Xcel, the biggest U.S. provider of wind power, plans to boost its wind farm capacity by about 14 percent to reduce fuel costs.
Xcel’s Southwestern Public Service unit is asking regulators for permission to buy power from almost 700 megawatts of wind farms in Oklahoma, Texas and New Mexico, the Minneapolis-based company said.
The deal will save customers $590 million in fuel expenses over 20 years and the wind farms will generate power at costs lower than most of Xcel’s natural gas plants, according to Riley Hill, president and chief executive officer of Southwestern Public Service.
• 199 megawatts from NextEra Energy Resources/Mammoth Plains Wind Energy Center located in Dewey and Blaine counties, Okla.
• 249 megawatts from NextEra Energy Resources/Palo Duro Wind Energy Center located in Hansford and Ochiltree counties, Texas.
• 250 megawatts from Infinity Wind Resources/Roosevelt Wind Ranch in Roosevelt County, N.M., between the towns of Dora and Elida.
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The price per megawatt-hour of energy generated at these wind facilities will be less than the per-megawatt-hour price of most of the company’s natural gas-fueled generation, according to Southwestern President and CEO Riley Hill. Over the 20-year terms of these agreements, Xcel Energy expects to save $590.4 million in fuel costs, Mr. Hill said.
“We started shopping for more wind energy in March after seeing some very good prices on the market,” Mr. Hill said. “We are making these acquisitions purely on economics and the savings we can deliver to our customers.”
Mr. Hill said the favorable pricing is partly the result of the federal wind energy production tax credit (PTC) that Congress extended January 1 for one year, applicable to facilities on which construction is started before the end of 2013.
Xcel Energy currently has close to 1,500 MW of wind energy capacity connected to its Texas-New Mexico transmission and distribution network, which spans the Panhandle and South Plains regions of Texas, six eastern and southeastern counties in New Mexico, and portions of Oklahoma and Kansas. Xcel Energy purchases more than 600 of those megawatts through long-term contracts.
The three additional contracts will more than double the company’s contract wind resources, and will push the total Texas-New Mexico wind capacity beyond 2,200 MW.
The company solicited additional wind resources through a request for proposals process that opened in March. This process generated more than 75 proposals that included the winning bidders. The deals are for energy only, and do not include the purchase of renewable energy certificates (RECs).
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• 199 megawatts from NextEra Energy Resources/Mammoth Plains Wind Energy Center located in Dewey and Blaine counties, Okla.
• 249 megawatts from NextEra Energy Resources/Palo Duro Wind Energy Center located in Hansford and Ochiltree counties, Texas.
• 250 megawatts from Infinity Wind Resources/Roosevelt Wind Ranch in Roosevelt County, N.M., between the towns of Dora and Elida.
The price per megawatt-hour of energy generated at these wind facilities will be less than the per-megawatt-hour price of most of the company’s natural gas-fueled generation, according to Southwestern President and CEO Riley Hill. Over the 20-year terms of these agreements, Xcel Energy expects to save $590.4 million in fuel costs, Mr. Hill said.
“We started shopping for more wind energy in March after seeing some very good prices on the market,” Mr. Hill said. “We are making these acquisitions purely on economics and the savings we can deliver to our customers.”
Mr. Hill said the favorable pricing is partly the result of the federal wind energy production tax credit (PTC) that Congress extended January 1 for one year, applicable to facilities on which construction is started before the end of 2013.
Xcel Energy currently has close to 1,500 MW of wind energy capacity connected to its Texas-New Mexico transmission and distribution network, which spans the Panhandle and South Plains regions of Texas, six eastern and southeastern counties in New Mexico, and portions of Oklahoma and Kansas. Xcel Energy purchases more than 600 of those megawatts through long-term contracts.
The three additional contracts will more than double the company’s contract wind resources, and will push the total Texas-New Mexico wind capacity beyond 2,200 MW.
The company solicited additional wind resources through a request for proposals process that opened in March. This process generated more than 75 proposals that included the winning bidders. The deals are for energy only, and do not include the purchase of renewable energy certificates (RECs).
Related articles:
Fact check: Exelon's faulty math (and logic) on wind's consumer benefits, June 11, 2013
Mid-American Energy announces $1.9-billion investment in additional wind generation capacity, May 8, 2013
Georgia Power to acquire 250 MW of wind; utility underscores strategy of portfolio diversity, April 29, 2013
New study answers columnist's questions, confirms wind energy's environmental benefits, April 19, 2013
Buffalo Dunes Wind Project: A lesson in export, affordability, and transmission, April 23, 2013
LBNL report: Low natural gas prices haven't detracted from wind's hedge appeal, March 11, 2013
U.S. electric utilities flock to lower-priced wind power, February 20, 2013
AWEA honors Alabama Power for using wind power to save dollars for Southeastern customers, December 3, 2012
Opinion: Wind energy delivers good value for Montana customers, November 26, 2012
First Wind's Bull Hill project now on line, highlights wind's affordability, November 20, 2012
Fact check: Exelon-funded report inflates wind integration costs, November 2, 2012
Alabama Power 'doubles down' on wind, October 9, 2012
IEA report finds cost of wind generation dropping as technology improves, June 7, 2012
WINDPOWER 2012 Update: Transmission for wind in western U.S.: Lower cost, lower variability, June 5, 2012
New study: Wind power can save Midwestern consumers between $3 billion and $9.5 billion annually by 2020, May 23, 2012
PTC, wind power bring cost savings to Iowa utility customers, May 10, 2012
Fact check: Lomborg lacking on wind's economics, emissions reductions, March 23, 2012
Mich. Public Service Commission: Renewable energy cheaper than coal, March 2, 2012
Fact check: American Enterprise Institute FAIL on study of wind costs, February 29, 2012
More savings for ratepayers in Southeast as Louisiana utility ups wind purchases, January 26, 2012
Southeast sees consumer savings, jobs from wind, but tax credit extension needed, January 10, 2012
Is wind power holding electricity costs down?, January 3, 2012