MINNEAPOLIS — Xcel Energy says a planned project to boost the power output of its Prairie Island nuclear plant won't be as cost effective as it originally thought.
The Minneapolis-based utility stopped short Friday of pulling the plug on the project. But it told the state Public Utilities Commission that circumstances have changed since regulators approved the plan in 2009. Xcel says it's stepping back and taking another look before continuing.
Xcel says the Prairie Island upgrade is now cost effective for 135 megawatts of added output, not 164 megawatts as first proposed. It also says the projected long-term growth in power demand is down 40 percent. And it says boosting nuclear power no longer is as financially attractive because natural gas costs are down.
