,071) ‐12.56% ‐12.51% ‐11.32% ‐18.64% ‐17.63% ‐17.17% ‐13.36% ‐12.91% 1.24% ‐0.34%353 2006 139,000                     ‐                   65,999 (65,999) ‐47.48% ‐15.49% ‐15.44% ‐13.93% ‐20.11% ‐19.05% ‐18.59% ‐14.61% ‐14.12% ‐0.27%353 2007 1,357,711 59,125 308,598 (249,473) ‐18.37% ‐21.08% ‐16.79% ‐16.76% ‐15.77% ‐19.54% ‐18.84% ‐18.52% ‐15.61% ‐15.20%353 2008 1,960,129 58,714 218,448 (159,734) ‐8.15% ‐12.33% ‐13.75% ‐13.38% ‐13.37% ‐12.92% ‐15.85% ‐15.47% ‐15.29% ‐13.55%353 2009 841,086 144,514 290,088 (145,574) ‐17.31% ‐10.90% ‐13.34% ‐14.44% ‐13.95% ‐13.94% ‐13.53% ‐16.02% ‐15.69% ‐15.53%353 2010 2,382,462 49,888 552,620 (502,732) ‐21.10% ‐20.11% ‐15.59% ‐16.17% ‐16.82% ‐16.03% ‐16.02% ‐15.66% ‐17.33% ‐17.05%353 2011 1,919,968 169,918 696,612 (526,695) ‐27.43% ‐23.93% ‐22.84% ‐18.79% ‐18.72% ‐19.19% ‐18.20% ‐18.18% ‐17.84% ‐19.06%353 2012 3,275,741 103,094 757,359 (654,265) ‐19.97% ‐22.73% ‐22.22% ‐21.73% ‐19.16% ‐19.07% ‐19.40% ‐18.63% ‐18.62% ‐18.35%

Attachment DAW-RR-2 

Page 113 of 140 

Docket: 42004

RR3 - 123 of 509 01239
Appendix E-2

Page 3 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

354 1989 50,440 33,815 27,845 5,970 11.84%354 1990 ‐                             ‐                   ‐                  0 NA 11.84%354 1991 ‐                             ‐                   ‐                  0 NA NA 11.84%354 1992 ‐                             ‐                   ‐                  0 NA NA NA 11.84%354 1993 ‐                             ‐                   ‐                  0 NA NA NA NA 11.84%354 1994 ‐                             ‐                   ‐                  0 NA NA NA NA NA 11.84%354 1995 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA 11.84%354 1996 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA 11.84%354 1997 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA 11.84%354 1998 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA 11.84%354 1999 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2000 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2001 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2002 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2003 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2004 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2005 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2006 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2007 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2008 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2009 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2010 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2011 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA354 2012 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA

Attachment DAW-RR-2 

Page 114 of 140 

Docket: 42004

RR3 - 124 of 509 01240
Appendix E-2

Page 4 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

355 1968 239,409 70,833 39,223 31,610 13.20%355 1969 127,364 40,879 8,485 32,394 25.43% 17.45%355 1970 211,943 28,010 23,145 4,865 2.30% 10.98% 11.90%355 1971 97,815 18,636 15,247 3,389 3.46% 2.66% 9.30% 10.68%355 1972 133,409 51,433 20,364 31,069 23.29% 14.90% 8.87% 12.57% 12.76%355 1973 84,301 40,263 15,996 24,267 28.79% 25.42% 18.61% 12.06% 14.66% 14.27%355 1974 55,902 19,460 13,019 6,441 11.52% 21.90% 22.58% 17.54% 12.00% 14.41% 14.11%355 1975 151,015 61,647 25,493 36,154 23.94% 20.59% 22.96% 23.06% 19.39% 14.46% 16.08% 15.46%355 1976 168,591 12,689 7,828 4,861 2.88% 12.83% 12.64% 15.60% 17.33% 15.37% 12.30% 13.92% 13.79%355 1977 113,550 95,440 35,535 59,905 52.76% 22.96% 23.30% 21.95% 22.96% 23.02% 20.64% 16.82% 17.78% 16.99%355 1978 100,968 73,456 13,135 60,321 59.74% 56.04% 32.65% 30.19% 28.42% 28.47% 27.61% 25.00% 20.70% 21.18%355 1979 121,194 107,289 31,849 75,440 62.25% 61.11% 58.28% 39.76% 36.12% 34.18% 33.61% 32.13% 29.40% 24.76%355 1980 139,132 70,405 21,483 48,922 35.16% 47.77% 51.12% 51.51% 38.77% 35.95% 34.34% 33.84% 32.52% 30.09%355 1981 289,903 184,359 74,199 110,160 38.00% 37.08% 42.62% 45.28% 46.39% 38.53% 36.50% 35.27% 34.83% 33.69%355 1982 287,518 33,748 20,261 13,487 4.69% 21.41% 24.08% 29.60% 32.85% 34.99% 30.56% 29.83% 29.11% 29.10%355 1983 285,090 382,891 185,184 197,707 69.35% 36.88% 37.26% 36.97% 39.70% 41.35% 42.32% 37.90% 36.63% 35.81%355 1984 164,833 193,221 308,297 (115,076) ‐69.81% 18.37% 13.03% 20.08% 21.88% 25.68% 28.15% 30.01% 27.28% 27.00%355 1985 135,862 100,863 145,791 (44,928) ‐33.07% ‐53.21% 6.44% 5.86% 13.87% 16.15% 20.07% 22.70% 24.78% 22.74%355 1986 167,695 127,397 175,103 (47,706) ‐28.45% ‐30.52% ‐44.35% ‐1.33% 0.33% 8.54% 11.06% 14.96% 17.63% 19.84%355 1987 46,545 6,453 8,097 (1,644) ‐3.53% ‐23.03% ‐26.93% ‐40.66% ‐1.46% 0.17% 8.13% 10.61% 14.43% 17.06%355 1988 154,317 77,971 140,044 (62,073) ‐40.22% ‐31.72% ‐30.23% ‐31.00% ‐40.56% ‐7.72% ‐4.85% 3.26% 5.92% 9.73%355 1989 972,385 154,006 494,593 (340,587) ‐35.03% ‐35.74% ‐34.46% ‐33.71% ‐33.65% ‐37.28% ‐21.50% ‐18.10% ‐11.61% ‐9.15%355 1990 430,919 60,191 282,633 (222,442) ‐51.62% ‐40.12% ‐40.13% ‐39.07% ‐38.06% ‐37.71% ‐40.26% ‐27.01% ‐23.56% ‐17.48%355 1991 298,797 25,477 243,634 (218,157) ‐73.01% ‐60.38% ‐45.90% ‐45.42% ‐44.40% ‐43.11% ‐42.49% ‐44.39% ‐32.18% ‐28.58%355 1992 308,422 40,447 156,975 (116,528) ‐37.78% ‐55.12% ‐53.67% ‐44.65% ‐44.34% ‐43.48% ‐42.42% ‐41.91% ‐43.63% ‐32.76%355 1993 179,511 25,059 151,133 (126,074) ‐70.23% ‐49.72% ‐58.57% ‐56.11% ‐46.75% ‐46.32% ‐45.49% ‐44.37% ‐43.80% ‐45.30%355 1994 69,597 18,388 131,091 (112,703) ‐161.94% ‐95.85% ‐63.73% ‐66.97% ‐61.83% ‐50.30% ‐49.65% ‐48.78% ‐47.48% ‐46.77%355 1995 812,480 142,498 636,426 (493,928) ‐60.79% ‐68.77% ‐69.02% ‐61.99% ‐63.96% ‐61.43% ‐53.07% ‐52.46% ‐51.76% ‐50.63%355 1996 310,919 49,989 346,464 (296,476) ‐95.35% ‐70.36% ‐75.70% ‐74.99% ‐68.16% ‐68.89% ‐65.80% ‐56.96% ‐56.23% ‐55.54%355 1997 101,146 11,252 167,157 (155,904) ‐154.14% ‐109.78% ‐77.28% ‐81.83% ‐80.42% ‐73.04% ‐73.04% ‐69.36% ‐59.78% ‐58.95%355 1998 1,718 250 3,316 (3,066) ‐178.42% ‐154.54% ‐110.07% ‐77.42% ‐81.96% ‐80.53% ‐73.14% ‐73.12% ‐69.44% ‐59.84%355 1999 244,870                     ‐                   ‐                  0 0.00% ‐1.24% ‐45.72% ‐69.15% ‐64.53% ‐68.93% ‐69.07% ‐64.31% ‐65.43% ‐63.27%355 2000 663                            ‐                   ‐                  0 0.00% 0.00% ‐1.24% ‐45.63% ‐69.08% ‐64.50% ‐68.90% ‐69.04% ‐64.29% ‐65.41%355 2001 4,123 46,678 64,419 (17,741) ‐430.28% ‐370.69% ‐7.11% ‐8.28% ‐50.13% ‐71.32% ‐65.53% ‐69.87% ‐69.91% ‐65.03%355 2002 107,543 352,912 898,464 (545,552) ‐507.29% ‐504.44% ‐501.47% ‐157.70% ‐157.80% ‐156.99% ‐132.14% ‐95.53% ‐98.32% ‐95.57%355 2003 682,368 228,716 750,264 (521,548) ‐76.43% ‐135.09% ‐136.62% ‐136.51% ‐104.36% ‐104.48% ‐108.87% ‐105.98% ‐89.78% ‐91.93%355 2004 48,532 2,173 6,120 (3,947) ‐8.13% ‐71.90% ‐127.74% ‐129.22% ‐129.12% ‐100.06% ‐100.19% ‐104.77% ‐102.82% ‐88.07%355 2005 416,495 2,763 708,352 (705,589) ‐169.41% ‐152.58% ‐107.29% ‐141.57% ‐142.52% ‐142.44% ‐119.26% ‐119.33% ‐121.52% ‐117.28%355 2006 94,689                       ‐                   291,242 (291,242) ‐307.58% ‐195.00% ‐178.80% ‐122.56% ‐153.22% ‐154.06% ‐153.99% ‐130.41% ‐130.46% ‐131.87%355 2007 261,747 1,641 1,446,549 (1,444,907) ‐552.02% ‐487.09% ‐315.91% ‐297.72% ‐197.31% ‐218.00% ‐218.54% ‐218.45% ‐189.71% ‐189.70%355 2008 310,876 23,561 1,316,268 (1,292,708) ‐415.83% ‐478.08% ‐453.89% ‐344.57% ‐330.15% ‐234.75% ‐249.99% ‐250.38% ‐250.29% ‐222.07%355 2009 554,654 17,399 1,639,950 (1,622,551) ‐292.53% ‐336.82% ‐386.79% ‐380.65% ‐326.95% ‐317.78% ‐248.27% ‐259.52% ‐259.80% ‐259.73%355 2010 1,189,152 9,913 4,552,142 (4,542,228) ‐381.97% ‐353.52% ‐362.95% ‐384.32% ‐381.30% ‐350.09% ‐344.32% ‐292.95% ‐299.24% ‐299.39%355 2011 1,139,611 46,403 7,851,658 (7,805,254) ‐684.91% ‐530.22% ‐484.50% ‐477.81% ‐483.43% ‐478.74% ‐446.27% ‐440.97% ‐388.03% ‐390.70%355 2012 1,370,076 40,513 4,164,490 (4,123,978) ‐301.00% ‐475.33% ‐445.31% ‐425.39% ‐424.74% ‐431.64% ‐429.26% ‐408.98% ‐405.37% ‐368.38%

Attachment DAW-RR-2 

Page 115 of 140 

Docket: 42004

RR3 - 125 of 509 01241
Appendix E-2

Page 5 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

356 1968 232,619 133,617 31,144 102,473 44.05%356 1969 110,266 48,154 6,629 41,525 37.66% 42.00%356 1970 129,484 42,925 14,385 28,540 22.04% 29.22% 36.53%356 1971 76,532 43,282 14,411 28,871 37.72% 27.87% 31.28% 36.69%356 1972 85,467 35,715 8,102 27,613 32.31% 34.87% 29.17% 31.50% 36.10%356 1973 38,550 17,027 7,698 9,329 24.20% 29.79% 32.82% 28.59% 30.86% 35.42%356 1974 26,921 9,016 5,225 3,791 14.08% 20.04% 26.99% 30.60% 27.49% 29.89% 34.60%356 1975 152,629 87,481 25,040 62,441 40.91% 36.89% 34.65% 33.99% 34.74% 31.51% 32.61% 35.73%356 1976 98,424 3,960 2,079 1,881 1.91% 25.62% 24.50% 24.47% 26.13% 27.99% 26.72% 28.40% 32.23%356 1977 91,077 86,961 29,259 57,702 63.36% 31.44% 35.67% 34.09% 33.16% 33.01% 33.64% 31.49% 32.33% 34.95%356 1978 55,439 20,584 7,569 13,015 23.48% 48.27% 29.64% 33.97% 32.71% 32.00% 32.05% 32.74% 30.90% 31.77%356 1979 62,731 55,510 17,013 38,497 61.37% 43.59% 52.19% 36.11% 37.70% 36.40% 35.50% 35.05% 35.35% 33.24%356 1980 115,203 41,046 12,089 28,957 25.14% 37.91% 34.48% 42.59% 33.12% 35.19% 34.24% 33.64% 33.48% 33.89%356 1981 254,446 164,738 55,676 109,062 42.86% 37.34% 40.82% 38.85% 42.71% 36.78% 37.54% 36.80% 36.26% 35.92%356 1982 53,134 17,462 6,372 11,090 20.87% 39.06% 35.27% 38.64% 37.09% 40.87% 35.62% 36.54% 35.87% 35.40%356 1983 278,432 158,131 156,460 1,671 0.60% 3.85% 20.79% 21.50% 24.78% 24.69% 28.56% 25.96% 27.92% 27.61%356 1984 57,102 178,339 206,053 (27,714)           ‐48.53% ‐7.76% ‐3.85% 14.63% 16.23% 19.68% 19.92% 24.01% 21.97% 24.34%356 1985 99,118 56,520 66,046 (9,526)             ‐9.61% ‐23.84% ‐8.18% ‐5.02% 11.40% 13.24% 16.52% 16.92% 20.88% 19.28%356 1986 166,651 129,995 139,705 (9,710)             ‐5.83% ‐7.24% ‐14.54% ‐7.53% ‐5.22% 8.24% 10.14% 13.10% 13.60% 17.27%356 1987 7,456                         ‐                   1,826 (1,826)             ‐24.49% ‐6.63% ‐7.71% ‐14.77% ‐7.74% ‐5.44% 7.97% 9.89% 12.84% 13.35%356 1988 35,277 15,819 21,645 (5,826)             ‐16.52% ‐17.91% ‐8.29% ‐8.72% ‐14.93% ‐8.22% ‐6.00% 7.06% 9.02% 11.92%356 1989 1,276,523 479,266 294,601 184,665 14.47% 13.63% 13.42% 11.26% 9.95% 7.92% 6.86% 7.24% 11.30% 11.98%356 1990 182,779 223,684 91,490 132,194 72.32% 21.71% 20.81% 20.59% 17.95% 16.40% 14.37% 12.55% 12.75% 15.93%356 1991 58,172 13,303 96,122 (82,819)           ‐142.37% 20.49% 15.42% 14.70% 14.51% 12.55% 11.34% 9.53% 8.38% 8.68%356 1992 116,180 17,784 60,389 (42,605)           ‐36.67% ‐71.94% 1.90% 11.72% 11.12% 10.96% 9.44% 8.47% 6.84% 6.08%356 1993 133,610 14,468 62,296 (47,828)           ‐35.80% ‐36.20% ‐56.26% ‐8.37% 8.13% 7.64% 7.51% 6.39% 5.62% 4.17%356 1994 40,365 6,965 24,528 (17,563)           ‐43.51% ‐37.59% ‐37.22% ‐54.78% ‐11.04% 6.97% 6.52% 6.40% 5.39% 4.69%356 1995 228,426 85,403 215,750 (130,347)         ‐57.06% ‐55.03% ‐48.64% ‐45.96% ‐55.68% ‐24.88% ‐0.21% ‐0.49% ‐0.58% ‐0.96%356 1996 107,185 31,806 155,228 (123,422)         ‐115.15% ‐75.61% ‐72.17% ‐62.63% ‐57.81% ‐65.00% ‐36.04% ‐5.96% ‐6.13% ‐6.19%356 1997 50,012 2,491 29,959 (27,467)           ‐54.92% ‐95.99% ‐72.93% ‐70.14% ‐61.94% ‐57.60% ‐64.32% ‐37.07% ‐7.08% ‐7.23%356 1998 20,801                       ‐                   ‐                  ‐                 0.00% ‐38.79% ‐84.77% ‐69.20% ‐66.88% ‐59.72% ‐55.88% ‐62.54% ‐36.25% ‐7.01%356 1999 51,014                       ‐                   ‐                  ‐                 0.00% 0.00% ‐22.55% ‐65.89% ‐61.48% ‐60.02% ‐54.90% ‐52.06% ‐58.58% ‐34.38%356 2000 4,808                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐21.69% ‐64.53% ‐60.84% ‐59.45% ‐54.48% ‐51.73% ‐58.24%356 2001 11,295                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% ‐19.91% ‐61.56% ‐59.39% ‐58.14% ‐53.53% ‐50.97%356 2002 935,765 185,103 642,281 (457,178)         ‐48.86% ‐48.27% ‐48.03% ‐45.59% ‐44.66% ‐45.14% ‐51.49% ‐52.40% ‐52.15% ‐50.77%356 2003 1,382,634 330,971 571,644 (240,673)         ‐17.41% ‐30.10% ‐29.95% ‐29.89% ‐29.25% ‐29.00% ‐29.53% ‐33.11% ‐35.07% ‐35.19%356 2004 162,255                     ‐                   ‐                  ‐                 0.00% ‐15.58% ‐28.13% ‐28.00% ‐27.95% ‐27.39% ‐27.17% ‐27.70% ‐31.14% ‐33.14%356 2005 1,754,197 8,534 37,905 (29,370)           ‐1.67% ‐1.53% ‐8.19% ‐17.17% ‐17.13% ‐17.11% ‐16.90% ‐16.82% ‐17.26% ‐19.60%356 2006 97,983 305,253 6,368 298,885 305.04% 14.55% 13.38% 0.85% ‐9.89% ‐9.86% ‐9.85% ‐9.74% ‐9.69% ‐10.20%356 2007 94,315                       ‐                   307,590 (307,590)         ‐326.13% ‐4.53% ‐1.96% ‐1.81% ‐7.98% ‐16.62% ‐16.58% ‐16.56% ‐16.37% ‐16.30%356 2008 150,261 40,919 272,386 (231,467)         ‐154.04% ‐220.40% ‐70.11% ‐12.86% ‐11.93% ‐14.01% ‐21.13% ‐21.08% ‐21.06% ‐20.83%356 2009 546,435 3,220 296,531 (293,311)         ‐53.68% ‐75.32% ‐105.23% ‐60.01% ‐21.29% ‐20.06% ‐19.19% ‐24.60% ‐24.55% ‐24.53%356 2010 824,294 36,174 259,987 (223,813)         ‐27.15% ‐37.73% ‐49.22% ‐65.39% ‐44.20% ‐22.69% ‐21.67% ‐20.50% ‐24.96% ‐24.91%356 2011 1,633,243 194,465 1,124,400 (929,935)         ‐56.94% ‐46.95% ‐48.17% ‐53.22% ‐61.14% ‐50.42% ‐33.65% ‐32.62% ‐29.45% ‐31.85%356 2012 560,652 28,813 826,707 (797,894)         ‐142.32% ‐78.76% ‐64.66% ‐62.98% ‐66.66% ‐73.09% ‐63.60% ‐44.41% ‐43.18% ‐38.23%

Attachment DAW-RR-2 

Page 116 of 140 

Docket: 42004

RR3 - 126 of 509 01242
Appendix E-2

Page 6 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

357 1985 ‐                             ‐                   ‐                  ‐                 NA357 1986 ‐                             ‐                   ‐                  ‐                 NA NA357 1987 ‐                             ‐                   ‐                  ‐                 NA NA NA357 1988 ‐                             ‐                   ‐                  ‐                 NA NA NA NA357 1989 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA357 1990 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA357 1991 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA357 1992 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA357 1993 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA357 1994 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1995 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1996 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1997 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1998 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1999 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2000 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2002 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2003 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2004 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2005 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1998 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 1999 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2000 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2002 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2003 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2004 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2005 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2006 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2007 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2008 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2009 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2010 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2011 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA357 2012 8                                 ‐                   582 (582) ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97% ‐7534.97%

