Bechtel to Provide Engineering and Construction Services to Xcel Energy's Nuclear Plants

Xcel Energy today announced an agreement has been reached with Bechtel to provide engineering, field engineering and construction services at the utility’s Monticello and Prairie Island nuclear generating plants.

As part of a five-year contract signed Wednesday, Bechtel will establish on-site engineering, construction and project controls staffs at each plant. Bechtel also will have the capability to manage projects and provide project engineering and construction services, referred to in the industry as "design-build” services. Bechtel was selected after a competitive bidding process.

Currently, a number of external firms and in-house contract staff provide engineering, field engineering and construction services to Xcel Energy nuclear plants. Under the contract, most engineering, project-related contract staffing, and maintenance and modification craft services will be transferred to Bechtel. Approximately 80 existing engineering, field engineering and construction contract workers will be affected by the change.

"We expect that integrating engineering, field engineering and construction activities in a single provider will result in more predictable and efficient completion of capital projects and delivery of plant services, which ultimately will benefit our customers and stakeholders by providing more cost-effective and reliable electricity,” said Dennis Koehl, Xcel Energy vice president and chief nuclear officer.

"Bechtel has a long history with Xcel Energy, dating back to the late 1960s when we designed and built the Monticello plant,” said Carl Rau, president of Bechtel’s nuclear division. "The integration we’re announcing today is a forward-thinking approach for our industry, and we are very pleased to continue our relationship on this significant endeavor. We share Xcel Energy’s goals of increased plant reliability and improved end product for their customers.”

Among types of work Bechtel employees will perform under the contract are:

• Construction activities associated with capital projects and modifications; outage maintenance and modification craft augmentation; day-to-day support for scaffolding construction and disassembly, and construction labor.
• Engineering services, including detailed design activities in performance of capital projects modifications such as security projects, equipment reliability modifications and plant infrastructure upgrades and specialized engineering analyses for plant operation.
• Field engineering, including performing detailed work planning and field implementation support for capital projects and modifications such as major equipment replacements and upgrades.

Bechtel is one of the world's premier engineering, construction, and project management companies. Since its founding in 1898, Bechtel has worked on more than 23,000 projects in 140 countries and all seven continents. Today, its 49,000 professional and craft employees are teamed with customers, partners, and suppliers on hundreds of projects in nearly 50 countries. Bechtel has served the nuclear power market for over 60 years, has worked at more than 150 nuclear plants worldwide and has provided services to over 85 percent of the U.S. nuclear fleet. Today, Bechtel has more than 3,000 employees working on nuclear projects. For more information, visit www.bechtel.com

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company that provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies in eight Western and Midwestern states. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.