Download Prager Presentation - Colorado Bar Association

Utility Perspective on
Climate Change
Frank Prager
January 22, 2008
Xcel Energy Overview
Northern States
Power CompanyMinnesota
44%
Northern
States Power
CompanyWisconsin
5%
Public Service
Company of
Colorado
39%
Southwestern
Public Service
12%
Member of:
5th Largest Combination
Electric and Gas Utility
(based on customers)
Gas Customers
Electric Customers
1.8 M
3.3 M
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
The 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
EPRI: Value of Clean Technologies*
U.S. Electric Sector CO2 Emissions (million metric tons)
3500
* Achieving all targets is very aggressive, but potentially feasible
3000
EIA Base Case 2007
2500
2000
Technology
Efficiency
Renewables
1500
Nuclear Generation
Advanced Coal Generation
1000
Carbon Capture & Sequestration
Plug-in Hybrid Vehicles
500
0
1990
Distributed Generation
1995
2000
2005
2010
2015
2020
2025
2030
2007 Colorado Resource Plan:
 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 CRP: Wind
Growth of Xcel Energy Colorado Wind
Capacity
2000
MW
1800
1600
1400
1200
1000
800
600
400
200
0
2007
2015
2007 CRP: Solar (CSP)
 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
 Solar*Rewards Customer
Program
— Over 1000 systems on
line
 8.2 MW PV plant in
Alamosa, Colorado
Parabolic Trough in
California
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
2007 CRP: Retirements
 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 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
Delayed filing for approval
— Cost, need,
partnership and other
issues
— 2009 – will evaluate
whether to file for
approval
2009 CRP: The Next Step
 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