Albuquerque Journal

ELECTRIC BOOM

- BY KEVIN ROBINSON-AVILA JOURNAL STAFF WRITER

Power demand surges in NM’s Permian Basin drilling region

The oil and gas boom in southeaste­rn New Mexico and West Texas is pushing electricit­y demand on Xcel Energy’s grid to all-time records.

The regional transmissi­on network delivered 6.15 gigawatts of electricit­y to customers on July 19, about 350 megawatts more than the company had predicted in peak demand on any given day for this year and the highest amount ever managed by the network.

A heat wave in July contribute­d to the surge. But it’s oil and gas production in the Permian Basin that’s driving accelerate­d load growth on the grid, said David Hudson, Xcel Energy president for New Mexico and Texas.

“Some of it is weather driven, but we’re seeing extreme strength in load growth in New Mexico, particular­ly in Eddy and Lea counties, and it’s almost all from oil and gas processing activities,” Hudson told the Journal. “We’re now projecting to connect at least another 286 megawatts of load growth this year to the system, and that wasn’t even in our forecast for this year.”

One megawatt is enough electricit­y to serve about 500 typical homes in the area.

Over the next five years, Xcel projects another 768 MW more in load growth for the area above and beyond what the company had previously forecast, Hudson added.

“That’s additional electricit­y to serve customers asking for service that we will connect up, primarily in the oil and gas industry,” Hudson said.

Most of the growth is coming from the Delaware Basin, an ovalshaped shale rock formation that protrudes from southwest Texas northward into Eddy and Lea counties. Modern drilling technologi­es have turned that zone into one of the most-productive oil and gas plays in the world.

“Right now Eddy County is our super hot spot for load growth,” Hudson said. “These are places where we didn’t have any highvoltag­e transmissi­on 10 years ago. There was nothing even out there back then.”

Excel is investing heavily in new infrastruc­ture to meet demand. Last week, it inaugurate­d an 86-mile, 345-kilowatt transmissi­on line from Hobbs to the newly built China Draw Substation southeast of Carlsbad.

The $140 million project is the first of several segments of a $400 million transmissi­on improvemen­t project, said Xcel spokesman Wes Reeves.

Since 2011, the company has invested in more than 800 miles of transmissi­on lines and more than 30 new substation­s, plus upgrades to another 40 substation­s. Counting new projects now planned or underway, the company will have invested about $3 billion in regional infrastruc­ture by 2021, Reeves said.

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 ?? COURTESY OF XCEL ENERGY ?? This is a segment of a new 86-mile, high-voltage transmissi­on line from Hobbs to Carlsbad that Xcel Energy inaugurate­d last week.
COURTESY OF XCEL ENERGY This is a segment of a new 86-mile, high-voltage transmissi­on line from Hobbs to Carlsbad that Xcel Energy inaugurate­d last week.

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