Xcel representatives talk growth, infrastructure

Representatives from Xcel Energy on Wednesday held an informational meeting at the Clovis Civic Center, with about 50 business and civic leaders in attendance.

The invitation-only event, known as a Customer and Community Xchange meeting, was the fifth of its kind throughout the utility's service area in New Mexico and Texas. Other cities included Amarillo, Hobbs, Lubbock and Roswell.

"It's a chance to get out and just talk with large customers about the big impacts," Xcel spokesman Wes Reeves said. "These are things that affect everyone, but we can't visit every customer."

Xcel handles three phases of power for the area, Reeves said — power generation, transmission and distribution — and jumps in local population and economy increase all of those phases.

"We're seeing unprecedented growth in our service area of southeastern New Mexico," said Mike McLeod, regional manager for community and economic development in New Mexico. "We're really seeing it throughout the entire region. Cannon Air Force is the driving force for growth in that area."

The company is planning $2 billion in infrastructure upgrades through 2016 — a huge leap, McLeod said, from the $800 million invested the previous five years. The upgrades, Reeves said, are mostly in transmission and generation.

Neither Reeves nor McLeod could give a breakdown on how much of that budget will be spent in New Mexico or individual counties, but noted that Xcel sells 48 percent of its power to Texas customers, 15 percent to New Mexico customers and 37 percent wholesale.

The $2 billion will be recouped through customers, and Xcel is likely to seek a rate increase before the end of the year. Reeves said a power bill is based on energy charges and fuel costs, and recent drops in fuel costs will help lessen the pinch of increasing base rates.

"What we do through these meetings is really try to update communities and business leaders," McLeod said. "We're trying to be as transparent as we can."

Conservation programs and energy-efficient appliances do make a difference for customers, Reeves said, but it makes a much smaller impact on the big picture for Xcel. Residential customers account for 18 percent of sales, while industry accounts for 41 percent and commercial 31 percent.