BY MARI HERNANDEZ, GUEST BLOGGER ON AUGUST 24, 2013 AT 10:00 AM
CREDIT:
Shutterstock
Last week,
Minneapolis-based utility Xcel Energy proposed its fourth wind farm in the Upper Midwest since mid-July. If approved, the 150-megawatt
Border Winds Project would be developed in North Dakota near the U.S.-Canadian
border and produce enough electricity to save customers an estimated $45
million over its lifetime while reducing annual carbon dioxide emissions by
about 320,000 tons.
In July, Xcel Energy — the
nation’s top utility for wind-based power — proposed to add 600 megawatts of wind energy through three wind farms in North Dakota and
Minnesota. With the addition of the Border Winds Project, Xcel could save
customers more than $220 million and add a total of 750 megawatts of wind power
to its existing Midwest portfolio, which would bring its wind capacity total in
the region to 2,550 megawatts — or enough power to serve over 750,000 homes.
“These projects will lower
our customers’ bills, offer protection from rising fuel costs, and provide
significant environmental benefits,” Dave Sparby, CEO of Xcel subsidiary
Northern States Power Co., said in a statement last month. “Wind prices are extremely competitive right now,
offering lower costs than other possible resources, like natural gas plants.”
Xcel has submitted the four
projects to the Minnesota Public Utilities Commission and the North Dakota
Public Service Commission for consideration and expects to hear the regulators’
decisions by late fall. If approved, construction will begin immediately in
order for the projects to qualify for the federal renewable energy Production
Tax Credit (PTC).
The PTC, which was set to
expire at the end of 2012, was extended in January to projects that begin
construction by the end of 2013. The tax credit provides 2.2 cents per
kilowatt-hour for electricity produced over the first ten years of operation.
The Upper Midwest is not
the only region that’s benefiting from Xcel’s aggressive push to add more wind
power before the PTC expires. In Colorado, Xcel has asked regulators to approve
a 200-megawatt wind farm that would save customers more than $142 million in fuel
costs over the 20-year contract term.
Xcel also proposed three
projects totaling nearly 700 megawatts that would be built in New Mexico, Oklahoma and Texas, citing a
lower price per megawatt-hour for wind energy generation than their own natural
gas-fueled generation. These projects are expected to save customers $590.4
million in fuel costs over 20 years.
Altogether, Xcel is
awaiting approval on about 1,650 megawatts of wind power that could come online
before the end of the 2016, which would increase its overall wind capacity by
30 percent.
“We are committed to
meeting our customers’ needs in clean and affordable ways,” said Ben Fowke,
Xcel Energy’s chairman and CEO. “Wind power is simply the cheapest resource
available right now, and we are taking the opportunity afforded by the PTC
extension to further shape our systems for the future.”
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