Xcel Energy, a leading electricity provider, has unveiled a comprehensive proposal to invest approximately $770 million in existing power-generating facilities in Texas and New Mexico. The primary objective of this significant investment is to address the increasing electricity demands in the Southwest region and ensure a reliable power supply for customers.
To meet the growing energy needs, Xcel Energy plans to extend the lifespan of two older gas-fueled units, construct multiple solar generating systems, and integrate battery storage technology into their operations. By doing so, the company aims to retire power plant generators that have been faithfully serving customers for almost seven decades, making way for more efficient and sustainable solutions.
The proposed plan includes extending the life of two natural gas units at the Cunningham-Maddox Generating Complex near Hobbs, New Mexico. Additionally, three solar generating facilities will be established, with two located at Cunningham Station and one at Plant X Generating Station near Earth, Texas. Furthermore, Xcel Energy plans to implement a cutting-edge battery system at Cunningham Station to store surplus power and enhance the overall reliability of the grid.
Xcel Energy anticipates that these upgrades and additions to the generating fleet will not only meet the region's electricity demands but also lead to significant economic benefits. The proposed investments are projected to generate an additional $116 million in tax revenue for the host communities. Moreover, customers can expect substantial fuel cost savings, estimated between $900 million and $2 billion over a 35-year period. Furthermore, Xcel Energy plans to pass on the anticipated $500 million in federal solar tax credits to its customers as additional savings over the course of a decade.
Pending regulatory approval, Xcel Energy aims to have the new and updated generating resources operational by 2026 and 2027. This ambitious investment initiative is not only a testament to the company's commitment to providing reliable power but also reflects their dedication to contributing to the economic development of the region and creating new job opportunities. Xcel Energy values the support from both its employees and the communities it operates in and remains steadfast in its mission to deliver sustainable and dependable energy solutions to its customers.
Source: energyportal.eu