Xcel Energy to Lower Electric Bills for Texas Customers
AMARILLO, Texas (March 25, 2026) — Xcel Energy (NASDAQ: XEL) announced today that its subsidiary, Southwestern Public Service Company, has filed an update with the Public Utility Commission of Texas (PUCT) that is projected to lower the fuel portion of electric bills for customers in Texas. The updated fuel rate reflects both lower fuel costs and changes in how electricity is generated across the system.
Bill Impact for Customers
Residential customers using 1,000 kilowatt-hours per month are expected to see electric bills lowered by approximately $6.40, representing a reduction of roughly 5%. Modest businesses, as well as larger commercial and industrial customers, will also experience lower bills, with the exact amount varying based on individual electricity usage.
Long-Term System Improvements Drive Savings
“These aren’t quick, one-time savings driven by the market,” said Brad Baldridge, interim president, Xcel Energy – Texas. “We’ve made long-term improvements to our system that lower fuel costs, and when we’re able to generate power for less, our customers benefit with lower electric bills.”
How Fuel Costs are Passed to Customers
Xcel Energy passes costs for fuels used in its power plants and electricity purchased from the market directly to customers without any markup. The factor used to calculate these charges on customer bills is periodically updated to accurately reflect actual resource costs. As Xcel Energy integrates more cost-effective energy sources, customer exposure to fluctuating fuel and market prices is reduced.
Renewable Energy Integration
Xcel Energy’s balance of traditional generation and resources with lower fuel costs, including wind and solar energy, is contributing to the reduction in fuel purchases needed to meet customer demand.
Scope of the Rate Adjustment
The updated fuel rate applies solely to the fuel and purchased power portion of electric bills and will not affect base rates or other unrelated charges. As a regulated utility, Xcel Energy is required to regularly review fuel rates to ensure customers pay only for actual fuel costs.
Implementation Timeline
The changes are scheduled to take effect for electric usage beginning April 1 on an interim basis, pending a final decision from the PUCT on the filed fuel factor revision. The filing is currently under review as part of the standard regulatory process.
About Xcel Energy
Xcel Energy is a leading energy provider serving millions of customers. The company is dedicated to delivering excellent service, ensuring reliable, resilient, and sustainable energy. Headquartered in Minneapolis, Xcel Energy provides electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, Fresh Mexico, and Texas. More information is available at xcelenergy.com, on X, and on Facebook.
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