Xcel Energy Requests Fuel Cost Increase in Texas
An area energy provider is requesting a rate increase for fuel costs.
On Tuesday, Xcel Energy filed a proposal with the Public Utility Commission of Texas to change its fuel cost factor to reflect higher prices for fuel.
If approved, the fuel charges for Xcel customers will increase on June 1st.
Xcel Energy says that fuel costs are passed through dollar for dollar with no profit to the company, and the company is currently spending more on fuel costs than it is taking in from customer fuel charges, which make up about half of a typical residential customer’s monthly bill.
A customer using 1,000 kilowatt-hours per month will pay $1.54 per month, if the increase is approved.
The company is attempting to use wind energy to fend off issues from fuel cost increases.
“By adding more wind energy and building more fuel-efficient power plants, we have managed to go a year without an increase in fuel costs despite a 7.8 percent increase in natural gas prices,” said David Hudson, president and CEO of Southwestern Public Service Company, an Xcel Energy Company.
Natural gas is used to generate around 40 percent of the region’s electricity, according to Xcel Energy.