Sep. 14--Over the past decade, Xcel Energy has spent $23 million on a plan to store highly radioactive nuclear waste at a Utah Indian reservation. But that project might be dead.

The Interior Department last week rejected a lease Xcel and other utilities had signed with the Skull Valley Band of Goshutes to store waste on its reservation. It's still unclear whether an appeal will be filed, but Xcel said Wednesday it would not help pay for one.

The lease would have allowed Minneapolis-based Xcel and seven other utilities to ship up to 44,000 tons of nuclear waste to Goshute land southwest of Salt Lake City, where it would be stored for up to 50 years or until a permanent federal repository is available, either at Yucca Mountain in Nevada or elsewhere.

Xcel's need for that approach has diminished in recent years.

In 2003, it received state permission to expand nuclear-waste storage capacity at its Prairie Island nuclear power plant near Red Wing. Now, it's seeking permission to build a similar storage site at its Monticello plant.

After seemingly going nowhere for years, plans to store waste at Yucca Mountain have accelerated. Congress is considering changes to a nuclear-waste policy bill that could enable Yucca Mountain to open in 2017.

Last December, Xcel pledged to withhold future contributions for the private storage option if plans for Yucca Mountain continue to advance.

Charles Bomberger, general manager of nuclear assets for Xcel, said the company is maintaining that stance.

"There is, I think, significant activity and progress being made on Yucca Mountain," Bomberger said.

Of the $23 million Xcel has spent so far on the private storage option, $800,000 was spent in 2003 and 2004 and none in the past two years. Still, Xcel has no plans to drop out of the consortium, called Private Fuel Storage.

"We are a passive participant in PFS," Bomberger said. "If progress is not being made, we reserve the right to resurrect active participation in PFS."

Dennis Lien can be reached at dlien@pioneerpress.com or 651-228- 5588.