Attachment DAW-RR-2 

Page 117 of 140 

Docket: 42004

RR3 - 127 of 509 01243
Appendix E-2

Page 7 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

358 1985 ‐                             ‐                   ‐                  ‐                 NA358 1986 ‐                             ‐                   ‐                  ‐                 NA NA358 1987 ‐                             ‐                   ‐                  ‐                 NA NA NA358 1988 ‐                             ‐                   ‐                  ‐                 NA NA NA NA358 1989 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA358 1990 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA358 1991 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA358 1992 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA358 1993 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA358 1994 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 1995 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 1996 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 1997 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 1998 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 1999 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2000 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2002 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2003 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2004 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2005 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2006 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2007 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2008 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2009 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2010 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA358 2011 4                                 ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%358 2012 11,475                       ‐                   2,840 (2,840)             ‐24.75% ‐24.74% ‐24.74% ‐24.74% ‐24.74% ‐24.74% ‐24.74% ‐24.74% ‐24.74% ‐24.74%360 1995 ‐                             ‐                   ‐                  0 NA NA360 1996 ‐                             ‐                   ‐                  0 NA NA NA360 1997 ‐                             ‐                   ‐                  0 NA NA NA NA360 1998 ‐                             ‐                   ‐                  0 NA NA NA NA NA360 1999 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA360 2000 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA360 2001 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA360 2002 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA360 2003 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2004 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2005 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2006 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2007 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2008 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2009 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2010 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2011 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA360 2012 ‐                             ‐                   ‐                  0 NA NA NA NA NA NA NA NA NA NA Attachment DAW-RR-2 

Page 118 of 140 

Docket: 42004

RR3 - 128 of 509 01244
Appendix E-2

Page 8 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

361 1977 419 235 105 130 31.03%361 1978 ‐                             ‐                   ‐                  ‐                 NA 31.03%361 1979 ‐                             ‐                   ‐                  ‐                 NA NA 31.03%361 1980 ‐                             ‐                   ‐                  ‐                 NA NA NA 31.03%361 1981 ‐                             ‐                   ‐                  ‐                 NA NA NA NA 31.03%361 1982 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA 31.03%361 1983 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA 31.03%361 1984 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA 31.03%361 1985 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA 31.03%361 1986 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA 31.03%361 1987 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA361 1988 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA361 1989 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA361 1990 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA361 1991 600                            ‐                   88 (88) ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1992 ‐                             ‐                   ‐                  ‐                 NA ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1993 ‐                             ‐                   ‐                  ‐                 NA NA ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1994 ‐                             ‐                   ‐                  ‐                 NA NA NA ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1995 ‐                             ‐                   ‐                  ‐                 NA NA NA NA ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1996 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA ‐14.67% ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1997 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA ‐14.67% ‐14.67% ‐14.67% ‐14.67%361 1998 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA ‐14.67% ‐14.67% ‐14.67%361 1999 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA ‐14.67% ‐14.67%361 2000 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA ‐14.67%361 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA361 2002 19,574 15,645 35,136 (19,490)           ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57% ‐99.57%361 2003 18,938                       ‐                   3,675 (3,675)             ‐19.41% ‐60.15% ‐60.15% ‐60.15% ‐60.15% ‐60.15% ‐60.15% ‐60.15% ‐60.15% ‐60.15%361 2004 2,084                         ‐                   ‐                  ‐                 0.00% ‐17.48% ‐57.06% ‐57.06% ‐57.06% ‐57.06% ‐57.06% ‐57.06% ‐57.06% ‐57.06%361 2005 229,476                     ‐                   6,041 (6,041)             ‐2.63% ‐2.61% ‐3.88% ‐10.81% ‐10.81% ‐10.81% ‐10.81% ‐10.81% ‐10.81% ‐10.81%361 2006 ‐                             ‐                   143 (143) NA ‐2.69% ‐2.67% ‐3.94% ‐10.87% ‐10.87% ‐10.87% ‐10.87% ‐10.87% ‐10.87%361 2007 52,820 150 21,787 (21,637)           ‐40.96% ‐41.23% ‐9.86% ‐9.78% ‐10.38% ‐15.79% ‐15.79% ‐15.79% ‐15.79% ‐15.79%361 2008 6,000                         ‐                   1,030 (1,030)             ‐17.17% ‐38.54% ‐38.78% ‐10.01% ‐9.94% ‐10.52% ‐15.82% ‐15.82% ‐15.82% ‐15.82%361 2009 7,656 70 284 (214)                ‐2.80% ‐9.11% ‐34.42% ‐34.63% ‐9.82% ‐9.75% ‐10.33% ‐15.52% ‐15.52% ‐15.52%361 2010 16,895 116 1,767 (1,651)             ‐9.77% ‐7.60% ‐9.48% ‐29.42% ‐29.60% ‐9.82% ‐9.75% ‐10.30% ‐15.24% ‐15.24%361 2011 37,538 24 (2,977) 3,000 7.99% 2.48% 1.83% 0.15% ‐17.81% ‐17.93% ‐7.91% ‐7.86% ‐8.45% ‐13.01%361 2012 38,708 35 3,938 (3,904)             ‐10.08% ‐1.18% ‐2.74% ‐2.75% ‐3.56% ‐15.93% ‐16.02% ‐8.13% ‐8.08% ‐8.61%

Attachment DAW-RR-2 

Page 119 of 140 

Docket: 42004

RR3 - 129 of 509 01245
Appendix E-2

Page 9 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

362 1972 79,998 3,209 3,964 (755)                ‐0.94%362 1973 75,256 5,933 3,872 2,061 2.74% 0.84%362 1974 113,723 6,920 4,120 2,800 2.46% 2.57% 1.53%362 1975 214,510 13,474 8,935 4,539 2.12% 2.24% 2.33% 1.79%362 1976 89,489 19,142 17,911 1,231 1.38% 1.90% 2.05% 2.16% 1.72%362 1977 248,491 22,849 16,484 6,365 2.56% 2.25% 2.20% 2.24% 2.29% 1.98%362 1978 204,657 24,076 18,575 5,501 2.69% 2.62% 2.41% 2.33% 2.35% 2.38% 2.12%362 1979 214,971 27,283 17,205 10,078 4.69% 3.71% 3.28% 3.06% 2.85% 2.81% 2.81% 2.56%362 1980 116,771 60,241 21,291 38,950 33.36% 14.78% 10.17% 7.76% 7.11% 6.12% 5.78% 5.60% 5.21%362 1981 227,117 36,709 17,623 19,086 8.40% 16.88% 12.19% 9.64% 7.90% 7.37% 6.52% 6.19% 6.02% 5.67%362 1982 302,247 24,787 30,319 (5,532)             ‐1.83% 2.56% 8.13% 7.27% 6.39% 5.66% 5.39% 4.96% 4.79% 4.71%362 1983 333,308 77,823 35,877 41,946 12.58% 5.73% 6.43% 9.64% 8.75% 7.86% 7.06% 6.77% 6.26% 6.05%362 1984 187,084 71,296 31,556 39,740 21.24% 15.70% 9.26% 9.07% 11.50% 10.44% 9.44% 8.51% 8.18% 7.57%362 1985 70,882 21,692 38,128 (16,436)           ‐23.19% 9.03% 11.04% 6.68% 7.03% 9.52% 8.80% 8.05% 7.33% 7.06%362 1986 369,069 5,369 16,052 (10,683)           ‐2.89% ‐6.16% 2.01% 5.68% 3.88% 4.57% 6.66% 6.43% 6.05% 5.67%362 1987 547,820 470,876 68,536 402,340 73.44% 42.72% 37.99% 35.32% 30.30% 24.93% 23.09% 23.65% 21.93% 20.40%362 1988 1,092,241 25,812 73,865 (48,053)           ‐4.40% 21.60% 17.10% 15.73% 16.18% 15.72% 13.89% 13.50% 14.21% 13.62%362 1989 567,817 120,516 163,899 (43,383)           ‐7.64% ‐5.51% 14.08% 11.65% 10.72% 11.41% 11.54% 10.37% 10.25% 10.96%362 1990 571,861 18,205 116,955 (98,750)           ‐17.27% ‐12.47% ‐8.52% 7.63% 6.40% 5.75% 6.60% 7.13% 6.46% 6.56%362 1991 328,195 12,174 91,148 (78,974)           ‐24.06% ‐19.75% ‐15.06% ‐10.51% 4.29% 3.52% 2.99% 3.90% 4.61% 4.17%362 1992 603,331 2,594 53,702 (51,108)           ‐8.47% ‐13.96% ‐15.22% ‐13.14% ‐10.12% 2.21% 1.75% 1.32% 2.18% 2.92%362 1993 361,481 50,258 83,491 (33,233)           ‐9.19% ‐8.74% ‐12.63% ‐14.05% ‐12.56% ‐10.03% 1.20% 0.86% 0.48% 1.31%362 1994 466,926 431 73,486 (73,055)           ‐15.65% ‐12.83% ‐10.99% ‐13.43% ‐14.37% ‐13.05% ‐10.69% ‐0.53% ‐0.71% ‐1.03%362 1995 966,782 4,737 95,654 (90,917)           ‐9.40% ‐11.44% ‐10.99% ‐10.35% ‐12.00% ‐12.92% ‐12.14% ‐10.44% ‐2.09% ‐2.14%362 1996 527,778 185,317 140,020 45,296 8.58% ‐3.05% ‐6.05% ‐6.54% ‐6.94% ‐8.66% ‐9.95% ‐9.65% ‐8.61% ‐1.16%362 1997 64,126 110,719 81,386 29,333 45.74% 12.61% ‐1.04% ‐4.41% ‐5.13% ‐5.81% ‐7.61% ‐9.03% ‐8.86% ‐7.98%362 1998 629,444 7,003 29,265 (22,262)           ‐3.54% 1.02% 4.29% ‐1.76% ‐4.20% ‐4.80% ‐5.41% ‐6.96% ‐8.27% ‐8.20%362 1999 1,198,832                 ‐                   ‐                  ‐                 0.00% ‐1.22% 0.37% 2.16% ‐1.14% ‐2.90% ‐3.44% ‐4.07% ‐5.34% ‐6.53%362 2000 376,750                     ‐                   ‐                  ‐                 0.00% 0.00% ‐1.01% 0.31% 1.87% ‐1.02% ‐2.64% ‐3.15% ‐3.77% ‐4.98%362 2001 701,536                     ‐                   6,799 (6,799)             ‐0.97% ‐0.63% ‐0.30% ‐1.00% 0.01% 1.30% ‐1.02% ‐2.40% ‐2.86% ‐3.44%362 2002 1,205,980 848,581 1,126,729 (278,148)         ‐23.06% ‐14.94% ‐12.47% ‐8.18% ‐7.47% ‐6.65% ‐4.94% ‐5.70% ‐6.46% ‐6.61%362 2003 927,965 61,470 78,654 (17,184)           ‐1.85% ‐13.84% ‐10.66% ‐9.41% ‐6.85% ‐6.44% ‐5.78% ‐4.43% ‐5.16% ‐5.86%362 2004 ‐                             ‐                   ‐                  ‐                 NA ‐1.85% ‐13.84% ‐10.66% ‐9.41% ‐6.85% ‐6.44% ‐5.78% ‐4.43% ‐5.16%362 2005 701,536 32,000 71,693 (39,693)           ‐5.66% ‐5.66% ‐3.49% ‐11.82% ‐9.66% ‐8.73% ‐6.69% ‐6.34% ‐5.77% ‐4.57%362 2006 34,831                       ‐                   70,687 (70,687)           ‐202.94% ‐14.99% ‐14.99% ‐7.66% ‐14.13% ‐11.55% ‐10.45% ‐8.01% ‐7.53% ‐6.94%362 2007 130,315 33,644 197,097 (163,453)         ‐125.43% ‐141.78% ‐31.60% ‐31.60% ‐16.22% ‐18.97% ‐15.56% ‐14.12% ‐10.91% ‐10.13%362 2008 853,190 40,075 89,580 (49,505)           ‐5.80% ‐21.65% ‐27.85% ‐18.80% ‐18.80% ‐12.86% ‐16.05% ‐13.73% ‐12.68% ‐10.20%362 2009 350,099 26,025 168,182 (142,157)         ‐40.60% ‐15.93% ‐26.63% ‐31.12% ‐22.49% ‐22.49% ‐16.10% ‐18.10% ‐15.65% ‐14.53%362 2010 493,074 32,164 237,979 (205,815)         ‐41.74% ‐41.27% ‐23.43% ‐30.71% ‐33.93% ‐26.19% ‐26.19% ‐19.72% ‐20.58% ‐18.03%362 2011 2,336,573 45,413 278,905 (233,492)         ‐9.99% ‐15.53% ‐18.29% ‐15.65% ‐19.08% ‐20.61% ‐18.47% ‐18.47% ‐15.82% ‐17.06%362 2012 1,925,946 66,250 340,343 (274,093)         ‐14.23% ‐11.91% ‐15.00% ‐16.76% ‐15.19% ‐17.55% ‐18.60% ‐17.27% ‐17.27% ‐15.43%

Attachment DAW-RR-2 

Page 120 of 140 

Docket: 42004

RR3 - 130 of 509 01246
Appendix E-2

Page 10 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

364 1963 401,237 36,713 19,352 17,361 4.33%364 1964 490,502 38,241 25,162 13,079 2.67% 3.41%364 1965 537,351 62,174 34,699 27,475 5.11% 3.95% 4.05%364 1966 647,856 51,546 28,770 22,776 3.52% 4.24% 3.78% 3.89%364 1967 681,472 58,217 31,873 26,344 3.87% 3.70% 4.10% 3.80% 3.88%364 1968 502,679 35,813 44,742 (8,929)             ‐1.78% 1.47% 2.19% 2.86% 2.82% 3.01%364 1969 400,478 49,365 22,524 26,841 6.70% 1.98% 2.79% 3.00% 3.41% 3.30% 3.41%364 1970 494,948 62,523 41,807 20,716 4.19% 5.31% 2.76% 3.12% 3.22% 3.53% 3.42% 3.50%364 1971 330,682 32,577 19,822 12,755 3.86% 4.05% 4.92% 2.97% 3.22% 3.29% 3.56% 3.45% 3.53%364 1972 424,366 69,301 36,845 32,456 7.65% 5.99% 5.27% 5.62% 3.89% 3.89% 3.82% 3.99% 3.85% 3.89%364 1973 559,641 116,841 124,828 (7,987)             ‐1.43% 2.49% 2.83% 3.20% 3.84% 2.80% 3.01% 3.09% 3.33% 3.26%364 1974 411,264 188,315 123,697 64,618 15.71% 5.83% 6.38% 5.90% 5.52% 5.70% 4.50% 4.38% 4.26% 4.35%364 1975 387,153 171,996 136,663 35,333 9.13% 12.52% 6.77% 6.98% 6.49% 6.05% 6.14% 5.01% 4.82% 4.65%364 1976 432,135 132,495 106,935 25,560 5.91% 7.43% 10.20% 6.56% 6.77% 6.39% 6.03% 6.11% 5.11% 4.92%364 1977 513,655 357,319 172,740 184,579 35.93% 22.22% 18.42% 17.78% 13.11% 12.26% 11.35% 10.36% 9.99% 8.66%364 1978 447,056 240,689 149,081 91,608 20.49% 28.75% 21.66% 18.94% 18.33% 14.31% 13.42% 12.52% 11.49% 11.05%364 1979 392,136 266,435 188,746 77,689 19.81% 20.17% 26.16% 21.26% 19.09% 18.56% 15.00% 14.12% 13.25% 12.23%364 1980 535,575 257,510 219,963 37,547 7.01% 12.42% 15.05% 20.73% 17.97% 16.70% 16.57% 13.84% 13.20% 12.50%364 1981 467,929 218,306 199,126 19,180 4.10% 5.65% 9.63% 12.27% 17.43% 15.64% 14.85% 14.95% 12.74% 12.26%364 1982 310,340 164,516 194,917 (30,401)           ‐9.80% ‐1.44% 2.00% 6.10% 9.09% 14.26% 13.09% 12.65% 12.98% 11.17%364 1983 429,981 290,796 266,803 23,993 5.58% ‐0.87% 1.06% 2.89% 5.99% 8.50% 13.05% 12.18% 11.88% 12.24%364 1984 545,822 297,436 346,794 (49,358)           ‐9.04% ‐2.60% ‐4.34% ‐2.09% 0.04% 2.93% 5.44% 9.74% 9.34% 9.32%364 1985 878,757 377,601 414,226 (36,625)           ‐4.17% ‐6.04% ‐3.34% ‐4.27% ‐2.78% ‐1.13% 1.18% 3.33% 7.04% 6.94%364 1986 583,454 336,840 425,597 (88,757)           ‐15.21% ‐8.57% ‐8.70% ‐6.18% ‐6.59% ‐5.04% ‐3.32% ‐1.13% 0.98% 4.49%364 1987 758,672 316,974 546,450 (229,476)         ‐30.25% ‐23.71% ‐15.98% ‐14.61% ‐11.89% ‐11.71% ‐9.85% ‐7.85% ‐5.63% ‐3.45%364 1988 692,349 350,803 611,741 (260,938)         ‐37.69% ‐33.80% ‐28.47% ‐21.14% ‐19.23% ‐16.49% ‐15.99% ‐13.98% ‐11.82% ‐9.60%364 1989 850,756 398,637 908,685 (510,048)         ‐59.95% ‐49.96% ‐43.46% ‐37.75% ‐29.91% ‐27.27% ‐24.29% ‐23.40% ‐21.07% ‐18.58%364 1990 763,636 378,220 809,202 (430,982)         ‐56.44% ‐58.29% ‐52.11% ‐46.70% ‐41.66% ‐34.39% ‐31.66% ‐28.75% ‐27.74% ‐25.37%364 1991 753,212 416,567 752,983 (336,416)         ‐44.66% ‐50.59% ‐53.96% ‐50.27% ‐46.30% ‐42.18% ‐35.85% ‐33.34% ‐30.67% ‐29.68%364 1992 534,767 306,690 636,824 (330,134)         ‐61.73% ‐51.75% ‐53.50% ‐55.39% ‐51.98% ‐48.19% ‐44.29% ‐38.23% ‐35.73% ‐33.11%364 1993 578,703 360,584 696,382 (335,798)         ‐58.03% ‐59.81% ‐53.70% ‐54.49% ‐55.83% ‐52.82% ‐49.35% ‐45.74% ‐40.02% ‐37.59%364 1994 600,154 304,882 556,415 (251,533)         ‐41.91% ‐49.82% ‐53.54% ‐50.83% ‐52.16% ‐53.78% ‐51.45% ‐48.54% ‐45.36% ‐40.18%364 1995 444,793 249,288 344,000 (94,713)           ‐21.29% ‐33.14% ‐42.01% ‐46.89% ‐46.32% ‐48.42% ‐50.59% ‐48.88% ‐46.51% ‐43.73%364 1996 626,066 350,884 484,196 (133,312)         ‐21.29% ‐21.29% ‐28.70% ‐36.24% ‐41.14% ‐41.89% ‐44.47% ‐47.03% ‐45.92% ‐44.12%364 1997 823,963 461,797 637,248 (175,452)         ‐21.29% ‐21.29% ‐21.29% ‐26.25% ‐32.24% ‐36.61% ‐38.00% ‐40.75% ‐43.48% ‐42.88%364 1998 659,184 369,445 509,809 (140,364)         ‐21.29% ‐21.29% ‐21.29% ‐21.29% ‐25.22% ‐30.30% ‐34.24% ‐35.81% ‐38.53% ‐41.28%364 1999 1,942,608                 ‐                   ‐                  ‐                 0.00% ‐5.39% ‐9.22% ‐11.08% ‐12.09% ‐15.61% ‐19.93% ‐23.53% ‐25.82% ‐28.84%364 2000 15,775                       ‐                   ‐                  ‐                 0.00% 0.00% ‐5.36% ‐9.18% ‐11.04% ‐12.05% ‐15.56% ‐19.88% ‐23.47% ‐25.76%364 2001 542,224 85,539 573,862 (488,324)         ‐90.06% ‐87.51% ‐19.53% ‐19.90% ‐20.19% ‐20.34% ‐20.42% ‐22.70% ‐25.98% ‐28.81%364 2002 1,128,528 238,332 374,839 (136,507)         ‐12.10% ‐37.40% ‐37.05% ‐17.22% ‐17.84% ‐18.40% ‐18.72% ‐18.90% ‐20.94% ‐23.85%364 2003 379,676 9,854 194,443 (184,589)         ‐48.62% ‐21.29% ‐39.48% ‐39.17% ‐20.19% ‐20.35% ‐20.49% ‐20.57% ‐20.62% ‐22.40%364 2004 519,789 8,086 442,577 (434,491)         ‐83.59% ‐68.83% ‐37.26% ‐48.40% ‐48.10% ‐27.47% ‐26.68% ‐25.94% ‐25.51% ‐25.24%364 2005 1,104,453 4,369 1,045,711 (1,041,342)     ‐94.29% ‐90.86% ‐82.86% ‐57.37% ‐62.19% ‐61.92% ‐40.57% ‐38.55% ‐36.55% ‐35.32%364 2006 117,340 59,542 576,470 (516,928)         ‐440.54% ‐127.54% ‐114.42% ‐102.64% ‐71.20% ‐73.90% ‐73.59% ‐48.73% ‐45.91% ‐43.10%364 2007 482,983 341,150 947,594 (606,444)         ‐125.56% ‐187.13% ‐126.98% ‐116.84% ‐106.89% ‐78.23% ‐79.73% ‐79.44% ‐54.68% ‐51.49%364 2008 926,301                     ‐                   1,074,160 (1,074,160)     ‐115.96% ‐119.25% ‐143.95% ‐123.10% ‐116.58% ‐109.27% ‐85.74% ‐86.19% ‐85.93% ‐62.61%364 2009 1,162,960                 ‐                   1,067,194 (1,067,194)     ‐91.77% ‐102.49% ‐106.82% ‐121.38% ‐113.50% ‐109.89% ‐104.94% ‐86.94% ‐87.21% ‐86.99%364 2010 1,194,687 804 1,533,157 (1,532,354)     ‐128.26% ‐110.26% ‐111.87% ‐113.62% ‐123.50% ‐117.03% ‐113.88% ‐109.67% ‐93.98% ‐93.69%364 2011 1,607,057 256 1,853,673 (1,853,417)     ‐115.33% ‐120.85% ‐112.32% ‐113.01% ‐114.13% ‐121.11% ‐116.62% ‐114.20% ‐110.88% ‐97.96%364 2012 1,733,849                 ‐                   1,647,053 (1,647,053)     ‐94.99% ‐104.78% ‐110.96% ‐107.05% ‐108.29% ‐109.47% ‐114.84% ‐112.12% ‐110.44% ‐107.90%

