News Releases

New power expected by summer peak

Customers can play role in managing tight power supplies and rising costs

AMARILLO, TEXAS - An additional 500 megawatts of generating capacity will become available to Xcel Energy later this summer, improving the utility’s generating efficiency and saving customers millions of dollars in fuel costs.
Until the new Hobbs, N.M., generating station begins operating,  Xcel Energy is taking steps to meet anticipated summer demand.
“We are excited about the new Hobbs plant coming on line,” said David Eves, president and CEO of Southwestern Public Service Company, an Xcel Energy company, “but until it is operational, we will need our customers’ help in conserving power.”
The 500-megawatt Hobbs Generating Station, built and to be operated by Lea Power Partners, is scheduled to be in service by mid- to late July. But power supplies will be extremely tight prior to the plant’s opening,  Eves said. Until the plant becomes operational, Xcel Energy plans include:
· Short-term purchases of power generated by other utility companies
· Rewards for large customers who reduce power demand on hot days
· Encouraging all customers to conserve energy on hot  days
Once the Hobbs plant becomes operational, it will account for approximately 10 percent of the company’s generating portfolio in its Texas-New Mexico service territory.  And because it is much more efficient than existing natural gas-fired plants in the area, the Hobbs plant will deliver millions of dollars in fuel cost savings directly to Xcel Energy customers.
 The plant will be dry-cooled and will use only 10 percent of the water needed at comparable generating facilities elsewhere on the system. The plant also will reduce emissions because of its more efficient operation. Other planned improvements at Xcel Energy plants will deliver long-term cost and environmental benefits as well.
Even as these improvements are being made, the company must be ready for any unplanned loss of electricity generating capacity this summer. If an unexpected outage occurred at a power plant or on a transmission line on a high-demand day, Xcel Energy would send out conservation appeals through area media outlets to ask customers to reduce power demand quickly.
If demand continued to exceed supply and the reserve margin required for system reliability, controlled outages would be needed to protect the electricity system.
Controlled outages involve interrupting service to predetermined blocks of customers, for up to an hour, to balance the system. The company’s controlled outage plan aims to avoid service interruptions to key facilities such as hospitals, sewer lift stations and water supply systems.
Xcel Energy customers can help prevent power shortages and save on their monthly bills by adopting smart energy habits at home and at work. A few simple changes include:
· Turning up air conditioner thermostats to 85 degrees when homes and offices are empty.
· Keeping the thermostat setting at 78 degrees or higher when people are at home or at work.
· Turning off air conditioning on cooler days.
· Turning off unnecessary lighting, especially in stores and office buildings.
· Unplugging appliances and electronics that aren’t in use.
· Putting off high-energy chores such as clothes washing and drying, cooking and dishwashing until after 7 p.m.
Many more energy- and money-saving tips can be found at Xcel Energy’s Web site, www.xcelenergy.com under the residential tab. Customers also may contact Xcel Energy at (800) 895-4999 to request information on reducing power demand.
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.