Xcel Energy seeks earlier wind power evaluation process

In an effort to take advantage of the recent but limited extension of the federal production tax credit for new wind projects, Xcel Energy has asked the Colorado Public Utilities Commission to grant a waiver allowing the company to accelerate the procedural schedule for evaluating new wind generating resources.

At the start of this year, Congress passed the American Taxpayer Relief Act, which was later signed by President Barack Obama. The new law included an extension of the PTC for wind developers, requiring that projects be at a certain level of construction by the end of 2013, although that level is yet to be determined at the federal level).

Xcel Energy had planned to issue its 2013 All-Source Solicitation by April, but the bidding time frame, the independent evaluation process and the time needed by the utilities commission to review and make a decision would not have allowed for the completion of this effort by the end of the year, Xcel said.

This would have made it very challenging for potential wind developers in Colorado to submit bids, negotiate and sign contracts with Xcel Energy, and begin construction, to meet the requirements necessary to qualify for the credits.

"We have a great opportunity to see if additional wind resources in Colorado would be of economic benefit to our customers with the extension of the federal tax credit, but we must act quickly," said Ben Fowke, president, chairman and CEO of Xcel Energy. "Our request is not being driven by state renewable energy standards, but by the opportunity to reduce costs."

The accelerated schedule if approved by the CPUC would call for Xcel Energy to solicit wind bids on or about March 1. The company would evaluate the bids and seek CPUC approval by October. An independent evaluator would be involved throughout the accelerated evaluation process. By completing the process under this time frame, it is anticipated that developers would have adequate time to develop and begin construction of any new Colorado wind projects to take advantage of the extension of the PTCs, Xcel said.

Any acquisition of wind resources in Colorado must be competitively priced and remain within the framework of the overall resource acquisition process, Fowke said. For that reason, the company is not suggesting an amount at this time for the number of megawatts of wind it would acquire.

Source: http://www.fortmorgantimes.com/fort-morgan-business/ci_22636910/xcel-energy-seeks-earlier-wind-power-evaluation?source=rss_viewed

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