Xcel Seeks Rate Hike for Texas Customers

Xcel Energy has requested permission from state regulators to raise rates for its customers starting on June 1.
LUBBOCK, TX -- Xcel Energy has requested permission from state regulators to raise rates for its customers by 1.47 percent starting on June 1. Xcel said the increase would cover its “fuel cost” for the use of natural gas. The impact on an average residential household would be $1.54 per month according to a written statement.

“By adding more wind energy and building more fuel-efficient power plants, we have managed to go a year without an increase in fuel costs despite a 7.8 percent increase in natural gas prices,” said David Hudson, president and CEO of Southwestern Public Service Company, an Xcel Energy company.
Xcel Energy issued the following statement on May 13.

Xcel Energy customers in Texas will see an increase in overall bills to cover the higher costs of natural gas used to generate 40 percent of the region’s electricity.


Today Xcel Energy filed a proposal with the Public Utility Commission of Texas to change its fuel cost factor to reflect higher prices for fuel – especially natural gas – which, if approved, will result in higher fuel charges beginning June 1.


Fuel costs are passed through dollar for dollar with no profit to the company, and currently the company is spending more on fuel costs than it is taking in from customer fuel charges that make up about half a typical residential customer’s monthly bill. For a customer using 1,000 kilowatt-hours a month, a new fuel cost factor that accounts for higher fuel costs will mean an increase of $1.54 a month, or about 1.47 percent.


“By adding more wind energy and building more fuel-efficient power plants, we have managed to go a year without an increase in fuel costs despite a 7.8 percent increase in natural gas prices,” said David Hudson, president and CEO of Southwestern Public Service Company, an Xcel Energy company. “We will continue to maximize our investment in natural gas and wind energy, which will help us contain fuel costs even as commodity prices rise.”


Almost 10 percent of the region’s energy comes from area wind farms, and that number continues to grow as new wind farms come online this year.


“Wind energy is a great hedge against rising fuel prices, as well as rising costs for environmental compliance,” Hudson said. “We currently have about 1,700 megawatts of wind energy on our system with 700 additional wind energy megawatts coming online. As natural gas prices rise, we save on fuel costs by displacing gas-fired generation with wind generation.”


Page: [[$index + 1]]
comments powered by Disqus

Most Recent Local News