Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Corporate Update (August 2010)

42 slides from Xcel Energy's corporate update, Aug 26, 2010

1. Slide 1: Xcel Energy Colorado DSM Roundtable Discussion

   Xcel Energy Colorado DSM Roundtable Discussion August 26, 2010 2:00pm to 5:00pm 1800 Larimer Room 03G01

2. Slide 2: Welcome and Introductions

   Welcome and Introductions Contact Info: Suzanne Doyle Manager, DSM Regulatory Strategy & Planning Office Phone: 612-330-5518 Cell Phone: 612-599-5785 E-mail: [email protected]

3. Slide 3: Agenda

   Agenda 2:00 – 2:05 Welcome, Introductions (Doyle) 2:05 – 2:30 Regulatory & Program Evaluation Updates (Doyle) 2:30 – 3:15 DSM Program Highlights (Warman/White) 3:15 – 3:30 Break 3:30 – 4:00 Product Development Update (Spargo) 4:00 – 4:45 Highlights of the 2010 ACEEE Summer Study on Energy Efficiency

4. Slide 4: Regulatory & Program Evaluations Updates

   Regulatory & Program Evaluations Updates Presented by: Suzanne Doyle Compliance Complianceinformation informationisisavailable available at atXcel XcelEnergy’s Energy’sDSM DSMWebsite: Website: http://www.xcelenergy.com/Colorado/Company/About_Energy_ http://www.xcelenergy.com/Colorado/Company/About_E

5. Slide 5: 2010 60-Day Notices

   2010 60-Day Notices ƒ February 8, 2010 ƒ AC Tune-Up Pilot ƒ Standard Offer ƒ May 3, 2010 ƒ Boiler Efficiency ƒ Cooling Efficiency ƒ Furnace Efficiency ƒ High Efficiency Air Conditioning ƒ Home Lighting & Recycling ƒ New Construction – Energy Design Assistance ƒ May 7, 2010 ƒ Lighting Efficiency 5

6. Slide 6: 2010 60-Day Notices

   2010 60-Day Notices ƒ Summer 2010 ƒ June 1, 2010 ƒ ENERGY STAR New Homes ƒ ENERGY STAR Retailer Incentive ƒ August 16, 2010 ƒ Energy Feedback Pilot ƒ Boiler Efficiency 6

7. Slide 7: Timeline of Recent Filings

   Timeline of Recent Filings April 5, 2010 July 1, 2010 2009 Annual Status 2011 DSM Plan (Electric & Report Gas) Docket No. 10A-471EG April 2010 Sept 2010 May 7, 2010 August 10, 2010 August 13, 2010 Motion to Alter or Amend DSM Strategic Issues Quarterly Reports to Decision Nos. C08-0560 and Applicati

8. Slide 8: Filing Details: Motion to Alter or Amend Decision Nos. C08-0560 and C08-0769

   Filing Details Motion to Alter or Amend Decision Nos. C08-0560 and C08-0769 ƒ Filed May 7, 2010 ƒ One year Plan (for 2011 instead of biennium) to be filed July 2010 (Approved) ƒ Bifurcated Filing – separate strategic issues from 2011 Plan (Approved) ƒ 2010/11 Incentive Modification (Increase Cap on

9. Slide 9: Filing Details: 2011 DSM Plan (Docket No. 10A-471EG)

   Filing Details 2011 DSM Plan (Docket No. 10A-471EG) ƒ Filed July 1, 2010 ƒ2011 Electric Budget & Goals: $67.4 M and 240 GWh ƒ2011 Gas Budget & Goals: $15.8 M and 368,227 Dth ƒSplits portfolio into 6 programs: ƒ Electric: Business, Residential, Low-Income ƒ Gas: Business, Residential, Low-Income ƒUpd

10. Slide 10: Filing Details: Strategic Issues Application (Docket No. 10A-554EG)

    Filing Details Strategic Issues Application (Docket No. 10A-554EG) ƒ Filed August 10, 2010 † Increases electric energy saving goals ~7% annually for 2011 – 2020 † Modified electric incentive mechanism, including recovery of lost margins and a performance component † Asks for guidance on setting gas

11. Slide 11: DSM Process and Impact Evaluations

    DSM Process and Impact Evaluations ƒ Residential – Conducted by The Cadmus Group ƒ Evaporative Cooling Program – Scheduled Completion Date 12/15/10 ƒ Trade Ally surveys – Completed ƒ Participant surveys and meter recruit completed ƒ Meters installed ƒ Customer Behavioral Change Program – Scheduled C

