The following is a press release from Xcel Energy:
The effect of the federal Tax Cuts and Jobs Act and lower debt costs will keep Xcel Energy base energy rates unchanged this year, good news for customers who already are enjoying lower costs related to falling prices for fuel used in area power plants.
“When we filed for new rates in 2017, we anticipated the need for $55 million in additional revenue to recover the costs of new power grid investments,” said David Hudson, president, Xcel Energy – Texas. “The significant reduction in federal corporate tax expense, coupled with lower costs on our long-term debt, will enable us to absorb the cost of new infrastructure without raising base electric rates.”
In the August 2017 filing with the Public Utility Commission of Texas, Xcel Energy sought base rate increases that could have increased a typical residential bill by $15 a month. Xcel Energy worked with key customer groups to bring down the proposed increase, and in a settlement filed Friday with regulators, now proposes no increase to base rates. A transmission cost recovery factor, a separate line item added to Texas bills in March 2017 to recover costs of new high-voltage transmission lines, will remain on customer bills under the terms of the settlement.
Since the August base rate filing, the costs for natural gas used to fuel close to 40 percent of the region’s electricity supply have fallen considerably. Fuel costs make up about a third of a typical residential bill, and a May 1 reduction in the fuel cost factor lowered residential bills by close to 6 percent. Hudson said fuel costs should hold steady through the remainder of the year.
The fuel cost reductions have already been approved, but the Public Utility Commission of Texas will still need to consider the base rate settlement filed last week and issue a final order.
(Press release from Xcel Energy)
NOTE: The press release was provided on July 2 and published on EverythingLubbock.com on July 7.
