Minneapolis-based Xcel Energy's Southwestern Public Service Co. has filed a proposal with the Public Utility Commission of Texas and area municipalities served by the company for an overall increase in annual revenues of approximately $61.3 million, or a 5.9% increase. Base revenues are proposed to increase by $94.4 million, while fuel and purchased power revenue will decline by $33.1 million, primarily due to the fuel savings from the Lea Power Partners' Hobbs Generating Station near Hobbs, N.M. Xcel will purchase the output of the new plant once it comes online later this summer.
‘We're in the middle of a historic growth cycle,’ say David Eves, president and CEO of Southwestern Public Service. ‘We must meet the needs of a growing economy, increasing electrical demands, a burgeoning wind power industry and, at the same time, build efficiencies into our traditional generating and transmission resources. These are efforts designed to bring down high fuel costs.’
The filing also involves a request to implement interim rates when the Hobbs Generating Station comes online. According to Xcel, this will help recover costs of purchasing this power until the full rate case is decided. If this component of the filing is approved, the interim rates will lower bills for many customers, reflecting fuel cost savings that are larger than the fixed costs related to the purchased power.
SOURCE: Xcel Energy