Xcel Energy Opens Bidding Process for 160 Megawatts of Peaking Generation Resources

09/14/2007

MINNEAPOLIS--(BUSINESS WIRE)--

Xcel Energy today opened a bidding process for 160 megawatts of electricity to meet growing demand for power during peak-use periods by its nearly 1.6 million electricity customers in the Upper Midwest.

The company requested proposals for power deliveries beginning May 1, 2011.

Peaking generation resources generally cost less to build than base-load resources - such as coal and nuclear power - but use higher-priced fuel. Also unlike base-load generation, which operates 24/7, peaking generation resources are called upon only during high-electricity use periods, such as hot, humid summer days when air conditioning use is high. Peaking plants often run on natural gas or fuel oil.

Proposals are due Nov. 13, 2007. Xcel Energy will evaluate proposals, select a short list and negotiate contracts with the winning bidder(s). Xcel Energy expects to submit purchase power agreements to the Minnesota Public Utilities Commission for approval by May 2008.

The full text of the Request for Peaking Proposals is available on Xcel Energy's Web site: http://www.xcelenergy.com/XLWEB/CDA/ 0,3080,1-1-1_41994_42118_43244-40149-5_406_651-0,00.html (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

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 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

Source: Xcel Energy

Contact: Xcel Energy Media Relations, 612-215-5300 www.xcelenergy.com