Xcel Energy and enXco, an EDF Energies Nouvelles company, have announced plans to develop 351 MW of wind power in Minnesota and North Dakota by the end of 2011, increasing the utility’s wind power resources by more than 10 percent company wide. Once developed, project ownership will be transferred to Northern States Power Co.-Minnesota, an Xcel Energy company.

The agreement between enXco and NSP-Minnesota targets approximately $900 million in investment over three years and underscores Xcel Energy’s strong commitment to renewable energy and the states it serves. It stems from a competitive bidding process Xcel Energy launched late last year, as part of its plan to meet state renewable requirements. The agreement also is consistent with Xcel Energy’s commitment to meeting its customers’ needs in an economic and environmentally sound manner and includes the company’s first major wind undertaking in North Dakota.

Under the agreement, Xcel Energy will seek regulatory approvals to develop a 201-megawatt project in southwestern Minnesota’s Nobles County, called the Nobles Wind Project, and a 150-megawatt project in Dickey and McIntosh counties in southeastern North Dakota, called the Merricourt Wind Project. The projects are expected to be operational by the end of 2010 and 2011, respectively. Together, the projects will produce enough electricity to power approximately 110,000 homes.

Said Minnesota Gov. Tim Pawlenty: “Wind power has great potential for providing clean, renewable energy. Xcel Energy’s leadership is very important as we work to meet Minnesota’s goal of securing 25 percent of our energy from renewable sources by the year 2025. More wind power in Minnesota means more clean energy and additional opportunities to create green jobs related to this type of development.”

The agreement with enXco builds on the experience the two companies gained through their joint development of the 100-megawatt Grand Meadow wind farm near Austin in southeastern Minnesota, the first wind farm owned by Xcel Energy in Minnesota. Xcel Energy also purchases power from three projects developed and owned by enXco in southwestern Minnesota, including the Fenton Wind Project, Chanarambie Wind Farm and Viking Wind Project. When Grand Meadow begins generating electricity late this year, Xcel Energy will have more than 1,200 megawatts of wind-powered generation on its Upper Midwest system.

In addition to these proposed wind farms, Xcel Energy is aiming to complete contracts for additional Community Based Energy Development (CBED) wind projects in Minnesota. If successful, the individual projects could begin operating in 2009.

“Owning wind farms will help us provide renewable energy at a reasonable cost to our customers while demonstrating our commitment to the communities we serve,” said Dave Sparby, president and CEO of NSP-Minnesota. “This level of new investment is appropriate even in these challenging economic times, given the value the wind projects will provide to our system. We believe that early wind development will be more likely to qualify for federal tax credits and reduce our cost of complying with state renewable energy standards.”