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Executing The Energy Supply PlanExecuting The Energy Supply Plan
Regulators/Regulators/LegislatorsLegislators
Value toCustomers
EnvironmentalStewardship
FinancialFinancialPerformancePerformance
Invest in Regulated Utility BusinessInvest in Regulated Utility Business
David Wilks President – Energy Supply David Wilks President – Energy Supply
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
0
2
4
6
8
10
12
14
Coal Plant NonCoal Plant Non--Fuel O&M ExpenseFuel O&M Expense
Source: Credit Suisse First Boston November 1, 2005 Report Source: Credit Suisse First Boston November 1, 2005 Report ––Costs of Doing BusinessCosts of Doing Business
3.653.653.65
Dollars per Dollars per MWhMWh 2004 average2004 average
US Electric Holding CompaniesUS Electric Holding CompaniesXcel EnergyXcel Energy
0
5
10
15
20
25
30
Coal Plant Fuel ExpenseCoal Plant Fuel Expense
11.3311.3311.33
Xcel EnergyXcel Energy
Dollars per MWh 2004 averageDollars per MWh 2004 average
Source: Credit Suisse First Boston November 1, 2005 Report Source: Credit Suisse First Boston November 1, 2005 Report ––Costs of Doing BusinessCosts of Doing Business
US Electric Holding CompaniesUS Electric Holding Companies
0
2
4
6
8
Nuclear Fuel ExpenseNuclear Fuel Expense
4.644.644.64
Xcel EnergyXcel Energy
Dollars per MWh 2004 averageDollars per MWh 2004 average
Source: Credit Suisse First Boston November 1, 2005 Report Source: Credit Suisse First Boston November 1, 2005 Report ––Costs of Doing BusinessCosts of Doing Business
US Electric Holding CompaniesUS Electric Holding Companies
Xcel Energy Supply SourcesXcel Energy Supply Sources
Nuclear12%
Nuclear12%
Coal **54%
Coal **54%
Gas27%Gas27%
* Includes purchases** Low-sulfur western coal* Includes purchases** Low-sulfur western coal
Renewables7%
Renewables7%
2004Energy Supply Mix*
2004Energy Supply Mix*
CoalCoal 3636 8,1388,138Natural GasNatural Gas 6161 4,9184,918NuclearNuclear 33 1,6171,617HydroHydro 8383 508508OilOil 2424 492492RDFRDF 66 9696WindWind -- 2525TotalTotal 15,79415,794
2005 OwnedGenerating Facilities
2005 OwnedGenerating Facilities
Unit TypeUnit Type NumberNumber MWMW
* Additionally, Xcel Energy purchases 928 MWs of wind power
**
NSP Supply SourcesNSP Supply Sources
Renewables3%
Renewables3% Manitoba Hydro
11%Manitoba Hydro
11%Other
Purchases12%
OtherPurchases
12%
Coal**44%
Coal**44%
Nuclear28%
Nuclear28%
Gas2%Gas2%
CoalCoal 3,3753,375Natural GasNatural Gas 1,7581,758NuclearNuclear 1,6171,617HydroHydro 266266OilOil 492492RDFRDF 9696TotalTotal 7,6047,604
Unit TypeUnit Type MWMW
2004Energy Supply Mix*
2004Energy Supply Mix*
2005 OwnedGenerating Facilities
2005 OwnedGenerating Facilities
TotalPurchases
TotalPurchases
* Includes purchases** Low-sulfur western coal* Includes purchases** Low-sulfur western coal
Purchases37%
Purchases37%
Coal **52%
Coal **52%
Gas11%Gas11% Renewables
0.2%Renewables
0.2%
CoalCoal 2,6172,617Natural GasNatural Gas 982982HydroHydro 242242WindWind 2525TotalTotal 3,8663,866
PSCo Supply SourcesPSCo Supply Sources
Unit TypeUnit Type MWMW
2005 OwnedGenerating Facilities
2005 OwnedGenerating Facilities
* Includes purchases** Low-sulfur western coal* Includes purchases** Low-sulfur western coal
2004Energy Supply Mix*
2004Energy Supply Mix*
Purchases20%
Purchases20%
Coal **56%
Coal **56%
Gas24%Gas24%
CoalCoal 2,1462,146Natural GasNatural Gas 2,1782,178TotalTotal 4,3244,324
Unit TypeUnit Type MWMW
SPS Supply SourcesSPS Supply Sources
* Includes purchases** Low-sulfur western coal* Includes purchases** Low-sulfur western coal
2005 OwnedGenerating Facilities
2005 OwnedGenerating Facilities
2004Energy Supply Mix*
2004Energy Supply Mix*
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
NSP Major Fossil Plant AvailabilityNSP Major Fossil Plant Availability
20012001 20022002 20032003 20042004 20052005YTDYTD
33rdrd QtrQtr
2005 YTD2005 YTDwithoutwithout
MERP unitsMERP units
8383 8888 8787 8585 83838989
PercentPercent
