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DENVER--(BUSINESS WIRE)-- In an effort to secure adequate funding for small demonstration projects that could eventually support Colorado's future clean energy needs, Xcel Energy today proposed the establishment of an Innovative Clean Technology (ICT) program.

In a filing with the Colorado Public Utilities Commission (CPUC), the company asked that $6 million be raised in each year from 2010 to 2013 to help deploy and test promising clean energy technologies in Colorado. The company seeks to ensure that such projects are commercially viable before implementing them on a larger scale.

Xcel Energy also today proposed the first project under the ICT program - the development of a concentrating solar power demonstration at the company's Cameo Generating Station near Grand Junction.

"In this period of difficult economic times, it is crucial for us to explore new, cleaner technologies by the most economical means possible. Our proposal gives us a chance to economically and efficiently accelerate the development of technologies that fit with the vision our customers have for future power needs in Colorado," said Tim Taylor, president and CEO of Public Service Co. of Colorado, an Xcel Energy company.

"This approach can minimize future risk for the utility and its customers. It would provide us with the experience and information we need to ensure that these technologies are able to meet our stringent standards for reliability, cost, safety and environmental protection - before we make commitments on larger investments," he added.

The expected impact of the proposal would be about 14 cents a month for typical residential customers and 22 cents a month for typical small-business customers. The program must be approved by the CPUC.

Taylor noted that the ICT projects are expected to include technologies that are not widely commercialized or deployed by the utility industry. He said that these projects would lead to environmental and economic benefits for the state.

The initial project to be developed - if the ICT proposal is approved by the CPUC - will be a $4.5 million concentrating solar power thermal integration demonstration at Cameo.

The project would test the use of concentrating solar energy to produce supplemental steam for power generation at an existing power plant. This would reduce the overall consumption of coal, reduce emissions from the plant and, if successful, increase the opportunity for cost-effective renewable power generation in Colorado.

Construction of the new solar facility at Cameo would begin in the summer of 2009, which would provide for a year of performance testing into 2010. The solar equipment later could be permanently integrated into possible future generation options at Cameo, or moved to another site.

Other innovative technologies could include new advanced solar, wind, biomass and energy-storage technologies. The company also would file an annual report on projects with the CPUC for each year of the program, to include details on project implementation, results and expenditures.

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