Xcel Energy has submitted a revised rate increase of 5 percent, slightly less than the 6.2 percent increase it sought last December.
The revision, filed with the New Mexico Public Regulation Commission Thursday, is the result of negotiations between Xcel and its and customer groups, which include representatives from local governments and community activists.
Company spokesman Wes Reeves said the new rate structure also addresses concerns of irrigation customers by modifying the demand charge to accommodate irrigation patterns.
Reeves said the increase means an additional $4.84 each month for the average electric customer. Xcel deems the average customer as a household using 750 kilowatt-hours each month.
Reeves said a portion of the increase covers costs associated with a new generating plant in Hobbs. The Hobbs plant began operating Sept. 16.