nbsp embedded in Excel output of adjacent spaces

Problem - users reporting that a column in a custom 11i --> BI Template --> Excel report has the nbsp (alt+0160) character instead of a space when a string contains two spaces. Excel displays the space-plus-nbsp as 2 spaces, but the data cannot be searched for 2 spaces or joined (via subsequent Excel activities) to other worksheets that use the same column and DO have two spaces. Hope that makes sense. Example:

Value from Oracle ("Grade") is "020A  0125WH," with 2 spaces after the "A."

Value in Excel is "020A" + alt+016 + ASCII(32) + "0125WH."

Examining the XML output from the .rdf - -  in html displays 2 spaces; in Microsoft Word after activeX 1 space; in WordPad 2 spaces. It appears the issue starts in the XML.