AMARILLO, TX (KFDA) - Xcel Energy is planning to spend $1.6 billion to build two wind farms in Texas and New Mexico.
If approved, this will be the first time Xcel owns wind farms in either of the two states.
Along with building the two farms they also plan to reach a long-term agreement with another wind energy producer.
Up to this point, Xcel had to purchase electricity from wind farms in the panhandle. They decided now was a good time to move forward because wind energy is currently at a premium.
"The way we see it, wind energy is on sale," said David Hudson, President of Xcel Energy's Texas and New Mexico operations. "We can develop it, own it, invest in it and save customers more money."
Over the next 30 years Xcel estimates these three projects will save consumers $2.8 billion.
Once constructed the two wind farms will add 1,230 megawatts to the grid, or enough energy to power 440,000 homes.
In addition to the local benefits Xcel plans to use production tax credits from the federal government to save on overhead.
While the two wind farms will be built in Roosevelt County, N.M. and Hale County, they will be managed from the Amarillo office.