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The Federal Energy Regulatory Commission (FERC) has granted Xcel Energy Services Inc.'s request for incentive transmission rates as part of its plan for six transmission upgrades to meet state renewable energy generation standards and serve increased power demand in the Upper Midwest.

Xcel, on behalf of Northern States Power Co. of Minnesota and Northern States Power Co. of Wisconsin (together, NSP Cos.), filed proposed modifications to the NSP's transmission rate formula under the Midwest Independent Transmission System Operator Inc.'s (Midwest ISO) open access transmission and energy markets tariff.

The proposed modifications permit two types of incentive rate treatments for the upgrades: recovery of return on 100% of prudently incurred construction work in progress and recovery of prudently incurred costs of transmission facilities that are canceled or abandoned for reasons beyond the NSP's control.

The transmission upgrades will help serve renewable energy resources, particularly wind energy. Xcel is looking to build transmission to accommodate between 300 MW and 700 MW of wind power.

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