meeting the challenge cleaner fuel sources for electric generation mark stoering, president...
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Meeting the ChallengeCleaner fuel sources for
electric generation
MARK STOERING, PRESIDENT NSP-WISCONSIN, AN XCEL ENERGY COMPANY
2015 MACE ADVOCACY ALLIANCE POLICY CONFERENCE
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XCEL ENERGY
Investor-owned Operate in 8 states 12,000+ employees
UnemploymentService area: 3.6%US: 5.1%
CustomersElectric: 3.4 millionGas: 1.9 million
NSP-Wisconsin
NSP-Minnesota
Public Service Company of Colorado
SouthwesternPublic Service
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NSP-WISCONSIN
Wisconsin & Michigan Customers
252,000 electric 112,000 natural gas
Total Assets $ $2.2 billion
Employees 1,000+
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ACCOMPLISHMENTS
No. 1 wind provider in America
Building Solar Capacity
A Leader inEmission Reductions
A Leaderin Conservation
A Leaderin Transmission30%
Carbon Reduction
Strong Reliability
StormResponse
All at aCompetitive
Price
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XCEL ENERGY SUPPLY PORTFOLIO
Coal37%
Nuclear30%
Renewables25%
Natural Gas 8%
Capitalize on diversity
Geographic advantage
Natural gas plants support renewables
Today, coal remains base-load option
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EVOLVING POLICY LANDSCAPE
Final Clean Power Plan
Reduce CO2 emissions 32% nationally
Improves on 2014 proposal‒ More recognition of
Xcel Energy’s early action
‒ Xcel Energy well-positioned
Our Goal: To be the Clean Power Plan Solution Provider to states we serve
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CLEAN POWER PLAN SOLUTION PROVIDER
Environment
• Continue emission reduction trajectory
• Support clean energy at a reasonable price
Customers
• Ensure reasonable cost
• Maintain reliability
• Remain viable regardless of outcome of litigation
Policymakers
• Maintain credibility with all states
• Reduce policy and political risk
Shareholders
• Support business strategy
• Create growth opportunities
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BOLD PLAN TO REDUCE EMISSIONS
Accelerate transition to clean energy future
Further reduce reliance on coal by 50 percent
Develop new natural gas generation in region
Speed up pace of wind and solar integration
Operate carbon-free nuclear plants through license life
Continue to help customers be even more energy efficient
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GRADUAL DECREASE ON COAL
Retire two major coal units
Replace withnatural gas plant
Add large-scale solar
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ADD PEAKING GENERATIONNatural Gas
Drilling and Fracking Price and Production
Henry Hub Price$/MMBtu
Marketed MonthlyProduction MMcf
Millions
$-
$2
$4
$6
$8
$10
$12
$14
1,000,000.0
1,200,000.0
1,400,000.0
1,600,000.0
1,800,000.0
2,000,000.0
2,200,000.0
2,400,000.0
2,600,000.0Price Production
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INDUSTRIAL SAND MINING
2010
Sand Deposit Customer
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INDUSTRIAL SAND MINING
Today
Sand Deposit Customer
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No. 1 utility wind provider for 11 consecutive years
1,800 MW of wind generation in Upper Midwest today
Increase Upper Midwest wind power by 750 MW or 40 percent by end of year
GROW EXISTING RENEWABLESWind
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Top 10 nationally
Upper Midwest Planned Additions
Utility-Scale Solar- 287 MW in 2016- 1,400 MW by 2030
Community Solar- 700 MW of small-scale solar gardens- Solar*Connect Community
in Wisconsin
ADD NEW RENEWABLES AND OPTIONSSolar
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MAINTAIN EXISTING RENEWABLESWisconsin Hydro
Leading hydro producer in Midwest
Upgraded and modernized
Relicensed
Low-cost generation
Carbon-free
Jim Falls Hydro
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Locally sustainable fuel
Local economic driver
Carbon neutral
Strong public/private partnerships
Bay Front Plant – Ashland
French Island Plant – La Crosse
MAINTAIN EXISTING RENEWABLESWisconsin Biomass
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RETAIN CARBON-FREE BASE LOADNuclear
Three units totaling 1,700 MWContinue operation through 2030/2032Economic driver for host communities
Monticello Prairie Island
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Programs to manage use:
100 for electricity
50 for natural gas
982 GWh of electricity saved in 2014
Our Plan:
To achieve an additional 1.5%in energy savings
NationalLeader
CORNERSTONE OF CLEAN ENERGYEnergy Efficiency
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THE RESULTSResources for the future
63% Carbon-Free by 2030
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Environmental challengeas an asset
Frame the discussion
Provide wins for all
Be BOLD … gain momentum
OUR PATH FORWARD
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