The arrangements include two agreements with NextEra Energy Resources for 199MW and 249MW wind energy from Mammoth Plains Wind Energy Center in Oklahoma and Palo Duro Wind Energy Center in Texas, respectively.
The third agreement was struck with Infinity Wind Resources to procure 250MW from Roosevelt Wind Ranch in Roosevelt County, New Mexico.
Southwestern Public Service Company president and CEO Riley Hill said that the company commenced seeking wind energy from March 2013 with reasonable market prices and it is intended to deliver low-cost power to its customers.
Favorable pricing is the side-effect of federal production tax credit that was extended for an additional year by Congress, applicable to facilities that begin construction before the end of 2013, added Hill.
Public Service Company claims that these agreements would save customers in Texas and New Mexico about $590m in fuel costs over 20 years.
Following the approval, the contracts are expected to further Xcel Energy’s wind energy capacity to 2,200MW in Texas-New Mexico region from current 1,500MW.
