Xcel Minn. unit seeks OK to build 100-MW wind farm

HOUSTON (Reuters) - Xcel Energy wants to build a 100-megawatt wind farm in Minnesota as it seeks to meet a state goal for renewable power passed earlier this year, the company said in a filing Tuesday.

Xcel requested approval from state regulators to own the proposed Grand Meadow Wind Farm in Mower County, to be operational by the end of 2008.

"Ownership of a wind farm makes a great deal of sense at this time," said Dave Sparby, acting president of Xcel's Northern States Power Co. in Minnesota. "Not only does it diversify the company-owned generation portfolio, it will produce energy that is emissions-free and it reduces the price risk that can occur with dependence on more volatile fossil fuels."

Xcel Energy has contracted with EnXco Development Corp. to build the wind farm. The project will consist of 67 wind turbines of 1.5-MW capacity each, on 40 square miles. EnXco has filed a separate permit for the site which is capable of supporting 200 megawatts of wind generation, the company said.

Xcel said it currently buys about 675 MW of wind generation in Minnesota. It will have at least 2,800 MW of wind power online by the end of the year across its eight-state territory, the company said.

The utility said it will need to add as much as 3,400 megawatts of new wind generation in Minnesota by 2020 to meet the state's renewable energy standard.

Minneapolis-based Xcel has 3.3 million electricity customers and 1.8 million natural gas customers.