NSP Nuclear Plant AvailabilityNSP Nuclear Plant Availability
20012001 20022002 20032003 20042004
83839595 9494 9393
8585
PercentPercent
20052005YTD 3YTD 3rdrd QtrQtr
PSCo Major Fossil Plant AvailabilityPSCo Major Fossil Plant Availability
20012001 20022002 20032003 20042004
9090 8787 9090 8888 8989PercentPercent
20052005YTD 3YTD 3rdrd QtrQtr
SPS Major Fossil Plant AvailabilitySPS Major Fossil Plant Availability
20012001 20022002 20032003 20042004
9191 9191 9090 8989 8686
PercentPercent
20052005YTD 3YTD 3rdrd QtrQtr
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
CAIR and Mercury Compliance PlanCAIR and Mercury Compliance Plan
Colorado is exempt from CAIRFiled suit contesting inclusion of West Texasin CAIRNSP SO2 credits to last through 2020SPS to purchase SO2 allowancesInvestment of $50 – 60 million to meet NOX standards at NSP and SPSPSCo expected to meet mercury reduction requirements with Comanche 3 andComanche 1 & 2 modificationsTesting and evaluating approaches to reduce mercury at NSP and SPS
Colorado is exempt from CAIRFiled suit contesting inclusion of West Texasin CAIRNSP SO2 credits to last through 2020SPS to purchase SO2 allowancesInvestment of $50 – 60 million to meet NOX standards at NSP and SPSPSCo expected to meet mercury reduction requirements with Comanche 3 andComanche 1 & 2 modificationsTesting and evaluating approaches to reduce mercury at NSP and SPS
Environmental ComplianceEnvironmental ComplianceCosts Minimized by AllowanceCosts Minimized by AllowancePurchases and InvestmentPurchases and Investment
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
AllowancesAllowances
Investment 0% 100%
Note: The curves are conceptual Note: The curves are conceptual
CapitalCapitalInvestmentInvestment
Dollars in millionsDollars in millions
AllowancesAllowances 100%100% 0%0%
NSP Environmental InitiativesNSP Environmental Initiatives
Owned generation (GWh)Owned generation (GWh)Owned generation (GWh) Pounds per MWhPounds per MWhPounds per MWh
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1997 1999 2001 2003 2005 2007 2009
Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions
0.0
2.0
4.0
5.0
3.0
1.0
Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)
ForecastForecast
Owned generation (GWh)Owned generation (GWh)Owned generation (GWh) Pounds per MWhPounds per MWhPounds per MWh
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1997 1999 2001 2003 2005 2007 20090.0
2.0
6.0
8.0
4.0
Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)
ForecastForecast
PSCo Environmental InitiativesPSCo Environmental Initiatives
Owned generation (GWh)Owned generation (GWh)Owned generation (GWh) Pounds per MWhPounds per MWhPounds per MWh
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1997 1908 1999 2000 2001 2002 2003 2004 20050.0
2.0
6.0
8.0
4.0
Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)
ForecastForecast
SPS Environmental InitiativesSPS Environmental Initiatives
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Maintenance RepairMaintenance Repairand Operations (MRO)and Operations (MRO)
Turbine Overhaul InitiativeTurbine Overhaul Initiative
Sourcing SavingsSourcing Savings
Energy Supply Sourcing InitiativesEnergy Supply Sourcing Initiatives
YTD Delivered Sourcing SavingsYTD Delivered Sourcing Savings
O&M TotalO&M Total == $1.0$1.0CapitalCapital == $1.5$1.5YTD TotalYTD Total == $2.5$2.5YE Projections/Negotiated YE Projections/Negotiated ~ $7.0~ $7.0
Sourcing Savings Sourcing Savings (millions)(millions)
PriceSavings
CostAvoidance
ValueAdded
O&M Capital830830
192192
526526
4443232
Dollars in thousandsDollars in thousands
Provide cost savingsProvide cost savings
Consolidate supply baseConsolidate supply base
Includes supplierIncludes supplierperformance program for performance program for continuous improvementcontinuous improvement
CharacteristicsCharacteristics
942942
Colorado (Overall)
Equipment
Units
Ash
A
uxilia
ry
Boi
ler W
ater
Mak
eup
Boi
ler
Con
trols
C
oolin
g To
wer
C
ircul
atin
