Xcel Energy Seeking Biomass Project For New Mexico

Xcel Energys Southwestern Public Service Company (SPS) is seeking proposals for new biomass resources as part of its plan to diversify its renewable energy portfolio

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Xcel Energy Seeking Biomass Project For New Mexico

ROSWELL Xcel Energys Southwestern Public Service Company (SPS) is seeking proposals for new biomass resources as part of its plan to diversify its renewable energy portfolio.

This solicitation will enable the company to comply with regulatory requirements in New Mexico and bring significant economic development and environmental benefits to the state.

SPS will require approximately 435,000 megawatt-hours of energy produced by renewable resources, or 10 percent of its New Mexico retail sales, beginning in 2011. This requirement increases to 15 percent of New Mexico retail sales beginning January 1, 2015, followed by another increase beginning Jan. 1, 2020 to 20 percent of New Mexico retail sales.

Of the total megawatt-hours of renewable energy required, SPS seeks to generate 43,493 megawatt-hours from biomass resources. Biomass fuels could include animal waste, timber, brush, landfill gas or anaerobically digested waste.

SPS prefers that the biomass resources be located in New Mexico.

Contracts entered into will be subject to the Reasonable Cost Threshold, which ensures that renewable energy technologies will not unduly raise customers rates. Contracts may also be subject to explicit regulatory approval by the New Mexico Public Regulatory Commission.

Proposals are due back to the company by 5 p.m. Mountain Daylight Time, Friday, July 24. Energy and Renewable Energy Certificates (RECs) associated with new projects and offered in response to this solicitation are required to have achieved commercial operations by January 2011. However, as circumstances warrant, SPS may entertain offers with planned commercial operation dates after Jan. 1, 2011.

RECs are environmental commodities that can be sold or traded. A REC represents proof that 1 kilowatt-hour (KWh) of electricity was generated from an eligible renewable energy resource.

Interested parties may access a copy of the RFP at www.xcelenergy.com/rfp after 3 p.m. MDT.

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 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis.

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This news release includes forward-looking statements, including but not limited to statements about Xcel Energys renewable requirements and plans to comply with such requirements and biomass resources, that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are identified in this document by the words will, expect, plan, possible, potential and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date. Factors that could cause actual results to differ materially include, but are not limited to, those risk factors listed from time to time by Xcel Energy in reports filed with the Securities and Exchange Commission (SEC), including Risk Factors in Item 1A and Exhibit 99.01 of Xcel Energy's Annual Report on Form 10-K for the year ended Dec. 31, 2008.

Additional Information

Web Site: http://xcelenergy.com/Company/Newsroom/Pages/NewsRelease2009-05-21-XcelEnergyseekingbiomassprojectforNewMexico.aspx

Category: Forestry>Grants and Incentives

Region: New Mexico

Ad Running: 5/26/2009-5/26/2011

Ad Posted: 5/26/2009 11:41:52 AM

Ad Viewed: 348 times

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