What is the status of the Mower wind facility acquisition?

Northern States Power Company (NSP-Minnesota), an Xcel Energy subsidiary, has filed a petition with the Minnesota Public Utilities Commission (MPUC) to acquire the Mower wind facility from NextEra Energy, Inc. affiliates. The acquisition is subject to MPUC and Federal Energy Regulatory Commission (FERC) approval and is expected to occur after the facility is repowered, which is anticipated to be completed before the end of 2020.

Why were the Crowned Ridge wind projects scaled back?

NextEra Energy, Inc. withdrew its MISO queue position for a portion of the Crowned Ridge projects due to increased estimates for Midcontinent Independent System Operator (MISO) transmission upgrade and interconnection costs. As a result, both the build-owner transfer (BOT) and purchased power agreement (PPA) components of the Crowned Ridge projects were reduced from 300 MW each to 200 MW each.

What is the expected cost and timeline for the Sagamore wind project?

The Sagamore wind project in New Mexico is expected to cost approximately $900 million. Construction is scheduled to begin in the fourth quarter of 2019, with commercial operation anticipated in 2020.

How will these wind projects benefit Xcel Energy's customers?

Xcel Energy stated that the acquisition of the repowered Mower facility is expected to provide significant customer financial benefits relative to other wind options. The company generally aims to meet customer clean energy needs through these developments, contributing to its clean energy transition commitment.

XEL/XELLL 8-K SEC Disclosure

Summary

Xcel Energy Inc. (XEL) announced significant updates regarding its wind development portfolio on August 30, 2019. Key among these is the petition filed by Northern States Power Company (NSP-Minnesota) to acquire the Mower wind facility. This facility, located in Minnesota, will be repowered and is expected to maintain approximately 99 megawatts (MW) of capacity, aiming to qualify for 100% of the production tax credit upon completion before the end of 2020. The acquisition is anticipated to offer substantial customer financial benefits and aligns with Xcel Energy's clean energy transition goals. Further updates include adjustments to the Crowned Ridge wind projects, where NextEra has reduced the capacity for both build-owner transfer and purchased power agreement components from 300 MW to 200 MW each due to increased transmission costs. These projects are now targeting a November 2020 commercial operation date. Separately, Southwestern Public Service Co. (SPS) has completed the development phase for its Sagamore wind project in New Mexico, a 478 MW project costing approximately $900 million, with construction slated to begin in Q4 2019 and service expected in 2020. These developments underscore Xcel Energy's ongoing commitment to expanding its renewable energy generation.

Key Highlights

1NSP-Minnesota filed to acquire the Mower wind facility (approx. 99 MW) in Minnesota from NextEra Energy, Inc. affiliates, pending regulatory approval.
2The Mower facility will be repowered and is expected to qualify for 100% of the production tax credit upon completion before the end of 2020.
3The Crowned Ridge projects (originally planned at 600 MW total) have been reduced to 200 MW each (300 MW BOT and 300 MW PPA reduced to 200 MW each) due to transmission cost increases.
4The Crowned Ridge projects are now targeting a November 2020 commercial operation date.
5Southwestern Public Service Co. (SPS) has completed the development phase for the Sagamore wind project (478 MW) in New Mexico.
6Sagamore wind project construction is expected to start in Q4 2019 with an estimated cost of $900 million and in-service date in 2020.
7All other announced wind projects have secured necessary permits and interconnections to qualify for production tax credits.

XCEL ENERGY INC 8-K Report, Corporate Update (Aug 30, 2019)

Summary

Key Highlights

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