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Southwestern Issues Request for Proposals (RFP)

NEW CENTURY ENERGIES™
Resource Acquisition & Analysis
PO Box 1261
Amarillo, Texas 79170-0001

March 10, 2000

Dear Prospective Bidder:

Southwestern Public Service Company (Southwestern), a subsidiary operating company of Denver-based New Century Energies, Inc. (NCE), is soliciting proposals from prospective bidders for the sale of Renewable Energy Credits (REC) or Renewable Energy Credits and associated energy (RENEWABLE ENERGY) to Southwestern. The Renewable Energy Credits must be generated from Renewable Resources located in Texas.

Southwestern is issuing this Request for Proposals (RFP) to satisfy the requirements of Texas Senate Bill 7 as they are set out in the Public Utility Commission of Texas' Substantive Rules §25.173 relating to Goal for Renewable Energy. The section was adopted under Public Utility Commission of Texas Project Number 20944. Section 25.173 implements the legislative goal for renewable energy development in the state of Texas as set forth in Senate Bill 7, Act of May 21, 1999, 76th Legislature, Regular Session, chapter 405, 1999 Texas Session Law Service 2543, 2561 (Vernon) (to be codified as an amendment to the Public Utility Regulatory Act (PURA), Texas Utilities Code Annotated §39.904).

Southwestern is issuing this Request for Proposals to potential bidders (Bidders) to solicit Bids under a fifteen year contract for RECs under the PUCT trading program or RECs and the associated energy that comes with these Credits. Although Southwestern reserves the right to purchase either more or less than the stated amounts, Southwestern's current intent is to acquire RECs or RENEWABLE ENERGY that is produced by the generation of approximately 123,560 MWHs of energy from Renewable Energy Resources annually. This quantity satisfies Southwestern's estimated incremental need as specified in the 2004 estimated allocation. Projects that are eligible for the Production Tax Credit (PTC) should be bid such that the full effect of the PTC can be reflected in the bid price and the Renewable Energy Resource can be completed no later than December 31, 2001.

No NCE or Northern States Power affiliates will be allowed to bid in this solicitation. Transmission/Distribution Study Requests with the appropriate fee must be submitted by April 14, 2000.

All proposals must be received by the Southwestern Authorized Contact by 5:00 PM CDT May 16, 2000.

Complete details are contained in the RFP issued March 10, 2000. If the RFP is not contained in this transmittal it may be obtained from the Southwestern Authorized Contact. Questions should also be directed to the Southwestern Authorized Contact.

Southwestern Authorized Contact:
Stephen Jones (stevej@swps.com), RFP Authorized Contact
Southwestern Public Service Company
Box 1261
Amarillo, TX 79170
Phone: (806) 378-2799
Fax: (806) 378-2517

Sincerely,

Stephen Jones
Engineer, Resource Acquisition and Analysis


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