1. Excelsior Energy’s Mesaba Energy Project
Update for the NM-SPG
August 16, 2006

2. Current Project Parameters
Two 606MW IGCC units
ISDs and 2013
Primary Site- West Range
POI---Blackberry 230kV Sub
Near Taconite, MN in Itasca County
Alternate Site- East Range
POI---Forbes 230kV Sub
Near Hoyt Lake, MN in St. Louis County
Designated as an Innovative Energy Project under special MN Legislation

3. MISO LGIP
Current Status

5. Transmission Progress to Date
Transmission Concept Screening Study July 2003
East Range GO Analysis August 2004
East Range GI Request to MISO October 2004
Queue # , Project G477
First Unit 531/552MW ISD 2010
Network Resource Service
G477 Feasibility Study Report March 2005
6 months
West Range GO Analysis May 2005
West Range GI Request May 2005
Queue # , Project G519
First Unit 600MW ISD 2010

6. Transmission Progress to Date
G519 ‘Out of Queue’ Study Agreement August 2005
West & East Range Preliminary
GO Facilities Engineering Designs December 2005
West & East Range GO Analyses
Updates December 2005
G519 Feasibility Study Results December 2005
8 months
G477 & 519 System Impact Study Results April 2006
11 and 19 months
G477 & 519 restudy of short circuit results July 2006
Second unit GI request submitted January 2006
Designated G597

7. Transmission Progress to Date
G597 Feasibility Study Report July 2006
G477&519 Facilities Studies underway July 2006
MP has contracted to perform
G597 SIS Agreement Executed August 2006
Note: Between July 2004 and December 2005 Excelsior performed six series of powerflow studies to evaluate GO facilities and network reinforcements

8. MISO Study Results Project G477 SIS (Forbes POI)
Powerflow : No problems identified
Short Circuit : Several pre-existing over-dutied breakers but no new ones caused by G477
Stability : All simulations are stable and within damping criteria. No transient low voltage violations.
Deliverability Analysis: Failed
Awaiting MISO study proposal to continue NRIS process
TSR submitted by Xcel for NITS (local capacity resource)

9. MISO Study Results Project G519 SIS (Blackberry POI)
Powerflow : Some issues identified during contingencies. Resolved with the addition of a new Boswell-Riverton 230kV line.
Short Circuit : Several pre-existing over-dutied breakers delete [plus four new 115kV breakers at Nashwauk Sub due to G519]
Stability : All simulations are stable and within damping criteria. No transient low voltage violations.
New Boswell-Riverton 230kV line was included in these studies.
Deliverability Analysis: Failed
Awaiting MISO study proposal to continue NRIS process
TSR submitted by Xcel for NITS (local capacity resource

10. MISO Study Results Project G597 Feasibilty Study (Blackberry POI)
Powerflow: numerous local contingency violations identified
Not unexpected with both MEP II and new 800MW NE MN unit included without any network upgrades
Short Circuit: four Nashwauk 115kV breakers overdutied
Note: Modeling didn’t include proposed Minnesota Steel Plant or CAPX 2020 Projects

11. Other Mesaba Energy Project Progress
Filing made 12/23/05 with MPUC for a PPA with Xcel Energy
under Innovative Energy Project Legislation
Joint Siting/Routing Application made 6/16/06 for both units, all GO facilities, and gas pipeline.
Application accepted as complete 7/6/06.

12. Proposed GO Facilities
G519: 9 mile double circuit 345kV steel pole structures, operated 230kV for MEP I
G477: Two 345/115kV steel pole lines replacing existing 115kV structures for most of their 34 and 37 mile routings, with 345kV side operated 230kV for MEP I

13. West Range GO Facilities

14. West Range GO Routings

15. East Range GO Facilities

16. East Range GO Routings

17. Questions??