ROSWELL, New Mexico (Oct. 5, 2022) – Xcel Energy’s electrical system is primed to supply enough electricity to more than meet peak electricity demand in growing New Mexico and Texas communities and is backed by strong connections to the Southwest Power Pool’s ample power reserves.
“Recent headlines have called attention to potential power shortages in New Mexico in the near future, but this is not the case in the eastern and southeastern parts of the state served by Xcel Energy,” said Adrian Rodriguez, president, Xcel Energy – New Mexico, Texas. “Our communities in both New Mexico and Texas are connected to the eastern grid within the Southwest Power Pool where strong connections to a robust power market enhance our own native power reserves. Additionally, our investments in new and upgraded substations and lines across the area allow power to flow freely, especially in areas that have seen a lot of economic growth.”
Xcel Energy discussed the company’s electricity supply outlook at a New Mexico Public Regulation Commission workshop last month, part of an effort the NMPRC is undertaking to ensure the state won’t experience power shortages in the future. Regulators are looking closely at an indicator known as the planning reserve margin, which is an electric provider’s capacity to cover projected customer demand plus a cushion of additional power generating capacity to make up for unplanned outages. Xcel Energy’s planning reserve margin within the Southwest Power Pool will increase to 15% in 2023 – a requirement Xcel Energy has already met, Rodriguez said.
Xcel Energy owns and operates conventional power plants in its New Mexico and Texas region and two large wind energy facilities. The company also has long-term power purchase contracts with other regional power generators and has quadrupled its transmission import capabilities over the past decade.
In the future, as aging plants retire, new facilities will be added to help support reliability while enabling customer and community growth. In addition to maintaining a safe and reliable margin of generating reserves, the company’s investments in local distribution systems keep power flowing in local neighborhoods on hot days. Ongoing projects to standardize the voltages in area communities help make certain that if heat-related outages do occur, crews can quickly reroute power to minimize disruptions.
“We aren’t immune from the effects of high heat or unplanned maintenance issues, but from an operational and planning standpoint, we are in a strong position in the areas of New Mexico we serve for the foreseeable future,” Rodriguez said. “And as our system grows, we will responsibly add generation in a timely manner.”
Xcel Energy provides electricity to 125,800 New Mexico customers in 16 communities and outlying areas across six eastern and southeastern New Mexico counties. Its regional system also covers most of the
Texas Panhandle and large areas of the Texas South Plains region. The company owns two natural gas-fueled power plants in the Hobbs area and purchases additional energy from the Hobbs Generating Station. In 2020, Xcel Energy completed the 522-megawatt Sagamore Wind Project in Roosevelt County south of Portales, a facility capable of powering close to 194,000 typical homes annually.
Additionally, Xcel Energy has long-term contracts to purchase solar energy from the Roswell and Chaves Solar Energy Centers, five SunEdison solar facilities in Lea and Eddy counties and from three New Mexico-based wind energy facilities owned by other companies. Conventional and renewable generating facilities based in Texas also provide electricity for Xcel Energy’s New Mexico customers.
Across its eight-state footprint, Xcel Energy is on track to reduce carbon emissions by 80% by 2030, and company leadership envisions providing 100% carbon-free electricity by 2050. More information on clean energy and grid investments in Xcel Energy’s New Mexico and Texas region can be found at Our Energy Future Southwest at xcelenergy.com.
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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.