Xcel announces major new wind purchase

Xcel Energy, Colorado’s largest electric utility, said Thursday that it will increase its portfolio of wind power by 25 percent.
Xcel spokesman Mark Stutz said the cost of the renewable resource has dropped sharply, making it too affordable to pass up.
“We’re bringing it on because it is the lowest price we’ve ever seen in the years since we’ve been adding wind to our system,” Stutz said.
He attributes the surge in supply, in part, to the renewal earlier this year of the federal Production Tax Credit. If wind farm developers get their projects started this year, they will qualify for the credit, Stutz said.
Wind turbines have also gotten much stronger and more efficient, allowing them to generate more electricity at a lower cost.
Xcel plans to buy 550 megawatts of wind power to add to its current 2,177 megawatt portfolio. That 550 megawatts is enough to serve 250 to 300 homes for a year, Stutz said.
Xcel had issued a request for proposals for wind power in March and after the bids came in, decided to move forward with this large purchase.
Under Colorado law, Xcel must provide 30 percent of its power through renewables and the utility was well on its way to meeting that benchmark, before this purchase was contemplated, Stutz said.
The new contracts will likely mean a handful of new wind farms will popup across the state, he said. The Colorado Public Utilities Commission must approve the purchases.
Xcel Energy (NYSE: XEL) supplies electricity and gas in eight states, including Colorado.