Attachment DAW-RR-2 

Page 121 of 140 

Docket: 42004

RR3 - 131 of 509 01247
Appendix E-2

Page 11 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

365 1963 361,113 68,278 21,358 46,920 12.99%365 1964 431,011 70,362 26,128 44,234 10.26% 11.51%365 1965 531,648 97,706 40,354 57,352 10.79% 10.55% 11.22%365 1966 688,650 84,626 32,647 51,979 7.55% 8.96% 9.30% 9.96%365 1967 654,125 90,454 32,204 58,250 8.91% 8.21% 8.94% 9.19% 9.70%365 1968 490,125 84,664 40,249 44,415 9.06% 8.97% 8.44% 8.97% 9.17% 9.60%365 1969 382,974 71,574 24,906 46,668 12.19% 10.43% 9.78% 9.08% 9.41% 9.53% 9.88%365 1970 534,317 61,961 46,486 15,475 2.90% 6.77% 7.57% 7.99% 7.88% 8.35% 8.57% 8.97%365 1971 383,414 62,258 28,382 33,876 8.84% 5.38% 7.38% 7.84% 8.13% 8.00% 8.40% 8.60% 8.96%365 1972 427,486 71,656 37,086 34,570 8.09% 8.44% 6.24% 7.56% 7.89% 8.12% 8.01% 8.37% 8.55% 8.88%365 1973 684,294 140,443 133,963 6,480 0.95% 3.69% 5.01% 4.45% 5.68% 6.25% 6.74% 6.87% 7.31% 7.55%365 1974 440,078 195,353 136,913 58,440 13.28% 5.77% 6.41% 6.89% 6.03% 6.85% 7.18% 7.46% 7.47% 7.81%365 1975 384,410 201,043 145,030 56,013 14.57% 13.88% 8.02% 8.03% 8.16% 7.18% 7.77% 7.94% 8.08% 8.01%365 1976 452,090 130,180 108,188 21,992 4.86% 9.33% 10.69% 7.29% 7.43% 7.63% 6.86% 7.41% 7.61% 7.78%365 1977 605,553 381,854 196,498 185,356 30.61% 19.60% 18.26% 17.10% 12.79% 12.12% 11.75% 10.54% 10.68% 10.52%365 1978 420,047 233,391 151,624 81,767 19.47% 26.05% 19.57% 18.53% 17.53% 13.73% 13.02% 12.60% 11.40% 11.47%365 1979 483,298 349,162 212,692 136,470 28.24% 24.16% 26.75% 21.70% 20.53% 19.39% 15.75% 14.91% 14.37% 13.09%365 1980 506,013 270,303 233,316 36,987 7.31% 17.53% 18.11% 21.87% 18.75% 18.19% 17.53% 14.68% 14.04% 13.62%365 1981 530,589 224,312 219,365 4,947 0.93% 4.05% 11.74% 13.41% 17.50% 15.60% 15.48% 15.23% 13.06% 12.63%365 1982 291,819 160,433 186,604 (26,171)           ‐8.97% ‐2.58% 1.19% 8.40% 10.48% 14.78% 13.42% 13.54% 13.51% 11.72%365 1983 554,301 270,132 313,647 (43,515)           ‐7.85% ‐8.24% ‐4.70% ‐1.47% 4.59% 6.84% 11.08% 10.35% 10.73% 10.97%365 1984 517,494 216,916 322,681 (105,765)         ‐20.44% ‐13.93% ‐12.87% ‐9.00% ‐5.56% 0.10% 2.56% 6.91% 6.70% 7.33%365 1985 777,972 308,952 399,847 (90,895)           ‐11.68% ‐15.18% ‐12.98% ‐12.44% ‐9.78% ‐7.06% ‐2.40% ‐0.15% 3.82% 3.91%365 1986 501,364 239,297 361,023 (121,726)         ‐24.28% ‐16.62% ‐17.72% ‐15.39% ‐14.68% ‐12.07% ‐9.41% ‐5.04% ‐2.79% 1.11%365 1987 786,423 280,356 515,129 (234,773)         ‐29.85% ‐27.68% ‐21.66% ‐21.41% ‐19.02% ‐18.16% ‐15.60% ‐13.01% ‐8.98% ‐6.75%365 1988 701,100 215,972 554,590 (338,618)         ‐48.30% ‐38.55% ‐34.95% ‐28.41% ‐27.15% ‐24.37% ‐23.28% ‐20.52% ‐17.80% ‐13.86%365 1989 723,363 273,460 663,715 (390,255)         ‐53.95% ‐51.17% ‐43.59% ‐40.02% ‐33.70% ‐31.99% ‐29.06% ‐27.85% ‐25.01% ‐22.24%365 1990 613,039 202,818 585,625 (382,807)         ‐62.44% ‐57.85% ‐54.56% ‐47.68% ‐44.15% ‐38.00% ‐36.03% ‐33.01% ‐31.73% ‐28.84%365 1991 637,607 267,840 592,672 (324,832)         ‐50.95% ‐56.58% ‐55.62% ‐53.70% ‐48.28% ‐45.24% ‐39.74% ‐37.84% ‐34.98% ‐33.74%365 1992 487,478 185,696 499,352 (313,656)         ‐64.34% ‐56.75% ‐58.76% ‐57.35% ‐55.34% ‐50.26% ‐47.34% ‐42.03% ‐40.09% ‐37.25%365 1993 535,714 210,068 570,998 (360,930)         ‐67.37% ‐65.93% ‐60.18% ‐60.79% ‐59.14% ‐57.08% ‐52.31% ‐49.49% ‐44.39% ‐42.41%365 1994 579,211 193,724 512,948 (319,224)         ‐55.11% ‐61.00% ‐62.02% ‐58.87% ‐59.64% ‐58.49% ‐56.82% ‐52.63% ‐50.07% ‐45.37%365 1995 430,960 200,145 298,842 (98,697)           ‐22.90% ‐41.37% ‐50.38% ‐53.73% ‐53.06% ‐54.82% ‐54.66% ‐53.71% ‐50.30% ‐48.12%365 1996 629,381 292,294 436,433 (144,139)         ‐22.90% ‐22.90% ‐34.28% ‐42.43% ‐46.44% ‐47.31% ‐49.68% ‐50.35% ‐50.08% ‐47.48%365 1997 875,349 406,526 606,995 (200,469)         ‐22.90% ‐22.90% ‐22.90% ‐30.32% ‐36.83% ‐40.62% ‐42.20% ‐44.79% ‐45.99% ‐46.25%365 1998 499,386 231,923 346,290 (114,368)         ‐22.90% ‐22.90% ‐22.90% ‐22.90% ‐29.09% ‐34.87% ‐38.43% ‐40.13% ‐42.72% ‐44.07%365 1999 1,263,868                 ‐                   ‐                  ‐                 0.00% ‐6.49% ‐11.93% ‐14.04% ‐15.08% ‐20.50% ‐25.71% ‐29.27% ‐31.59% ‐34.48%365 2000 8,908                         ‐                   ‐                  ‐                 0.00% 0.00% ‐6.45% ‐11.89% ‐14.01% ‐15.04% ‐20.45% ‐25.67% ‐29.22% ‐31.55%365 2001 666,203 35,214 811,740 (776,526)         ‐116.56% ‐115.02% ‐40.05% ‐36.54% ‐32.93% ‐31.33% ‐30.50% ‐33.38% ‐36.70% ‐38.95%365 2002 20,460 315,552 487,063 (171,511)         ‐838.29% ‐138.06% ‐136.30% ‐48.38% ‐43.21% ‐37.88% ‐35.50% ‐34.26% ‐36.69% ‐39.67%365 2003 3,791,465 10,643 201,444 (190,801)         ‐5.03% ‐9.50% ‐25.43% ‐25.38% ‐19.80% ‐20.05% ‐20.40% ‐20.60% ‐20.72% ‐23.00%365 2004 1,208,153 59,549 370,273 (310,725)         ‐25.72% ‐10.03% ‐13.41% ‐25.49% ‐25.45% ‐20.83% ‐20.97% ‐21.17% ‐21.29% ‐21.37%365 2005 3,066,059 66,751 735,813 (669,062)         ‐21.82% ‐22.92% ‐14.51% ‐16.60% ‐24.21% ‐24.18% ‐21.13% ‐21.22% ‐21.35% ‐21.43%365 2006 705,708 118,144 656,658 (538,514)         ‐76.31% ‐32.02% ‐30.49% ‐19.48% ‐21.39% ‐28.09% ‐28.07% ‐24.76% ‐24.68% ‐24.55%365 2007 1,390,592 389,623 920,054 (530,431)         ‐38.14% ‐50.99% ‐33.67% ‐32.16% ‐22.04% ‐23.68% ‐29.38% ‐29.36% ‐26.30% ‐26.16%365 2008 2,135,067 180,704 1,081,479 (900,776)         ‐42.19% ‐40.59% ‐46.55% ‐36.16% ‐34.68% ‐25.54% ‐26.89% ‐31.49% ‐31.47% ‐28.68%365 2009 1,778,272 121,616 1,071,014 (949,397)         ‐53.39% ‐47.28% ‐44.88% ‐48.57% ‐39.54% ‐37.91% ‐29.06% ‐30.23% ‐34.13% ‐34.11%365 2010 1,569,978 121,925 1,289,013 (1,167,088)     ‐74.34% ‐63.21% ‐55.03% ‐51.61% ‐53.91% ‐44.67% ‐42.74% ‐33.60% ‐34.65% ‐37.99%365 2011 2,652,459 408,668 1,461,472 (1,052,804)     ‐39.69% ‐52.57% ‐52.82% ‐50.03% ‐48.29% ‐50.22% ‐43.68% ‐42.18% ‐34.48% ‐35.38%365 2012 3,181,058 276,983 1,432,984 (1,156,001)     ‐36.34% ‐37.86% ‐45.60% ‐47.11% ‐46.18% ‐45.30% ‐46.93% ‐42.26% ‐41.13% ‐34.76%

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 132 of 509 01248
Appendix E-2

Page 12 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

366 1985 34,316 24,130 4,961 19,169 55.86%366 1986 31,467 15,458 9,623 5,835 18.54% 38.01%366 1987 10,353 5,964                ‐                  5,964 57.61% 28.21% 40.67%366 1988 35,333 6,362 9,800 (3,438)             ‐9.73% 5.53% 10.84% 24.70%366 1989 61,020 48,223 14,421 33,802 55.39% 31.51% 34.04% 30.51% 35.56%366 1990 18,023 16,241 13,210 3,031 16.82% 46.60% 29.20% 31.56% 28.93% 33.78%366 1991 211,657 261,629 17,254 244,375 115.46% 107.72% 96.73% 85.20% 84.35% 78.72% 76.77%366 1992 14,826 9,896 7,584 2,312 15.59% 108.92% 102.13% 92.80% 82.17% 81.45% 76.27% 74.59%366 1993 18,935 12,215 8,383 3,832 20.24% 18.20% 102.08% 96.25% 88.56% 78.91% 78.31% 73.63% 72.23%366 1994 13,715 6,986 14,603 (7,617)             ‐55.54% ‐11.59% ‐3.10% 93.74% 88.73% 82.72% 73.97% 73.53% 69.37% 68.34%366 1995 24,929 22,578 5,537 17,041 68.36% 24.39% 23.02% 21.50% 91.51% 87.05% 81.73% 73.62% 73.22% 69.31%366 1996 18,657 16,898 4,144 12,754 68.36% 68.36% 38.70% 34.12% 31.10% 90.08% 85.97% 81.08% 73.39% 73.00%366 1997 74,073 67,088 16,453 50,635 68.36% 68.36% 68.36% 55.42% 50.99% 47.81% 85.81% 82.66% 79.01% 72.63%366 1998 20,903 18,932 4,643 14,289 68.36% 68.36% 68.36% 68.36% 57.20% 53.11% 50.12% 84.89% 81.94% 78.54%366 1999 21,151                       ‐                   ‐                  ‐                 0.00% 33.98% 55.91% 57.63% 59.31% 50.22% 47.27% 45.00% 80.61% 77.98%366 2000 ‐                             ‐                   ‐                  ‐                 NA 0.00% 33.98% 55.91% 57.63% 59.31% 50.22% 47.27% 45.00% 80.61%366 2001 2,154 6 367 (361) ‐16.75% ‐16.75% ‐1.55% 31.51% 54.58% 56.46% 58.29% 49.40% 46.56% 44.37%366 2002 25,082 ‐                   7,725 (7,725) ‐30.80% ‐29.69% ‐29.69% ‐16.71% 8.95% 39.65% 42.95% 46.34% 39.38% 37.73%366 2003 6,363                         ‐                   289 (289) ‐4.55% ‐25.49% ‐24.93% ‐24.93% ‐15.30% 7.82% 37.77% 41.16% 44.67% 38.03%366 2004 25,417                       ‐                   10,283 (10,283)           ‐40.46% ‐33.27% ‐32.18% ‐31.62% ‐31.62% ‐23.27% ‐4.32% 26.42% 30.45% 34.77%366 2005 31,988                       ‐                   29,991 (29,991)           ‐93.76% ‐70.16% ‐63.61% ‐54.35% ‐53.46% ‐53.46% ‐43.38% ‐25.82% 7.86% 12.86%366 2006 30,369                       ‐                   6,266 (6,266)             ‐20.63% ‐58.14% ‐53.02% ‐49.75% ‐45.76% ‐45.24% ‐45.24% ‐38.53% ‐24.86% 4.21%366 2007 25,495 536 26,378 (25,842)           ‐101.36% ‐57.47% ‐70.68% ‐63.90% ‐60.75% ‐55.55% ‐54.99% ‐54.99% ‐48.06% ‐35.18%366 2008 19,968                       ‐                   5,311 (5,311)             ‐26.60% ‐68.52% ‐49.34% ‐62.52% ‐58.31% ‐55.86% ‐52.04% ‐51.59% ‐51.59% ‐45.78%366 2009 7,842                         ‐                   10,509 (10,509)           ‐134.02% ‐56.89% ‐78.16% ‐57.28% ‐67.37% ‐62.52% ‐60.02% ‐55.77% ‐55.29% ‐55.29%366 2010 1,023                         ‐                   5,674 (5,674)             ‐554.68% ‐182.56% ‐74.55% ‐87.13% ‐63.29% ‐71.64% ‐66.06% ‐63.43% ‐58.71% ‐58.20%366 2011 560                            ‐                   7,414 (7,414)             ‐1324.46% ‐826.94% ‐250.39% ‐98.35% ‐99.75% ‐71.57% ‐77.62% ‐71.00% ‐68.16% ‐62.78%366 2012 11,591                       ‐                   1,391 (1,391)             ‐12.00% ‐72.46% ‐109.90% ‐118.90% ‐73.93% ‐84.45% ‐64.44% ‐71.72% ‐66.57% ‐64.11%

Attachment DAW-RR-2 

Page 123 of 140 

Docket: 42004

RR3 - 133 of 509 01249
Appendix E-2

Page 13 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

367 1974 75,083 4,885 2,057 2,828 3.77%367 1975 17,993 3,757 1,678 2,079 11.55% 5.27%367 1976 35,257 594 472 122 0.35% 4.13% 3.92%367 1977 33,084 12,603 2,453 10,150 30.68% 15.03% 14.31% 9.40%367 1978 35,689 40,136 7,162 32,974 92.39% 62.70% 41.57% 37.14% 24.43%367 1979 32,240 21,753 8,566 13,187 40.90% 67.95% 55.75% 41.41% 37.93% 26.75%367 1980 35,315 14,869 6,945 7,924 22.44% 31.25% 52.39% 47.12% 37.51% 35.04% 26.17%367 1981 26,667 16,954 7,393 9,561 35.85% 28.21% 32.55% 48.99% 45.28% 37.28% 35.14% 27.06%367 1982 25,137 8,746 7,399 1,347 5.36% 21.06% 21.62% 26.83% 41.92% 39.94% 33.69% 32.04% 25.33%367 1983 42,963 74,522 21,996 52,526 122.26% 79.11% 66.94% 54.86% 52.08% 59.35% 55.25% 47.98% 45.67% 36.92%367 1984 44,458 30,564 14,218 16,346 36.77% 78.78% 62.38% 57.30% 50.25% 48.79% 55.21% 52.26% 46.37% 44.47%367 1985 98,035 56,483 15,973 40,510 41.32% 39.90% 58.98% 52.58% 50.70% 47.04% 46.39% 51.21% 49.39% 45.16%367 1986 85,410 51,807 27,934 23,873 27.95% 35.10% 35.42% 49.20% 45.47% 44.68% 42.48% 42.35% 46.55% 45.40%367 1987 76,037 51,474 20,194 31,280 41.14% 34.16% 36.87% 36.85% 47.43% 44.59% 44.00% 42.25% 42.16% 45.73%367 1988 77,342                       ‐                   32,301 (32,301)           ‐41.76% ‐0.67% 9.57% 18.81% 20.91% 31.17% 29.73% 30.07% 29.54% 30.22%367 1989 103,469 57,808 32,222 25,586 24.73% ‐3.71% 9.56% 14.15% 20.20% 21.72% 29.91% 28.79% 29.12% 28.73%367 1990 42,234 23,663 34,420 (10,757)           ‐25.47% 10.18% ‐7.83% 4.62% 9.80% 16.20% 17.94% 25.80% 24.94% 25.41%367 1991 273,642 233,623 39,208 194,415 71.05% 58.14% 49.90% 35.62% 36.36% 35.27% 36.05% 36.09% 40.48% 39.46%367 1992 72,506 28,779 35,158 (6,379)             ‐8.80% 54.32% 45.65% 41.25% 29.97% 31.28% 30.89% 32.13% 32.36% 36.58%367 1993 50,639 38,247 29,157 9,090 17.95% 2.20% 49.68% 42.45% 39.07% 28.98% 30.31% 30.05% 31.31% 31.57%367 1994 60,747 21,023 55,315 (34,292)           ‐56.45% ‐22.63% ‐17.17% 35.59% 30.43% 29.45% 21.36% 23.35% 23.81% 25.64%367 1995 58,909 38,900 19,748 19,152 32.51% ‐12.65% ‐3.55% ‐5.12% 35.24% 30.65% 29.72% 22.25% 24.01% 24.38%367 1996 56,380 37,230 18,901 18,330 32.51% 32.51% 1.81% 5.42% 1.97% 34.97% 30.82% 29.94% 22.97% 24.56%367 1997 124,684 82,335 41,799 40,536 32.51% 32.51% 32.51% 14.54% 15.03% 10.96% 34.53% 31.10% 30.32% 24.27%367 1998 69,674 46,009 23,357 22,652 32.51% 32.51% 32.51% 32.51% 17.92% 17.92% 14.00% 34.35% 31.23% 30.49%367 1999 87,863                       ‐                   ‐                  ‐                 0.00% 14.38% 22.39% 24.07% 25.32% 14.48% 14.83% 11.88% 30.82% 28.17%367 2000 ‐                             ‐                   ‐                  ‐                 NA 0.00% 14.38% 22.39% 24.07% 25.32% 14.48% 14.83% 11.88% 30.82%367 2001 13,816 24 1,469 (1,445)             ‐10.46% ‐10.46% ‐1.42% 12.38% 20.86% 22.72% 24.12% 13.75% 14.16% 11.36%367 2002 175,122 23,116 34,335 (11,219)           ‐6.41% ‐6.70% ‐6.70% ‐4.58% 2.88% 10.72% 13.05% 15.01% 8.30% 9.00%367 2003 94,422                       ‐                   11,601 (11,601)           ‐12.29% ‐8.47% ‐8.56% ‐8.56% ‐6.54% ‐0.37% 6.88% 9.21% 11.22% 5.68%367 2004 224,885 9,351 52,342 (42,992)           ‐19.12% ‐17.10% ‐13.31% ‐13.23% ‐13.23% ‐11.28% ‐6.70% ‐0.51% 1.68% 3.69%367 2005 431,386 11,624 175,430 (163,806)         ‐37.97% ‐31.51% ‐29.09% ‐24.80% ‐24.59% ‐24.59% ‐22.49% ‐19.00% ‐13.74% ‐11.70%367 2006 139,699 45,617 55,054 (9,437)             ‐6.76% ‐30.34% ‐27.17% ‐25.59% ‐22.44% ‐22.28% ‐22.28% ‐20.61% ‐17.61% ‐13.02%367 2007 368,419 62,036 16,593 45,443 12.33% 7.09% ‐13.60% ‐14.67% ‐14.49% ‐13.50% ‐13.47% ‐13.47% ‐12.70% ‐10.74%367 2008 225,104 18,740 65,833 (47,093)           ‐20.92% ‐0.28% ‐1.51% ‐15.02% ‐15.68% ‐15.46% ‐14.51% ‐14.48% ‐14.48% ‐13.75%367 2009 232,554 15,904 88,496 (72,592)           ‐31.22% ‐26.15% ‐8.99% ‐8.66% ‐17.71% ‐17.91% ‐17.60% ‐16.56% ‐16.52% ‐16.52%367 2010 100,204 7,782 94,073 (86,291)           ‐86.12% ‐47.75% ‐36.92% ‐17.33% ‐15.94% ‐22.29% ‐21.88% ‐21.38% ‐20.06% ‐20.00%367 2011 167,628 24,207 14,081 10,126 6.04% ‐28.44% ‐29.73% ‐27.00% ‐13.75% ‐12.96% ‐19.44% ‐19.40% ‐19.06% ‐18.04%367 2012 373,683 32,538 137,195 (104,657)         ‐28.01% ‐17.46% ‐28.19% ‐28.99% ‐27.34% ‐17.38% ‐16.46% ‐21.01% ‐20.82% ‐20.48%

