Investments to ensure local reliability are primary drivers

SIOUX FALLS, S.D. - Xcel Energy today asked the South Dakota Public Utilities Commission for recovery on investments made to the electricity system to provide safe, reliable and cost-effective service to customers.

"We are making substantial investments in electricity system upgrades in Sioux Falls that serve our customers and are essential for economic vitality," said Laura McCarten, Xcel Energy regional vice president.

"We've also invested in our nuclear and other power plants and in the regional delivery system that serves our nearly 87,000 electricity customers in South Dakota. We made these investments to ensure these important resources are available to serve our customers well into the future."

Xcel Energy seeks to recover the costs of these investments through a rate increase of approximately 8 percent, or a total incremental revenue increase of about $15.6 million. If approved, the typical residential electricity customer would see a monthly bill increase of about $8.50. Increases for commercial and industrial customers vary depending on consumption and rate class.

Approximately 58 percent of the request is to recover the cost of investments and operating expenses for the Monticello and Prairie Island nuclear generating plants.

"Our nuclear plants are among our lowest-cost resources, generating electricity 24/7," said McCarten.  "The investments we've made will secure the benefits of this cost effective, clean energy resource for customers today and into the future."

Improvements to the local electricity distribution system in South Dakota included in this rate case are:

• upgrading the high-voltage transmission loop on the north side of Sioux Falls from 69 kilovolts to 115 kilovolts, which will boost reliability and double the power-carrying capability of the system;

• replacing an existing Sioux Falls substation near the falls of the Big Sioux River with a new, higher capacity substation at the old stockyards site; and

• adding more automatic switches on key distribution lines that sense power failures and switch to an alternate power source. Ten such switches already operate in and around Sioux Falls. Xcel Energy plans to expand the use of this technology in the near future.

"We know any rate increase affects our customers, and we worked hard to manage costs and increase efficiency to keep our request in this case as small as possible," McCarten said. "Our customers value reliable service, and we continually improve our system to deliver on their expectations."

McCarten emphasized that Xcel Energy is a national leader in efforts to help customers use energy more wisely, and she encouraged customers to take advantage of the company's energy efficiency programs to save money and lower their energy bills.

A copy of the rate case filing will be available on the commission's website at. http://puc.sd.gov/Dockets/Electric/2014/. When posted, the docket # will be EL14-058. Information will also be available at www.xcelenergy.com

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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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