PPM Breaks Ground on MinnDakota Wind Farm for Xcel Energy

"PPM Energy is delighted to bring online a fourth wind powerproject for customers of Xcel Energy," said Raimund Grube, PPMEnergy's managing director of development in the Mid-Continent. "Wethank Xcel Energy and their customers for making this projectpossible. We applaud Governor Rounds and the South Dakota PublicUtilities Commissioners for their vision in laying the groundwork thatenables wind power development in South Dakota. We also want to thankthe South Dakota and Minnesota Congressional delegations for theirhelp that enabled the MinnDakota project to receive recent FAAapproval."

Governor Rounds says, "South Dakota is pleased to host the largestinstallation to date of wind energy. The MinnDakota project taps yetanother one of South Dakota's resources - wind - and representsfurther diversification of our rural economies. In particular, theproject will yield significant benefits to the local economy inBrookings County with new job opportunities and an expanding tax base.South Dakota is committed to ensuring the investment environment forwind energy in the state remains strong and looks forward to furtherexpansion of wind energy in the state."

MinnDakota will span the wind resource-rich area on the border ofSouth Dakota and Minnesota with approximately 50 MW located in SouthDakota and 100 MW in Minnesota. The 50 MW will be the largestinstallation of wind power in South Dakota, a state with vast windresources but transmission issues that, until now, have made itdifficult to get the power from the wind to cities and otherelectrical loads.

Power generated by the MinnDakota project will be delivered undera long-term contract to customers of Xcel Energy. The MinnDakotaproject interconnects at Xcel's newly approved Yankee substation. XcelEnergy's recent and ongoing transmission upgrades in the upper Midwesthave helped make MinnDakota and similar future wind projects possible.

"As the nation's number one provider of wind energy to retailcustomers, Xcel Energy will rely on South Dakota to help us double ourportfolio of wind generation by the end of next year," said PaulBonavia, President of Xcel Energy's Utilities Group. "We look forwardto partnering with our friends from PPM Energy on this importantproject."

MinnDakota will use 100 GE 1.5 MW turbines in Minnesota and SouthDakota. Construction is scheduled for completion by the end of 2007.

While the project spans approximately 15,000 acres owned by 70landowners, the actual footprint of the turbines uses less than twopercent of the total acreage. The remainder continues to be used forgrowing corn and soybeans and grazing cattle. The project is expectedto create approximately 200 jobs during construction. In addition tothe creation of 10-12 full-time jobs in the community, the projectinitially is expected to provide several hundred thousand dollars ayear in property tax revenues annually.

About PPM Energy

PPM Energy (www.ppmenergy.com) now has nearly 2000 megawatts ofwind energy in operation or under construction. The strength of itsrenewable project pipeline has allowed the company to increase its2010 target by more than 50 percent to at least 3,500 megawattsdeveloped or controlled by PPM Energy. PPM Energy balances its supplyportfolio with sales to wholesale customers, placing almost all of itsoutput in long-term contracts. Major customers include the cities ofSeattle, Sacramento, Eugene, Pasadena, and Anaheim as well asinvestor-owned utilities such as Xcel Energy and Pacific Gas &Electric Company and the federal Bonneville Power Administration. PPMEnergy also creates innovative new products to meet customer needs,such as operations and maintenance services and build-own transfers.

About Xcel Energy

Xcel Energy (NYSE:XEL) is a major U.S. electricity and natural gascompany with regulated operations in eight Western and Midwesternstates. Xcel Energy provides a comprehensive portfolio ofenergy-related products and services to 3.3 million electricitycustomers and 1.8 million natural gas customers through its regulatedoperating companies. Company headquarters are located in Minneapolis.More information is available at www.xcelenergy.com.