Attachment DAW-RR-2 

Page 124 of 140 

Docket: 42004

RR3 - 134 of 509 01250
Appendix E-2

Page 14 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

368 1963 229,639 56,192 1,092 55,100 23.99%368 1964 141,354 36,340 1,274 35,066 24.81% 24.30%368 1965 143,179 31,008 1,569 29,439 20.56% 22.67% 23.26%368 1966 414,389 49,923 2,584 47,339 11.42% 13.77% 16.00% 17.98%368 1967 232,543 41,116 678 40,438 17.39% 13.57% 14.84% 16.35% 17.86%368 1968 267,425 75,692 1,130 74,562 27.88% 23.00% 17.75% 18.13% 18.92% 19.74%368 1969 254,011 59,319 426 58,893 23.19% 25.59% 23.06% 18.94% 19.11% 19.67% 20.26%368 1970 297,271 67,651 10,764 56,887 19.14% 21.00% 23.25% 21.95% 18.98% 19.12% 19.58% 20.09%368 1971 259,990 37,293 6,264 31,029 11.93% 15.78% 18.10% 20.52% 19.97% 17.92% 18.12% 18.59% 19.14%368 1972 255,245 10,801 185 10,616 4.16% 8.08% 12.13% 14.76% 17.39% 17.39% 16.14% 16.44% 16.96% 17.61%368 1973 282,560 22,610 717 21,893 7.75% 6.04% 7.96% 11.00% 13.29% 15.71% 15.92% 15.09% 15.42% 15.94%368 1974 247,613 38,283 1,265 37,018 14.95% 11.11% 8.85% 9.62% 11.73% 13.55% 15.61% 15.80% 15.08% 15.38%368 1975 270,369 53,797 1,582 52,215 19.31% 17.23% 13.88% 11.53% 11.61% 13.00% 14.38% 16.07% 16.20% 15.49%368 1976 379,200 54,209 50 54,159 14.28% 16.38% 15.98% 14.01% 12.26% 12.21% 13.24% 14.37% 15.80% 15.94%368 1977 280,739 65,226 3,087 62,139 22.13% 17.62% 18.11% 17.45% 15.57% 13.87% 13.62% 14.34% 15.23% 16.44%368 1978 430,729 59,744 2,884 56,860 13.20% 16.73% 15.88% 16.56% 16.31% 15.03% 13.74% 13.54% 14.16% 14.93%368 1979 561,217 168,383 21,279 147,104 26.21% 20.56% 20.91% 19.39% 19.38% 18.87% 17.59% 16.32% 15.94% 16.23%368 1980 484,394 49,365 43,872 5,493 1.13% 14.59% 14.19% 15.46% 15.25% 15.71% 15.63% 14.88% 14.02% 13.86%368 1981 510,800 87,312 87,188 124 0.02% 0.56% 9.81% 10.55% 11.98% 12.31% 12.96% 13.12% 12.68% 12.09%368 1982 332,462 39,184 98,018 (58,834)           ‐17.70% ‐6.96% ‐4.01% 4.97% 6.50% 8.19% 8.96% 9.82% 10.19% 10.00%368 1983 534,097 78,543 17,899 60,644 11.35% 0.21% 0.14% 0.40% 6.38% 7.41% 8.73% 9.33% 10.04% 10.34%368 1984 420,418 52,493 12,297 40,196 9.56% 10.56% 3.26% 2.34% 2.09% 6.85% 7.68% 8.83% 9.35% 9.99%368 1985 786,258 132,455 40,416 92,039 11.71% 10.96% 11.08% 6.47% 5.19% 4.55% 7.90% 8.46% 9.35% 9.74%368 1986 571,225 65,499 187,561 (122,062)         ‐21.37% ‐2.21% 0.57% 3.06% 0.45% 0.38% 0.48% 3.92% 4.78% 5.78%368 1987 1,579,204 120,373 98,247 22,126 1.40% ‐4.65% ‐0.27% 0.96% 2.39% 0.81% 0.72% 0.76% 3.23% 3.92%368 1988 2,105,514 200,054 108,642 91,412 4.34% 3.08% ‐0.20% 1.66% 2.26% 3.07% 1.98% 1.84% 1.79% 3.53%368 1989 1,329,963 212,376 1,174,723 (962,347)         ‐72.36% ‐25.35% ‐16.93% ‐17.38% ‐13.79% ‐12.35% ‐10.62% ‐10.93% ‐10.24% ‐9.60%368 1990 1,173,532 148,697 34,309 114,388 9.75% ‐33.87% ‐16.41% ‐11.87% ‐12.67% ‐10.13% ‐9.09% ‐7.81% ‐8.18% ‐7.73%368 1991 637,922 105,806 184,339 (78,533)           ‐12.31% 1.98% ‐29.49% ‐15.92% ‐11.91% ‐12.64% ‐10.30% ‐9.33% ‐8.12% ‐8.46%368 1992 1,063,522 106,894 280,054 (173,160)         ‐16.28% ‐14.79% ‐4.78% ‐26.15% ‐15.98% ‐12.50% ‐13.10% ‐10.99% ‐10.10% ‐8.97%368 1993 842,268 85,340 107,096 (21,756)           ‐2.58% ‐10.23% ‐10.75% ‐4.28% ‐22.22% ‐14.40% ‐11.54% ‐12.15% ‐10.29% ‐9.49%368 1994 979,164 98,952 98,756 196 0.02% ‐1.18% ‐6.75% ‐7.76% ‐3.38% ‐18.61% ‐12.66% ‐10.38% ‐10.99% ‐9.38%368 1995 1,488,399 199,706 257,020 (57,314)           ‐3.85% ‐2.31% ‐2.38% ‐5.76% ‐6.60% ‐3.50% ‐15.68% ‐11.30% ‐9.51% ‐10.08%368 1996 812,790 109,056 140,354 (31,298)           ‐3.85% ‐3.85% ‐2.70% ‐2.67% ‐5.46% ‐6.21% ‐3.54% ‐14.53% ‐10.72% ‐9.13%368 1997 1,191,822 159,913 205,807 (45,894)           ‐3.85% ‐3.85% ‐3.85% ‐3.00% ‐2.94% ‐5.16% ‐5.81% ‐3.58% ‐13.19% ‐10.02%368 1998 1,157,648 155,324 199,901 (44,577)           ‐3.85% ‐3.85% ‐3.85% ‐3.85% ‐3.18% ‐3.10% ‐4.96% ‐5.53% ‐3.62% ‐12.18%368 1999 71,292                       ‐                   ‐                  ‐                 0.00% ‐3.63% ‐3.74% ‐3.77% ‐3.79% ‐3.14% ‐3.07% ‐4.91% ‐5.49% ‐3.59%368 2000 350                            ‐                   ‐                  ‐                 0.00% 0.00% ‐3.63% ‐3.74% ‐3.77% ‐3.79% ‐3.14% ‐3.07% ‐4.91% ‐5.49%368 2001 9,198                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐3.60% ‐3.72% ‐3.75% ‐3.78% ‐3.13% ‐3.06% ‐4.91%368 2002 ‐                             ‐                   188 (188) NA ‐2.04% ‐1.96% ‐0.23% ‐3.61% ‐3.73% ‐3.76% ‐3.79% ‐3.14% ‐3.06%368 2003 13,984 28 22,643 (22,615)           ‐161.71% ‐163.05% ‐98.36% ‐96.89% ‐24.05% ‐5.38% ‐4.63% ‐4.44% ‐4.25% ‐3.52%368 2004 38,444 57,337 9,715 47,623 123.88% 47.70% 47.34% 40.28% 40.05% 18.62% ‐1.53% ‐2.64% ‐2.94% ‐3.22%368 2005 1,602,234 84,560 63,509 21,051 1.31% 4.19% 2.78% 2.77% 2.76% 2.76% 2.64% 0.04% ‐1.09% ‐1.55%368 2006 3,022,289 135,980 13,384 122,596 4.06% 3.11% 4.10% 3.61% 3.60% 3.60% 3.59% 3.54% 2.09% 1.10%368 2007 1,349,167 184,921 848,473 (663,552)         ‐49.18% ‐12.37% ‐8.70% ‐7.86% ‐8.21% ‐8.22% ‐8.20% ‐8.20% ‐8.11% ‐7.43%368 2008 1,925,223 23,697 1,839,403 (1,815,706)     ‐94.31% ‐75.72% ‐37.43% ‐29.57% ‐28.83% ‐29.06% ‐29.06% ‐29.03% ‐29.03% ‐28.77%368 2009 1,621,072 29,820 14,734 15,085 0.93% ‐50.77% ‐50.34% ‐29.57% ‐24.38% ‐23.78% ‐23.98% ‐23.98% ‐23.96% ‐23.96%368 2010 1,766,228 40,852 816,224 (775,371)         ‐43.90% ‐22.45% ‐48.49% ‐48.63% ‐32.19% ‐27.43% ‐26.92% ‐27.08% ‐27.09% ‐27.06%368 2011 1,745,989 38,626 (43,877) 82,503 4.73% ‐19.73% ‐13.20% ‐35.33% ‐37.55% ‐26.55% ‐23.12% ‐22.69% ‐22.84% ‐22.84%368 2012 1,766,466 109,632 42,833 66,800 3.78% 4.25% ‐11.86% ‐8.86% ‐27.50% ‐30.37% ‐22.49% ‐19.91% ‐19.54% ‐19.67%

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 135 of 509 01251
Appendix E-2

Page 15 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

369 1963 104,678 33,170 30,308 2,862 2.73%369 1964 115,813 25,617 28,646 (3,029)             ‐2.62% ‐0.08%369 1965 125,180 20,000 32,372 (12,372)           ‐9.88% ‐6.39% ‐3.63%369 1966 151,506 19,545 28,350 (8,805)             ‐5.81% ‐7.65% ‐6.17% ‐4.29%369 1967 105,506 20,617 28,483 (7,866)             ‐7.46% ‐6.49% ‐7.60% ‐6.44% ‐4.85%369 1968 98,857 26,972 30,572 (3,600)             ‐3.64% ‐5.61% ‐5.70% ‐6.79% ‐5.98% ‐4.68%369 1969 109,942 24,875 33,993 (9,118)             ‐8.29% ‐6.09% ‐6.55% ‐6.31% ‐7.07% ‐6.34% ‐5.17%369 1970 111,923 22,215 36,852 (14,637)           ‐13.08% ‐10.71% ‐8.53% ‐8.26% ‐7.62% ‐8.02% ‐7.26% ‐6.13%369 1971 106,121 23,628 37,354 (13,726)           ‐12.93% ‐13.01% ‐11.43% ‐9.62% ‐9.19% ‐8.45% ‐8.67% ‐7.91% ‐6.83%369 1972 105,882 23,412 42,421 (19,009)           ‐17.95% ‐15.44% ‐14.62% ‐13.02% ‐11.28% ‐10.65% ‐9.72% ‐9.74% ‐8.94% ‐7.87%369 1973 121,838 27,773 55,468 (27,695)           ‐22.73% ‐20.51% ‐18.10% ‐16.84% ‐15.15% ‐13.41% ‐12.58% ‐11.46% ‐11.27% ‐10.40%369 1974 118,485 33,193 55,439 (22,246)           ‐18.78% ‐20.78% ‐19.92% ‐18.28% ‐17.25% ‐15.79% ‐14.23% ‐13.42% ‐12.30% ‐12.04%369 1975 111,038 39,309 61,737 (22,428)           ‐20.20% ‐19.46% ‐20.60% ‐19.98% ‐18.66% ‐17.73% ‐16.41% ‐14.98% ‐14.18% ‐13.07%369 1976 126,743 40,013 68,461 (28,448)           ‐22.45% ‐21.40% ‐20.52% ‐21.09% ‐20.52% ‐19.35% ‐18.48% ‐17.25% ‐15.92% ‐15.12%369 1977 123,439 37,077 85,395 (48,318)           ‐39.14% ‐30.68% ‐27.46% ‐25.32% ‐24.79% ‐23.77% ‐22.36% ‐21.23% ‐19.86% ‐18.45%369 1978 112,752 39,161 90,963 (51,802)           ‐45.94% ‐42.39% ‐35.42% ‐31.86% ‐29.24% ‐28.13% ‐26.82% ‐25.23% ‐23.92% ‐22.42%369 1979 111,028 37,553 106,632 (69,079)           ‐62.22% ‐54.02% ‐48.73% ‐41.70% ‐37.62% ‐34.45% ‐32.72% ‐31.04% ‐29.19% ‐27.62%369 1980 105,997 42,019 118,952 (76,933)           ‐72.58% ‐67.28% ‐59.98% ‐54.31% ‐47.34% ‐42.98% ‐39.44% ‐37.25% ‐35.28% ‐33.21%369 1981 114,709 36,289 160,559 (124,270)         ‐108.34% ‐91.16% ‐81.48% ‐72.46% ‐65.22% ‐57.42% ‐52.29% ‐47.99% ‐45.05% ‐42.56%369 1982 100,817 36,864 162,168 (125,304)         ‐124.29% ‐115.80% ‐101.55% ‐91.45% ‐82.04% ‐74.13% ‐65.89% ‐60.29% ‐55.49% ‐52.01%369 1983 104,438 35,202 198,470 (163,268)         ‐156.33% ‐140.59% ‐129.03% ‐114.98% ‐104.07% ‐93.98% ‐85.23% ‐76.39% ‐70.22% ‐64.82%369 1984 116,309 38,084 201,701 (163,617)         ‐140.67% ‐148.08% ‐140.62% ‐132.13% ‐120.49% ‐110.59% ‐101.07% ‐92.48% ‐83.74% ‐77.49%369 1985 143,705 43,747 233,493 (189,746)         ‐132.04% ‐135.90% ‐141.76% ‐137.97% ‐132.11% ‐122.91% ‐114.46% ‐105.96% ‐97.98% ‐89.73%369 1986 145,013 36,122 235,345 (199,223)         ‐137.38% ‐134.72% ‐136.43% ‐140.51% ‐137.83% ‐133.16% ‐125.44% ‐117.99% ‐110.28% ‐102.83%369 1987 145,870 36,168 189,456 (153,288)         ‐105.09% ‐121.19% ‐124.77% ‐128.13% ‐132.63% ‐131.51% ‐128.46% ‐122.40% ‐116.26% ‐109.65%369 1988 133,934 53,911 183,884 (129,973)         ‐97.04% ‐101.24% ‐113.57% ‐118.24% ‐122.05% ‐126.59% ‐126.33% ‐124.27% ‐119.34% ‐114.15%369 1989 158,612 56,685 174,329 (117,644)         ‐74.17% ‐84.64% ‐91.44% ‐102.86% ‐108.63% ‐113.05% ‐117.82% ‐118.44% ‐117.44% ‐113.70%369 1990 130,586 46,575 185,356 (138,781)         ‐106.28% ‐88.67% ‐91.32% ‐94.85% ‐103.49% ‐108.27% ‐112.14% ‐116.42% ‐117.09% ‐116.32%369 1991 101,031 30,493 192,340 (161,847)         ‐160.20% ‐129.80% ‐107.19% ‐104.59% ‐104.70% ‐110.52% ‐113.74% ‐116.66% ‐120.17% ‐120.49%369 1992 107,794 28,039 181,111 (153,072)         ‐142.00% ‐150.81% ‐133.67% ‐114.72% ‐110.98% ‐109.87% ‐114.19% ‐116.60% ‐118.97% ‐122.00%369 1993 101,066 27,804 202,223 (174,419)         ‐172.58% ‐156.80% ‐157.91% ‐142.60% ‐124.48% ‐119.47% ‐117.08% ‐119.96% ‐121.44% ‐123.19%369 1994 108,454 27,730 217,670 (189,940)         ‐175.13% ‐173.90% ‐163.07% ‐162.37% ‐149.03% ‐132.25% ‐126.64% ‐123.46% ‐125.24% ‐126.01%369 1995 93,110 29,848 123,023 (93,174)           ‐100.07% ‐140.46% ‐151.19% ‐148.77% ‐151.03% ‐141.93% ‐128.50% ‐124.00% ‐121.44% ‐123.33%369 1996 164,780 52,823 217,718 (164,894)         ‐100.07% ‐100.07% ‐122.29% ‐133.17% ‐134.82% ‐138.61% ‐133.38% ‐123.65% ‐120.41% ‐118.61%369 1997 73,803 23,659 97,513 (73,854)           ‐100.07% ‐100.07% ‐100.07% ‐118.57% ‐128.65% ‐130.87% ‐134.82% ‐130.59% ‐121.98% ‐119.13%369 1998 107,363 34,417 141,855 (107,437)         ‐100.07% ‐100.07% ‐100.07% ‐100.07% ‐114.94% ‐123.92% ‐126.50% ‐130.47% ‐127.27% ‐119.93%369 1999 455,730                     ‐                   ‐                  ‐                 0.00% ‐19.08% ‐28.46% ‐43.18% ‐49.10% ‐62.73% ‐72.78% ‐78.94% ‐85.19% ‐87.10%369 2000 ‐                             ‐                   ‐                  ‐                 NA 0.00% ‐19.08% ‐28.46% ‐43.18% ‐49.10% ‐62.73% ‐72.78% ‐78.94% ‐85.19%369 2001 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% ‐19.08% ‐28.46% ‐43.18% ‐49.10% ‐62.73% ‐72.78% ‐78.94%369 2002 ‐                             ‐                   ‐                  ‐                 NA NA NA 0.00% ‐19.08% ‐28.46% ‐43.18% ‐49.10% ‐62.73% ‐72.78%369 2003 4,199                         ‐                   83 (83) ‐1.97% ‐1.97% ‐1.97% ‐1.97% ‐0.02% ‐18.95% ‐28.29% ‐42.97% ‐48.88% ‐62.47%369 2004 41,893                       ‐                   9,253 (9,253)             ‐22.09% ‐20.25% ‐20.25% ‐20.25% ‐20.25% ‐1.86% ‐19.17% ‐27.91% ‐41.94% ‐47.69%369 2005 2,712,711 257,622 1,420,550 (1,162,928)     ‐42.87% ‐42.55% ‐42.49% ‐42.49% ‐42.49% ‐42.49% ‐36.47% ‐38.52% ‐39.86% ‐42.65%369 2006 85,661                       ‐                   51,841 (51,841)           ‐60.52% ‐43.41% ‐43.10% ‐43.03% ‐43.03% ‐43.03% ‐43.03% ‐37.09% ‐39.08% ‐40.37%369 2007 255,141 62,009 468,950 (406,941)         ‐159.50% ‐134.62% ‐53.11% ‐52.69% ‐52.62% ‐52.62% ‐52.62% ‐52.62% ‐45.88% ‐47.46%369 2008 1,305,142                 ‐                   290,133 (290,133)         ‐22.23% ‐44.68% ‐45.50% ‐43.86% ‐43.66% ‐43.62% ‐43.62% ‐43.62% ‐43.62% ‐39.53%369 2009 992,982                     ‐                   274,698 (274,698)         ‐27.66% ‐24.58% ‐38.06% ‐38.79% ‐40.86% ‐40.71% ‐40.68% ‐40.68% ‐40.68% ‐40.68%369 2010 1,182,971                 ‐                   336,377 (336,377)         ‐28.43% ‐28.08% ‐25.89% ‐35.01% ‐35.58% ‐38.61% ‐38.50% ‐38.48% ‐38.48% ‐38.48%369 2011 313,844 20,157 450,568 (430,411)         ‐137.14% ‐51.23% ‐41.83% ‐35.09% ‐42.93% ‐43.29% ‐43.12% ‐43.00% ‐42.97% ‐42.97%369 2012 348,596                     ‐                   289,687 (289,687)         ‐83.10% ‐108.70% ‐57.25% ‐46.90% ‐39.13% ‐46.11% ‐46.39% ‐45.06% ‐44.93% ‐44.90%

