AMARILLO, Texas (March 25, 2026) — Xcel Energy (NASDAQ: XEL) announced that its subsidiary, Southwestern Public Service Company, has filed an update with the Public Utility Commission of Texas (PUCT) that could lower the fuel portion of electric bills for customers in Texas. The proposed change reflects both lower fuel costs and adjustments in electricity generation methods.
Lower Bills on the Horizon
Residential customers who use 1,000 kilowatt-hours of electricity per month could notice a decrease of approximately $6.40, or about 5%, on their monthly bills. Small businesses, as well as larger commercial and industrial customers, are also expected to see lower bills, with the exact amount varying based on individual usage.
According to Brad Baldridge, interim president of Xcel Energy – Texas, the savings are not a temporary market fluctuation. “These aren’t quick, one-time savings driven by the market,” he said. “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.”
How the System Works
Xcel Energy passes fuel costs directly to customers without any markup. The company periodically updates the factor used to calculate these charges to reflect current resource costs. By incorporating more cost-effective energy sources, such as wind and solar, Xcel Energy aims to reduce customer vulnerability to fluctuating fuel and market prices.
The proposed changes are set to accept effect for electric usage beginning April 1, but are subject to a final decision by the PUCT. The filing will undergo standard regulatory review.
Xcel Energy, headquartered in Minneapolis, currently serves customers in eight states – Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, Novel Mexico, and Texas – and is committed to providing reliable, resilient, and sustainable energy. More information can be found at xcelenergy.com.
Frequently Asked Questions
What is the Public Utility Commission of Texas (PUCT)?
The PUCT is the regulatory body responsible for overseeing electric utilities in Texas.
When will the changes to electric bills take effect?
The changes are set to apply to electric usage beginning April 1 on an interim basis, pending a final decision from the PUCT.
How does Xcel Energy determine the fuel factor on customer bills?
The fuel factor is updated periodically to reflect actual resource costs, and costs for fuels used in power plants and electricity purchased from the market are passed directly to customers with no markup.
As energy costs and generation methods continue to evolve, how might these changes impact the long-term affordability and sustainability of electricity in Texas?
