The Future of Clean Energy
Developments in Sustainable Technology
Ben Fowke Executive Vice-President and Chief Financial Officer
Xcel Energy Service Territory
Northern States Power CompanyMinnesota Northern States Power CompanyWisconsin
Public Service Company of Colorado Southwestern Public Service
Xcel Energy Electric Customers Gas Customers
3.4 million 1.9 million
Largest provider of retail wind energy in U.S.
Environmental Leadership
Carbon Emission Reduction: Reduced by 26 million tons since 2003
Renewable Energy: 3,643 MW on our system in 2008
Energy Conservation: Avoided more than eleven 250-MW plants
SO2/NOx: Reduced 66K tons of SO2 and 43K tons NOx
Projected Resource Mix
Energy
2008
Natural Gas 22% Nuclear 12%
2020
Renewables 13%
Nuclear 13% Natural Gas 17% Coal 52% Renewables 24%
Other 1%
Coal 46%
Capacity
MW
2008 2020
Wind Hydro 2,935 365 7,400 400
Solar 32 800
Biomass RDF Landfill Geothermal 194 100 18 0 250 60 20 20
Geographic Advantage
Biomass Resource Wind Resource
Source: National Renewable Energy Laboratory
Solar Resource
Wind Density High Low
Xcel Energy States Served
American Clean Energy and Security Act (ACES)
Projected Electric Sector CO2 Emissions and Allocation
3,500 3,000 2,500 2,000 1,500 1,000 500 0
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
Million metric tons CO2
AEO2007 reference case AEO2009 reference case Emissions under ACES (per EPA analysis) Electric sector allocation under ACES
Meeting the Challenge
EPRI: Value of Clean Technologies*
3500 3000 2500 2000 Technology 1500 1000 500 0 1990 1995 2000 2005 2010 2015 2020 2025 2030
Efficiency Renewables Nuclear Generation Advanced Coal Generation Carbon Capture & Sequestration Plug-in Hybrid Vehicles Distributed Generation
U.S. Electric Sector CO2 Emissions (million metric tons) * Achieving all targets is very aggressive, but potentially feasible
EIA Base Case 2007
NSP Planned Carbon Reductions
Carbon Emissions Reduction
20+% by 2020
CO2 Reduction from 2005 Existing Levels
40,000,000 35,000,000 30,000,000 25,000,000
CO2 Levels
20,000,000 15,000,000
2005 CO2 w/o Reductions MERP Wind MH Upgrades
2020 CO2 with Reductions DSM
Wind: A Model for Technological Innovation
MW
8,000
2000 2007 2020
6,000 4,000 2,000 0
SPS PSCo NSPM Xcel Energy
New Renewable Potential
Energy Storage
Achieving Demand Side Savings
Premium Efficiency Motor
LED Lighting
SmartGridCityTM
Transmission Line
Two-way
Communications BPL Cellular/WiFi/WiMax Meshed solutions
Grid Monitoring/Control
Substations Transformers Control points
Substation
End User
Distribution System
End user becomes part
of the solution
Smart Grid Customer Applications
PHEV and New Supply Sources
Pictures from CarbonDay
90 80 70 60 50 40 30 20 10 0
Source: EEI
Dollars in billions
Investment Horizon
US Shareholder-Owned Electric Utilities Capital Spending: Trailing 12 Months
20 03 20 Q4 04 20 Q1 04 20 Q2 04 20 Q3 04 20 Q 05 4 20 Q1 05 20 Q2 05 20 Q3 05 20 Q4 06 20 Q1 06 20 Q 06 2 20 Q3 06 20 Q4 07 20 Q1 07 20 Q2 07 20 Q 07 3 20 Q4 08 20 Q1 08 20 Q2 08 20 Q3 08 Q 4
Technology Development Continuum
Research & Development
Demonstration
Deployment
Traditional utility industry position
Utility role responsive to demand for cleaner technologies
Aligning Interests
Customers
Regulators
Utilities