Attachment DAW-RR-2 

Page 126 of 140 

Docket: 42004

RR3 - 136 of 509 01252
Appendix E-2

Page 16 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

369 Overhead 2003 400 83 (83)                  ‐20.62%369 Overhead 2004 41,893 8,369 (8,369)             ‐19.98% ‐19.98%369 Overhead 2005 1,979,080 106,525 1,167,131 (1,060,606)     ‐53.59% ‐52.89% ‐52.89%369 Overhead 2006 25,763                       ‐                   48,848 (48,848)           ‐189.61% ‐55.34% ‐54.61% ‐54.61%369 Overhead 2007 237,620 3,222 462,617 (459,395)         ‐193.33% ‐192.97% ‐69.96% ‐69.04% ‐69.04%369 Overhead 2008 1,292,588                 ‐                   288,194 (288,194)         ‐22.30% ‐48.86% ‐51.19% ‐52.53% ‐52.15% ‐52.15%369 Overhead 2009 985,772                     ‐                   271,680 (271,680)         ‐27.56% ‐24.57% ‐40.51% ‐42.02% ‐47.09% ‐46.84% ‐46.84%369 Overhead 2010 1,172,367                 ‐                   329,283 (329,283)         ‐28.09% ‐27.85% ‐25.77% ‐36.56% ‐37.62% ‐43.17% ‐43.01% ‐43.00%369 Overhead 2011 296,535 34,600 446,408 (411,808)         ‐138.87% ‐50.45% ‐41.26% ‐34.72% ‐44.18% ‐45.11% ‐47.91% ‐47.72% ‐47.72%369 Overhead 2012 333,081                     ‐                   282,789 (282,789)         ‐84.90% ‐110.32% ‐56.82% ‐46.47% ‐38.81% ‐47.32% ‐48.16% ‐49.86% ‐49.66% ‐49.66%369 Underground369 Underground 2003 3,799                         ‐                 0.00%369 Underground 2004 ‐                             ‐                   884 (884) NA ‐23.26%369 Underground 2005 733,630 151,097 253,418 (102,322)         ‐13.95% ‐14.07% ‐14.00%369 Underground 2006 59,898                       ‐                   2,993 (2,993)             ‐5.00% ‐13.27% ‐13.38% ‐13.32%369 Underground 2007 17,521 58,787 6,333 52,454 299.37% 63.89% ‐6.52% ‐6.63% ‐6.60%369 Underground 2008 12,554                       ‐                   1,939 (1,939)             ‐15.45% 167.96% 52.82% ‐6.65% ‐6.76% ‐6.73%369 Underground 2009 7,210                         ‐                   3,017 (3,017)             ‐41.85% ‐25.08% 127.39% 45.80% ‐6.96% ‐7.07% ‐7.03%369 Underground 2010 10,603                       ‐                   7,094 (7,094)             ‐66.90% ‐56.76% ‐39.68% 84.37% 34.71% ‐7.71% ‐7.82% ‐7.78%369 Underground 2011 17,309 (14,443) 4,160 (18,602)           ‐107.47% ‐92.06% ‐81.75% ‐64.29% 33.44% 15.04% ‐9.73% ‐9.83% ‐9.78%369 Underground 2012 15,514                       ‐                   6,898 (6,898)             ‐44.46% ‐77.69% ‐75.06% ‐70.33% ‐59.43% 18.46% 8.47% ‐10.34% ‐10.44% ‐10.40%

Attachment DAW-RR-2 

Page 127 of 140 

Docket: 42004

RR3 - 137 of 509 01253
Appendix E-2

Page 17 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

370 1963 85,041 5,290 2,253 3,037 3.57%370 1964 92,676 6,650 2,650 4,000 4.32% 3.96%370 1965 89,678 4,866 1,880 2,986 3.33% 3.83% 3.75%370 1966 104,094 13,547 1,396 12,151 11.67% 7.81% 6.68% 5.97%370 1967 115,375 2,920 903 2,017 1.75% 6.46% 5.55% 5.26% 4.97%370 1968 115,559 6,660 1,428 5,232 4.53% 3.14% 5.79% 5.27% 5.10% 4.88%370 1969 100,571 6,991 1,206 5,785 5.75% 5.10% 3.93% 5.78% 5.36% 5.21% 5.01%370 1970 123,041 6,351 3,249 3,102 2.52% 3.97% 4.16% 3.55% 5.06% 4.82% 4.76% 4.64%370 1971 92,708 6,007 1,946 4,061 4.38% 3.32% 4.09% 4.21% 3.69% 4.97% 4.77% 4.72% 4.61%370 1972 115,431 5,814 2,164 3,650 3.16% 3.70% 3.26% 3.84% 3.99% 3.60% 4.69% 4.55% 4.53% 4.45%370 1973 102,687 5,110 2,024 3,086 3.01% 3.09% 3.47% 3.20% 3.68% 3.83% 3.52% 4.50% 4.39% 4.38%370 1974 74,460 4,930 2,586 2,344 3.15% 3.07% 3.10% 3.41% 3.20% 3.62% 3.76% 3.49% 4.39% 4.30%370 1975 92,768 10,304 1,863 8,441 9.10% 6.45% 5.14% 4.55% 4.51% 4.11% 4.34% 4.37% 4.04% 4.81%370 1976 106,744 10,248 2,369 7,879 7.38% 8.18% 6.81% 5.77% 5.16% 5.04% 4.60% 4.74% 4.72% 4.39%370 1977 153,640 10,045 4,548 5,497 3.58% 5.14% 6.18% 5.65% 5.14% 4.78% 4.73% 4.42% 4.56% 4.55%370 1978 129,122 9,255 4,258 4,997 3.87% 3.71% 4.72% 5.56% 5.24% 4.89% 4.63% 4.61% 4.35% 4.48%370 1979 126,548 9,299 4,217 5,082 4.02% 3.94% 3.81% 4.55% 5.24% 5.01% 4.75% 4.55% 4.53% 4.31%370 1980 116,827 8,409 7,002 1,407 1.20% 2.67% 3.08% 3.23% 3.93% 4.59% 4.46% 4.29% 4.16% 4.18%370 1981 158,937 9,179 8,930 249 0.16% 0.60% 1.67% 2.21% 2.52% 3.17% 3.79% 3.74% 3.67% 3.62%370 1982 156,015 6,559 5,701 858 0.55% 0.35% 0.58% 1.36% 1.83% 2.15% 2.74% 3.31% 3.30% 3.27%370 1983 156,484 10,484 10,070 414 0.26% 0.41% 0.32% 0.50% 1.12% 1.54% 1.85% 2.39% 2.91% 2.92%370 1984 160,178 2,696 6,512 (3,816)             ‐2.38% ‐1.07% ‐0.54% ‐0.36% ‐0.12% 0.48% 0.92% 1.27% 1.78% 2.28%370 1985 204,321 38,898 7,287 31,611 15.47% 7.63% 5.41% 4.29% 3.51% 3.22% 3.32% 3.38% 3.40% 3.69%370 1986 330,802 15,999 9,932 6,067 1.83% 7.04% 4.87% 4.02% 3.49% 3.03% 2.87% 2.97% 3.04% 3.09%370 1987 221,756 8,848 9,520 (672)                ‐0.30% 0.98% 4.89% 3.62% 3.13% 2.80% 2.50% 2.40% 2.52% 2.62%370 1988 95,891 12,167 16,297 (4,130)             ‐4.31% ‐1.51% 0.20% 3.86% 2.87% 2.52% 2.29% 2.06% 2.00% 2.15%370 1989 177,383 7,010 11,964 (4,954)             ‐2.79% ‐3.32% ‐1.97% ‐0.45% 2.71% 2.03% 1.82% 1.69% 1.54% 1.52%370 1990 288,035 5,059 5,996 (937)                ‐0.33% ‐1.27% ‐1.79% ‐1.37% ‐0.42% 2.05% 1.57% 1.44% 1.36% 1.27%370 1991 352,276 10,524 8,218 2,306 0.65% 0.21% ‐0.44% ‐0.84% ‐0.74% ‐0.16% 1.75% 1.39% 1.30% 1.25%370 1992 367,768 4,102 11,900 (7,798)             ‐2.12% ‐0.76% ‐0.64% ‐0.96% ‐1.21% ‐1.08% ‐0.55% 1.05% 0.80% 0.77%370 1993 475,114 3,128 5,900 (2,772)             ‐0.58% ‐1.25% ‐0.69% ‐0.62% ‐0.85% ‐1.04% ‐0.96% ‐0.56% 0.74% 0.56%370 1994 435,089 3,156 8,895 (5,739)             ‐1.32% ‐0.94% ‐1.28% ‐0.86% ‐0.78% ‐0.95% ‐1.10% ‐1.02% ‐0.68% 0.44%370 1995 325,445 14,953 11,494 3,459 1.06% ‐0.30% ‐0.41% ‐0.80% ‐0.54% ‐0.51% ‐0.68% ‐0.82% ‐0.78% ‐0.49%370 1996 948,078 43,560 33,483 10,076 1.06% 1.06% 0.46% 0.23% ‐0.11% ‐0.02% ‐0.04% ‐0.19% ‐0.30% ‐0.30%370 1997 1,102,283 50,645 38,929 11,715 1.06% 1.06% 1.06% 0.69% 0.51% 0.24% 0.28% 0.24% 0.12% 0.03%370 1998 1,102,283 50,645 38,929 11,715 1.06% 1.06% 1.06% 1.06% 0.80% 0.65% 0.43% 0.45% 0.41% 0.31%370 1999 ‐                             ‐                   ‐                  ‐                 NA 1.06% 1.06% 1.06% 1.06% 0.80% 0.65% 0.43% 0.45% 0.41%370 2000 ‐                             ‐                   ‐                  ‐                 NA NA 1.06% 1.06% 1.06% 1.06% 0.80% 0.65% 0.43% 0.45%370 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA 1.06% 1.06% 1.06% 1.06% 0.80% 0.65% 0.43%370 2002 78 103,214 103,214           ‐                 0.00% 0.00% 0.00% 0.00% 1.06% 1.06% 1.06% 1.06% 0.80% 0.65%370 2003 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 0.00% 0.00% 1.06% 1.06% 1.06% 1.06% 0.80%370 2004 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% 0.00% 0.00% 1.06% 1.06% 1.06% 1.06%370 2005 1,135,066                 ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.52% 0.70% 0.78%370 2006 1,592,930                 ‐                   13,640 (13,640)           ‐0.86% ‐0.50% ‐0.50% ‐0.50% ‐0.50% ‐0.50% ‐0.50% ‐0.50% ‐0.05% 0.20%370 2007 3,656,069                 ‐                   968,429 (968,429)         ‐26.49% ‐18.71% ‐15.38% ‐15.38% ‐15.38% ‐15.38% ‐15.38% ‐15.38% ‐15.38% ‐12.96%370 2008 1,762,801                 ‐                   ‐                  ‐                 0.00% ‐17.87% ‐14.01% ‐12.05% ‐12.05% ‐12.05% ‐12.05% ‐12.05% ‐12.05% ‐12.05%370 2009 2,086,694                 ‐                   ‐                  ‐                 0.00% 0.00% ‐12.90% ‐10.79% ‐9.60% ‐9.60% ‐9.60% ‐9.60% ‐9.60% ‐9.60%370 2010 1,607,483                 ‐                   644,593 (644,593)         ‐40.10% ‐17.45% ‐11.81% ‐17.70% ‐15.19% ‐13.74% ‐13.74% ‐13.74% ‐13.74% ‐13.74%370 2011 3,944,904                 ‐                   ‐                  ‐                 0.00% ‐11.61% ‐8.44% ‐6.86% ‐12.35% ‐11.10% ‐10.30% ‐10.30% ‐10.30% ‐10.30%370 2012 1,275,813                 ‐                   ‐                  ‐                 0.00% 0.00% ‐9.44% ‐7.23% ‐6.04% ‐11.25% ‐10.21% ‐9.53% ‐9.53% ‐9.53%

Attachment DAW-RR-2 

Page 128 of 140 

Docket: 42004

RR3 - 138 of 509 01254
Appendix E-2

Page 18 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

371 1966 50,665 18,047 6,247 11,800 23.29%371 1967 47,372 20,644 6,654 13,990 29.53% 26.31%371 1968 53,838 13,535 8,294 5,241 9.73% 19.00% 20.43%371 1969 55,556 13,498 9,561 3,937 7.09% 8.39% 14.78% 16.86%371 1970 46,762 7,159 9,331 (2,172)             ‐4.64% 1.73% 4.49% 10.32% 12.90%371 1971 47,880 13,565 15,981 (2,416)             ‐5.05% ‐4.85% ‐0.43% 2.25% 7.39% 10.06%371 1972 45,620 15,699 10,967 4,732 10.37% 2.48% 0.10% 2.08% 3.73% 7.85% 10.10%371 1973 49,637 17,833 9,589 8,244 16.61% 13.62% 7.38% 4.42% 5.02% 5.87% 9.10% 10.91%371 1974 49,657 22,079 11,762 10,317 20.78% 18.69% 16.07% 10.83% 7.81% 7.67% 7.99% 10.57% 12.01%371 1975 44,269 26,992 13,185 13,807 31.19% 25.68% 22.55% 19.61% 14.63% 11.45% 10.74% 10.60% 12.64% 13.74%371 1976 51,408 32,169 16,598 15,571 30.29% 30.71% 27.31% 24.59% 21.89% 17.42% 14.34% 13.31% 12.88% 14.48%371 1977 53,635 30,514 21,460 9,054 16.88% 23.44% 25.74% 24.50% 22.93% 20.98% 17.34% 14.69% 13.74% 13.31%371 1978 74,439 36,022 32,881 3,141 4.22% 9.52% 15.47% 18.58% 18.98% 18.61% 17.59% 14.99% 13.01% 12.38%371 1979 91,618 57,668 45,560 12,108 13.22% 9.18% 11.06% 14.71% 17.02% 17.53% 17.42% 16.72% 14.67% 13.04%371 1980 135,781 82,865 66,474 16,391 12.07% 12.53% 10.48% 11.45% 13.83% 15.53% 16.05% 16.10% 15.66% 14.12%371 1981 228,237 128,802 107,146 21,656 9.49% 10.45% 11.01% 10.05% 10.68% 12.27% 13.50% 14.00% 14.16% 13.95%371 1982 175,040 102,823 110,408 (7,585)             ‐4.33% 3.49% 5.65% 6.75% 6.48% 7.22% 8.68% 9.85% 10.45% 10.77%371 1983 213,671 106,842 129,150 (22,308)           ‐10.44% ‐7.69% ‐1.34% 1.08% 2.40% 2.55% 3.34% 4.69% 5.79% 6.46%371 1984 280,059 105,812 172,034 (66,222)           ‐23.65% ‐17.93% ‐14.37% ‐8.30% ‐5.62% ‐4.09% ‐3.57% ‐2.70% ‐1.40% ‐0.33%371 1985 498,543 135,347 192,687 (57,340)           ‐11.50% ‐15.87% ‐14.70% ‐13.15% ‐9.44% ‐7.54% ‐6.36% ‐5.90% ‐5.20% ‐4.19%371 1986 267,670 115,320 202,767 (87,447)           ‐32.67% ‐18.90% ‐20.17% ‐18.52% ‐16.79% ‐13.18% ‐11.28% ‐10.09% ‐9.55% ‐8.84%371 1987 323,785 110,418 225,693 (115,275)         ‐35.60% ‐34.28% ‐23.86% ‐23.82% ‐22.01% ‐20.25% ‐16.84% ‐14.99% ‐13.82% ‐13.23%371 1988 261,273 90,521 219,561 (129,040)         ‐49.39% ‐41.76% ‐38.91% ‐28.80% ‐27.91% ‐25.89% ‐24.02% ‐20.62% ‐18.76% ‐17.57%371 1989 304,006 114,089 299,746 (185,657)         ‐61.07% ‐55.67% ‐48.36% ‐44.73% ‐34.72% ‐33.12% ‐30.86% ‐28.87% ‐25.44% ‐23.54%371 1990 298,192 95,256 301,745 (206,489)         ‐69.25% ‐65.12% ‐60.36% ‐53.61% ‐49.76% ‐39.99% ‐37.94% ‐35.54% ‐33.46% ‐30.02%371 1991 241,341 96,183 274,771 (178,588)         ‐74.00% ‐71.37% ‐67.66% ‐63.34% ‐57.05% ‐53.20% ‐43.73% ‐41.46% ‐38.99% ‐36.88%371 1992 324,525 116,929 336,322 (219,393)         ‐67.60% ‐70.33% ‐69.96% ‐67.64% ‐64.31% ‐59.01% ‐55.52% ‐46.81% ‐44.49% ‐42.08%371 1993 273,551 84,874 274,360 (189,486)         ‐69.27% ‐68.37% ‐69.99% ‐69.79% ‐67.95% ‐65.10% ‐60.39% ‐57.16% ‐49.01% ‐46.70%371 1994 374,474 110,599 333,446 (222,847)         ‐59.51% ‐63.63% ‐64.96% ‐66.75% ‐67.25% ‐66.21% ‐64.10% ‐60.25% ‐57.49% ‐50.25%371 1995 29,660 11,814 22,209 (10,395)           ‐35.05% ‐57.71% ‐62.38% ‐64.07% ‐66.00% ‐66.63% ‐65.71% ‐63.69% ‐59.95% ‐57.24%371 1996 138,879 55,318 103,990 (48,672)           ‐35.05% ‐35.05% ‐51.92% ‐57.73% ‐60.54% ‐62.89% ‐64.02% ‐63.56% ‐61.92% ‐58.60%371 1997 104,323 41,554 78,115 (36,562)           ‐35.05% ‐35.05% ‐35.05% ‐49.20% ‐55.16% ‐58.40% ‐60.93% ‐62.32% ‐62.14% ‐60.72%371 1998 28,438 11,327 21,294 (9,967)             ‐35.05% ‐35.05% ‐35.05% ‐35.05% ‐48.60% ‐54.56% ‐57.88% ‐60.45% ‐61.90% ‐61.78%371 1999 105,483                     ‐                   ‐                  ‐                 0.00% ‐7.44% ‐19.53% ‐25.24% ‐25.96% ‐42.04% ‐49.10% ‐53.45% ‐56.51% ‐58.49%371 2000 ‐                             ‐                   ‐                  ‐                 NA 0.00% ‐7.44% ‐19.53% ‐25.24% ‐25.96% ‐42.04% ‐49.10% ‐53.45% ‐56.51%371 2001 22,040                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐6.39% ‐17.88% ‐23.85% ‐24.62% ‐40.89% ‐48.10% ‐52.61%371 2002 222,879 24,634 25,629 (995)                ‐0.45% ‐0.41% ‐0.41% ‐0.28% ‐2.89% ‐9.84% ‐15.46% ‐16.36% ‐32.10% ‐39.93%371 2003 28,625                       ‐                   2,647 (2,647)             ‐9.25% ‐1.45% ‐1.33% ‐1.33% ‐0.96% ‐3.34% ‐9.80% ‐15.19% ‐16.06% ‐31.48%371 2004 144,321                     ‐                   35,720 (35,720)           ‐24.75% ‐22.18% ‐9.94% ‐9.42% ‐9.42% ‐7.52% ‐8.94% ‐13.09% ‐16.93% ‐17.58%371 2005 353,445                     ‐                   36,254 (36,254)           ‐10.26% ‐14.46% ‐14.18% ‐10.09% ‐9.80% ‐9.80% ‐8.62% ‐9.45% ‐12.10% ‐14.87%371 2006 104,725                     ‐                   29,289 (29,289)           ‐27.97% ‐14.31% ‐16.81% ‐16.46% ‐12.28% ‐11.97% ‐11.97% ‐10.69% ‐11.37% ‐13.59%371 2007 25,428 12,763 36,309 (23,546)           ‐92.60% ‐40.59% ‐18.42% ‐19.88% ‐19.41% ‐14.61% ‐14.25% ‐14.25% ‐12.76% ‐13.37%371 2008 11,348 205 7,381 (7,176)             ‐63.24% ‐83.54% ‐42.41% ‐19.45% ‐20.65% ‐20.16% ‐15.23% ‐14.86% ‐14.86% ‐13.32%371 2009 2,409                         ‐                   3,529 (3,529)             ‐146.48% ‐77.81% ‐87.41% ‐44.15% ‐20.06% ‐21.12% ‐20.61% ‐15.58% ‐15.20% ‐15.20%371 2010 36,441                       ‐                   16,528 (16,528)           ‐45.36% ‐51.63% ‐54.25% ‐67.15% ‐44.40% ‐21.79% ‐22.42% ‐21.89% ‐16.75% ‐16.36%371 2011 17,357                       ‐                   16,482 (16,482)           ‐94.96% ‐61.36% ‐65.01% ‐64.71% ‐72.34% ‐48.83% ‐24.10% ‐24.23% ‐23.64% ‐18.18%371 2012 41,007 36 6,459 (6,424)             ‐15.66% ‐39.25% ‐41.59% ‐44.19% ‐46.18% ‐54.99% ‐43.14% ‐23.51% ‐23.75% ‐23.21%

