IEP PRESENTATIONSEPTEMBER 23, 2010

A WALK AROUND THE WEST STARTING WITH COLORADO

Nicholas G. Muller, Executive Director

Colorado Independent Energy Association

CIEA was formed in 1991 to represent non-utility power producers of all types; CIEA’s 40 members include most IPPs who have PPAs in

Colorado.

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IPPs Operating in CO for 20+ years

Contribute to the dependability of the regional electric system

Provide approximately 48% of Xcel’s electricity in CO during peak periods

Cost-effective power delivery Competitive bidding throughout US Innovative and creative energy solutions

Lead the way with projects of all types Gas-fired generation, wind, solar, biomass and small hydro

Under the current bidding rules at the CO PUC, an IPP’s bid includes interconnection costs with the utility and the cost of new transmission needed for its project.

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Importance of competition Generation of all types is cheaper at wholesale

level Holds down costs as new transmission is

developed for new renewable generation

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CIEA commitments Fuel-neutral

Supports all types of renewable and non-renewable energy projects, both large and small

Advocates transmission policies that are non-partisan and non-discriminatory

CIEA attends regular meetings with Xcel and the other utilities here and participates in the generation and transmission dockets at the Colorado PUC.

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New Colorado energy legislation SB 100 encourages investment in new

transmission for renewables – being modified

HB 1281 and HB 1001 increase the Renewable Portfolio Standard (RPS) Requires set percentage of generation to come from

renewables including wind and solar The focus should be on the need for the

ratepayers to have cost-effective, environmentally-sensitive generation and transmission.

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The Colorado PUC can help optimize competitive markets

continue to support the PUC bidding rules for new generation

support true coordination of transmission planning Not just by Xcel and Black Hills, but also by all others

who own transmission in Colorado

HB 1365 is an effort to substitute gas for coal plants, since gas plants are essential for balancing intermittent resources such as wind and solar.

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New gas-fired generation Essential going forward because it can be

ramped up and down, where this is difficult with coal plants

Less than half the carbon output of coal.

Recent shale gas discoveries 97-year supply of natural gas Prices expected to stay in the $6 - $8/MMBTU

range for the foreseeable future

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Here in Colorado we have good PUC bidding rules for new generation over 30MW, and a

very competitive power market at the wholesale level.

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