In July, Xcel Energy completed the five-year upgrade of its oldest nuclear power plant in Monticello, Minnesota, to ensure that the plant runs for another 20 years, while also boosting its power by 12 percent. The project was estimated to total $665 million, but has cost more than double due to the replacement of pumps, filters and other additional equipment.
Xcel Energy maintains that “The costs were prudent,” but they will have to prove this to the Minnesota utility regulators to fully recoup the investment by raising electric rates.
Dave Sparby, CEO of Xcel’s Minnesota branch, has stated that the power plant is, “Safe, carbon-free and cost-effective.” All of the company’s executives have defended the investment, maintaining that the same decision would be made today even though the utility industry has experienced massive changes since 2008 when the project initially began. For example, low-priced natural gas is now the preferred fuel for power plants and the demand for electricity has decreased, lessening the need for new power plants.
Dave Sparby, CEO of Xcel’s Minnesota branch, has stated that the power plant is, “Safe, carbon-free and cost-effective.” All of the company’s executives have defended the investment, maintaining that the same decision would be made today even though the utility industry has experienced massive changes since 2008 when the project initially began. For example, low-priced natural gas is now the preferred fuel for power plants and the demand for electricity has decreased, lessening the need for new power plants.
The company has stated that even with the project running over budget, it will benefit customers in the long-run saving them an estimated $174 million through the remaining 16 years. The Minnesota utility regulators will announce their decision over the next few weeks.