AMARILLO, Texas (Sept. 28, 2026) — Xcel Energy (NASDAQ: XEL) submitted a proposal to the Public Utility Commission of Texas to address the growth in customers with large electricity needs, such as data centers, with a focus on protecting existing customers from higher bills. The proposed large load tariff would establish clear rules, ensuring large electricity users pay for what they need without shifting costs to other residential and business customers.

"We know many of our customers are concerned about the scale of electricity needed to serve larger data center customers. These projects can drive economic opportunity in the communities we serve, but it's critical that growth is handled the right way," said Brad Baldridge, interim president, Xcel Energy – Texas, New Mexico. "These rules make sure data centers and other large customers pay for the power they use and any necessary infrastructure so that it’s planned and built responsibly. We will continue to deliver the safe, reliable electric service that powers our local economy and that our customers depend on every day."

If approved, the tariff would set the terms and conditions under which Xcel Energy will provide service, including the types of costs large electricity users are responsible for paying.

Under the proposal, data centers and other major industrial users would be subject to commercial terms and customer commitments designed to support appropriate cost responsibility for infrastructure and electric service required to serve their projects, including electric transmission, substations, interconnection upgrades and new generation.

The tariff includes multiple safeguards to reduce risk and further protect existing customers, including:

  • Long-term commitments: Large customers would be required to make long-term commitments, typically 15 years or more, supported by financial security provisions if a project is delayed, scaled back, or not completed.

  • Minimum monthly payment requirements: Large customers would contribute to the cost of electric infrastructure constructed and available to serve them, even if electric usage ramps up gradually.

  • Exit and termination provisions: If a customer leaves service early, termination charges are designed to recover costs associated with project-specific infrastructure and mitigate stranded cost risks for other customers.

The proposal would require payments for incremental infrastructure costs, allowing for system investments that improve grid reliability for all Xcel Energy customers. When large customers fund the infrastructure needed to serve them, additional electric sales help spread existing fixed grid costs over a larger sales base. This can help keep all customer bills lower over time.

All aspects of the large load tariff require approval from the Public Utility Commission of Texas.

Xcel Energy has successfully advanced large load tariffs in other states and expects to file a large load tariff with the New Mexico Public Regulation Commission in the near future.

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.

We are committed to leading the clean energy transition, meeting our customers’ need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.

Headquartered in Minneapolis, we work every day to generate and distribute electricity and gas to customers across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas. For more information, visit xcelenergy.com or follow us on X and Facebook.