Xcel reaches settlement on 1.23-GW wind plan in US Southwest - report

US utility Xcel Energy (NYSE:XEL) has reached a settlement agreement over a plan to add 1,230 MW of new wind power capacity in New Mexico and parts of Texas, the Albuquerque Journal reports.

The company has submitted the agreement with involved parties to the New Mexico Public Regulation Commission and will also need to get the green light from the Public Utility Commission of Texas.

The 1,230-MW plan includes proposals for the 522-MW Sagamore Wind project in Roosevelt County, New Mexico, and the 478-MW Hale Wind scheme in Hale County, Texas. Meanwhile, Xcel has filed for a power purchase agreement (PPA) tied to the 230-MW Bonita wind project that is developed by NextEra Energy Resources in Texas’ Cochran and Crosby Counties.

According to the report, Xcel Energy has agreed to some compromises to its plan, including a cap cost recovery of USD 1.675 (EUR 1.427) per kWh, a minimum output guarantee for the wind parks per year and certain assurances that customers will be entitled to 100% of the federal production tax credits related to the schemes.

The 1,230-MW initiative is part of a 3,380-MW plan, launched in March, proposing a mix of owned wind parks and PPAs that will be developed through 2021.

(USD 1.0 = EUR 0.852)

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