The company said the reasons behind the investment are due to strong agricultural demand and general economic growth in the Texas South Plains region.
The company’s investment will help increase the reliability and capacity of the regional power grid.
Xcel Energy has constructed two new substations and completed or is building several new transmission lines in the region.
The projects include the new Newhart Substation northeast of Hart, the new Kiser Substation northeast of Plainview and three 115-kilovolt lines that are between eight and 24 miles in length.
Xcel Energy’s investment plans also include new and upgraded distribution lines that deliver electricity directly to homes, farms and businesses in the region.
Southwestern Public Service Company president and CEO David Hudson said the company continues to see strong agricultural demand as farmers and ranchers demand more electric power for irrigation purposes in the area.
"Our transmission and distribution system is much like our system of highways and city streets. As traffic increases – in our case, electricity demand – we have to update and expand the lines that transport power to a growing customer base," Hudson added.
Xcel Energy’s investments in Texas and New Mexico service area total over $3bn, which will be used for constructing or upgrading power plants, power lines and substations.