12. Slide 12: Overall DSM Achievements Q2 June 30, 2010

    Overall DSM Achievements Q2 June 30, 2010 ƒ Electric YE Goals: 67 MW, 237 GWh, $63.6M ƒ Electric Achievements: 26 MW, 130 GWh, $20.2M ƒ Gas YE Goals: 402,808 Dth, $16.5M ƒ Gas Achievements: 143,364 Dth, $6.3M 12

13. Slide 13: DSM Program Highlights

    DSM Program Highlights Presented By: Kate Warman Shawn White

14. Slide 14: Residential and Low-Income Program Highlights

    Residential and Low-Income Program Highlights

15. Slide 15: Central AC Trade In

    Central AC Trade In ƒ Rebate added late spring 2010 ƒ Rebate is in addition to high efficiency new equipment, with quality installation ƒ $500 Trade In rebate for old systems, 12 SEER max, and new equipment 14 SEER minimum ƒ Few Trade In rebates received to date, but high activity (phone calls with

16. Slide 16: Central AC Rebates – Trade Relations

    Central AC Rebates – Trade Relations ƒ Contractors reluctant to use the program † Load calculations (right sizing) take 1 – 2 hours † Rebate paperwork requires technical measurements sometimes not done today (quality installation related) † The requirement for a NATE technician ƒ Minnesota is having

17. Slide 17: Central AC Tune-Up Pilot

    Central AC Tune-Up Pilot ƒ Pilot re-launched with changes spring 2010 ƒ Proactive demand is very low during spring season † Customers don’t think of tuning their AC in cooler weather † Customers haven’t responded well to marketing efforts ƒ During summer, there’s limited technician time for a compre

18. Slide 18: Low-Income Kits

    Low-Income Kits ƒ Secured a contract with the Mile High Youth Corps to create kits, perform all data collection, and to distribute to qualified customers ƒ M&V results are showing higher installation rates compared to 2009. ƒ All kit materials are now offered in Spanish ƒ Running into challenges wit

19. Slide 19: Refrigerator Recycling

    Refrigerator Recycling ƒ Program offers a free scheduled pick up of the secondary refrigerator unit and offers a $35 rebate ƒ As of 6/31, we have recycled 1,109 units ƒ Participation improved from 2009 but customer interest is still low ƒ Similar marketing efforts are more successful in other states

20. Slide 20: Community Energy Efficiency Activities

    Community Energy Efficiency Activities ƒ Worked with over 20 cities & counties that received EECBG funds (ARRA) ƒ Partnering with Boulder, Denver, and Garfield County to develop business/residential energy efficiency initiatives with ambitious participation goals (funded by EECBG-C) ƒ Fulfilled more

21. Slide 21: Business Energy Efficiency Program Highlights

    Business Energy Efficiency Program Highlights

22. Slide 22: Boiler Efficiency

    Boiler Efficiency ƒ Participant Goals: † Filed 146 participants; 31,650 Dth † Q2 YTD Achievement: 64 projects; 16,843 Dth (53% of goal) ƒ Q2 Program Promotions: † Researched all eligible businesses with boilers, conducting 4 phase campaign to promote product † Launched Plan B boilers (higher rebate

23. Slide 23: Process Efficiency

    Process Efficiency ƒ Participant Goals: † Electric ‹ Filed 4 participants; 7.79 GWh ‹ Q2 YTD Achievement: 9 projects; 2.46 GWh (31% of year-end goal) ƒ Q2 Program Activity: † 5 new customers joined the program in 2010 for a total of 14 since program availability † Our customer base now consists of s

24. Slide 24: Lighting Efficiency

    Lighting Efficiency ƒ Participant Goals: † Electric ‹ Filed 678 participants; 35.9 GWh ‹ Q2 YTD Achievement: 803 participants; 37.1 GWh (103% of year-end goal) ƒ Q2 Program Activity: † Positive results due to ‹ Diversity of available rebate measures ‹ Increased rebate levels commenced with the 2009

25. Slide 25: Break

    (2) Xcel Energy’ Break

26. Slide 26: DSM Product Development Update

    DSM Product Development Update Presented by: George Spargo DSM DSMWebsite Websiteprovides providesprogram programidea ideasubmission submissionforms formsat: at: http://www.xcelenergy.com/Colorado/Company/About_Energy_and_Ra http://www.xcelenergy.com/Colorado/Company/About_Energy_and_Ra tes/DemandSi

27. Slide 27: Product Development Team

    Product Development Team ƒ George Spargo – Manager – 612-330-6036 ƒ Anne Kraft – Commercial Segment – 612-330-7582 ƒ Pat Goggin – Industrial Segment – 303-294-2370 ƒ Nathan Huso – Residential Segment – 612-330-2812 27