Attachment DAW-RR-2 

Page 129 of 140 

Docket: 42004

RR3 - 139 of 509 01255
Appendix E-2

Page 19 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

373 1963 95,647 3,444 2,164 1,280 1.34%373 1964 149,656 9,015 3,130 5,885 3.93% 2.92%373 1965 62,440 3,691 1,402 2,289 3.67% 3.85% 3.07%373 1966 127,924 15,314 4,753 10,561 8.26% 6.75% 5.51% 4.59%373 1967 243,817 9,206 6,984 2,222 0.91% 3.44% 3.47% 3.59% 3.27%373 1968 125,013 18,843 12,253 6,590 5.27% 2.39% 3.90% 3.87% 3.89% 3.58%373 1969 124,904 28,398 18,401 9,997 8.00% 6.64% 3.81% 4.72% 4.63% 4.50% 4.18%373 1970 116,438 14,042 14,795 (753)                ‐0.65% 3.83% 4.32% 2.96% 3.88% 3.86% 3.87% 3.64%373 1971 68,272 395 118 277 0.41% ‐0.26% 3.08% 3.71% 2.70% 3.58% 3.59% 3.64% 3.44%373 1972 77,348 2,170 312 1,858 2.40% 1.47% 0.53% 2.94% 3.51% 2.67% 3.48% 3.49% 3.55% 3.37%373 1973 125,363 6,655 1,883 4,772 3.81% 3.27% 2.55% 1.59% 3.15% 3.57% 2.83% 3.52% 3.53% 3.58%373 1974 62,550 8,328 9,554 (1,226)             ‐1.96% 1.89% 2.04% 1.70% 1.10% 2.60% 3.07% 2.52% 3.20% 3.23%373 1975 32,736 13,259 5,651 7,608 23.24% 6.70% 5.06% 4.37% 3.63% 2.60% 3.71% 3.98% 3.21% 3.79%373 1976 34,424 13,116 3,205 9,911 28.79% 26.09% 12.56% 8.26% 6.90% 5.79% 4.34% 5.05% 5.09% 4.08%373 1977 56,836 21,475 12,368 9,107 16.02% 20.84% 21.47% 13.62% 9.67% 8.23% 7.06% 5.50% 5.95% 5.84%373 1978 25,791 12,583 8,255 4,328 16.78% 16.26% 19.95% 20.67% 14.00% 10.22% 8.76% 7.58% 5.98% 6.33%373 1979 23,177 10,666 7,755 2,911 12.56% 14.78% 15.45% 18.72% 19.58% 13.86% 10.37% 8.96% 7.81% 6.23%373 1980 68,306 20,471 13,497 6,974 10.21% 10.81% 12.12% 13.39% 15.94% 16.93% 13.04% 10.34% 9.13% 8.09%373 1981 26,732 18,857 11,712 7,145 26.73% 14.86% 14.41% 14.83% 15.17% 17.16% 17.90% 14.15% 11.30% 10.01%373 1982 87,698 8,900 15,045 (6,145)             ‐7.01% 0.87% 4.36% 5.29% 6.57% 8.43% 10.60% 11.76% 9.71% 8.35%373 1983 37,153 147,363 26,409 120,954 325.56% 91.96% 80.45% 58.63% 54.24% 50.65% 44.60% 43.09% 41.44% 35.48%373 1984 59,416 99,675 25,550 74,125 124.76% 202.01% 102.53% 92.93% 72.70% 68.09% 64.06% 56.97% 54.66% 52.38%373 1985 96,012 82,563 33,456 49,107 51.15% 79.29% 126.80% 84.93% 79.86% 67.19% 64.01% 61.14% 55.81% 54.00%373 1986 77,373 114,070 53,700 60,370 78.02% 63.14% 78.87% 112.82% 83.44% 79.49% 69.04% 66.29% 63.74% 58.89%373 1987 82,440 84,656 54,989 29,667 35.99% 56.34% 54.39% 67.65% 94.84% 74.55% 71.81% 63.95% 61.81% 59.82%373 1988 53,131 66,337 51,779 14,558 27.40% 32.62% 49.12% 49.75% 61.85% 86.01% 69.47% 67.27% 60.65% 58.82%373 1989 108,621 112,039 94,622 17,417 16.03% 19.77% 25.24% 37.94% 40.98% 51.41% 71.22% 59.82% 58.42% 53.69%373 1990 134,898 117,546 118,659 (1,113)             ‐0.83% 6.70% 10.40% 15.97% 26.49% 30.77% 39.90% 56.25% 48.72% 47.95%373 1991 46,998 86,378 57,497 28,881 61.45% 15.27% 15.55% 17.38% 20.98% 29.75% 33.18% 41.44% 56.60% 49.48%373 1992 48,812 70,695 66,002 4,693 9.61% 35.04% 14.07% 14.70% 16.42% 19.82% 27.97% 31.40% 39.24% 53.52%373 1993 45,524 26,796 39,820 (13,024)           ‐28.61% ‐8.83% 14.54% 7.04% 9.58% 11.74% 15.58% 23.66% 27.47% 35.14%373 1994 44,514 63,140 49,796 13,344 29.98% 0.36% 3.61% 18.24% 10.22% 11.69% 13.42% 16.71% 24.10% 27.62%373 1995 63,130 60,533 38,338 22,195 35.16% 33.02% 14.70% 13.47% 22.53% 14.32% 14.70% 15.94% 18.57% 25.09%373 1996 110,452 105,908 67,076 38,832 35.16% 35.16% 34.10% 23.27% 21.14% 26.41% 18.98% 18.45% 19.17% 21.05%373 1997 71,189 68,260 43,232 25,028 35.16% 35.16% 35.16% 34.36% 25.80% 23.74% 27.85% 21.01% 20.21% 20.74%373 1998 28,510 27,337 17,314 10,023 35.16% 35.16% 35.16% 35.16% 34.43% 26.53% 24.53% 28.31% 21.69% 20.82%373 1999 110,180                     ‐                   ‐                  ‐                 0.00% 7.23% 16.70% 23.06% 25.06% 25.57% 20.36% 19.35% 22.83% 18.30%373 2000 ‐                             ‐                   ‐                  ‐                 NA 0.00% 7.23% 16.70% 23.06% 25.06% 25.57% 20.36% 19.35% 22.83%373 2001 23,134 2,161 11,284 (9,122)             ‐39.43% ‐39.43% ‐6.84% 0.56% 11.13% 18.86% 21.39% 22.23% 17.57% 16.86%373 2002 186,485 4,043 12,153 (8,111)             ‐4.35% ‐8.22% ‐8.22% ‐5.39% ‐2.07% 4.25% 10.69% 13.29% 14.46% 11.59%373 2003 47,889                       ‐                   15,494 (15,494)           ‐32.35% ‐10.07% ‐12.71% ‐12.71% ‐8.90% ‐5.73% 0.50% 7.12% 9.88% 11.19%373 2004 314,751                     ‐                   113,113 (113,113)         ‐35.94% ‐35.46% ‐24.90% ‐25.48% ‐25.48% ‐21.37% ‐19.10% ‐14.16% ‐8.06% ‐5.21%373 2005 428,676                     ‐                   181,832 (181,832)         ‐42.42% ‐39.67% ‐39.23% ‐32.58% ‐32.74% ‐32.74% ‐29.49% ‐27.87% ‐24.17% ‐19.21%373 2006 700,500                     ‐                   334,979 (334,979)         ‐47.82% ‐45.77% ‐43.63% ‐43.26% ‐38.94% ‐38.95% ‐38.95% ‐36.58% ‐35.47% ‐32.84%373 2007 207,354 83,763 464,535 (380,772)         ‐183.63% ‐78.84% ‐67.16% ‐61.21% ‐60.39% ‐54.85% ‐54.66% ‐54.66% ‐51.68% ‐50.47%373 2008 1,073,246 5,375 472,455 (467,080)         ‐43.52% ‐66.21% ‐59.71% ‐56.63% ‐54.24% ‐53.86% ‐50.74% ‐50.65% ‐50.65% ‐48.85%373 2009 656,663 65,428 462,899 (397,471)         ‐60.53% ‐49.98% ‐64.28% ‐59.91% ‐57.47% ‐55.46% ‐55.14% ‐52.52% ‐52.44% ‐52.44%373 2010 477,769 9,626 470,575 (460,949)         ‐96.48% ‐75.67% ‐60.04% ‐70.65% ‐65.52% ‐62.72% ‐60.54% ‐60.19% ‐57.65% ‐57.55%373 2011 290,614 52,509 480,074 (427,565)         ‐147.12% ‐115.63% ‐90.24% ‐70.17% ‐78.87% ‐72.48% ‐69.12% ‐66.60% ‐66.21% ‐63.58%373 2012 872,185 36 385,543 (385,507)         ‐44.20% ‐69.92% ‐77.66% ‐72.76% ‐63.45% ‐70.42% ‐66.72% ‐64.50% ‐62.71% ‐62.43%

Attachment DAW-RR-2 

Page 130 of 140 

Docket: 42004

RR3 - 140 of 509 01256
Appendix E-2

Page 20 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

389 1995 ‐                             ‐                   ‐                  ‐                 NA NA389 1996 ‐                             ‐                   ‐                  ‐                 NA NA NA389 1997 ‐                             ‐                   ‐                  ‐                 NA NA NA NA389 1998 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA389 1999 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA389 2000 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA389 2001 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA389 2002 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA389 2003 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2004 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2005 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2006 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2007 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2008 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2009 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2010 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2011 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA389 2012 ‐                             ‐                   ‐                  ‐                 NA NA NA NA NA NA NA NA NA NA

Attachment DAW-RR-2 

Page 131 of 140 

Docket: 42004

RR3 - 141 of 509 01257
Appendix E-2

Page 21 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

390 1977 29,481 2,352 6,289 (3,937)             ‐13.35%390 1978 53,296 1,067 3,914 (2,847)             ‐5.34% ‐8.20%390 1979 165,239 36,296 6,324 29,972 18.14% 12.41% 9.35%390 1980 7,493 734 135 599 7.99% 17.70% 12.27% 9.31%390 1981 25,892 1,152 970 182 0.70% 2.34% 15.48% 11.08% 8.52%390 1982 111,270 1,227 1,880 (653)                ‐0.59% ‐0.34% 0.09% 9.71% 7.50% 5.94%390 1983 46,615 443 1,154 (711)                ‐1.53% ‐0.86% ‐0.64% ‐0.30% 8.24% 6.48% 5.15%390 1984 110,768 11,461 2,267 9,194 8.30% 5.39% 2.91% 2.72% 2.85% 8.26% 6.86% 5.78%390 1985 35,446 270 4,853 (4,583)             ‐12.93% 3.15% 2.02% 1.07% 1.04% 1.19% 6.76% 5.60% 4.65%390 1986 52,958 92 594 (502)                ‐0.95% ‐5.75% 2.06% 1.38% 0.77% 0.76% 0.90% 6.03% 5.03% 4.18%390 1987 194,632 164,561 2,188 162,373 83.43% 65.38% 55.57% 42.28% 37.64% 29.93% 28.62% 28.36% 26.11% 24.02%390 1988 193,674                     ‐                   7,052 (7,052)             ‐3.64% 40.00% 35.09% 31.52% 27.14% 25.03% 21.21% 20.52% 20.40% 20.00%390 1989 174,775 91,714 26,725 64,989 37.18% 15.72% 39.13% 35.68% 33.04% 29.44% 27.66% 24.24% 23.60% 23.47%390 1990 197,267 20,615 43,708 (23,093)           ‐11.71% 11.26% 6.16% 25.94% 24.19% 22.64% 20.98% 19.94% 17.90% 17.51%390 1991 295,846 16,740 221,664 (204,924)         ‐69.27% ‐46.24% ‐24.41% ‐19.74% ‐0.73% ‐0.74% ‐1.12% ‐0.29% ‐0.33% ‐0.35%390 1992 93,213                       ‐                   22,580 (22,580)           ‐24.22% ‐58.48% ‐42.74% ‐24.39% ‐20.18% ‐2.64% ‐2.56% ‐2.86% ‐1.94% ‐1.93%390 1993 128,059 242 17,234 (16,992)           ‐13.27% ‐17.88% ‐47.28% ‐37.46% ‐22.79% ‐19.36% ‐3.70% ‐3.59% ‐3.83% ‐2.92%390 1994 361,903 39,167 54,381 (15,214)           ‐4.20% ‐6.57% ‐9.39% ‐29.55% ‐26.28% ‐17.41% ‐15.56% ‐3.81% ‐3.72% ‐3.91%390 1995 183,425 (652) 27,553 (28,205)           ‐15.38% ‐7.96% ‐8.97% ‐10.83% ‐27.10% ‐24.69% ‐17.15% ‐15.54% ‐4.98% ‐4.86%390 1996 299,410 (8,592) 72,903 (81,495)           ‐27.22% ‐22.72% ‐14.79% ‐14.59% ‐15.43% ‐27.13% ‐25.17% ‐18.89% ‐17.36% ‐8.11%390 1997 556,505                     ‐                   5,606 (5,606)             ‐1.01% ‐10.18% ‐11.09% ‐9.31% ‐9.65% ‐10.48% ‐19.55% ‐18.82% ‐14.54% ‐13.69%390 1998 185,745                     ‐                   ‐                  ‐                 0.00% ‐0.76% ‐8.36% ‐9.41% ‐8.22% ‐8.60% ‐9.41% ‐17.82% ‐17.30% ‐13.45%390 1999 5,398                         ‐                   ‐                  ‐                 0.00% 0.00% ‐0.75% ‐8.32% ‐9.37% ‐8.20% ‐8.57% ‐9.38% ‐17.78% ‐17.26%390 2000 168,513 95,628 8,023 87,604 51.99% 50.37% 24.36% 8.95% 0.04% ‐1.98% ‐2.44% ‐3.17% ‐4.16% ‐12.62%390 2001 210,977                     ‐                   ‐                  ‐                 0.00% 23.08% 22.76% 15.35% 7.27% 0.04% ‐1.72% ‐2.18% ‐2.85% ‐3.76%390 2002 351,147 39,900 49,864 (9,964)             ‐2.84% ‐1.77% 10.63% 10.55% 8.42% 4.87% ‐0.53% ‐1.92% ‐2.28% ‐2.85%390 2003 526,407 324,547 108,874 215,672 40.97% 23.44% 18.90% 23.33% 23.23% 20.25% 14.35% 8.95% 7.16% 5.71%390 2004 31,815 (18,779)             ‐                  (18,779) ‐59.03% 35.27% 20.56% 16.68% 21.30% 21.21% 18.55% 13.21% 8.02% 6.32%390 2005 478,956 260 1,500 (1,240)             ‐0.26% ‐3.92% 18.86% 13.38% 11.61% 15.46% 15.41% 13.95% 10.64% 6.61%390 2006 56,178 341,312 631,302 (289,989)         ‐516.19% ‐54.42% ‐54.68% ‐8.63% ‐7.22% ‐6.30% ‐0.92% ‐0.91% ‐0.83% ‐0.87%390 2007 93,709 (1,035) 22,854 (23,889)           ‐25.49% ‐209.41% ‐50.11% ‐50.54% ‐9.96% ‐8.33% ‐7.33% ‐2.12% ‐2.11% ‐1.92%390 2008 121,615                     ‐                   14,873 (14,873)           ‐12.23% ‐18.00% ‐121.09% ‐43.97% ‐44.58% ‐10.17% ‐8.62% ‐7.65% ‐2.72% ‐2.71%390 2009 31,950                       ‐                   9,068 (9,068)             ‐28.38% ‐15.59% ‐19.34% ‐111.33% ‐43.34% ‐43.95% ‐10.60% ‐8.99% ‐8.00% ‐3.12%390 2010 ‐                             ‐                   ‐                  ‐                 NA ‐28.38% ‐15.59% ‐19.34% ‐111.33% ‐43.34% ‐43.95% ‐10.60% ‐8.99% ‐8.00%390 2011 1,204,983                 ‐                   337,193 (337,193)         ‐27.98% ‐27.98% ‐27.99% ‐26.58% ‐26.51% ‐44.75% ‐34.03% ‐34.42% ‐18.83% ‐16.89%390 2012 612,960 100 287,445 (287,345)         ‐46.88% ‐34.35% ‐34.35% ‐34.25% ‐32.89% ‐32.56% ‐45.36% ‐37.06% ‐37.32% ‐24.27%

Attachment DAW-RR-2 

Page 132 of 140 

Docket: 42004

RR3 - 142 of 509 01258
Appendix E-2

Page 22 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

391 1988 32,100 565                    ‐                  565 1.76%391 1989 105,533 3,068                ‐                  3,068 2.91% 2.64%391 1990 64,111 2,376 106 2,270 3.54% 3.15% 2.93%391 1991 111,663 8,132                ‐                  8,132 7.28% 5.92% 4.79% 4.48%391 1992 73,139 577 1,862 (1,285)             ‐1.76% 3.71% 3.66% 3.44% 3.30%391 1993 48,357 225                    ‐                  225 0.47% ‐0.87% 3.03% 3.14% 3.08% 2.98%391 1994 35,118                       ‐                   220 (220) ‐0.63% 0.01% ‐0.82% 2.55% 2.74% 2.78% 2.71%391 1995 21,835 2,670                ‐                  2,670 12.23% 4.30% 2.54% 0.78% 3.28% 3.33% 3.23% 3.14%391 1996 27,924 926                    ‐                  926 3.32% 7.23% 3.98% 2.70% 1.12% 3.29% 3.33% 3.24% 3.15%391 1997 494,556                     ‐                   ‐                  ‐                 0.00% 0.18% 0.66% 0.58% 0.57% 0.33% 1.29% 1.45% 1.61% 1.61%391 1998 76,609                       ‐                   ‐                  ‐                 0.00% 0.00% 0.15% 0.58% 0.51% 0.51% 0.30% 1.17% 1.33% 1.49%391 1999 470,070                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.09% 0.33% 0.30% 0.31% 0.19% 0.77% 0.89%391 2000 29,174                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.08% 0.32% 0.29% 0.30% 0.18% 0.75%391 2001 181,403                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.07% 0.28% 0.25% 0.26% 0.16%391 2002 56,331                       ‐                   2,920 (2,920)             ‐5.18% ‐1.23% ‐1.09% ‐0.40% ‐0.36% ‐0.22% ‐0.15% 0.05% 0.03% 0.05%391 2003 563,780 27,828 11,648 16,180 2.87% 2.14% 1.65% 1.60% 1.02% 0.96% 0.71% 0.75% 0.88% 0.85%391 2004 76,621 131                    ‐                  131 0.17% 2.55% 1.92% 1.52% 1.48% 0.97% 0.92% 0.69% 0.72% 0.85%391 2005 13,281 330                    ‐                  330 2.49% 0.51% 2.55% 1.93% 1.54% 1.49% 0.99% 0.94% 0.70% 0.74%391 2006 7,331 75                      ‐                  75 1.02% 1.97% 0.55% 2.53% 1.92% 1.54% 1.49% 0.99% 0.94% 0.70%391 2007 ‐ 265                    ‐                  265 NA 4.64% 3.25% 0.82% 2.57% 1.96% 1.56% 1.52% 1.01% 0.95%391 2008 3,062                         ‐                   ‐                  ‐                 0.00% 8.65% 3.27% 2.83% 0.80% 2.56% 1.95% 1.56% 1.51% 1.00%391 2009 67,584                       ‐                   ‐                  ‐                 0.00% 0.00% 0.38% 0.44% 0.73% 0.48% 2.32% 1.78% 1.45% 1.41%391 2010 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 0.38% 0.44% 0.73% 0.48% 2.32% 1.78% 1.45%391 2011 ‐                             ‐                   9,601 (9,601) NA NA ‐14.21% ‐13.59% ‐13.22% ‐11.88% ‐9.79% ‐5.24% 1.01% 0.57%391 2012 ‐                             ‐                   1,405 (1,405) NA NA NA ‐16.29% ‐15.58% ‐15.21% ‐13.68% ‐11.33% ‐6.08% 0.82%

