AMARILLO, Texas (KFDA) - Due to costs for natural gas rising, bills for Xcel Energy’s Texas customers will increase.
However, the company says a new wind farm is expected to bring the costs back down in early 2021.
“Abnormally low natural gas prices and new supplies of low-cost wind energy have combined to lower electric bills over the last two years, but now natural gas prices are on the upswing,” said David Hudson, president of Xcel Energy - Texas. “The good news is our Sagamore Wind Project in New Mexico is nearing completion and the savings it will deliver after the first of the year should bring fuel costs down once again.”
Xcel Energy has filed with the Public Utility Commission of Texas to revise the monthly fuel cost factor that collects for the cost of natural gas and coal that fuel area power plants, as well as the costs of electricity purchased from other suppliers.
If approved, the typical residential bill of 1,000 kilowatt-hours would increase by around six percent or $6.29 more per month in November.
“In spite of the increase, fuel costs over time have trended much lower than the past,” said Hudson. “We have made some permanent changes in how we generate electricity to reduce our exposure to natural gas prices, and these efforts will continue to pay off over time.”
The Sagamore Project, now under construction in Roosevelt County, New Mexico, is expected to generate a large amount of savings that the company says should offset the increases in natural gas prices.