News Details

ROSWELL, N.M.--(BUSINESS WIRE)-- Xcel Energy'sSouthwestern Public Service Company (SPS) is seeking a 5.1 percent overall increase in New Mexico rates to recover costs associated with the new Hobbs Generating Station, and to recover higher operational and environmental costs incurred to serve New Mexico customers.

The proposal, filed today at the New Mexico Public Regulation Commission (NMPRC), would increase the average residential bill of 750 kilowatt-hours per month by 12.7 percent, or $8.79 per month.

The proposal also seeks to implement part of this increase on an interim basis, beginning Jan. 17, to recover costs of the new Hobbs Generating Station. The Hobbs plant began operating September 16, 2008, adding 560 megawatts of power to a rapidly growing power grid.

The addition of the Hobbs plant is a key part of company strategy to hold down overall bill costs by generating power more efficiently. The Hobbs plant is 40 percent more efficient than older natural gas-fired plants, uses 90 percent less water, and, when combined with the effect of lower natural gas prices, has contributed to a decline in overall bills since the summer of 2008.

"We cannot access the capital dollars needed to acquire more efficient power sources such as the Hobbs plant, and to build new power lines, if our existing rates can't cover our costs," said David Eves, president and CEO of Southwestern Public Service Company, an Xcel Energy company. "We must invest in our system if we are to hold down costs in the long-term, reduce our environmental impact and deliver more power to a growing region."

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