Xcel Energy, Padoma Wind Power sign 'San Juan Mesa Wind Project' contract

Planned 120-MW wind-powered facility near Elida, N.M., expected on line by end of 2005

AMARILLO, TEXAS - March 4, 2005 - Xcel Energy Inc. contracted this week with Padoma Wind Power LLC of La Jolla, Calif., to purchase all the electricity Padoma's planned "San Juan Mesa Wind Project," near Elida, N.M., produces in its first 20 years of operation.

The San Juan Mesa facility, first announced in October 2004, is expected to be on line by Dec. 31, 2005, said Jan Paulin, Padoma Wind Power president and CEO. Pre-construction of the 120-megawatt facility will begin this month, he said; visible construction activities will start in May. The project site is near the county line between Chaves and Roosevelt counties about 65 miles northeast of Roswell, N.M.

Paulin said the costs of wind turbines and of construction have increased significantly during the past year. He estimated the final costs of the project, which will employ wind turbines manufactured by Mitsubishi, will exceed $150 million.

The 120-megawatt wind-powered facility will provide enough power for the average annual needs of about 41,600 homes, said Gary L. Gibson, Xcel Energy state vice president.

"The output of the San Juan Mesa Project will be an excellent buy for Xcel Energy customers," Gibson said. "Tax credits from New Mexico and the federal government support wind power. The resulting cost for this power is lower than the costs of electricity produced at natural gas-fueled power plants. So, this wind power will help Xcel Energy continue to offer our customers the lowest-priced electricity in a very large region."

Paulin said, "We're committed to making the San Juan Mesa Project a model for future wind farm development, and excited that we'll be producing clean, renewable power in New Mexico."

Xcel Energy also purchases wind energy from a 1.98-MW wind facility near Texico, N.M., home of the first commercial-scale wind facility in New Mexico and in the Xcel Energy-served region; from 60 one-MW turbines at a soon-to-be 80-MW wind ranch near Tucumcari, N.M.; from a 3-MW facility in Hansford County; and from an 80-MW wind ranch near White Deer.