MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy announced today that this month the company will achieve 1,000 megawatts of wind power capacity on its Minnesota system.

This renewable energy milestone will be reached by year-end, when PPM Energy’s MinnDakota Wind Power project goes on-line. The 150-megawatt development is located on the Minnesota-South Dakota border.

With today’s announcement, Minnesota moves into third place nationally in wind power production, according to the American Wind Energy Association. Only Texas and California will produce more wind. AWEA also ranks Xcel Energy as the No. 1 wind power provider, offering customers more wind than any other utility in the country.

During a celebration at Xcel Energy headquarters in downtown Minneapolis, Xcel Energy Chairman, President and CEO Dick Kelly said that 1,000 megawatts of wind can provide enough electricity to power 270,000 homes. “It’s a very significant accomplishment for the company and also for the great state of Minnesota,” said Kelly. “Gov. Tim Pawlenty and other Minnesota officials, including our legislators and regulators, share our vision of a clean energy future.”

During the 2007 legislative session, Pawlenty signed legislation that requires utilities to obtain 25 percent of their electrical energy from renewable resources. Xcel Energy, which supports the new law, must obtain 30 percent of its electricity from renewable resources by 2020. As part of that requirement, Xcel Energy plans to increase wind power capacity on its system to nearly 4,000 megawatts.

“Minnesota is helping lead the way to a cleaner, more secure and more independent energy future,” Pawlenty said in remarks prepared for today’s event. “Wind power holds great potential for clean renewable energy for our country and is an important part of diversifying and improving our energy sources. I applaud Xcel Energy’s commitment to reaching the aggressive renewable energy goals we’ve set.”

“Xcel Energy is fortunate with the wind potential in our service territory,” Kelly added. “We will continue to develop wind resources throughout Minnesota, North Dakota and South Dakota.”

In 1986, Xcel Energy began researching wind power in Minnesota with three 65-kilowatt turbines erected on Buffalo Ridge in southwestern Minnesota. Over the next two decades, the utility continued to support wind development in the state and added to the wind capacity on its system.

In June, Xcel Energy announced plans to build and own a 100-megawatt wind farm near Austin, Minn. The Grand Meadow Wind Farm is scheduled to be operational by the end of 2008. In November, Xcel Energy dedicated a major transmission line that will carry power from the state’s largest wind farm. The Fenton Wind Project, in the Buffalo Ridge area of southwestern Minnesota, has a generating capacity of 205 megawatts.

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 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.