Xcel Energy has filed a rate review seeking an increase of 6.5 percent in annual revenues to recover close to $1.7 billion invested in the regional grid since mid 2017.
In a news release, Xcel states that fuel cost savings will more than offset the annual cost of the investment in the new Hale Wind Project. However, continued upgrades to the region’s electric transmission and distribution systems will lead to higher rates for Texas customers in 2020.
If the new proposed rates are put into effect, residential customers using 1,000 kilowatt-hours per month would see an increase of $14.99. However, Xcel Energy says that the proposed increased rates will still be less than one percent more than overall rates in 2017.
The company says the primary driver in the proposed increase is the large investment in new transmission lines and substations across the system that make the grid more reliable.