US-based Xcel Energy’s Southwestern Public Service Company is seeking approval for the purchase of wind power totaling 700MW, through three purchase agreements.
Under the power purchase agreements, the company is planning to purchase 199MW from Mammoth Plains Wind Energy Center, 249MW from Palo Duro Wind Energy Center and 250MW from Roosevelt Wind Ranch.
The wind power purchase deals are expected to save approximately $590m in fuel costs over the next 20 years.
Commenting on the transactions, Southwestern Public Service Company president and CEO Riley Hill said, "We started shopping for more wind energy in March after seeing some very good prices on the market.
"We are making these acquisitions purely on economics and the savings we can deliver to our customers."
The three wind power purchase deals are expected to double the company’s contract wind resources, and will take the Texas-New Mexico wind capacity beyond 2,200MW.
Currently, Xcel Energy’s wind energy capacity connected to its Texas-New Mexico transmission and distribution network is around 1,500MW.