New Mexico regulators have approved an expansion of wind energy generation in Xcel Energy’s New Mexico and Texas service areas. According to the Minneapolis-based utility, the move will return significant savings to regional customers over the next several decades.
In a 5-0 vote on Wednesday, the New Mexico Public Regulation Commission approved a plan to add 1,230 megawatts of wind energy to the regional generating mix. The plan was supported by various consumer groups, state agencies and environmental organizations, the utility notes.
“This is a historic day for customers of Xcel Energy in New Mexico and Texas,” comments David Hudson, president of Xcel Energy for the two states. “These wind facilities will power the regional economy with energy from our abundant, fuel-free wind resource and save customers hundreds of millions of dollars in energy costs for decades to come.”
Xcel Energy appreciates the support from local communities for the company’s long-term vision to secure customer savings, preserve precious water resources and spur regional economic activity, Hudson adds.
According to the energy company, customers will begin to see the benefits of reduced fuel costs, which represent about one-third of a residential customer’s bill, as soon as the projects begin commercial operations. Xcel Energy anticipates average monthly fuel savings to be about $2 for a typical residential customer beginning in 2021 after both wind facilities are operational.
Construction of the 522 MW Sagamore Wind Project will the include installation of close to 250 Vestas turbines, producing an estimated $43 million in gross receipts tax revenue for the state of New Mexico.
Together with the 478 MW Hale Wind Project planned in Texas, the Xcel Energy-owned facilities will produce enough wind energy to power about 360,000 homes, create approximately 600 construction jobs and 40-50 full-time positions, and generate $154 million in additional revenue for state and local governments and school districts, according to the utility.
Regulatory approval is still needed from the Public Utility Commission of Texas before construction can begin. Xcel Energy anticipates approval from Texas regulators by mid-April.
