March 31, 2004 Mr. David L. Eves, Vice President Resource Planning and Acquisition Xcel Energy Markets Address City state zip Subject: Transmission outlet projects for wind generation on Buffalo Ridge Your letter dated January 16, 2004 Dear David: I am writing in response to your letter dated January 16, 2004 requesting information regarding the status and in-service dates of transmission infrastructure improvements in southwest Minnesota. You asked for the following: 1. 2. 3. 4. 5. Confirm the list of components and in-service dates for the 425 MW outlet capacity project The in-service date of the Lakefield Junction to Fox Lake 161 kV project Cost and likelihood of accelerating the upgrades of the 425 MW group Outlet capacity available today Outlet capacity available upon the completion of each component of the 425 group of upgrades 6. When 540 MW of outlet capacity will be achieved I will address the first three items on this list. The last three items are issues of capacity, and MISO will be addressing those items in the near future. Xcel Energy is currently assisting MISO with this study. As was posted to the MISO OASIS in February 2003, the anticipated in-service date for the 425 MW project is April 11, 2006 and the anticipated in-service date for the 825 MW project is October 26, 2007. Components of the 425 MW Outlet Project Project Component – 425 Project Wilmarth – Martin County 345 Black Dog transformer Paynesville transformer Grant County – Brandon 115 Chanarambie – Lake Yankton 115 Minnesota Valley relaying Lyon County substation Willmar – Kerkhoven tap 115 Summit – Loon Lake tap 115 Anticipated In-Service Date Complete Complete Complete Complete (MRES project) Complete April 2004 April 2004 May 2004 May 2004 Project Component – 425 Project Lake Yankton SVC Lake Yankton substation Lake Yankton – Lyon County 2nd 115 circuit Bird Island – Franklin 69 Alexandria – Douglas County 115: Xcel segment Alexandria – Douglas County: Otter Tail segment Troy Switching Station 69 Paynesville – Wakefield Minnesota Valley – Redwood Falls tap Willmar 115/69 transformer Minnesota Valley transformers Lakefield to Fox Lake 161 Anticipated In-Service Date May 2004 May 2004 October 2004 December 2004 December 2004 TBD December 2004 April 2005 May 2005 December 2005 (Willmar Municipal Utilities project) February 2006 April 2006 Project Acceleration The Xcel Energy transmission organization continues to review opportunities to accelerate the completion of the 425 and 825 MW outlet projects. For example, our construction crews are working overtime on key projects. We are utilizing contract construction crews on several projects this year. In addition, we have augmented our workforce with consultants in order to speed the permitting processes. We are also working aggressively with MISO and are reviewing operational studies in order to determine intermediate steps that will yield additional outlet capacity. We expect positive results, and anticipate additional outlet capacity will be available later this year. Per FERC regulations, this letter has been posted to the MISO OASIS. Sincerely,