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Xcel Energy seeks to increase Monticello plant output to help meet customers' growing electricity needs

MINNEAPOLIS - Xcel Energy has asked Minnesota regulators to approve an electricity generating capacity increase at the Monticello nuclear plant to help meet customers’ growing power needs.

“The Monticello plant safely, economically and reliably produces large amounts of electricity – approximately 10 percent of our customers’ needs – 24 hours a day, seven days a week,” said Dave Sparby, acting president and CEO of Northern States Power Co.-Minnesota, an Xcel Energy company.

“Our analysis shows that adding capacity at Monticello is a very cost-effective option for meeting customers’ increasing demand for electricity while helping us accomplish the state’s environmental objectives for carbon reductions. It also enhances our fuel diversity, which provides a valuable hedge on price risks and potential carbon regulation costs.”

In a Certificate of Need application filed with the Minnesota Public Utilities Commission, Xcel Energy proposes to increase the generating capacity at Monticello, a single-unit boiling water reactor, by approximately 70 megawatts. The plant’s current gross capacity is approximately 600 megawatts. The plant began commercial operations in 1970 and is currently licensed by the federal Nuclear Regulatory Commission to operate until 2030.
 
The expansion project, which also requires approval from the NRC, would include increasing the amount of steam produced in the reactor and upgrading equipment that converts the steam into electricity. The changes would take place within the confines of existing buildings; the footprint of the existing site would not be expanded.

Xcel Energy analysts put the project’s price tag at between $100 million and $135 million. The Monticello expansion would cost from approximately $170 million to $515 million less than natural gas, coal and biomass alternatives, according to the company’s analysis.

The capacity expansion request was previewed late last year in Xcel Energy’s 2007 Resource Plan filing, which also cites the need for life extension and capacity expansion at the Prairie Island nuclear plant and outlines plans for expansion and emissions reductions at the Sherburne County (Sherco) coal-fired plant.

The Resource Plan, which covers 2008 through 2022, describes how Xcel Energy aims to meet renewable energy, conservation and greenhouse gas reduction goals established by the 2007 Minnesota Legislature, while at the same time meeting customers’ increasing demand for electricity. Continued operation of and capacity expansions at the company’s nuclear plants are integral parts of the plan.

“The proposed Monticello plant expansion complements our other efforts to greatly expand wind resources and conservation on our system,” Sparby said. “We are committed to achieving a well-balanced portfolio of energy resources that best meets our customers’ needs and accomplishes the state’s environmental goals.”

The Monticello Certificate of Need and the Resource Plan are available on Xcel Energy’s Web site at www.xcelenergy.com.

After the Public Utilities Commission reviews the Certificate of Need application for completeness, the commission will set a schedule to review the merits of the request. 

Xcel Energy (NYSE: XEL) 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. More information is available at www.xcelenergy.com.