Xcel Energy files for 600-MW wind project in Colorado

US utility Xcel Energy Inc (NYSE:XEL) has turned to the Colorado Public Utilities Commission (PUC) for approval to build the 600-MW Rush Creek wind farm along with a 345-kV transmission line.

In a filing on Friday, Xcel seeks PUC clearance of an application to acquire the USD-1-billion (EUR 883m) project, a Certificate of Public Convenience and Necessity (CPCN) for the scheme along with approval to seek cost recovery. The utility also needs land use permits from Arapahoe, Cheyenne, Elbert, Kit Carson and Lincoln counties where the wind farm will be built.

The company said in a press release that it expects to start construction work on the plant in late 2017, assuming that it secures the needed permits. Commissioning is scheduled for late 2018.

Representatives of Xcel and Denmark’s Vestas Wind Systems A/S (CPH:VWS) unveiled plans for the project at a conference in early April. A day later the Danish wind turbine maker said it had signed a conditional deal to supply wind turbines for a 600-MW project in the US, without giving more details.

On Friday, Xcel confirmed that Vestas will supply the turbines for the Rush Creek scheme, adding that they will be manufactured at factories in Brighton, Pueblo and Windsor. Meanwhile, Invenergy has been mandated as the project’s lead developer.

Xcel mentioned in its statement that thanks to the Production Tax Credits (PTCs) for wind power, it can reduce capital costs and directly pass these savings along to its local customers. It estimates that residents and businesses would save more than USD 400 million on a net present value basis over the 25-year life of the project.

(USD 1.0 = EUR 0.883)

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