Minnesota projects will improve safety, system reliability

MINNEAPOLIS - Xcel Energy has asked regulators to approve a new funding mechanism for pipeline system upgrades that will improve safety and reliability for the company's 441,000 natural gas customers in Minnesota.

"We will be making significant investments in our pipeline system during the next 10 years primarily to support compliance with new safety regulations," said Dave Sparby, president and CEO of Northern States Power Co.-Minnesota, an Xcel Energy company.

"In 2015, our investments will finance replacing part of a main natural gas supply line in the eastern Twin Cities metro area and fund improvements throughout our natural gas system in Minnesota. Among the upgrades are projects that provide for the use of technology to inspect the overall condition of pipelines - as well as replacement or repairs if necessary - and installation of remote-controlled or automatic valves."

The request to recover nearly $15 million from customers for improvements planned in 2015, which was filed Friday with the Minnesota Public Utilities Commission, is the first Xcel Energy is making under a 2013 Minnesota law that authorizes a separate charge on customer bills to pay for important natural gas infrastructure improvements.

Under the proposal, a typical natural gas residential customer's monthly bill would increase by about $2, or 3.4 percent. If approved by the commission, the new charge would appear on customer bills beginning in January.

"We are proposing significant investments now, while natural gas prices are at historically low levels, which will moderate the impact on customers' bills," Sparby said. "Projects like these also have beneficial economic impacts on local communities, including providing jobs."   

Among projects included in the filing for 2015:

• Continuing to replace an 11½-mile long transmission pipeline in Roseville and St. Paul that serves 100,000 residential and business customers in the east metro area. The design and construction of the new pipeline will also provide the ability to use advanced technology to assess the physical condition of the line in future years.  Work was completed last year on the Roseville segment and will continue through 2016 in St. Paul. The 2015 work will be conducted from Rose Avenue and Park Street to Pleasant Avenue and St. Albans Street.
• Using special technology to inspect more than seven miles of transmission pipeline in St. Cloud, South St. Paul, Inver Grove Heights, Maplewood and North St. Paul, and fixing problems found.
• Installing new valves on transmission and distribution pipelines to provide the ability to shut down natural gas flow automatically or remotely if necessary.

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Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.5 million electricity customers and 1.9 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis.

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