Xcel Energy proposes one of largest packages of energy investments in state history
June 17 2020 - 5:38PM
Business Wire
Almost $3 billion of accelerated and
incremental capital investment planned to support Minnesota’s
economic recovery, advance clean energy goals, and keep customer
bills stable
Xcel Energy today announced its
proposal for the one of the largest packages of energy investments
in Minnesota’s history, as part of its response to the Minnesota
Public Utilities Commission and Department of Commerce request for
energy companies to help with job growth and getting the economy on
track. As part of Xcel Energy’s commitment to helping customers and
the state recover from the COVID-19 pandemic, the company’s
proposal would include almost $3 billion of accelerated and
incremental projects that will create jobs, advance the transition
to cleaner energy, and keep customer bills stable.
“COVID-19 put the brakes on our economy, leading to widespread
unemployment and we are eager to help Minnesota with our proposal
that can help provide the economic jump start our state needs.”
said Ben Fowke, chairman and CEO, Xcel Energy. “We thank Governor
Tim Walz, our regulators and commissioners for the leadership on
this issue and remain committed to working with them along with
our, communities, policymakers, stakeholders and employees to move
these projects forward quickly to help all Minnesotans.”
Xcel Energy proposed a slate of projects to the Minnesota Public
Utilities Commission that would create an estimated 5,000 jobs in
the state, while keeping customer bills stable. Xcel Energy
customers in Minnesota have electricity bills that are 24% below
the national average, and the company plans to continue to keep our
customers’ bills low, at or below the rate of inflation.
Project highlights include:
- Adding solar near the Sherco plant. Xcel Energy has
proposed speeding up the addition of up to 460 megawatts of solar
power next to our Sherco coal plant in Becker, Minnesota. Building
the solar installation would create 230 to 350 union jobs during
construction and generate significant state and local tax benefits
as well as landowner lease payments over the life of the project.
The solar installation will also generate enough carbon-free energy
to power more than 240,000 homes each year while leveraging
existing transmission infrastructure.
- Expanding and rebuilding wind farms. Rebuilding aging
wind farms with the latest technology and adding additional wind
power in the state would create hundreds of construction jobs in
greater Minnesota – jobs that often spur additional jobs and
economic benefits in those communities. Xcel Energy would use union
labor and women, veteran, and minority-owned businesses for various
aspects of the projects.
- Expanding conservation and efficiency programs. We
proposed to expand our current energy conservation programs,
including direct rebate payments to customers who may be struggling
to pay for new equipment, leading to job growth in the trade
services while lowering customer bills. We also proposed to spend
twice as much as the state requires on assistance programs for
low-income customers.
Xcel Energy also proposed other investments in transmission,
distribution, natural gas and electric vehicle infrastructure
projects, including building electric vehicle charging stations for
fleets and the public.
“As we join the Minnesota Public Utilities Commission in its
effort to aid in Minnesota’s economic recovery, we’ve proposed
projects that will bring significant system benefits, accelerate
the economy and advance our plans to reduce carbon emissions,” said
Chris Clark, president, Xcel Energy-Minnesota. “Xcel Energy is
proud to be part of the Minnesota community, and we are in a strong
position to create a pipeline of jobs by moving forward with
projects across the state that will accelerate economic growth
while advancing our goals as we continue to lead the clean energy
transition.”
The proposed projects will need approval from the Minnesota
Public Utilities Commission.
Commitment to customers and communities
Throughout the COVID-19 pandemic, Xcel Energy has been working
to help customers save energy and money to help them get back on
their feet. The company is lowering electric customer bills in
Minnesota by a total of $25 million this summer, as a result of
lower-than-expected fuel costs. Low natural gas prices have also
led to reduced use of coal-fired generation in recent months,
keeping bills low for customers while also reducing emissions.
Through another proposal Xcel Energy has made to the Minnesota
PUC, commercial customers may also be eligible for reduced bills if
they have experienced significant reductions in electric use due to
the pandemic. The program is designed to help mid-sized facilities
restart production as workers return to facilities.
In addition to these proposals, Xcel Energy is also using the
$20 million net gain from selling the Mankato Energy Center to
support short-term and long-term corporate giving, including
COVID-19 relief in all the states it serves.
Xcel Energy has also committed to helping neighborhoods and
businesses repair and rebuild following the widespread acts of
property damage in the Twin Cities. That includes special recovery
rebates on equipment that are up to double the usual amount to help
replace equipment that was damaged or destroyed, as well as free
energy consulting services.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers
millions of homes and businesses across eight Western and
Midwestern states. Headquartered in Minneapolis, the company is an
industry leader in responsibly reducing carbon emissions and
producing and delivering clean energy solutions from a variety of
renewable sources at competitive prices. For more information,
visit xcelenergy.com or follow us on Twitter and Facebook.
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