28. Slide 28: 60-Day Notice for Modified Products

    60-Day Notice for Modified Products ƒ ENERGY STAR New Homes (6/1/10) † Updated Technical Assumptions ‹ More Accurate (Lower) Incremental Costs ‹ Used Modeled HERS scores for measures (not deemed values) † Addressed Cost/Benefit Issues ‹ Reduced Admin Expenses † Corrected Net-to-Gross ‹ Used actual p

29. Slide 29: 60-Day Notice for Modified Products

    60-Day Notice for Modified Products ƒ ENERGY STAR Retailer Incentive(6/1/10) † Updated Technical Assumptions ‹ Updated Baseline Products ‹ New ENERGY STAR 4.1 & 5.1 Televisions (Apr. 1, 2010) ‹ New CEE Standards ‹ Used updated data to adjust Net-to-Gross † Focused on Mid-Stream Retailer incentives †

30. Slide 30: 60-Day Notice for Modified Products

    60-Day Notice for Modified Products ƒ Boiler Efficiency (8/16/10) † Updated Technical Assumptions to correct an omission in the Deemed Savings † Doesn’t affect goals, budgets, or the product’s TRC previously filed 30

31. Slide 31: 60-Day Notice for New Products

    60-Day Notice for New Products ƒ Energy Feedback Pilot (8/16/10) † Energy Feedback Pilot included in 2011 DSM Plan † 2010 activity consists of: ‹ Set up ‹ Data gathering ‹ Report delivery. † 2010 goals for kWh and Dth will be zero. 31

32. Slide 32: Energy Feedback Pilot

    Energy Feedback Pilot † Energy Feedback Pilot included in 2011 DSM Plan † 60-Day Notice to begin set-up of program posted August 16 † Testing 35,000 participants receiving paper reports in the mail ~7 times per year versus similar “control” group † Testing 15,000 receiving 1 initial paper report and

33. Slide 33: DSM Roundtable New Product Development Procedure

    DSM Roundtable New Product Development Procedure ƒ Interested persons may submit new program ideas or proposed revisions to existing programs to the Company in writing (link below). ƒ The Company screens and prioritizes all new program ideas for further research and development. ƒ Within three month

34. Slide 34: DSM Roundtable New Product Development Procedure

    DSM Roundtable New Product Development Procedure ƒ No products from DSM Roundtable participants during quarter 34

35. Slide 35: Product Development Timeline - Next DSM Plan filing in 2011

    Product Development Timeline - Next DSM Plan filing in 2011 ƒ Ideation July 1 – August 15 ƒ Framing July 15 –August 31 ƒ Design Sept. 1 through Q1 2011 ƒ Build Oct. 1 through Q2 2011 ƒ Test Nov. 1 through 2012 ƒ Launch Jan. 1 through 2013 35

36. Slide 36: Product Development Process

    Product Development Process ƒ Traditional “Stage-Gate” process that includes team or management review at key decision points: † Ideation † Framing † Design † Build † Test † Launch 36

37. Slide 37: Stakeholder Input Ideas

    Stakeholder Input Ideas ƒ ECM Furnace Motor Retrofit ƒ Conservation Membership (BC Hydro PowerSmart) † Similar to OPower ƒ Upstream HE Window rebate/incentive ƒ Energy Efficiency Support Services ƒ Forced Air Duct Sealing 37

38. Slide 38: New Products Under Consideration

    New Products Under Consideration Commercial Industrial Computer Efficiency ASD/VFD Study Commercial Energy Feedback Pilot Efficient Small Motors - ECMs Commercial Efficiency Pilot "Plan A" FOR 10 to 49 HP VSD Compressors Desktop PC Virtualization Pumping Equipment Rebates Expand Refrigeration Recomm

39. Slide 39: A/C Tune-up Pilot Update

    A/C Tune-up Pilot Update † 283 tests through July † 147 have enough data to analyze ‹ Many of the early tests weren’t complete – Training, learning curve – Weather conditions not conducive to testing. ‹ Many units with a high pre-test don’t receive a post-test † 73 tune-ups passed pilot program crit

40. Slide 40: Whole House Energy Efficiency Study

    Whole House Energy Efficiency Study † Study description included in 2011 DSM Plan † 10 Houses will be selected for Energy Efficient improvements † Different combinations of efficient technology upgrades † Track pre-study home energy usage versus post- improvement energy usage. † Measures: Insulation

41. Slide 41: Highlights of the 2010 ACEEE Summer Study on Energy Efficiency in Buildings

    Highlights of the 2010 ACEEE Summer Study on Energy Efficiency in Buildings Presented by: Howard Geller Southwest Energy Efficiency Project (SWEEP)

42. Slide 42: Open Discussion/Wrap-Up

    Open Discussion/Wrap-Up Upcoming UpcomingRoundtable RoundtableSchedule: Schedule: Q3: Q3:November November17, 17,2010 2010

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