Note: This study was recently completed and consists of three documents: Wind Integration Study Final Report, Characterization of the Wind Resource in the Upper Midwest and Wind Integration Study Presentation. They are available for download on the Minnesota Department of Commerce web site as well as on the web site for the Utility Wind Integration Group.

Knoxville, Tenn., February 12, 2004 - EnerNex Corporation, an electric power engineering and consulting firm specializing in the development and application of new electric power technologies, announced that it has been awarded a contract by Xcel Energy to conduct a comprehensive assessment of the potential operational impacts of wind generation on the utility's system in the Upper Midwest. EnerNex has enlisted the assistance of NexGen Energy LLC, WindLogics, and AREVA T&D to perform this work for Xcel Energy.

The study focuses on the potential technical and economic impacts of operating up to 1,500 MW of wind generation on Xcel Energy's system in Minnesota, North Dakota, South Dakota, Wisconsin and Michigan. It builds upon a recent wind integration study conducted by Xcel Energy and the Utility Wind Interest Group. Xcel Energy is undertaking the project at the direction of the Minnesota Legislature, which adopted a requirement for an independent study of intermittent resources. The EnerNex team will be closely coordinating with Xcel Energy and the Minnesota Department of Commerce in conducting the project.

The study will analyze the impacts of significant amounts of large-scale wind generation on the real-time operations and short-term planning of Xcel Energy's electric power system. These functions, also known as ancillary services, are critical to reliable and economic operation of interconnected power systems, and represent tangible costs to the utility. The surge over the past two years in wind power development in the U.S. has given urgency to questions regarding ancillary services and operational impacts in both the wind power and electric utility industries.

According to Bob Zavadil, Vice-President and Principal Consultant for EnerNex, the key components of the project include accurate modeling and forecasting of wind patterns with simulation and analysis of power system operations: "This study builds on methodologies used in the earlier study, and extends them to address the additional complexities and scope related to such a significant amount of wind generation. The overall effort begins with a thorough, science-based investigation of the wind patterns in Xcel Energy's control area in the Upper Midwest to yield the most accurate models possible. Wind generation forecast accuracy will also be evaluated with the results forming a basis for the power system operational analysis. WindLogics is recognized for its work in meteorological analysis and forecasting and AREVA T&D has tools and expertise in power system operation and control. Key personnel from EnerNex and Nexgen participated in the earlier study and overall, we proposed a well-respected team of experts and a unique approach that Xcel Energy officials determined best met their needs."

Xcel Energy is a major U.S. electricity and natural gas company, with operations in 11 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

EnerNex Corporation provides engineering and consulting services, along with software solutions and customization, for the electric power industry. EnerNex focuses on providing services around the development and application of new and emerging electric power technologies to engineer a cleaner, smarter energy system of the future. For more information on EnerNex, visit www.enernex.com.

Contact: Carrie Parks
Phone: 865-218-4600 ext.6142
carrie@enernex.com
www.enernex.com