utility perspective on climate change frank prager january 22, 2008 frank prager january 22, 2008

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Utility Perspective on Climate Change Frank Prager January 22, 2008

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Utility Perspective on Climate Change

Utility Perspective on Climate Change

Frank PragerJanuary 22, 2008

Frank PragerJanuary 22, 2008

Northern States Power Company-

Minnesota44%

Northern States Power Company-

Minnesota44%

Public Service Company of

Colorado39%

Public Service Company of

Colorado39%

Southwestern Public Service

12%

Southwestern Public Service

12%

Northern States Power

Company- Wisconsin

5%

Northern States Power

Company- Wisconsin

5%

5th Largest Combination Electric and Gas Utility (based on customers)

5th Largest Combination Electric and Gas Utility (based on customers)

Gas Customers 1.8 MElectric Customers 3.3 MGas Customers 1.8 MElectric Customers 3.3 M

Member of:Member of:

Xcel Energy OverviewXcel Energy Overview

Xcel Energy’s Environmental Leadership

Xcel Energy’s Environmental Leadership

#1 Retail wind energy provider Industry-leading voluntary

emission reductions Windsource - Largest

voluntary green pricing program

New technologies:

— IGCC, hydrogen, plug-in hybrids, energy storage, carbon sequestration, solar

Comprehensive CSR reporting

#1 Retail wind energy provider Industry-leading voluntary

emission reductions Windsource - Largest

voluntary green pricing program

New technologies:

— IGCC, hydrogen, plug-in hybrids, energy storage, carbon sequestration, solar

Comprehensive CSR reporting

The Challenge of Climate ChangeThe Challenge of Climate Change

Climate Change policy will require:

— Significant emission reductions

— Huge capital investments

— Long-term technological transformation

— A diverse portfolio of resources Clean Technology will lead the way Colorado New Energy Economy

Climate Change policy will require:

— Significant emission reductions

— Huge capital investments

— Long-term technological transformation

— A diverse portfolio of resources Clean Technology will lead the way Colorado New Energy Economy

00

500500

10001000

15001500

20002000

25002500

30003000

35003500

19901990 19951995 20002000 20052005 20102010 20152015 20202020 20252025 20302030

U.S. Electric SectorU.S. Electric Sector CO2CO2 Emissions (million metric tons) Emissions (million metric tons)

EIA Base Case 2007

Technology

* Achieving all targets is very aggressive, but potentially feasible

Advanced Coal Generation

Distributed Generation

Plug-in Hybrid VehiclesCarbon Capture & Sequestration

Efficiency

Renewables

Nuclear Generation

EPRI: Value of Clean Technologies*EPRI: Value of Clean Technologies*

Goal: Meet customer energy needs cost effectively while reducing emissions

2007 proposed plan:

— Renewable energy (including wind and solar)

— Energy efficiency and conservation

— New gas fired generation

— Coal plant retirement Achieves 10% reduction by 2017 2009 filing: evaluate 20% by 2020 scenarios

Goal: Meet customer energy needs cost effectively while reducing emissions

2007 proposed plan:

— Renewable energy (including wind and solar)

— Energy efficiency and conservation

— New gas fired generation

— Coal plant retirement Achieves 10% reduction by 2017 2009 filing: evaluate 20% by 2020 scenarios

2007 Colorado Resource Plan: 2007 Colorado Resource Plan:

Growth of Xcel Energy Colorado Wind Capacity

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2000

2007 2015

Growth of Xcel Energy Colorado Wind Capacity

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2007 2015

2007 CRP: Wind 2007 CRP: Wind

MWMW

Concentrating solar thermal uses mirrors to concentrate sunlight and heat a transfer fluid

— Less expensive for large solar plants (>50 MW) today

— Can be combined with thermal energy storage

— RFP issued for 25 MW

— 200 MW in 2015

Concentrating solar thermal uses mirrors to concentrate sunlight and heat a transfer fluid

— Less expensive for large solar plants (>50 MW) today

— Can be combined with thermal energy storage

— RFP issued for 25 MW

— 200 MW in 2015

Parabolic Trough in California

Parabolic Trough in California

2007 CRP: Solar (CSP) 2007 CRP: Solar (CSP)

Solar*Rewards Customer Program

— Over 1000 systems on line

8.2 MW PV plant in Alamosa, Colorado

Solar*Rewards Customer Program

— Over 1000 systems on line

8.2 MW PV plant in Alamosa, Colorado

2007 CRP – Energy Efficiency and Conservation

2007 CRP – Energy Efficiency and Conservation

Energy Efficiency Goals

— 0.7 % of retail sales

— 1617 GW-Hr through 2015

— Roughly double current program size

— Important part of CO2 reduction strategy Customer partnership opportunities

— Efficiency often first choice in reducing GHG emissions

— Lowers energy bills Smart Grid City

— Advanced smart grid system

Energy Efficiency Goals

— 0.7 % of retail sales

— 1617 GW-Hr through 2015

— Roughly double current program size

— Important part of CO2 reduction strategy Customer partnership opportunities

— Efficiency often first choice in reducing GHG emissions

— Lowers energy bills Smart Grid City

— Advanced smart grid system

2007 CRP proposes retirement of 229 MW of coal fired generation

— Cameo (Grand Junction) 2010

— Arapahoe (Denver) 2012 New natural gas combined cycle at Arapahoe

site Additional natural gas likely in All-Source RFP

2007 CRP proposes retirement of 229 MW of coal fired generation

— Cameo (Grand Junction) 2010

— Arapahoe (Denver) 2012 New natural gas combined cycle at Arapahoe

site Additional natural gas likely in All-Source RFP

2007 CRP: Retirements2007 CRP: Retirements

2007 CRP and IGCC2007 CRP and IGCC

Integrated Gasification Combined Cycle

— Advanced coal gasification technology

— Carbon dioxide capture at lower cost Federal support Colorado Legislation (H.B. 06-1281) Evaluated IGCC project

— Technology and carbon sequestration effective

Integrated Gasification Combined Cycle

— Advanced coal gasification technology

— Carbon dioxide capture at lower cost Federal support Colorado Legislation (H.B. 06-1281) Evaluated IGCC project

— Technology and carbon sequestration effective

Delayed filing for approval

— Cost, need, partnership and other issues

— 2009 – will evaluate whether to file for approval

Delayed filing for approval

— Cost, need, partnership and other issues

— 2009 – will evaluate whether to file for approval

Proposed Resource Acquisition Period: 2015 2009 filing: Deal with post 2015 time frame

— Evaluate additional reductions – 20% goal

— Plant retirements

— New clean resources and technology development

Proposed Resource Acquisition Period: 2015 2009 filing: Deal with post 2015 time frame

— Evaluate additional reductions – 20% goal

— Plant retirements

— New clean resources and technology development

2009 CRP: The Next Step2009 CRP: The Next Step