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Xcel Energy seeks proposals for new power generation

The RFP is seeking options for new PPAs, extensions or changes to existing long-term PPAs, self-build projects and build projects that transfer to the utility.
Xcel Energy seeks proposals for new power generation
(Courtesy: BFS Man/Flickr.)

Xcel Energy launched an all-source request for proposals (RFP) for power generation to serve its Texas-New Mexico system.

The utility cited older plant retirements and projected electricity demand increases as reasons for a “major expansion” in the area.

According to Xcel Energy, power forecasts show the region has a future need over 3 GW of accredited capacity, which would translate to more than 5 GW of additional nameplate capacity by the end of the decade. The utility said the current peak demand in its Texas-New Mexico service area is a little more than 6 GW.

Xcel Energy owns and operates a fleet of conventional plants in this region, along with two large wind energy facilities. The region’s energy mix also includes electricity generated by outside suppliers and sold to Xcel through long-term power purchase agreements (PPAs).

SPS Electric Service Territory. SPS is a subsidiary of Xcel Energy.

The RFP is seeking options for new PPAs, extensions or changes to existing long-term PPAs, self-build projects and build projects that transfer to the utility.

Bids from developers are due by Jan. 3, 2025. Xcel Energy will evaluate submissions with proposed commercial operation dates within or before May 1, 2027, to May 1, 2030. Individual projects selected will be submitted for approval to the NMPRC and the Public Utility Commission of Texas, with decisions expected in summer 2026.

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