For the second time in the past 12 months, Xcel Energy is looking to pass the savings of reduced fuel and purchased energy costs on to Texas customers by reducing its monthly fuel charge on customer bills – a move that reflects a continuing focus on managing fuel costs to help keep total energy costs down.

Texas customers enjoyed a reduction in March 2015 that lowered a typical residential bill by $7.68 – a 6.9 percent reduction at the time.

If the latest fuel cost decrease is approved by the Public Utility Commission of Texas, a typical residential customer using 1,000 kilowatt-hours per month will see an average monthly savings of $2.51 – a 2.4 percent reduction – starting Feb. 1. The longer-term fuel cost decrease will more than offset the previously announced $1.11 monthly increase related to higher base rates, a change Xcel Energy has requested to go into effect Feb. 1.

In fact, residential customers will be paying less for electricity in Texas than they paid a year ago. A 1,000 kilowatt-hour residential bill in February 2015 was $110.67, and this year that same bill will be $101.52.

A sustained decrease in the cost of natural gas used to fuel several area power plants, less expensive power imported over new transmission lines and an increased supply of wind energy are the primary factors driving down fuel costs, which account for about one third of a residential bill. The remainder of the bill includes infrastructure and energy charges and service availability charges that recover costs of constructing, operating and maintaining the facilities that provide safe and dependable service to the growing economies of the Texas Panhandle and South Plains regions.

“We’re pleased that our focus on investing in efficiencies and tapping cheaper power sources is leading to savings that we can pass on to our customers,” said David Hudson, president of Southwestern Public Service Company, an Xcel Energy company.

In 2014, the company entered into a larger wholesale market with neighboring utilities in the Southwest Power Pool. New high-voltage transmission lines completed in 2014 provide the links to this market and its supply of lower-cost power, saving between $60 million and $80 million per year.

“The new transmission lines have not fully been reflected in customer rates, but they’re already delivering significant savings by making our system much more efficient,” Hudson said.

In addition to tapping new markets for cheaper power sources, the company has added 750 additional megawatts of wind energy to its mix since 2014, a resource estimated to save almost $600 million in fuel costs over the next 20 years.

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.5 million electricity customers and 2 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

(Press release from Xcel Energy)