4TTPSCo_Plan_Xcel_Energy_12052007

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4TTPSCo_Plan_Xcel_Energy_12052007

  1. 1. Public Service Company of Colorado Plans Tim Taylor President and CEO Public Service Company of Colorado, an Xcel Energy Company New York Analyst Meeting December 5, 2007
  2. 2. Safe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this document by the words “anticipate,” “estimate,” “expect,” “projected,” “objective,” “outlook,” “possible,” “potential” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; effects of geopolitical events, including war and acts of terrorism; changes in federal or state legislation; regulation; actions of accounting regulatory bodies; the higher degree of risk associated with Xcel Energy’s nonregulated businesses compared with Xcel Energy’s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, including Exhibit 99.01 to Xcel Energy’s report on Form 10-K for year 2006.
  3. 3. Public Service Company of Colorado 2006 Financials Colorado Earnings Cont. Op $221 million Assets $8,363 million GAAP ROE 7.8% Equity Ratio 56.5% 2006 Owned Generation Coal 2,617 MW Gas 855 MW Renewable 242 MW Wind 27 MW 2006 Customers 2006 Retail Sales Electric 1,320,000 (Thousands of MWh / MMBtu) Gas 1,260,000 Electric 27,198 Gas 125,123
  4. 4. 2006 Rate Base and ROE Dollars in millions Weather Normalized Rate Base Earned ROE Colorado Electric $3,292 7.7% Colorado Gas 1,106 7.8 Wholesale 418 Not Reported Total Rate Base $4,816 Regulated Equity Ratio = 60.3%
  5. 5. Environmental Policy Demand-Side Renewable Management Portfolio (annual GWh Carbon State Standards savings) Reduction Colorado 20% by 2020 * 0.35% N/A * Renewable Bill Timeline Renewable Bill Provides: Opportunity to own 25% 5% by 2008 of incremental wind 10% by 2011 50% if ownership creates 15% by 2015 economic development 20% by 2020 benefits
  6. 6. Current Position Wind capacity 1,084 MW Wind in WindSource Over 255 GWh Photovoltaic solar energy 8 MW Customer-sited photovoltaic capacity in SolarRewards 9 MW DSM electric sales reduction 0.7% — Doubles DSM Commitment
  7. 7. Resource Planning Process Last resource plan filed April 2004 Legislation modified process Three resource portfolio scenarios modeled and optimized Costs and benefits of each scenario reviewed for the 2008–2015 time period Preferred resource plan selected and submitted to the PUC on November 15, 2007 Commission approval in 7 months
  8. 8. Colorado Resource Plan MW Wind 800 2007 2015 1,884 MW Central Solar 225 271 MW Customer-sited 1,618 GWh 1,084 MW Solar 29 147 GWh DSM 360 17 MW Gas Generation 980 Wind Solar DSM Biomass 4 Energy Sources Retirements 340
  9. 9. Colorado Resource Plan Impact System Energy Mix System Energy Mix 2007 2015 Wind Gas 15% Gas 27% Hydro 0.8% 16% Wind 3% Biomass 0.2% Hydro 1% Solar 2% Econ 5% Econ 4% Coal Coal 64% 62%
  10. 10. Acquisition Plan Acquire resources through 2015 by staged/targeted acquisitions; defer 2016 and beyond to future plans Build new natural gas-fired combined cycle at Arapahoe Target 50% wind ownership through legislative set aside — Acquire through Build-Transfer/PPA RFP 25 MW solar in 2011 through PPA RFP Customer-sited solar projects through rebates and bids Own future generic thermal and solar thermal through Reverse Auction/Build Transfer
  11. 11. Recovery on Capital Expenditures Dollars in millions 1,200 $945 1,000 $850 $750 800 $680 $650 600 400 200 0 2007 2008 2009 2010 2011 Traditional Enhanced Recovery Depreciation
  12. 12. Colorado Recovery Mechanisms Ability to file either historic or forecast test year Purchased capacity cost adjustment Comanche 3 – forward CWIP via general rate case Transmission rider Renewable Energy rider IGCC rider (if there is an approved project) Demand-Side Management Cost Adjustment rider Air Quality Improvement rider Energy Cost adjustment Gas Cost adjustment Partial decoupling on retail natural gas
  13. 13. Key Priorities Achieve favorable regulatory treatment — Forecast test year — Implement cost recovery riders Achieve carbon reduction goals, while increasing company-owned generation — Demand-Side Management — Colorado Resource Plan — 10% reduction by 2017; 20% by 2020 Strengthen people and talent management Strengthen transmission and distribution infrastructure
  14. 14. Positioned for Success High customer satisfaction Competitive advantages through geography — Wind — Solar Partnering with key stakeholders Constructive regulatory recovery mechanisms Resource plans deliver carbon reduction — 10% reduction from 2005 levels by 2017 — 2009 plan to deliver 20% reduction by 2020 Able to achieve plan at reasonable cost to customers
  15. 15. Environmentalist Comments “It is one of the most significant resource plans being submitted by any utility anywhere in the country. It gets us on the path to reducing carbon emissions. It provides a significant boost to the new energy economy. And it will help protect ratepayers.” Matt Baker - Director, Environment Colorado “In the fine tradition of Colorado’s pioneers, Xcel Energy is charting the innovative and cost-effective path forward to cut global-warming pollution, protect human health and propel Colorado’s clean energy economy.” Vickie Patton – Deputy General Counsel, Environmental Defense “It’s the only Western utility to put forth a plan to cut its carbon- dioxide emissions. It’s precedent setting. It should be a model for other utilities.” John Nielsen – Energy Project Director, Western Resource Advocates

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