Gas

Navitas, Xcel sign agreements for 650 MW of wind and gas

Jan. 23, 2001—Northern Alternative Energy, Inc., through its affiliate, Navitas Energy, said January 16 that it recently executed power purchase agreements with investor-owned utility Xcel Energy (formerly Northern States Power) which will result in the installation of 650 MW of wind and combustion turbine energy to be developed at five sites in Minnesota, Iowa and Wisconsin.

The $400 million project, Navitas said, includes 100 MW of wind energy and 550 MW of dispersed generation using combustion turbines in a unique hybrid application, adding, “The resulting contracts are designed to help alleviate the growing capacity shortfall in the region. A healthy economy and strong demand for power have left Minnesota and surrounding states short of energy. The Minnesota Department of Commerce and energy forecasters are estimating that the upper Midwest will need more than 5,000 MW of additional energy by 2006.”

“Navitas Energy is pleased to be a part of the solution by supplying much-needed electricity to the region using environmentally-friendly wind in combination with clean-burning natural gas combustion turbines,” said company president Greg Jaunich. “The gas turbines are completely dispatchable and will provide power during peak demand periods and when the wind is not available.”

Minnesota will be the greatest beneficiary of the project, Navitas said, with 100 MW of wind energy and 250 MW of combustion turbines located within the state.

Construction will begin in May and is expected for completion in phases by December for the wind energy and by June, 2002, for the combustion turbines, Navitas said. It said M. A. Mortenson Company will serve as the project’s EPC (engineering, procurement and construction) contractor. “We are very excited to be a partner with Navitas Energy in the opportunity to meet the Midwest’s growing demand for clean power,” commented Jerry Grundtner, General Manager for the Industrial Group of Mortenson.

Navitas Energy owns, operates and maintains energy production facilities in the United States, while Northern Alternative Energy focuses exclusively on wind energy facilities.

For further information, visit the web site http://www.windpower.com .