NEW YORK, April 15 (Reuters) - Xcel Energy Inc (XEL.N: Quote, Profile, Research) on Tuesday filed with the U.S. Nuclear Regulatory Commission to extend the operating life of the 1,096-megawatt Prairie Island nuclear plant in Minnesota.

The plant's current 40-year licenses expire in 2013 and 2014. The application requests 20-year license extensions for each reactor.

The company also said in a release it expects to file with the Minnesota Public Utilities Commission later this spring to increase the number of used fuel storage containers at Prairie Island.

The company explained the 5.5-acre used fuel storage facility on the plant site now has 24 containers. It is authorized for enough containers to accommodate plant operation through expiration of the current licenses, estimated to total about 29.

The application with state regulators will seek to add 35 containers, which would fit within the existing storage site boundaries, to support plant operations during the license renewal period.

The filing with the Minnesota commission will also include a Certificate of Need seeking to increase the generating capacity of each Prairie Island reactor by about 80 MW.

The 1,096 MW Prairie Island station, which entered service in 1974, is located in Red Wing, in Goodhue County about 55 miles southeast of Minneapolis. There are two units at the station, the 551 MW Unit 1 and the 545 MW Unit 2.

One MW powers about 800 homes in Minneapolis.

The company said continued operation and expansion of the reactors would help meet growing customer demand and enhance fuel diversity while helping the company meet green gas reduction goals established by the 2007 Minnesota Legislature.