Siemens Begins Construction of High Voltage Intertie for Xcel Energy

08/20/2003

Back to Back System Will Create Eighth Link of the Eastern & Western

                              Transmission Grids

RALEIGH, N.C., Aug. 20 /PRNewswire-FirstCall/ -- Siemens Power Transmission & Distribution, Inc., an affiliate of Siemens AG (NYSE: SI), announced today that they and their partner, Beta Engineering, have begun construction under a contract from Public Service Company of Colorado (PSCO), Denver, CO, for a High Voltage DC (HVDC) back to back converter. In February of 2003 PSCO, a subsidiary of Xcel Energy Inc. (NYSE: XEL), Minneapolis, MN, awarded the contract to the Siemens/Beta consortium for the design, procurement, construction and commissioning of the HVDC Converter tie to be located in Lamar, Colorado. The tie will connect Xcel Energy's Southwestern Public Service Company (SPS) system in the eastern interconnection with its PSCO system in the western interconnection, and allow 210 MW of power transfer capability in each direction. The HVDC intertie will begin commercial operation by the end of 2004.

(Logo: http://www.newscom.com/cgi-bin/prnh/20021029/SILOGO )

"We chose the Siemens/Beta team following an extensive evaluation of technical, economic and commercial considerations," said Don Jones, Director of Transmission Asset Management at Xcel Energy. "The connection of Xcel Energy's PSCO and SPS systems will meet a commitment made when the two utilities merged," he added. "It also provides an important eighth connection between the nation's Eastern and Western electric grids."

The Siemens and Beta team consists of the Siemens High Voltage Systems (HVS) division in Wendell, NC, Siemens Reactive Power division in Erlangen, Germany, and Beta Engineering in Pineville, Louisiana. Siemens HVS is providing overall project management and coordination with Siemens Germany, Beta Engineering and Xcel Energy officials for the completion of the back to back tie. Beta Engineering is the EPC contractor for the project. Siemens and Beta have partnered on over a dozen high voltage transmission system projects in the US since 1990.

About Siemens Power Transmission & Distribution (USA)

Siemens Power Transmission & Distribution, Inc., headquartered in Raleigh, NC, creates innovative equipment and energy service solutions for electric utilities, independent power producers, co-generators and other energy- intensive industries. Its products and systems are used to increase power system capacity and improve the reliability, stability and flexibility of power delivery systems. It has operations in Wendell, NC; Jackson, MS, Minneapolis, MN; San Jose, CA; and Atlanta, GA. For more information visit, www.ptd.siemens.com.

About Beta Engineering

Beta Engineering, headquartered in Pineville, LA, is an EPC contractor specializing in the design, procurement and construction of high voltage substations, transmission lines and FACTS projects throughout the United States. For more information, visit http://www.BetaEngineering.com.

    Backgrounder on HVDC Technology follows

    About High Voltage DC (HVDC) Transmission Systems

HVDC (High Voltage Direct Current) transmission systems connect two separate high voltage AC Systems via a DC link and are used for energy transmission world-wide. HVDC solves the complex problems of connecting power sources to power users over long distances or across large bodies of water where underwater cables are used. HVDC back to back links have been installed to connect two power systems together where synchronous ties could not be used or where the systems operated at different frequencies (e.g., 50 and 60 Hz). Recently, HVDC has been examined as a form of pipeline system to bypass existing AC transmission grids for the purposes of moving power from generator to load. This could emerge as a very viable technical solution to meet the requirements for an open generation market system. They are a useful supplement or in some cases the only alternative for traditional High Voltage Alternating Current (HVAC) systems.

    These HVDC transmission systems are specifically used to:

    * connect asynchronous grids or grids with different frequencies
    * economically transmit electrical energy over long distances via overhead
      lines or cable

Siemens has been one of the leading companies in HVDC technology for more than 25 years.

SOURCE  Siemens Power Transmission & Distribution, Inc.
    -0-                             08/20/2003
    /CONTACT:  Rita Simonetta, Senior Manager, Communications of Siemens Power
Transmission & Distribution, Inc., +1-919-325-7044, or
rita.simonetta@siemens.com/
    /Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/20021029/SILOGO
              PRN Photo Desk, 888-776-6555 or 212-782-2840/
    /Web site:  http://www.BetaEngineering.com /
    /Web site:  http://www.ptd.siemens.com /
    (SI XEL)

CO:  Siemens Power Transmission & Distribution, Inc.; Siemens AG; Beta
     Engineering; Public Service Company of Colorado; Xcel Energy Inc.
ST:  North Carolina, Colorado, Louisiana, Minnesota
IN:  OIL CST
SU:  CON



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