Xcel customers to see lower bills beginning in July

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Lower costs for the natural gas Xcel Energy purchases to fuel area power plants, along with a greater reliance on clean wind energy, is leading Xcel Energy to reduce residential customer bills by 5% this summer.

Xcel Energy 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 that is known as the fuel cost factor.

If approved, customers will see lower bills July

1. Additionally, Xcel Energy is 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.

Natural gas fuels close to 50 percent of the region’s electricity production at area power plants, with wind energy accounting for about 20 percent. The remainder is derived from coal and a small amount of solar.

“Historically low natural gas prices and more energy from wind farms are making electricity cheaper for our customers,” David Hudson, president, Xcel Energy-Texas said. “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 between 20 to 30 percent of an average residential bill.”

 

 

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