391.02 2006 7,039 92 13,223 (13,131)           ‐186.56%

391.02 2007 ‐ 40 5 35 NA ‐186.06%391.02 2008 ‐                             ‐                   ‐                  ‐                 NA NA ‐186.06%391.02 2009 ‐                             ‐                   ‐                  ‐                 NA NA NA ‐186.06%391.02 2010 ‐                             ‐                   ‐                  ‐                 NA NA NA NA ‐186.06%391.02 2011 3,053,117                 ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% ‐0.43%391.02 2012 11,585,344 (3,461) 5,648               ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐0.09%

Attachment DAW-RR-2 

Page 133 of 140 

Docket: 42004

RR3 - 143 of 509 01259
Appendix E-2

Page 23 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

392 1968 271,025 52,273 35 52,238 19.27%392 1969 440,172 97,714 15 97,699 22.20% 21.08%392 1970 510,478 101,122 672 100,450 19.68% 20.84% 20.50%392 1971 504,355 115,792            ‐                  115,792 22.96% 21.31% 21.58% 21.22%392 1972 542,695 124,345 46 124,299 22.90% 22.93% 21.86% 21.94% 21.62%392 1973 521,679 74,787 488 74,299 14.24% 18.66% 20.04% 19.95% 20.34% 20.24%392 1974 469,773 131,277 148 131,129 27.91% 20.72% 21.49% 21.86% 21.42% 21.53% 21.35%392 1975 376,917 77,961 414 77,547 20.57% 24.65% 20.68% 21.31% 21.66% 21.31% 21.43% 21.27%392 1976 537,830 62,953 886 62,067 11.54% 15.26% 19.56% 18.10% 19.17% 19.81% 19.79% 20.06% 20.01%392 1977 440,410 72,236 150 72,086 16.37% 13.71% 15.62% 18.79% 17.78% 18.74% 19.37% 19.41% 19.69% 19.67%392 1978 324,496 72,221 412 71,809 22.13% 18.81% 15.81% 16.88% 19.29% 18.30% 19.08% 19.61% 19.62% 19.86%392 1979 487,562 130,285 1,522 128,763 26.41% 24.70% 21.77% 18.70% 19.02% 20.61% 19.56% 20.05% 20.40% 20.32%392 1980 669,394 160,314 1,218 159,096 23.77% 24.88% 24.28% 22.47% 20.08% 20.14% 21.25% 20.29% 20.62% 20.86%392 1981 270,204 67,433 1,636 65,797 24.35% 23.94% 24.78% 24.29% 22.70% 20.50% 20.51% 21.48% 20.56% 20.83%392 1982 428,513 87,830 165 87,665 20.46% 21.96% 22.85% 23.78% 23.54% 22.33% 20.49% 20.50% 21.37% 20.55%392 1983 783,821 235,081 10,145 224,936 28.70% 25.79% 25.52% 24.98% 25.24% 24.90% 23.80% 22.13% 21.99% 22.57%392 1984 740,381 169,668 9,482 160,186 21.64% 25.27% 24.21% 24.23% 24.12% 24.45% 24.25% 23.41% 22.05% 21.94%392 1985 487,749 115,175 7,726 107,449 22.03% 21.79% 24.48% 23.78% 23.83% 23.82% 24.15% 23.99% 23.27% 22.05%392 1986 1,235,434 241,506 22,563 218,943 17.72% 18.94% 19.75% 21.91% 21.74% 21.92% 22.19% 22.59% 22.56% 22.10%392 1987 605,759 127,138 1,054 126,084 20.81% 18.74% 19.43% 19.96% 21.74% 21.61% 21.77% 22.03% 22.40% 22.39%392 1988 1,082,394 230,200            ‐                  230,200 21.27% 21.10% 19.68% 20.01% 20.30% 21.63% 21.54% 21.68% 21.90% 22.22%392 1989 879,289 166,040 1,218 164,822 18.74% 20.14% 20.30% 19.46% 19.75% 20.03% 21.20% 21.15% 21.28% 21.51%392 1990 477,942 91,445              ‐                  91,445 19.13% 18.88% 19.94% 20.11% 19.42% 19.69% 19.95% 21.04% 21.00% 21.13%392 1991 1,331,314 214,700 12,484 202,216 15.19% 16.23% 17.05% 18.26% 18.62% 18.42% 18.71% 19.02% 20.02% 20.04%392 1992 802,383 177,955 23,589 154,366 19.24% 16.71% 17.16% 17.56% 18.43% 18.71% 18.52% 18.77% 19.05% 19.94%392 1993 2,093,096 429,499 60,611 368,888 17.62% 18.07% 17.16% 17.36% 17.58% 18.18% 18.40% 18.30% 18.50% 18.74%392 1994 1,247,106 286,529 39,805 246,724 19.78% 18.43% 18.59% 17.76% 17.87% 17.98% 18.43% 18.60% 18.49% 18.66%392 1995 1,359,711 308,288 49,887 258,401 19.00% 19.38% 18.60% 18.69% 18.01% 18.08% 18.15% 18.52% 18.66% 18.55%392 1996 1,770,617 419,554 39,866 379,688 21.44% 20.38% 20.21% 19.38% 19.36% 18.72% 18.74% 18.74% 18.99% 19.08%392 1997 1,934,737 163,974 3,231 160,742 8.31% 14.59% 15.77% 16.56% 16.83% 17.04% 16.80% 16.91% 17.04% 17.39%392 1998 1,230,327                 ‐                   ‐                  ‐                 0.00% 5.08% 10.95% 12.69% 13.86% 14.68% 15.03% 15.05% 15.21% 15.44%392 1999 902,817                     ‐                   ‐                  ‐                 0.00% 0.00% 3.95% 9.26% 11.10% 12.38% 13.42% 13.83% 13.98% 14.16%392 2000 940,676                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 3.21% 7.97% 9.81% 11.14% 12.32% 12.77% 13.01%392 2001 2,046,566 323,000 2,521 320,479 15.66% 10.73% 8.24% 6.26% 6.82% 9.75% 10.99% 11.95% 12.83% 13.19%392 2002 2,668,480 456,832 246,091 210,741 7.90% 11.27% 9.39% 8.10% 6.82% 7.12% 9.32% 10.35% 11.18% 12.01%392 2003 6,338,025 374,258 107,545 266,712 4.21% 5.30% 7.22% 6.65% 6.19% 5.65% 5.97% 7.51% 8.32% 9.02%392 2004 6,187,416 294,141 282,623 11,517 0.19% 2.22% 3.22% 4.70% 4.45% 4.24% 3.98% 4.36% 5.62% 6.34%392 2005 1,757,660 81,354              ‐                  81,354 4.63% 1.17% 2.52% 3.36% 4.69% 4.47% 4.27% 4.04% 4.38% 5.55%392 2006 165,008 16,083              ‐                  16,083 9.75% 5.07% 1.34% 2.60% 3.43% 4.73% 4.51% 4.32% 4.08% 4.42%392 2007 ‐ 1,095,847 (7,028) 1,102,875 NA 678.12% 62.43% 14.94% 10.23% 9.87% 10.49% 10.00% 9.57% 9.04%392 2008 ‐                             ‐                   ‐                  ‐                 NA NA 678.12% 62.43% 14.94% 10.23% 9.87% 10.49% 10.00% 9.57%392 2009 379,394                     ‐                   10,491 (10,491)           ‐2.77% ‐2.77% 287.93% 203.61% 51.69% 14.15% 9.90% 9.60% 10.23% 9.76%392 2010 ‐                             ‐                   ‐                  ‐                 NA ‐2.77% ‐2.77% 287.93% 203.61% 51.69% 14.15% 9.90% 9.60% 10.23%392 2011 ‐                             ‐                   ‐                  ‐                 NA NA ‐2.77% ‐2.77% 287.93% 203.61% 51.69% 14.15% 9.90% 9.60%392 2012 ‐                             ‐                   ‐                  ‐                 NA NA NA ‐2.77% ‐2.77% 287.93% 203.61% 51.69% 14.15% 9.90%

Attachment DAW-RR-2 

Page 134 of 140 

Docket: 42004

RR3 - 144 of 509 01260
Appendix E-2

Page 24 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

393 1977 934                            ‐                   ‐                  ‐                 0.00%393 1978 551 9                        ‐                  9 1.63% 0.61%393 1979 1,024 1 1                       ‐                 0.00% 0.57% 0.36%393 1980 ‐                    ‐                  ‐                 NA 0.00% 0.57% 0.36%393 1981 1,664                         ‐                   8 (8)                     ‐0.48% ‐0.48% ‐0.30% 0.03% 0.02%393 1982 141                            ‐                   ‐                  ‐                 0.00% ‐0.44% ‐0.44% ‐0.28% 0.03% 0.02%393 1983 ‐                    ‐                  ‐                 NA 0.00% ‐0.44% ‐0.44% ‐0.28% 0.03% 0.02%393 1984 2,014 10                      ‐                  10 0.50% 0.50% 0.46% 0.05% 0.05% 0.04% 0.20% 0.17%393 1985 1,868                         ‐                   ‐                  ‐                 0.00% 0.26% 0.26% 0.25% 0.04% 0.04% 0.03% 0.15% 0.13%393 1986 1,414 45                      ‐                  45 3.18% 1.37% 1.04% 1.04% 1.01% 0.66% 0.66% 0.58% 0.65% 0.58%393 1987 6,484                         ‐                   ‐                  ‐                 0.00% 0.57% 0.46% 0.47% 0.47% 0.46% 0.35% 0.35% 0.32% 0.37%393 1988 486 486                    ‐                  486 100.00% 6.97% 6.33% 5.18% 4.41% 4.41% 4.36% 3.79% 3.79% 3.53%393 1989 1,156                         ‐                   ‐                  ‐                 0.00% 29.60% 5.98% 5.57% 4.65% 4.03% 4.03% 3.99% 3.50% 3.50%393 1990 3,001                         ‐                   7 (7)                     ‐0.23% ‐0.17% 10.32% 4.30% 4.18% 3.64% 3.25% 3.25% 3.22% 2.89%393 1991 8,273 2,715                ‐                  2,715 32.82% 24.02% 21.79% 24.73% 16.46% 15.56% 14.28% 13.16% 13.16% 13.08%393 1992 1,137                         ‐                   ‐                  ‐                 0.00% 28.85% 21.82% 19.96% 22.73% 15.55% 14.76% 13.60% 12.58% 12.58%393 1993 2,017                         ‐                   ‐                  ‐                 0.00% 0.00% 23.76% 18.77% 17.38% 19.88% 14.16% 13.51% 12.54% 11.67%393 1994 2,547                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 19.43% 15.95% 14.94% 17.16% 12.72% 12.22% 11.41%393 1995 3,973 1,098 2,749 (1,650)             ‐41.54% ‐25.31% ‐19.33% ‐17.06% 5.93% 5.05% 4.78% 6.83% 5.31% 5.21%393 1996 2,548                         ‐                   ‐                  ‐                 0.00% ‐25.31% ‐18.20% ‐14.89% ‐13.50% 5.19% 4.50% 4.29% 6.14% 4.88%393 1997 577                            ‐                   ‐                  ‐                 0.00% 0.00% ‐23.25% ‐17.11% ‐14.15% ‐12.89% 5.05% 4.39% 4.19% 6.00%393 1998 429                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐21.92% ‐16.38% ‐13.65% ‐12.48% 4.95% 4.32% 4.12%393 1999 3,602                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% ‐14.83% ‐12.07% ‐10.52% ‐9.81% 4.24% 3.76%393 2000 2,181                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% ‐12.40% ‐10.41% ‐9.23% ‐8.68% 3.90%393 2001 462                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐11.98% ‐10.11% ‐9.00% ‐8.47%393 2002 765                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐11.35% ‐9.66% ‐8.64%393 2003 1,804                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐10.10% ‐8.74%393 2004 675                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐9.70%393 2005 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%393 2006 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%393 2007 ‐                             ‐                   ‐                  ‐                 NA NA NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%393 2008 ‐ 550                    ‐                  550 NA NA NA NA 81.52% 22.19% 16.96% 14.84% 9.34% 5.80%393 2009 12,898                       ‐                   ‐                  ‐                 0.00% 4.26% 4.26% 4.26% 4.26% 4.05% 3.58% 3.41% 3.31% 2.93%393 2010 1,953                         ‐                   ‐                  ‐                 0.00% 0.00% 3.70% 3.70% 3.70% 3.70% 3.54% 3.17% 3.04% 2.96%393 2011 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 3.70% 3.70% 3.70% 3.70% 3.54% 3.17% 3.04%393 2012 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% 3.70% 3.70% 3.70% 3.70% 3.54% 3.17%

Attachment DAW-RR-2 

Page 135 of 140 

Docket: 42004

RR3 - 145 of 509 01261
Appendix E-2

Page 25 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

394 1977 11,046 85 1 84 0.76%394 1978 10,609 308                    ‐                  308 2.90% 1.81%394 1979 26,762 719                    ‐                  719 2.69% 2.75% 2.29%394 1980 6,679 219 10 209 3.13% 2.78% 2.81% 2.40%394 1981 72,064 183 633 (450)                ‐0.62% ‐0.31% 0.45% 0.68% 0.68%394 1982 4,106                         ‐                   28 (28) ‐0.68% ‐0.63% ‐0.32% 0.41% 0.63% 0.64%394 1983 7,888                         ‐                   18 (18) ‐0.23% ‐0.38% ‐0.59% ‐0.32% 0.37% 0.58% 0.59%394 1984 8,031 1,904                ‐                  1,904 23.71% 11.85% 9.28% 1.53% 1.64% 1.86% 1.94% 1.85%394 1985 9,521                         ‐                   22 (22) ‐0.23% 10.72% 7.33% 6.21% 1.36% 1.47% 1.71% 1.80% 1.73%394 1986 16,728 257 43 214 1.28% 0.73% 6.11% 4.93% 4.43% 1.35% 1.45% 1.67% 1.75% 1.68%394 1987 11,684 39                      ‐                  39 0.33% 0.89% 0.61% 4.64% 3.93% 3.60% 1.26% 1.35% 1.57% 1.65%394 1988 12,082                       ‐                   52 (52) ‐0.43% ‐0.05% 0.50% 0.36% 3.59% 3.13% 2.91% 1.12% 1.21% 1.43%394 1989 79,429                       ‐                   ‐                  ‐                 0.00% ‐0.06% ‐0.01% 0.17% 0.14% 1.52% 1.42% 1.36% 0.72% 0.79%394 1990 29,197                       ‐                   350 (350) ‐1.20% ‐0.32% ‐0.33% ‐0.27% ‐0.10% ‐0.11% 1.04% 0.98% 0.94% 0.49%394 1991 33,773 680 29 651 1.93% 0.48% 0.21% 0.16% 0.17% 0.27% 0.25% 1.19% 1.14% 1.10%394 1992 27,861                       ‐                   29 (29) ‐0.10% 1.01% 0.30% 0.16% 0.12% 0.13% 0.22% 0.20% 1.03% 0.99%394 1993 80,986 653                    ‐                  653 0.81% 0.57% 0.89% 0.54% 0.37% 0.33% 0.33% 0.39% 0.37% 0.97%394 1994 53,504 1,673                ‐                  1,673 3.13% 1.73% 1.41% 1.50% 1.15% 0.85% 0.80% 0.79% 0.81% 0.78%394 1995 12,659                       ‐                   ‐                  ‐                 0.00% 2.53% 1.58% 1.31% 1.41% 1.09% 0.82% 0.77% 0.76% 0.78%394 1996 54,292                       ‐                   ‐                  ‐                 0.00% 0.00% 1.39% 1.15% 1.00% 1.12% 0.89% 0.70% 0.66% 0.65%394 1997 181,585                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.55% 0.61% 0.56% 0.66% 0.55% 0.47% 0.45%394 1998 65,605                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.46% 0.52% 0.48% 0.58% 0.48% 0.42%394 1999 163,867                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.31% 0.38% 0.36% 0.44% 0.37%394 2000 15,872                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.31% 0.37% 0.35% 0.43%394 2001 40,216                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.28% 0.35% 0.33%394 2002 12,162                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.28% 0.34%394 2003 12,914 2,200 2,750 (550)                ‐4.26% ‐2.19% ‐0.84% ‐0.68% ‐0.22% ‐0.18% ‐0.11% ‐0.10% ‐0.10% 0.18%394 2004 4,332 4,870                ‐                  4,870 112.41% 25.05% 14.69% 6.21% 5.05% 1.73% 1.37% 0.87% 0.78% 0.77%394 2005 1,823 10,758              ‐                  10,758 590.08% 253.88% 79.07% 48.28% 21.10% 17.27% 6.00% 4.76% 3.03% 2.73%394 2006 16,268 935                    ‐                  935 5.75% 64.64% 73.87% 45.32% 33.71% 18.26% 15.46% 5.99% 4.81% 3.11%394 2007 ‐                             ‐                   ‐                  ‐                 NA 5.75% 64.64% 73.87% 45.32% 33.71% 18.26% 15.46% 5.99% 4.81%394 2008 712                            ‐                   ‐                  ‐                 0.00% 0.00% 5.51% 62.19% 71.59% 44.42% 33.21% 18.11% 15.35% 5.97%394 2009 60,973                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 1.20% 14.66% 19.69% 16.50% 14.67% 10.72% 9.69%394 2010 6,746                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 1.10% 13.51% 18.23% 15.43% 13.81% 10.26%394 2011 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 0.00% 0.00% 1.10% 13.51% 18.23% 15.43% 13.81%394 2012 1,431 696 207 490 34.22% 34.22% 5.99% 0.71% 0.70% 0.70% 1.65% 13.85% 18.48% 15.69%

Attachment DAW-RR-2 

Page 136 of 140 

Docket: 42004

RR3 - 146 of 509 01262
Appendix E-2

Page 26 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

395 1977 17,049 43 2 41 0.24%395 1978 2,392 60                      ‐                  60 2.51% 0.52%395 1979 1,869 2                        ‐                  2 0.11% 1.46% 0.48%395 1980 4,944 110                    ‐                  110 2.22% 1.64% 1.87% 0.81%395 1981 17,676                       ‐                   66 (66) ‐0.37% 0.19% 0.19% 0.39% 0.33%395 1982 4,597                         ‐                   ‐                  ‐                 0.00% ‐0.30% 0.16% 0.16% 0.34% 0.30%395 1983 7,964                         ‐                   ‐                  ‐                 0.00% 0.00% ‐0.22% 0.13% 0.12% 0.27% 0.26%395 1984 5,424                         ‐                   22 (22) ‐0.41% ‐0.16% ‐0.12% ‐0.25% 0.05% 0.06% 0.19% 0.20%395 1985 8,099                         ‐                   ‐                  ‐                 0.00% ‐0.16% ‐0.10% ‐0.08% ‐0.20% 0.05% 0.05% 0.16% 0.18%395 1986 169,346 1,000 1,799 (799)                ‐0.47% ‐0.45% ‐0.45% ‐0.43% ‐0.42% ‐0.42% ‐0.36% ‐0.35% ‐0.32% ‐0.28%395 1987 2,118                         ‐                   ‐                  ‐                 0.00% ‐0.47% ‐0.44% ‐0.44% ‐0.43% ‐0.42% ‐0.41% ‐0.35% ‐0.35% ‐0.32%395 1988 18,169                       ‐                   48 (48) ‐0.26% ‐0.24% ‐0.45% ‐0.43% ‐0.43% ‐0.41% ‐0.40% ‐0.40% ‐0.35% ‐0.34%395 1989 6,359                         ‐                   ‐                  ‐                 0.00% ‐0.20% ‐0.18% ‐0.43% ‐0.42% ‐0.41% ‐0.40% ‐0.39% ‐0.39% ‐0.34%395 1990 29,655 5 20 (15)                  ‐0.05% ‐0.04% ‐0.12% ‐0.11% ‐0.38% ‐0.37% ‐0.37% ‐0.36% ‐0.35% ‐0.35%395 1991 42,671                       ‐                   ‐                  ‐                 0.00% ‐0.02% ‐0.02% ‐0.07% ‐0.06% ‐0.32% ‐0.31% ‐0.31% ‐0.31% ‐0.30%395 1992 4,388                         ‐                   ‐                  ‐                 0.00% 0.00% ‐0.02% ‐0.02% ‐0.06% ‐0.06% ‐0.32% ‐0.31% ‐0.31% ‐0.30%395 1993 55,671                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐0.01% ‐0.01% ‐0.04% ‐0.04% ‐0.26% ‐0.26% ‐0.26%395 1994 22,859                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% ‐0.01% ‐0.01% ‐0.04% ‐0.03% ‐0.25% ‐0.24%395 1995 48,355                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% ‐0.01% ‐0.01% ‐0.03% ‐0.03% ‐0.22%395 1996 15,471                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐0.01% ‐0.01% ‐0.03% ‐0.03%395 1997 352,862                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ‐0.01%395 1998 18,578                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 1999 78,666                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2000 2,605                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2001 28,785                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2002 10,475                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2003 395,467 4,794 4,794               ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2004 5,737                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%395 2005 34,485                       ‐                   (70) 70 0.20% 0.17% 0.02% 0.02% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%395 2006 123                            ‐                   ‐                  ‐                 0.00% 0.20% 0.17% 0.02% 0.02% 0.01% 0.01% 0.01% 0.01% 0.01%395 2007 2,344                         ‐                   818 (818) ‐34.89% ‐33.14% ‐2.02% ‐1.75% ‐0.17% ‐0.17% ‐0.16% ‐0.16% ‐0.13% ‐0.13%395 2008 782                            ‐                   ‐                  ‐                 0.00% ‐26.16% ‐25.17% ‐1.98% ‐1.72% ‐0.17% ‐0.17% ‐0.16% ‐0.16% ‐0.13%395 2009 84,441                       ‐                   ‐                  ‐                 0.00% 0.00% ‐0.93% ‐0.93% ‐0.61% ‐0.58% ‐0.14% ‐0.14% ‐0.13% ‐0.13%395 2010 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% ‐0.93% ‐0.93% ‐0.61% ‐0.58% ‐0.14% ‐0.14% ‐0.13%395 2011 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% ‐0.93% ‐0.93% ‐0.61% ‐0.58% ‐0.14% ‐0.14%395 2012 ‐                             ‐                   ‐                  2,786 NA NA NA 3.30% 3.27% 2.25% 2.24% 1.67% 1.59% 0.39%

