One plant is expected to be built in Burnsville, Minnesota, while the other two will be situated near Hankinson, North Dakota.
As per the plans, the first natural gas power plant will be built at the Black Dog plant in Burnsville to replace the facility’s coal-fired generating capacity.
The power plant will be able to generate 215MW of electricity and is expected to be completed in 2017.
Xcel Energy plans to add second and third 215MW combustion turbines near Hankinson in 2018 and 2019, if they are needed.
The energy firm said the proposal is in response to proceedings before the Minnesota Public Utilities Commission on its Upper Midwest Resource Plan.
It was concluded at the proceedings that the company will need to add 150MW of new power resources in 2017 and up to another 350MW by 2019.
Xcel’s Minnesota region CEO Judy Poferl said: "Our proposal responds to our customers’ need for power that can be brought on line quickly and efficiently to meet demand when it’s highest."