Xcel Energy Gets Approval to Add Renewable Energy in Colorado

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Xcel Energy Gets Approval to Add Renewable Energy in Colorado

DENVER, COLORADO, Aug. 12 -/E-Wire/Business Wire/-- The Colorado Public Utilities Commission (CPUC) on Wednesday approved an Xcel Energy proposal that could triple the company's wind power capacity in Colorado by 2007.

The CPUC approved Xcel Energy's proposal to acquire up to 500 megawatts (MW) of renewable energy resources, primarily wind, through an early competitive bidding process. This will allow the company to take advantage of any short-term renewal of the federal production tax credit (PTC) for wind energy, currently under consideration by Congress. The company also will study the impact that additional renewable resources will have on system reliability, operation, cost and transmission.

"We are very pleased that the commission approved our request to greatly expand our renewable energy resources, and we will issue our request for proposals shortly," said Fred Stoffel, Xcel Energy vice president of policy development.

Xcel Energy now has about 250 MW of wind generating capacity in its Colorado energy supply portfolio, which includes all commercially available wind energy in the state. Xcel Energy is the second-largest provider of wind energy to retail customers in the United States, with 829 MW on its entire system. The company's Windsource program is the largest voluntary wind power program in the country.

"Xcel Energy is one of the nation's leading wind power providers, and this decision could enable us to dramatically expand these resources in Colorado," Stoffel added. "We continue to urge Congress to take action soon to reinstate the federal production tax credit, so more cost-effective wind energy can be built in Colorado."

The federal PTC enables wind power to compete more cost effectively with natural-gas generated electricity. It has historically been extended by U.S. Congress for limited periods of time, and is currently expired. It requires that wind resources become operational before the tax credit expires, so they can qualify for tax credits on power produced over 10 years. Bills pending before the U.S. Congress could extend the expiration date of the federal PTC to Dec. 31, 2006.

The renewable energy Request for Proposal (RFP) is part of the company's Colorado Least-Cost (Resource) Plan (LCP), which was filed in April 2004. The company also has proposed an all-source competitive bidding process to acquire other needed resources, including additional renewable resources, fossil-fuel generation and demand-side management. The resource plan also proposes construction of a coal-fired unit at the company's Comanche Generating Station near Pueblo, Colo. The CPUC will consider the rest of the plan during the next several months, with a decision expected by the end of 2004.

Xcel Energy (NYSE:XEL) is a major U.S. electricity and natural gas company with regulated operations in 11 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

Xcel Energy; Mark Stutz, [REDACTED-PHONE]; www.xcelenergy.com

http://www.xcelenergy.com

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