Attachment DAW-RR-2 

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Docket: 42004

RR3 - 147 of 509 01263
Appendix E-2

Page 27 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

396 1968 16,032                       ‐                   ‐                  ‐                 0.00%396 1969 3,004 2,470                ‐                  2,470 82.22% 12.98%396 1970 29,822 8,150                ‐                  8,150 27.33% 32.35% 21.74%396 1971 10,268 3,425                ‐                  3,425 33.36% 28.87% 32.59% 23.75%396 1972 28,580 5,850                ‐                  5,850 20.47% 23.88% 25.37% 27.76% 22.68%396 1973 30,327 8,560                ‐                  8,560 28.23% 24.46% 25.78% 26.25% 27.90% 24.11%396 1974 15,434 1,200                ‐                  1,200 7.78% 21.33% 21.00% 22.50% 23.76% 25.25% 22.22%396 1975 27,321 17,850 272 17,578 64.34% 43.92% 37.41% 32.65% 32.71% 31.58% 32.63% 29.38%396 1976 46,780 5,463 115 5,348 11.43% 30.94% 26.95% 27.27% 25.96% 26.44% 26.58% 27.45% 25.33%396 1977 26,705 8,197 168 8,029 30.07% 18.20% 30.71% 27.66% 27.78% 26.59% 26.96% 27.01% 27.77% 25.87%396 1978 32,310 6,223                ‐                  6,223 19.26% 24.15% 18.53% 27.93% 25.84% 26.24% 25.45% 25.82% 26.00% 26.67%396 1979 ‐                             ‐                   ‐                  ‐                 NA 19.26% 24.15% 18.53% 27.93% 25.84% 26.24% 25.45% 25.82% 26.00%396 1980 2,554                         ‐                   ‐                  ‐                 0.00% 0.00% 17.85% 23.15% 18.09% 27.40% 25.40% 25.87% 25.14% 25.52%396 1981 737 200                    ‐                  200 27.14% 6.08% 6.08% 18.04% 23.20% 18.15% 27.40% 25.41% 25.88% 25.14%396 1982 47,820 5,036 335 4,701 9.83% 10.09% 9.59% 9.59% 13.33% 17.39% 15.62% 22.84% 21.68% 22.54%396 1983 60,720 12,232 29 12,203 20.10% 15.57% 15.65% 15.29% 15.29% 16.18% 18.35% 16.87% 22.16% 21.31%396 1984 7,261 4,375                ‐                  4,375 60.25% 24.39% 18.38% 18.43% 18.04% 18.04% 18.30% 20.06% 18.27% 23.26%396 1985 77,127 26,249 3,175 23,074 29.92% 32.53% 27.33% 22.99% 23.01% 22.71% 22.71% 22.22% 23.04% 21.24%396 1986 230,983 85,995 263 85,732 37.12% 35.31% 35.89% 33.34% 30.69% 30.68% 30.50% 30.50% 29.71% 29.73%396 1987 69,099 14,905              ‐                  14,905 21.57% 33.54% 32.80% 33.31% 31.51% 29.41% 29.41% 29.25% 29.25% 28.64%396 1988 52,588 8,856                ‐                  8,856 16.84% 19.53% 31.05% 30.84% 31.33% 29.96% 28.20% 28.20% 28.07% 28.07%396 1989 35,496 8,801                ‐                  8,801 24.79% 20.05% 20.72% 30.48% 30.38% 30.84% 29.62% 27.99% 27.99% 27.87%396 1990 8,692 1,129                ‐                  1,129 12.99% 22.47% 19.41% 20.31% 30.09% 30.06% 30.52% 29.35% 27.77% 27.77%396 1991 16,052 2,014                ‐                  2,014 12.55% 12.70% 19.83% 18.44% 19.63% 29.41% 29.49% 29.94% 28.87% 27.37%396 1992 74,979 19,300 2,521 16,779 22.38% 20.64% 19.98% 21.24% 20.01% 20.43% 28.33% 28.55% 28.95% 28.10%396 1993 141,834 46,770 6,007 40,763 28.74% 26.54% 25.58% 25.12% 25.08% 23.77% 23.39% 28.42% 28.59% 28.91%396 1994 66,670 13,150 2,144 11,006 16.51% 24.83% 24.18% 23.56% 23.26% 23.42% 22.54% 22.40% 27.28% 27.54%396 1995 611 143 1,649 (1,507)             ‐246.44% 14.12% 24.04% 23.60% 23.01% 22.73% 22.94% 22.13% 22.05% 27.04%396 1996 245,022 115,736 1,738 113,998 46.53% 45.80% 39.54% 36.17% 34.22% 33.58% 33.25% 32.74% 31.44% 30.48%396 1997 87,189                       ‐                   ‐                  ‐                 0.00% 34.31% 33.80% 30.91% 30.34% 29.37% 28.95% 28.73% 28.52% 27.68%396 1998 261,667                     ‐                   ‐                  ‐                 0.00% 0.00% 19.20% 18.92% 18.68% 20.46% 20.62% 20.48% 20.40% 20.57%396 1999 158,989                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 15.14% 14.93% 15.06% 17.08% 17.46% 17.38% 17.35%396 2000 178,813                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 12.24% 12.07% 12.36% 14.40% 14.89% 14.86%396 2001 281,712                     ‐                   97 (97)                  ‐0.03% ‐0.02% ‐0.02% ‐0.01% ‐0.01% 9.39% 9.26% 9.64% 11.54% 12.08%396 2002 207,989                     ‐                   ‐                  ‐                 0.00% ‐0.02% ‐0.01% ‐0.01% ‐0.01% ‐0.01% 8.01% 7.90% 8.29% 10.07%396 2003 361,942 61,585 3,893 57,692 15.94% 10.12% 6.76% 5.59% 4.84% 3.97% 3.74% 9.62% 9.53% 9.79%396 2004 586,150                     ‐                   (13,983) 13,983 2.39% 7.56% 6.20% 4.98% 4.43% 4.03% 3.51% 3.37% 7.83% 7.77%396 2005 82,076                       ‐                   ‐                  ‐                 0.00% 2.09% 6.96% 5.79% 4.71% 4.21% 3.85% 3.38% 3.24% 7.57%396 2006 ‐                             ‐                   ‐                  ‐                 NA 0.00% 2.09% 6.96% 5.79% 4.71% 4.21% 3.85% 3.38% 3.24%396 2007 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 2.09% 6.96% 5.79% 4.71% 4.21% 3.85% 3.38%396 2008 182,799                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 1.64% 5.91% 5.04% 4.20% 3.80% 3.51%396 2009 95,278                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 1.48% 5.48% 4.73% 3.98% 3.62%396 2010 ‐                             ‐                   ‐                  ‐                 NA 0.00% 0.00% 0.00% 0.00% 0.00% 1.48% 5.48% 4.73% 3.98%396 2011 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% 0.00% 0.00% 0.00% 1.48% 5.48% 4.73%396 2012 ‐                             ‐                   ‐                  ‐                 NA NA NA 0.00% 0.00% 0.00% 0.00% 0.00% 1.48% 5.48%

Attachment DAW-RR-2 

Page 138 of 140 

Docket: 42004

RR3 - 148 of 509 01264
Appendix E-2

Page 28 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

397 1977 8,063 596 338 258 3.20%397 1978 23,435 389 1,283 (894)                ‐3.81% ‐2.02%397 1979 11,455 3,002 173 2,829 24.70% 5.55% 5.11%397 1980 2,870                         ‐                   314 (314) ‐10.94% 17.56% 4.29% 4.10%397 1981 39,754 4,048 30 4,018 10.11% 8.69% 12.08% 7.27% 6.89%397 1982 14,211 1,151 1,232 (81)                  ‐0.57% 7.30% 6.37% 9.45% 6.06% 5.83%397 1983 132,971 1,113 3,929 (2,816)             ‐2.12% ‐1.97% 0.60% 0.43% 1.81% 1.22% 1.29%397 1984 9,013 341 661 (320)                ‐3.55% ‐2.21% ‐2.06% 0.41% 0.24% 1.58% 1.04% 1.11%397 1985 188,561 12,838 3,089 9,749 5.17% 4.77% 2.00% 1.89% 2.74% 2.64% 3.28% 2.88% 2.89%397 1986 92,030 392 104 288 0.31% 3.58% 3.36% 1.63% 1.56% 2.27% 2.20% 2.72% 2.42% 2.43%397 1987 7,703 5,327 657 4,670 60.63% 4.97% 5.10% 4.84% 2.69% 2.58% 3.20% 3.12% 3.61% 3.28%397 1988 410,216 9,032 6,506 2,526 0.62% 1.72% 1.47% 2.47% 2.39% 1.68% 1.64% 2.02% 1.97% 2.26%397 1989 128,319 16,151 6,462 9,689 7.55% 2.27% 3.09% 2.69% 3.26% 3.18% 2.46% 2.41% 2.71% 2.67%397 1990 124,059 10,909 7,710 3,199 2.58% 5.11% 2.33% 3.00% 2.67% 3.17% 3.10% 2.47% 2.43% 2.70%397 1991 87,067 1,608 3,517 (1,909)             ‐2.19% 0.61% 3.23% 1.80% 2.40% 2.17% 2.72% 2.66% 2.13% 2.09%397 1992 155,686                     ‐                   1,637 (1,637)             ‐1.05% ‐1.46% ‐0.09% 1.89% 1.31% 1.81% 1.67% 2.23% 2.18% 1.75%397 1993 563,176 2,506 15,674 (13,168)           ‐2.34% ‐2.06% ‐2.07% ‐1.45% ‐0.36% ‐0.09% 0.23% 0.23% 0.76% 0.74%397 1994 31,137                       ‐                   3,954 (3,954)             ‐12.70% ‐2.88% ‐2.50% ‐2.47% ‐1.82% ‐0.71% ‐0.35% ‐0.04% ‐0.02% 0.53%397 1995 91,979                       ‐                   863 (863) ‐0.94% ‐3.91% ‐2.62% ‐2.33% ‐2.32% ‐1.74% ‐0.73% ‐0.38% ‐0.09% ‐0.07%397 1996 148,229 3,111 1,928 1,183 0.80% 0.13% ‐1.34% ‐2.01% ‐1.86% ‐1.89% ‐1.43% ‐0.56% ‐0.28% ‐0.02%397 1997 169,264 276 3,839 (3,564)             ‐2.11% ‐0.75% ‐0.79% ‐1.63% ‐2.03% ‐1.90% ‐1.92% ‐1.51% ‐0.74% ‐0.45%397 1998 234,227                     ‐                   ‐                  ‐                 0.00% ‐0.88% ‐0.43% ‐0.50% ‐1.07% ‐1.65% ‐1.58% ‐1.61% ‐1.29% ‐0.64%397 1999 278,849                     ‐                   ‐                  ‐                 0.00% 0.00% ‐0.52% ‐0.29% ‐0.35% ‐0.75% ‐1.34% ‐1.32% ‐1.36% ‐1.10%397 2000 265,980                     ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐0.38% ‐0.22% ‐0.27% ‐0.59% ‐1.14% ‐1.14% ‐1.18%397 2001 17,272                       ‐                   44 (44) ‐0.25% ‐0.02% ‐0.01% ‐0.01% ‐0.37% ‐0.22% ‐0.27% ‐0.59% ‐1.13% ‐1.13%397 2002 3,061,058 9,333 520 8,813 0.29% 0.28% 0.26% 0.24% 0.23% 0.13% 0.15% 0.13% 0.04% ‐0.24%397 2003 288,434 269,543 265,164 4,379 1.52% 0.39% 0.39% 0.36% 0.34% 0.32% 0.22% 0.24% 0.22% 0.13%397 2004 26,145                       ‐                   ‐                  ‐                 0.00% 1.39% 0.39% 0.39% 0.36% 0.33% 0.32% 0.22% 0.24% 0.22%397 2005 2,096,638                 ‐                   124 (124)                ‐0.01% ‐0.01% 0.18% 0.24% 0.24% 0.23% 0.22% 0.21% 0.15% 0.16%397 2006 881,972                     ‐                   40,141 (40,141)           ‐4.55% ‐1.35% ‐1.34% ‐1.09% ‐0.43% ‐0.43% ‐0.41% ‐0.39% ‐0.38% ‐0.42%397 2007 33,361                       ‐                   110,530 (110,530)         ‐331.32% ‐16.46% ‐5.01% ‐4.96% ‐4.40% ‐2.15% ‐2.15% ‐2.06% ‐1.98% ‐1.92%397 2008 15,415,705 (740,714) (25) (740,689)         ‐4.80% ‐5.51% ‐5.46% ‐4.84% ‐4.83% ‐4.73% ‐4.03% ‐4.03% ‐3.98% ‐3.93%397 2009 2,411,501                 ‐                   ‐                  ‐                 0.00% ‐4.15% ‐4.77% ‐4.76% ‐4.28% ‐4.27% ‐4.19% ‐3.63% ‐3.62% ‐3.59%397 2010 ‐                             ‐                   ‐                  ‐                 NA 0.00% ‐4.15% ‐4.77% ‐4.76% ‐4.28% ‐4.27% ‐4.19% ‐3.63% ‐3.62%397 2011 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% ‐4.15% ‐4.77% ‐4.76% ‐4.28% ‐4.27% ‐4.19% ‐3.63%397 2012 ‐                             ‐                   ‐                  ‐                 NA NA NA 0.00% ‐4.15% ‐4.77% ‐4.76% ‐4.28% ‐4.27% ‐4.19%

Attachment DAW-RR-2 

Page 139 of 140 

Docket: 42004

RR3 - 149 of 509 01265
Appendix E-2

Page 29 of 29

Transactional 2- yr 3- yr 4- yr 5- yr 6- yr 7- yr 8- yr 9- yr 10- yr

Transaction History Removal Net Net Net Net Net Net Net Net Net Net Net 

Acct Year Retirements Salvage Cost Salvage Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. % Salv. %

Southwestern Public Service Company - Texas

Retirement and Salvage Analysis

398 1977 4,711 359 2 357 7.58%398 1978 4,364 460                    ‐                  460 10.54% 9.00%398 1979 5,584 412                    ‐                  412 7.38% 8.77% 8.38%398 1980 1,171 35 3 32 2.73% 6.57% 8.13% 7.97%398 1981 16,011 206 443 (237)                ‐1.48% ‐1.19% 0.91% 2.46% 3.22%398 1982 2,271 163                    ‐                  163 7.18% ‐0.40% ‐0.22% 1.48% 2.82% 3.48%398 1983 1,708 239                    ‐                  239 13.99% 10.10% 0.83% 0.93% 2.28% 3.44% 3.98%398 1984 2,497 51                      ‐                  51 2.04% 6.90% 7.00% 0.96% 1.05% 2.26% 3.33% 3.85%398 1985 11,389 259 41 218 1.91% 1.94% 3.26% 3.76% 1.28% 1.33% 2.16% 2.97% 3.41%398 1986 5,909                         ‐                   ‐                  ‐                 0.00% 1.26% 1.36% 2.36% 2.82% 1.09% 1.14% 1.89% 2.63% 3.05%398 1987 2,189 418                    ‐                  418 19.10% 5.16% 3.26% 3.13% 3.91% 4.19% 2.03% 2.05% 2.66% 3.31%398 1988 6,045 150                    ‐                  150 2.48% 6.90% 4.02% 3.08% 2.99% 3.62% 3.87% 2.09% 2.10% 2.64%398 1989 16,347 167                    ‐                  167 1.02% 1.42% 2.99% 2.41% 2.28% 2.26% 2.70% 2.91% 1.82% 1.83%398 1990 5,364 262 1 261 4.87% 1.97% 2.08% 3.33% 2.78% 2.57% 2.54% 2.92% 3.10% 2.05%398 1991 6,475 155 182 (27)                  ‐0.42% 1.98% 1.42% 1.61% 2.66% 2.29% 2.21% 2.20% 2.55% 2.72%398 1992 14,834 252 14 238 1.60% 0.99% 1.77% 1.49% 1.61% 2.35% 2.11% 2.08% 2.08% 2.36%398 1993 6,868 250                    ‐                  250 3.64% 2.25% 1.64% 2.15% 1.78% 1.86% 2.51% 2.28% 2.22% 2.22%398 1994 15,895 2,555                ‐                  2,555 16.07% 12.32% 8.09% 6.84% 6.63% 5.24% 5.00% 5.42% 5.02% 4.63%398 1995 32,842 2,000                ‐                  2,000 6.09% 9.35% 8.64% 7.16% 6.52% 6.41% 5.52% 5.34% 5.63% 5.33%398 1996 69,599 2,470                ‐                  2,470 3.55% 4.36% 5.94% 5.81% 5.36% 5.11% 5.10% 4.70% 4.63% 4.81%398 1997 57,740 825                    ‐                  825 1.43% 2.59% 3.31% 4.46% 4.43% 4.22% 4.07% 4.09% 3.87% 3.83%398 1998 30,144                       ‐                   ‐                  ‐                 0.00% 0.94% 2.09% 2.78% 3.81% 3.80% 3.66% 3.55% 3.58% 3.41%398 1999 41,762                       ‐                   ‐                  ‐                 0.00% 0.00% 0.64% 1.65% 2.28% 3.17% 3.18% 3.09% 3.01% 3.04%398 2000 2,009                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.63% 1.64% 2.26% 3.14% 3.15% 3.07% 2.99%398 2001 51,221                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.45% 1.31% 1.86% 2.61% 2.63% 2.58%398 2002 7,682                         ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% 0.43% 1.27% 1.81% 2.54% 2.57%398 2003 95,277 12,482 12,571 (89)                  ‐0.09% ‐0.09% ‐0.06% ‐0.06% ‐0.04% ‐0.04% 0.26% 0.90% 1.34% 1.92%398 2004 19,625                       ‐                   11,131 (11,131)           ‐56.72% ‐9.76% ‐9.15% ‐6.46% ‐6.38% ‐5.16% ‐4.53% ‐3.40% ‐2.11% ‐1.45%398 2005 900                            ‐                   ‐                  ‐                 0.00% ‐54.23% ‐9.69% ‐9.09% ‐6.42% ‐6.35% ‐5.14% ‐4.51% ‐3.39% ‐2.11%398 2006 8,182                         ‐                   ‐                  ‐                 0.00% 0.00% ‐38.77% ‐9.05% ‐8.52% ‐6.13% ‐6.07% ‐4.95% ‐4.37% ‐3.30%398 2007 508                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% ‐38.10% ‐9.01% ‐8.49% ‐6.12% ‐6.05% ‐4.94% ‐4.36%398 2008 218                            ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% ‐37.82% ‐9.00% ‐8.47% ‐6.11% ‐6.04% ‐4.93%398 2009 27,646                       ‐                   ‐                  ‐                 0.00% 0.00% 0.00% 0.00% 0.00% ‐19.50% ‐7.36% ‐7.01% ‐5.31% ‐5.26%398 2010 ‐                   ‐                 NA 0.00% 0.00% 0.00% 0.00% 0.00% ‐19.50% ‐7.36% ‐7.01% ‐5.31%398 2011 ‐                             ‐                   ‐                  ‐                 NA NA 0.00% 0.00% 0.00% 0.00% 0.00% ‐19.50% ‐7.36% ‐7.01%398 2012 ‐                             ‐                   501 (501) NA NA NA ‐1.81% ‐1.80% ‐1.77% ‐1.37% ‐1.34% ‐20.38% ‐7.69%

Attachment DAW-RR-2 

Page 140 of 140 

Docket: 42004

RR3 - 150 of 509 01266
Workpapers of 

Dane A. Watson 

Attach CD for Watson 

workpapers 

Attachment DAW-RR-3 

Page 1 of 1 

Docket: 42004

RR3 - 151 of 509 01267