g W
ater
D
iese
l Eng
ine
Circ
Wat
er M
akeu
p E
nviro
nmen
tal
Ele
ctric
al
Em
issi
ons
For
ebay
F
GS
F
uel H
andl
ing
Fue
l F
eedw
ater
C
T W
ater
Mak
eup
Gen
erat
or
Com
bust
ion
Turb
ine
Con
dens
er
Ste
am
Pow
er T
unne
l R
adia
tors
R
eser
voir
Soo
t Blo
win
g P
lant
S
uppo
rt Eq
uipm
ent
Tur
bine
W
ater
Gat
herin
g
Alamosa 1 N Y N N G N N N N G G N N N G N G G N N N N N N G
Alamosa 2 N G N N G N N N N G G N N N G N G G N N N N N N G
Arapahoe 3 Y G G R Y G R N G Y G N N Y Y G N Y G N N N Y R G
Arapahoe 4 Y G G Y G R R N G G Y G N N Y Y Y N Y G N N N R Y
Cabin Creek A N G N N N N N N G Y Y N N N N N G N N N N N Y N
Cabin Creek B N G N N N N N N G Y Y N N N N N G N N N N N Y N
Cameo 1 Y G G R Y N R N G G G G N N N R Y R N G G N N N Y R
Cameo 2 Y G G Y Y N R N G G G Y N N N R R N R N G G N N N Y R
Cherokee 1 Y Y Y Y G G G N Y G Y R N N R Y G N Y Y N N N G Y
Cherokee 2 Y Y Y Y R G G N Y G G R N R Y G N G G N N N G Y
Cherokee 3 Y Y Y Y G G G N Y G G R G R Y G N Y G N N N G G
Cherokee 4 Y Y Y G Y G G N Y G G R N G R Y Y N G G N N N G G
Comanche 1 Y Y Y Y G G Y N Y G Y Y N N G Y N Y N G G N N N Y Y
Comanche 2 Y Y G Y Y G Y N Y G Y Y N G G Y G N R Y N N N Y Y
Denver Steam N G G Y G N N G Y N N Y Y N N G N N N
Fort Lupton 1 N G N N G N N N N G G N N N G N N G G N N N N N N G
Fort Lupton 2 N G N N G N N N N G G G N N N G N N G G N N N N N N G N
Fort St Vrain 1 N Y G N Y Y Y N G Y Y Y N N N G Y N Y Y N N N N Y G G
Fort St Vrain 2 N G N G G N N N N N G Y N N N G G N G Y N G N N N N N N
Fort St Vrain 3 N G N G G N N N N N G G N N N G G N G G N N N N N N N N
Fort St Vrain 4 N G N G G N N N N N G G N N N G G N G Y N G N N N N N N
Energy Supply PlantEnergy Supply PlantCondition AssessmentCondition Assessment
Energy Supply AdditionalEnergy Supply AdditionalCost Saving InitiativesCost Saving Initiatives
0369
121518
2003* 2004* 2005* 2006*
$6.9 Cost Reduction$6.9 Cost Reduction
Insurance premiumInsurance premium $2.6 M $2.6 M
Vendor managementVendor managementmeetingsmeetings 1.31.3
MRO alliancesMRO alliances 0.60.6
Total savingsTotal savings $4.5 M$4.5 M
Dollars in millionsDollars in millionsDollars in millions
YTD 2005Cost Savings
YTD 2005YTD 2005Cost SavingsCost Savings
* Year ended June* Year ended June* Year ended June
Insurance PremiumsInsurance PremiumsInsurance Premiums
Energy Supply Material InventoryEnergy Supply Material Inventory
20022002 20032003 20042004 2005 YTD2005 YTD33rdrd QtrQtr
8282 7878 7474 7373
Dollars in millionsDollars in millions
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Completed Construction ProjectsCompleted Construction Projects
Fort St. VrainFort St. Vrain737 MWs737 MWs
Completed May 2001;Completed May 2001;onon--time and within budgettime and within budget
Black Dog 5Black Dog 5162 MWs162 MWs
Completed November 2002;Completed November 2002;onon--time and within budgettime and within budget
Two units, 1076 MWs which began commercial operation late 1973/1974
Steam generators replaced on unit 1 November 2004 after30 years of operations
Project completed on time and within budget
Two units, 1076 MWs which began commercial operation late 1973/1974
Steam generators replaced on unit 1 November 2004 after30 years of operations
Project completed on time and within budget
Prairie Island Steam Generators ReplacedPrairie Island Steam Generators Replaced
NSP New Gas UnitsNSP New Gas Units
One 160 MW combustion One 160 MW combustion turbine peaking unit installedturbine peaking unit installedOnline May 2005; on time and Online May 2005; on time and under budgetunder budgetCapacity factor of 25%Capacity factor of 25%for June through Augustfor June through August
2 combustion turbine peaking 2 combustion turbine peaking units totaling 320 MWs installed units totaling 320 MWs installed Online May 2005; on time and Online May 2005; on time and under budgetunder budgetCapacity factors of 16% and Capacity factors of 16% and 18% from June through August18% from June through August
Blue LakeBlue Lake
