From July 2013 through the end of this year, Xcel Energy will have invested almost $872 million in new and upgraded power lines, substations and generating units in response to strong economic growth and the need to tap new sources of power to sustain that growth, said David Hudson, president and CEO of Southwestern Public Service Company, an Xcel Energy company.
A proposal presented today to the 80 Texas towns and cities served by the company, and to the Public Utility Commission of Texas (PUCT), seeks to increase revenue by a net of $64.75 million per year. Impacts on each customer class vary, but for residential customers using 1,000 kilowatt-hours per month, the increase would average $9.14 per month, or 8.2 percent, with fuel costs factored in. For all customer classes combined, the total increase is 6.7 percent accounting for base rates and fuel costs.
"Since we moved into Texas in 1925, our communities have depended on us to make investments in critical infrastructure to maintain reliability and sustain economic growth," Hudson said. "These investments tend to drive up costs in the short-term, but because these improvements lead to greater efficiency, the pricing will stabilize over the long term and our region will remain a great place to live and do business."
New federal mandates on power plant emissions are leading the company to seek alternative power sources that require better transmission connections to a wider market. Since 2013, the company completed two 345-kilovolt transmission lines to Woodward, Okla., a power hub within the Southwest Power Pool. These investments alone totaled almost $270 million.
"We are already realizing savings from these new transmission lines in the form of cheaper energy imports, but the cost of the new lines are not yet included in customer rates," Hudson said.
Even with higher base rates, total Xcel Energy bills remain below the national average, Hudson said. A key strategy in holding down rising costs is to manage fuel costs, which can account for up to half a typical residential bill. The company maintains a diverse mix of generating resources, and new wind energy acquisitions will save an estimated $590 million in fuel costs over the next 20 years.
Customers also have a role in making energy usage more efficient and helping hold down costs by taking advantage of energy-efficiency programs and tips offered by Xcel Energy. These measures can reduce bills by as much as 10 percent or more. Information on energy efficiency tips and programs can be found at www.xcelenergy.com on the "Save Money & Energy" tab.
