Xcel cleared to buy 700MW
New Mexico regulators OK three contracts for new wind energy
The New Mexico Public Regulation Commission has approved Xcel Energy’s plan to purchase 698MW of additional wind energy for its Texas-New Mexico system.
Subsidiary Southwestern Public Service (SPS) will buy the output from NextEra Energy Resources’s 199MW Mammoth Plains wind farm in Oklahoma and 249MW Palo Duro project in Texas as well as the 250MW Roosevelt scheme in New Mexico by Infinity Wind Power.
The deals will save Texas-New Mexico customers an estimated $590m in fuel costs over 20 years, said Xcel.
The plan to purchase the additional wind power was announced in July, but required final approval from the New Mexico Commission, as reported by reNews. The company was not required to seek approval in Texas.
Xcel already has met and exceeded requirements of renewable portfolio standards in both New Mexico and Texas, said SPS president and CEO Riley.
“The energy purchased from these facilities has been contracted at a price that is less than the price of power generated at some older natural gas-fueled power plants,” said Hill.
“Additionally, the expected output of the facilities will displace power generated by fossil fuels, which helps us control emissions, lower fuel costs, save water and lower the cost of environmental compliance over time.”