Xcel Enters Power Purchase Deal - Analyst Blog

Xcel Energy Inc. (XEL), through its subsidiary Public Service Company of Colorado (PSCo), entered into a power purchase agreement (PPA) with Renewable Energy Systems Americas Inc. (RES Americas). Under the agreement, PSCo will buy 252.2 megawatts (MW) of power from RES America’s Cedar Point Wind project for a 20-year term.
 
Located primarily in Lincoln and Elbert Counties, Colorado, the Cedar project is expected to provide the benefits of both renewable energy and job creation to the state of Colorado. The project also includes the construction of a 42-mile transmission line across the Arapahoe County, connecting the project to PSCo’s Missile Site Substation.
 
The project is expected to generate 252.2 MW of energy, which is enough to power roughly 68,000 Colorado homes. Furthermore, it is projected to employ 100-200 people during construction and up to 12 people after the wind farm is complete.
 
Construction of Cedar Point Wind is expected to begin in mid-2010 with commercial operation expected in 2011. On completion, the project will be the second largest wind project in Colorado.
 
The power purchase agreement with Public Service Company of Colorado represents a major milestone in the development and construction of Cedar Point Wind. With this agreement in place, RES Americas is one step closer to bringing clean power and jobs to the state of Colorado.
 
Renewable Energy Systems Americas is a fully-integrated renewable energy company that develops, constructs, owns, and operates projects across the U.S., Canada, Mexico and the Caribbean. The company employs 240 full time professionals working throughout North America, has constructed 3,800 MW, and is working on a development portfolio of more than 12,500 MW.  The company is dedicated to securing a sustainable energy future.
 
Xcel Energy is a holding company, with subsidiaries engaged primarily in the utility business. Xcel is a major U.S. electricity and natural gas company, with operations in eight Western and Midwestern states. Through its four regulated utility subsidiaries, — Northern States Power Company (NSP)-Minnesota, NSP-Wisconsin, Public Service Company of Colorado (PSCo) and Southwestern Public Service Co. (SPS) — the company serves 3.4 million electricity customers and 1.9 million natural gas customers.
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