AMARILLO, Texas (KVII) — Xcel Energy has asked Texas regulators to approve new rules for data centers and other large electricity users, saying the proposal would protect residential and business customers from bearing the cost of infrastructure needed to serve the projects.
The utility submitted its proposed large-load tariff to the Public Utility Commission of Texas, Xcel Energy said Monday.
If approved, the tariff would set terms for customers with major electricity needs, including data centers and industrial users. Xcel said those customers would be responsible for costs tied to the electric infrastructure needed for their projects, including transmission lines, substations, interconnection upgrades and new generation.
The proposal would generally require long-term commitments of 15 years or more, backed by financial security if a project is delayed, reduced or never completed, the company said.
Large users also would face minimum monthly payment requirements for infrastructure built and available to serve them, even if their electricity use increases gradually. Customers that leave service early could face termination charges intended to recover project-specific costs.
“We know many of our customers are concerned about the scale of electricity needed to serve larger data center customers,” Brad Baldridge, interim president of Xcel Energy-Texas, New Mexico, said in a statement. “These rules make sure data centers and other large customers pay for the power they use and any necessary infrastructure so that it’s planned and built responsibly.”
Xcel said requiring large customers to fund their incremental infrastructure costs could allow additional electricity sales to help spread existing fixed grid costs across a larger customer base over time.
The Public Utility Commission of Texas must approve the proposal before it can take effect.