Fermi America Executes Electric Service Agreement with Southwestern Public Service Company, a Subsidiary of Xcel Energy, Securing Up to 200 MW of Power
Rhea-AI Summary
Fermi America (NASDAQ:FRMI) signed a definitive Electric Service Agreement with Southwestern Public Service Company, a subsidiary of Xcel Energy (NASDAQ:XEL), to secure up to 200 MW of electrical capacity for Fermi's 11 GW Project Matador Campus in Amarillo.
Under the ESA SPS will begin delivering 86 MW in January 2026, with deliveries ramping to 200 MW over time via SPS's 115-kilovolt transmission system to support large-scale AI and computing operations.
Positive
- Signed definitive ESA securing up to 200 MW capacity
- Immediate supply: 86 MW begins January 2026
- Supports 11 GW Project Matador Campus power needs
- Delivery over SPS 115-kV transmission system
Negative
- Initial delivery is only 86 MW, below the 200 MW eventual capacity
Key Figures
Market Reality Check
Peers on Argus
XEL was down 1.1% while large regulated electric peers were mixed: ETR up 0.31%, EXC down 0.73%, PEG down 1%, WEC down 0.8%, D down 0.85%, suggesting the ESA news is more company-specific than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 21 | Management change | Neutral | -0.8% | Named Bria Shea president for Upper Midwest operating company. |
| Oct 06 | Earnings call notice | Neutral | +1.1% | Announced timing and access details for Q3 2025 earnings call. |
| Sep 24 | Litigation settlement | Positive | +6.7% | Agreements in principle to settle Marshall Fire litigation with insurance support. |
| Jul 31 | Earnings report | Positive | +1.4% | Strong Q2 2025 EPS and revenue growth; reaffirmed 2025 earnings guidance. |
| Jul 30 | Dividend declaration | Positive | +0.1% | Board declared quarterly dividend of $0.57 per share on common stock. |
Recent positive or de‑risking headlines (Marshall Fire settlement, strong Q2 earnings, dividend declaration) generally coincided with modestly positive price moves, with the litigation settlement showing the strongest upside reaction.
Over the past six months, Xcel Energy has combined solid financial execution with regulatory and legal developments. Q2 2025 results showed diluted EPS of $0.75 and net income of $444 million, supported by revenue of $3.287 billion and plans for nearly 5,200 MW of new generation. The company declared a quarterly dividend of $0.57 per share and reached agreements in principle to resolve Marshall Fire litigation with about $640 million in settlements, including $350 million from insurance and no customer cost pass‑through. The new ESA with Fermi America fits into this trajectory of expanding load and long-term power commitments.
Market Pulse Summary
This announcement highlights a definitive Electric Service Agreement with Fermi America securing up to 200 MW of power, starting with 86 MW in January 2026 for an 11 GW AI-focused campus. It fits alongside Xcel Energy’s broader growth initiatives in Texas and New Mexico and its history of adding new generation capacity. Investors may watch future disclosures on capital spending, regulatory treatment, and incremental large-load contracts to gauge the longer-term impact.
Key Terms
electric service agreement financial
AI-generated analysis. Not financial advice.
Under the terms of the ESA, and applicable tariffs, Xcel Energy's SPS subsidiary will begin delivering 86 MW of electrical capacity in January 2026, eventually ramping up to 200 MW.
"This agreement is yet one more example of Fermi transforming intent into execution, with the strong commercial and technical support of our friends at Xcel Energy," said Larry Kellerman, Chief Power Officer of Fermi America. "Securing reliable and cost-effective power from Xcel Energy today and working together with them to grow our relationship over time is a key component of Fermi's plans."
"Partnering with Xcel Energy helps demonstrate that reliable, large-scale energy for artificial intelligence can be developed on time and on budget," said Toby Neugebauer, Co-founder and CEO of Fermi America.
The ESA provides up to 200 megawatts of power to Fermi's Project Matador Campus in
"Xcel Energy is focused on meeting the growing energy needs of the Texas Panhandle and is pleased to work with Fermi America on this project," said Adrian Rodriguez, president, Xcel Energy Texas –New Mexico.
About Fermi America
Fermi America™ (Nasdaq & LSE: FRMI) (https://fermiamerica.com/) is pioneering the development of next-generation private electric grids that deliver highly redundant power at gigawatt scale, required to create next-generation artificial intelligence. Co-founded by former
About Xcel Energy
Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy. We are committed to leading the clean energy transition, meeting our customers' need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives. Headquartered in
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy, future operations, financial position, prospects, plans and objectives of management. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "will be," "will likely result," "should," "expects," "plans," "anticipates," "could," "would," "foresees," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "outlook," or "continue" or the negative of these words or other similar terms or expressions. These forward-looking statements are not guarantees of future performance, but are based on management's current expectations, assumptions, and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Our results could be materially different from our expectations because of various risks.
For media inquiries, please contact:
Lexi Swearingen
Media@FermiAmerica.com
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SOURCE Fermi America
FAQ
What did Fermi America announce with Xcel Energy (XEL) on December 5, 2025?
When will Xcel Energy begin delivering power to Fermi America's Project Matador (FRMI)?
How will electricity be delivered to Fermi America's Matador Campus under the ESA?
How much capacity does the ESA provide relative to Fermi's Project Matador size?
What is the investor relevance of the Fermi–Xcel Energy agreement for XEL shareholders?
