Xcel Energy is adding more natural gas-fired power generation in Texas, with plans to convert a retiring coal-fired plant to natural gas, along with building a new peaker plant to provide electricity at times of high demand.
The new plants are part of Xcel’s plan to add more than 5 GW of capacity to its generation fleet in its Texas and New Mexico service area over the next five years. The two gas-fired projects announced October 1 are among 17 generation facilities the utility plans to build, including about 3.2 GW of dispatchable generation and energy storage, and nearly 2 GW of renewable energy including wind and solar. The utility also said the portfolio, originally announced in July of this year, includes extensions of 521 MW of existing generation from gas-fired units at the Nichols and Plant X power stations in Texas, and the Maddox station in New Mexico.
Xcel, which serves customers in eight states, said its strategy is designed to strengthen power grid reliability across its Southwest service territory. The company said the portfolio supports the utility’s broader five-year investment plan for Texas and New Mexico that was announced in October 2024, which is designed to modernize and expand the region’s energy infrastructure.
Xcel has purchased 10 gas turbines from Siemens Energy to power the new gas-fired plants, which together will add 2,088 MW of generation capacity. The utility will retire its coal plant at Tolk Station in Muleshoe, Texas, and install five Siemens Energy SGT6-5000F gas turbines and five SGen6-1000A generators to provide 928 MW of gas-fired capacity. The company also will build a new peaker plant in Gaines County, which will feature five Siemens F-class turbines and five generators, adding 1,160 MW of capacity.
“These power plant projects are part of a broader portfolio that includes 17 new power initiatives and more than 5,000 megawatts of added capacity by 2030,” said Adrian J. Rodriguez, president, Xcel Energy—Texas, New Mexico. “We are committed to thoughtfully investing in a balanced mix of energy resources that deliver reliable service to our customers and support long-term economic growth across the region. This approach ensures we can meet today’s energy needs with confidence and deliver lasting value, while preparing for the evolving expectations of tomorrow’s customers and communities.”
“As demand for reliable energy grows, dispatchable power is no longer optional,” said Luke Baker, Head of Gas Services Sales, North America, at Siemens Energy. “Our turbine technology ensures availability and flexibility in a region critical to America’s energy future.”
—Darrell Proctor is a senior editor for POWER.
