Xcel Energy 2013 Annual Report Download - page 26

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In the first half of 2013, NSP-Minnesota also issued a RFP for cost effective wind generation. In the summer of 2013, NSP-Minnesota
filed a petition with the MPUC and the NDPSC seeking approval of four wind generation projects. The projects are as follows:
• A 200 MW ownership project for the Pleasant Valley wind farm in Minnesota, which is expected to be operational by
October 2015;
• A 150 MW ownership project for the Border Winds wind farm in North Dakota, which is expected to be operational by 2015;
• A 200 MW PPA with Geronimo Energy, LLC for the Odell wind farm in Minnesota; and
• A 200 MW PPA with Geronimo Energy, LLC for the Courtenay wind farm in North Dakota.
In October 2013, the four wind projects were approved by the MPUC. A NDPSC decision is anticipated in early 2014. The feasibility
of the Border Winds and Pleasant Valley projects are also dependent on the finalization of estimated transmission costs, which MISO
is expected to determine in the first half of 2014.
CapX2020 — In 2009, the MPUC granted CONs to construct one 230 KV electric transmission line and three 345 KV electric
transmission lines as part of the CapX2020 project. The estimated cost of the four major transmission projects is $1.9 billion. NSP-
Minnesota and NSP-Wisconsin are responsible for approximately $1.1 billion of the total investment.
Hampton, Minn. to Rochester, Minn. to La Crosse, Wis. 345 KV transmission line
In May 2012, the MPUC issued a route permit for the Minnesota portion of the project and the PSCW approved a CPCN for the
Wisconsin portion of the project. Federal approval of the project was granted in January 2013. All avenues of appeal for the grant of
project permits have now been exhausted. In July 2013, the FERC denied a complaint filed by two citizen groups in March 2013
against the project. Construction on the project started in Minnesota in January 2013 and the project is expected to go into service in
2015.
Monticello, Minn. to Fargo, N.D. 345 KV transmission line
In December 2011, the Monticello, Minn. to St. Cloud, Minn. portion of the Monticello, Minn. to Fargo, N.D. project was placed in
service. The MPUC issued a route permit for the Minnesota portion of the St. Cloud, Minn. to Fargo, N.D. section in June 2011.
Construction started on the Minnesota portion of the St. Cloud, Minn. to Fargo, N.D. segment in January 2012. The NDPSC granted a
CPCN in January 2011 and a certificate of corridor compatibility and route permit for the portion of the line in North Dakota in
September 2012. In January 2013, construction started on the project in North Dakota. The project is expected to go fully into service
in 2015, although segments will be placed in service as they are completed.
Brookings County, S.D. to Hampton, Minn. 345 KV transmission line
The MPUC route permit approvals for the Minnesota segments were obtained in 2010 and 2011. In June 2011, the SDPUC approved
a facility permit for the South Dakota segment. In December 2011, MISO granted the final approval of the project as a MVP.
Construction started on the project in Minnesota in May 2012. The project is expected to go fully into service in 2015, although
segments will be placed in service as they are completed.
Bemidji, Minn. to Grand Rapids, Minn. 230 KV transmission line
The Bemidji, Minn. to Grand Rapids, Minn. line was placed in service in September 2012.
Minnesota Solar Initiatives — In May 2013, Minnesota’s Governor signed into law legislation requiring that 1.5 percent of a public
utility’s total electric retail sales to retail customers be generated using solar energy by 2020. Of the 1.5 percent, 10 percent must
come from systems sized less than 20 kilowatts. The legislation also authorized NSP-Minnesota to offer two new solar programs: a
community solar garden program that will provide bill credits to participating solar garden subscribers and a new solar energy
incentive program for solar energy systems equal to or less than 20 kilowatts that authorizes the spending of $5.0 million over five
years for production incentive payments. NSP-Minnesota is continuing to work toward bringing solar energy generation on line in
support of these solar programs and legislative requirements. NSP-Minnesota submitted its proposal for a community solar garden
program to the MPUC in September 2013. The MPUC may approve, disapprove or modify the program. NSP-Minnesota is currently
developing the new solar energy incentive program. The legislation also provides for an alternative tariff based on a distributed solar
value or Value of Solar methodology. As required by the legislation, the DOC developed and filed a distributed solar value
methodology with the MPUC on Jan. 31, 2014. The MPUC must approve, modify with the consent of the DOC or disapprove the
methodology within 60 days. Once the methodology is approved, NSP-Minnesota may elect to file a Value of Solar tariff. NSP-
Minnesota provided comments to the DOC on the methodology of this Value of Solar alternative tariff on Oct. 1 and Oct. 8, 2013.
On Jan. 24, 2014, the MPUC approved $42 million in grants for renewable energy generation and research projects in Minnesota.
Xcel Energy will fund the grants through its renewable development fund.