Xcel Energy (NYSE: XEL) and enXco, an EDF Energies Nouvelles Company (EEN.P) announced plans to develop 351 megawatts (MW) of wind power in Minnesota and North Dakota by the end of 2011, increasing the utility’s wind power resources by more than 10% company wide. Once developed, project ownership will be transferred to Northern States Power Co.-Minnesota, an Xcel Energy company.
The agreement between enXco and NSP-Minnesota targets approximately
$900 million in investment over three years. It stems from a competitive bidding process Xcel Energy
launched late last year, as part of its plan to meet state renewable
requirements. The agreement marks Xcel’s first major
wind undertaking in North Dakota.
"Xcel Energy already is the nation’s No. 1 wind power provider, and this agreement advances our commitment to meet aggressive renewable energy requirements," said Richard C. Kelly, Xcel Energy’s chairman, president and CEO. "We believe our partnership with enXco also will allow us to meet our goals in a cost-effective manner for our customers."
Under the agreement, Xcel Energy will seek regulatory approvals to develop a 201-MW project in southwestern Minnesota’s Nobles County, called the Nobles Wind Project, and a 150-MW project in Dickey and McIntosh counties in southeastern North Dakota, called the Merricourt Wind Project. The projects are expected to be operational by the end of 2010 and 2011, respectively. Together, the projects will produce enough electricity to power approximately 110,000 homes.
The agreement with enXco builds on the experience the two companies gained through their joint development of the 100-MW Grand Meadow wind farm near Austin in southeastern Minnesota, the first wind farm owned by Xcel Energy in Minnesota. Xcel Energy also purchases power from three projects developed and owned by enXco in southwestern Minnesota, including the Fenton Wind Project, Chanarambie Wind Farm and Viking Wind Project. When Grand Meadow begins generating electricity late this year, Xcel Energy will have more than 1,200 MW of wind-powered generation on its Upper Midwest system.
In addition to these proposed wind farms, Xcel Energy is aiming to complete contracts for additional Community Based Energy Development (CBED) wind projects in Minnesota. If successful, the individual projects could begin operating in 2009.
ABout Xcel Energy
Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in eight 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. Company headquarters are located in Minneapolis.
About enXco
enXco, an EDF Energies Nouvelles Company, develops, constructs, operates and manages renewable energy projects throughout the United States. For more than two decades, enXco has been a leader in wind energy focusing on large-scale wind projects. Today, enXco’s portfolio includes solar and biomass technologies in an effort to help drive the nation’s transition to a sustainable energy economy. enXco is a significant owner and developer of wind-energy installations in the United States and is the largest third-party operations and maintenance provider for wind farms in North America. (www.enxco.com)
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