Xcel Energy Inc. provided an update on its wind expansion in New Mexico and Minnesota, announcing the closing a deal with Invenergy LLC and the purchase of a wind farm from NextEra Energy Inc. affiliates.
In New Mexico, Xcel Energy subsidiary Southwestern Public Service Co. closed a purchase and sale agreement with Invenergy and completed development phase for the 522-MW Sagamore Wind Project.
The $900 million Sagamore project is part of Southwestern Public Service's proposal to add 1,230 MW of new wind generation. The proposal was approved by New Mexico and Texas regulators in 2018.
Construction is expected to begin in the fourth quarter of 2019 and the project is scheduled to enter operation in 2020.
Separately, Northern States Power Co.-Minnesota is seeking approval from the Minnesota Public Utilities Commission to acquire the 99-MW Mower wind farm from NextEra Energy Inc. affiliates.
The Xcel Energy Inc. subsidiary said in an Aug. 30 filing that the acquisition will occur after the facility's repowering, which is expected to be completed prior to the end of 2020 and to qualify for 100% of the production tax credit.
The facility is in southeastern Minnesota and is contracted under a purchased power agreement with Northern States Power-Minnesota, or NSP-Minnesota, through 2026.
The utility will also need approval from the Federal Energy Regulatory Commission to close the transaction.
NSP-Minnesota also provided an update on Crowned Ridge I and Crowned Ridge II transactions that involved a 300-MW build-owner transfer wind farm and a 300-MW power contract, both with affiliates of NextEra. In August, NextEra withdrew its Midcontinent ISO queue position for a portion of the Crowned Ridge projects that were still awaiting transmission access due to increased estimates of MISO transmission upgrade and interconnection costs.
As a result, NextEra reduced capacity of each the two Crown Ridge projects from 300 MW to 200 MW. The projects are part of a proposed wind portfolio approved by Minnesota regulators in 2017.
The Crowned Ridge projects are anticipated to enter commercial operation in November 2020.
