Xcel Energy to keep Texas rates flat

The effect of the federal Tax Cuts and Jobs Act and lower debt costs will keep Xcel Energy base energy rates unchanged this year, reads a Monday news release from the energy provider.

“When we filed for new rates in 2017, we anticipated the need for $55 million in additional revenue to recover the costs of new power grid investments,” said David Hudson, president, Xcel Energy–Texas, in the news release. “The significant reduction in federal corporate tax expense, coupled with lower costs on our long-term debt, will enable us to absorb the cost of new infrastructure without raising base electric rates.”

In August 2017, the company sought base rate increases that could have increased customer bills by $15 a month. After meeting with customer groups, Xcel filed a settlement with the Public Utility Commission of Texas that proposes no rate increases.

A transmission cost recovery factor, a separate line item added to Texas bills in March 2017 to recover costs of new high-voltage transmission lines, will remain on customer bills under the terms of the settlement, states the news release.

Since the August proposal, the costs for natural gas used by Xcel has dropped significantly, according to the statement. Fuel costs make up about a third of a typical residential bill, and a May 1 reduction in the fuel cost factor lowered residential bills by close to 6 percent. Hudson said fuel costs should hold steady through the remainder of the year.