Angus AnsonAngus Anson
NSP MERP NSP MERP —— King PlantKing PlantDetailed design work is 65% Detailed design work is 65% completecompletePiling work is complete; Piling work is complete; foundation installation work foundation installation work continuescontinuesFirst permanent supportFirst permanent supportsteel was set on August 3,steel was set on August 3,as scheduled as scheduled SCR and AQCS components SCR and AQCS components continue to be received at the continue to be received at the site. Initial SCR ductwork was site. Initial SCR ductwork was installed during September installed during September outageoutageScheduled for commercial Scheduled for commercial operations May 2007operations May 2007
Artist RenderingArtist RenderingOne Unit One Unit –– 571 MWs571 MWs
NSP MERP NSP MERP —— High Bridge PlantHigh Bridge Plant
Signed contract for Signed contract for purchase of 2 purchase of 2 CTsCTs andand1 steam turbine. Resulted1 steam turbine. Resultedin $40 million savingsin $40 million savingsGas pipeline awarded to Gas pipeline awarded to NSP GasNSP GasAll permits have been All permits have been issued and site remediation issued and site remediation work began August 2005work began August 2005Full construction releaseFull construction releaseProject planned to be Project planned to be completed by May 2008completed by May 2008
Artist RenderingArtist Rendering575 MWs575 MWs
NSP MERP NSP MERP —— Riverside PlantRiverside Plant
Asbestos abatement, Asbestos abatement, mercury and lead removal mercury and lead removal activities underway on old activities underway on old sectionsection
Began site development Began site development study in April 2005study in April 2005
Permitting and equipment Permitting and equipment design began in Fall 2005design began in Fall 2005
InIn--service scheduled for service scheduled for May 2009May 2009
Artist RenderingArtist Rendering520 MWs520 MWs
PUC approval January 2005PUC approval January 2005Major contracts signed for Major contracts signed for turbine generator, boiler and turbine generator, boiler and air quality control system air quality control system ––within budget within budget Air permit approvedAir permit approvedJuly 15, 2005July 15, 2005Began construction inBegan construction inOctober 2005. Major October 2005. Major contractors start May 2006contractors start May 2006Construction completed fall Construction completed fall 2009 at a total cost of $1.35 2009 at a total cost of $1.35 billionbillion
New unit $1.073 BNew unit $1.073 BTransmissionTransmission $150 M$150 MRetrofit 1 & 2Retrofit 1 & 2 $127 M$127 M
Artist RenderingArtist RenderingOne Unit One Unit –– 750 MWs Net750 MWs Net
PSCo Comanche 3PSCo Comanche 3
NSP Nuclear Relicensing StatusNSP Nuclear Relicensing Status
Minnesota PUC, legislative and NRC approvals expected 2006 – 2007Life Cycle modifications to be installed 2008 – 2012, projected capital cost of $150 – 200 million
Minnesota PUC, legislative and NRC approvals expected 2006 – 2007Life Cycle modifications to be installed 2008 – 2012, projected capital cost of $150 – 200 million
Begin license application to the NRC and Minnesota Legislature in 2008Life Cycle modifications under evaluationApprovals expected 2010 – 2011
Begin license application to the NRC and Minnesota Legislature in 2008Life Cycle modifications under evaluationApprovals expected 2010 – 2011
MonticelloMonticello
Prairie IslandPrairie Island
Energy Supply CapitalEnergy Supply CapitalExpenditures Expenditures 2001 2001 –– 20092009
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006 2007 2008 2009
MN MERP
Comanche 3
Blue Lake CTs
Angus Anson CTs
TX CAIR/Hg
MN CAIR/Hg
Base Budget
Actual
Dollars in millionsDollars in millions
ForecastForecast
Excellence in GenerationExcellence in Generation
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills
Strong operational performance
Environmental stewardship
Strong cost management
Proven construction management skills