ROSWELL, N.M. (July 1, 2019) – Xcel Energy has filed a rate review in New Mexico that shows a

significant amount of cost-effective capital improvements in clean energy and enhanced delivery systems that are powering growth in the New Mexico economy.

“Our investments in a more efficient and reliable energy grid are mostly paying for themselves in the savings they generate, and at the same time are playing a critical role in sustaining a large amount of economic growth in a regional economy that benefits all of New Mexico,” said David Hudson, president, Xcel Energy – New Mexico.

The company filed the review today with the New Mexico Public Regulation Commission, seeking a boost in annual revenue to recover the new investments in power generation, power lines and substations that support job growth and reliability in the eastern and southeastern parts of the state. The proposed new rates, if approved, would not be in effect until mid-2020, and would increase a typical residential bill of 1,000 kilowatt-hours per month by approximately 7.5 percent on average, or $7.83 more per month. But because customers have enjoyed lower fuel prices in the past two years, the proposed increase would be only 3.6 percent higher than the average residential rate in 2017, which tracks closely to the rate of natural inflation between 2017 and today.

Natural gas, currently the fuel source for about 50 percent of the region’s electricity, plays a large role in the company’s strategy to hold down price increases as it invests hundreds of millions of dollars in the regional grid. An oversupply of natural gas related to a steep increase in oil drilling has brought natural gas prices down to historic lows, leading the company to rely more heavily on natural gas generation and invest in the transmission systems that can move greater supplies of lower-cost electricity into the region.

Wind energy, which makes up about 20 percent of the region’s electricity supply, has played and will

continue to play a role in lowering fuel costs as well because generators are driven by the free and

abundant wind. Customers should continue to enjoy low fuel costs as more wind energy is brought onto the system and additional transmission lines are built to move clean energy to market. Last week, Xcel Energy brought the new 478-megawatt Hale Wind Project on line near Plainview, Texas, on time and under budget. Another large wind plant, the Sagamore Wind Project near Portales, N.M., is proposed to be completed in 2020.

“Investing in clean energy and improving the regional grid is much like purchasing fuel-efficient cars or a new energy-efficient air conditioner at home,” Hudson said. “We pay more up front but see considerable gains from energy savings over time. This will help us stabilize rates by keeping future price increases within the range of inflation.”

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.

Forward-Looking Statements

Certain matters discussed herein are forward-looking statements that are subject to certain risks,

uncertainties and assumptions. Such forward-looking statements, including potential changes to our

generation mix and the timing of such changes, are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions. Actual results may vary materially. Forwardlooking statements speak only as of the date they are made and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018 and subsequent securities filings, could cause actual results to differ materially from those discussed in this release as suggested by such forward-looking information: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries (collectively, Xcel Energy) to obtain financing on favorable terms; business conditions in the energy industry; including the risk of a slowdown in the U.S. economy or delay in growth, recovery, trade, fiscal, taxation and environmental policies in areas where Xcel Energy has a financial interest; customer business conditions; actions of credit rating agencies; competitive factors including the extent and timing of the entry of additional competition in the markets served by Xcel Energy; unusual weather; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric and natural gas markets; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; financial or regulatory accounting policies imposed by regulatory bodies; outcomes of regulatory proceedings; availability or cost of capital; and employee work force factors.