Xcel Energy submitted a proposal to refund $53.3 million in fuel costs to Texas customers that will result in a one-time credit against electricity charges during the December billing cycle.
If approved by the Public Utility Commission of Texas (PUCT), customers will receive billing credits based on the amount of electricity a customer uses during December. Residential customers using 1,000 kilowatt-hours a month, for example, would see a total bill credit of $36.84. The refund could be spread over two months depending on when a customer’s meter is read.
“The cost of fuel is a pass-through charge on customer bills, and when fuel costs fall, our customers realize the savings,” said Adrian J. Rodriguez, president, Xcel Energy – Texas. “Lower natural gas prices have helped keep a large portion of our power generation costs down for much of this year. Additionally, customers have benefited from low-cost energy generated by local wind farms, which harness the wind as fuel.”
Xcel Energy’s costs for fuel and power purchase agreements are passed through to customers without markup via a fuel cost factor on their bills. Although natural gas prices fluctuate daily, the fuel cost factor collects a fixed amount. Over time, this generally balances out, but it can sometimes lead to over- or under-collection of the actual fuel costs.
While a fixed fuel factor aids in providing price predictability for customers, if natural gas prices remain lower than anticipated for an extended period, the resulting surplus is refunded to customers with interest.
“Our customers enjoy cost-savings from our diversified mix of generation resources and access to competitive market pricing for electricity,” Rodriguez said. “We are dedicated to investing in innovative energy solutions that consistently provide value to our customers and bolster a strong economy.”
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