Upper Midwest 2011-2025 Resource Plan

This plan proposes how we will reliably and safely meet customer energy needs

Xcel Energy’s Upper Midwest Resource Plan is our proposal to reliably and safely meet customer energy needs in a cost effective and environmentally responsible way from 2011 through 2025. The plan examines the costs, benefits and risks associated with various electricity supply options. We file resource plans every two to three years with regulators in the Upper Midwest states we serve.

In our current plan, filed Aug. 2, 2010, we noted that we are well positioned to meet customers’ future energy needs and adapt to emerging issues in the economy and the utility industry. That is why we have proposed a balanced and robust plan that will allow us to be flexible in our decisions to add or defer future resources depending on their cost, increasing environmental regulations or changes in energy demand.

On Dec.1, 2011, we filed a comprehensive update to our August 2010 Upper Midwest Resource Plan, which notes that continuing to implement many of the initiatives identified in the original Action Plan remains appropriate; however, significantly slower economic growth has delayed the timing of and likely size and type of certain resources. This filing updates our Resource Plan to:

• Account for slower economic growth and the loss of wholesale customers;
• Capture benefits for our customers associated with lower additional resource needs; and
• Inform the Commission of changes to our plans for the current planning cycle.

The parts of our proposed Five-Year Action Plan that remain unchanged include our successful effort to achieve 1.5 percent energy savings through our conservation and demand side management efforts. We have also successfully executed our competitive bidding program to add 200 MW of new wind power to our system.

The proposed adjustments to our initial Five-Year Action Plan include:

• Withdrawing a proposal to expand generation at the Black Dog Generating Plant in Burnsville due to continued slow economic growth and the loss of municipal wholesale customers, which have reduced our projection of future customer electric needs.; and
• While our current analysis suggests the proposed capacity upgrade at our Prairie Island Nuclear plant remains cost effective, longer than anticipated federal review and updated cost information prompt us to reevaluate this expansion.

The ‘2011 Upper Midwest Resource Plan Update’ can be found in the ‘Additional Resources’ section below.