AMARILLO, Texas (KFDA) - Xcel Energy is reducing residential customer bills by five percent this summer.
This is due to lower costs from natural gas that Xcel Energy purchases, along with a greater reliance on clean wind energy.
According to a news release, the company has filed an application with the Public Utility Commission of Texas to update the formula by which fuel charges are figured and to lower the monthly fuel charge known as the fuel cost factor.
If the application is approved, customers will see lower bills July 1.
“Historically low natural gas prices and more energy from wind farms are making electricity cheaper for our customers,” said David Hudson, the president of Xcel Energy - Texas. “And though we’ll soon need to account for the higher costs of improvements in our power generating and delivery systems, lower fuel costs and efficiencies generated by wind farms and grid improvements will help hold bills steady because fuel costs make up between20 to 30 percent of an average residential bill.”
The company is also planning to submit a proposal for a one-month refund later this summer that will return at least $16 million to Texas customers to account for a significant reduction in natural gas prices this spring.