Xcel Energy files for lower fuel costs in Texas - KCBD NewsChannel 11 Lubbock

Xcel Energy files for lower fuel costs in Texas

Provided by Xcel Energy

Xcel Energy submitted plans to the Public Utility Commission of Texas (PUCT) today for a revised fuel cost formula and factor that will reduce residential bills of 1,000 kilowatt-hours by an average of $1.83, or about 1.8 percent, starting April 1.

The fuel factor is a pass-through charge on customer bills to recover the cost of fuel used by generation plants and energy purchased from other generators. The factor on customer bills can be adjusted up to three times a year in Texas to reflect rising and falling costs along with fuel mix changes. A drop in natural gas prices over the past year has offset higher natural gas usage in the company's generation fleet.

Another factor holding down fuel costs this year is the delay of a costly new federal emissions rule that was set to take effect on Jan. 1. Xcel Energy's only viable short-term compliance option to the Cross-State Air Pollution Rule was to reduce the output of lower-cost coal-fueled power plants and depend on natural gas-fueled plants for the bulk of power generation. Compliance would have increased costs of all fossil fuel generation despite lower natural gas prices. A federal appeals court issued a stay of the Cross-State rule Dec. 30, which temporarily delayed the effective date of the rule until the court takes up the merits of lawsuits filed in opposition.

"We're pleased to announce the reduction in the fuel cost factor, and that our joint efforts to oppose the Cross-State rule have helped contain expected increases in bills," said Riley Hill, president and CEO of Southwestern Public Service Company, an Xcel Energy company. "Moving forward, investments in new, more efficient generating units and new transmission lines will help us keep downward pressure on fuel costs."

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 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

 

  • Local News on KCBD.comNewsMore>>

  • Toys R Us joins bankruptcy list as Amazon exerts influence

    Toys R Us joins bankruptcy list as Amazon exerts influence

    Tuesday, September 19 2017 3:02 AM EDT2017-09-19 07:02:12 GMT
    Tuesday, September 19 2017 3:09 PM EDT2017-09-19 19:09:58 GMT

    Toys R Us says court-supervised proceedings will help restructure its outstanding debt and reorganize for long-term growth.

    Toys R Us says court-supervised proceedings will help restructure its outstanding debt and reorganize for long-term growth.

  • 3 people charged with inciting riot after Georgia Tech vigil

    3 people charged with inciting riot after Georgia Tech vigil

    Tuesday, September 19 2017 4:52 AM EDT2017-09-19 08:52:18 GMT
    Tuesday, September 19 2017 3:09 PM EDT2017-09-19 19:09:50 GMT

    Police shot and killed Scout Schultz late Saturday night after the 21-year-old student called 911 to report an armed and possibly intoxicated suspicious person, the Georgia Bureau of Investigation has said.

    Police shot and killed Scout Schultz late Saturday night after the 21-year-old student called 911 to report an armed and possibly intoxicated suspicious person, the Georgia Bureau of Investigation has said.

  • Senate panel cancels private interview with Trump lawyer

    Senate panel cancels private interview with Trump lawyer

    Tuesday, September 19 2017 10:12 AM EDT2017-09-19 14:12:23 GMT
    Tuesday, September 19 2017 3:09 PM EDT2017-09-19 19:09:27 GMT
    Donald Trump's personal lawyer says a proposal to develop a Trump Tower in Moscow was "solely a real estate deal and nothing more.".
    Donald Trump's personal lawyer says a proposal to develop a Trump Tower in Moscow was "solely a real estate deal and nothing more.".
Powered by Frankly