AMARILLO, Texas (March 25, 2026) — Xcel Energy’s (NASDAQ: XEL) subsidiary, Southwestern Public Service Company, has filed an update with the Public Utility Commission of Texas (PUCT) that would lower the fuel portion of electric bills for Texas customers. The updated fuel rate reflects both lower fuel costs and changes in how electricity is generated across the system.
Residential customers using 1,000 kilowatt-hours per month would see electric bills lowered by about $6.40, or roughly 5%. Under the fuel revision factor as filed, small businesses, as well as larger commercial and industrial customers, would also see lower bills, varying based on electric use.
“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.”
Costs for fuels used in Xcel Energy power plants and electricity purchased from the market are passed directly to customers with no markup. The factor on customer bills used to calculate these charges is updated periodically to better reflect actual resource costs. As Xcel Energy adds more cost-effective energy sources, customer exposure to volatile fuel and market purchases is reduced.
Xcel Energy has a balance of traditional generation and resources with lower fuel costs, including wind and solar, reducing the amount of fuel purchased to meet customer demand.
The updated fuel rate applies only to the fuel and purchased power portion of electric bills and does not affect base rates or other unrelated charges. As a regulated utility, Xcel Energy is required to review fuel rates, ensuring customers pay no more or less than actual fuel costs.
Changes are set to apply to electric usage beginning April 1 on an interim basis until the PUCT issues a final decision on the filed fuel factor revision. The filing will be reviewed as part of the standard regulatory process.
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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.
