Xcel Energy plans to build a 345-kilovolt power line between Texas and New Mexico to extend its electrical transmission system.
The company on Wednesday announced the $400 million project to connect a substation north of Abernathy, Texas, to a similar site in Eddy County, New Mexico.
Xcel says it's begun seeking regulatory approval for the 240-mile route.
A similar transmission project was completed in 2014 connecting the Texas substation to a unit near Woodward, Oklahoma.
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Officials with Minneapolis-based Xcel say the westward extension will help ensure that power can move freely into oil and gas producing regions.