The following is a news release from Texas Tech University:
Xcel Energy and several key stakeholders in Texas have reached an agreement to boost regional wind energy production and lower long-term electricity generation costs.
In March 2017, the company filed proposals with regulators in both Texas and New Mexico to add 1,230 megawatts of new wind generation, including 1,000 megawatts from two large wind farms the company proposes to build and own in Texas and New Mexico. Combined with an additional 230-megawatt purchased power agreement, these new resources are expected to deliver significant energy savings over the next three decades, preserve environmental resources, and stimulate regional economic activity.
“We’re very pleased with the results of productive stakeholder negotiations,” said David Hudson, president, Xcel Energy – New Mexico, Texas. “Xcel Energy and all the parties to this case are looking out for the best long-term interests of our Texas customers, and we know these projects will deliver lower cost electricity, protect the environment, and stimulate local economic development.”
The stipulation filed today recommends the Public Utility Commission of Texas approve Xcel Energy’s proposal to build and own the Texas and New Mexico wind facilities and enter into the new long-term purchased power agreement. Under the agreement, Xcel Energy will:
- Guarantee that customers will see a positive net benefit from the wind facilities for the first 10 years of operation
- Cap base rate cost recovery at 102.5 percent of the estimated construction costs
- Credit customers, through the fuel component of their monthly bill, 100 percent of the federal production tax credits related to actual wind generation from the wind facilities
- Provide a minimum production guarantee of 48 percent for 25 years, including a credit to Texas retail customers’ fuel expense, should actual production output fall below a 48 percent net capacity factor
The parties also agreed to rate mechanisms that will provide Xcel Energy the ability to closely match the start of cost recovery in Texas retail rates with the in-service date of the wind facilities in the summer of 2019 and fall of 2020.
A stipulation was filed in the related New Mexico proceeding in December. Decisions from regulatory authorities in both states are expected in March. Upon approval, Xcel Energy anticipates starting construction on the Hale project near Plainview, Texas, in the second quarter of this year and would complete construction in 2019. Construction on the Sagamore project near Portales, N.M., would start in 2019, and the facility would be operational by the end of 2020.
A map showing the locations of the proposed new wind farms can be found at www.xcelenergy.com/ourenergyfuturesw, along with a link to more details on the projects.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
Forward-Looking Statements
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Such forward-looking information includes, among other things, statements concerning the expected development of future wind projects, investment amounts and expected savings. Xcel Energy cautions that certain factors can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information which is subject to a number of risks, uncertainties and assumptions. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 may cause results to differ: the ability to construct facilities in accordance with the requirements of permits and licenses, and to satisfy any operational and environmental performance standards; cost overruns; and the ability to satisfy the requirements of tax credits and other incentives. Xcel Energy expressly disclaims any obligation to update any such forward-looking information.
(News release from Xcel Energy)