ROSWELL, N.M.--(BUSINESS WIRE)--
Xcel Energy'sSouthwestern Public Service Company (SPS) is seeking
proposals for new renewable energy sources as part of its plan to
diversify its renewable energy portfolio.
This solicitation will enable the company to comply with recently
enacted regulatory requirements to add renewable generation resources
and bring significant economic development and environmental benefits
to New Mexico.
Texas customers of Xcel Energy will benefit from additional energy
resources as well because the SPS system is interconnected across
state lines, and power is shared between the two states.
SPS will require approximately 434,931 megawatt-hours of energy
produced by renewable resources, or 10 percent of its New Mexico
retail sales, beginning in 2011. This requirement increases to 15
percent of New Mexico retail sales beginning January 1, 2015, followed
by another increase beginning January 1, 2020 to 20 percent of New
Mexico retail sales.
As part of this solicitation, the company is seeking renewable
generation from solar and other renewable technologies (biomass and or
geothermal).
Contracts entered into will be subject to the Reasonable Cost
Threshold, which ensures that renewable energy technologies will not
unduly raise customers' rates. Contracts may also be subject to
explicit regulatory approval by the New Mexico Public Regulatory
Commission.
Proposals are due back to the company by Monday, May 5. Energy and
Renewable Energy Credits (RECs) associated with new projects and
offered in response to this solicitation are required to have achieved
commercial operations by January, 2011. However, as circumstances
warrant, SPS may entertain offers with planned commercial operation
dates after January 1, 2011.
RECs are environmental commodities that can be sold or traded. An
REC represents proof that 1 megawatt-hour (MWh) of electricity was
generated from an eligible renewable energy resource.
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 3.3 million electricity
customers and 1.8 million natural gas customers through its regulated
operating companies. Company headquarters are located in Minneapolis.
More information is available at www.xcelenergy.com.
Source: Xcel Energy
Contact: Xcel Energy Media Relations
Wes Reeves, 806-679-7773
www.xcelenergy.com