ROSWELL, N.M. (AP) - Two planned solar generating stations are expected to boost Xcel Energy’s (NYSE: XEL) renewable energy portfolio for electric customers in New Mexico and Texas.
The utility announced Thursday it has signed power purchase agreements with affiliates of NextEra Energy Resources (NYSE: NEE), which plans to build solar farms near Roswell.
The agreements require the approval of the New Mexico Public Regulation Commission.
Xcel spokesman Wes Reeves says the cost of solar has come down and tax incentives have helped to make it more competitive with gas-fueled generation.
Most of the utility's renewable energy comes from wind generation, but Xcel is looking to add more solar before investment tax credits expire.
Through the subsidiary Southwestern Public Service Co., Xcel serves nearly 385,000 customers in New Mexico and the Panhandle and South Plains regions of Texas.