Xcel Energy Inc. · NASDAQ:XEL

Xcel Energy — Colorado PUC Commissioner Panel Discussion 1: Colorado Renewable Distributed Generation (July 2014)

20 slides from Xcel Energy's conference presentation, Jul 24, 2014

  1. Slide 1: Colorado PUC Commissioner Panel Discussion 1: Colorado Renewable Distributed Generation

    Colorado PUC E-Filings System Commissioner Panel Discussion 1: Colorado Renewable Distributed Generation Alice K. Jackson Regional Vice President, Rates & Regulatory Affairs Public Service Company of Colorado

  2. Slide 2: History of RES in Colorado

    History of RES in Colorado z 2004 Amendment 37 Historical Small Solar*Rewards Capacity Installed & Incentive Rate — 10% retail sales w/ 0.2% customer sited solar ~40 MW by 60.0 SB 1281 SB 51 HB 1001 $0.180 2015 $0.160 C a p a c i ty I n s ta l l e d (M W ) N o m i n a l I n c e n ti v e R a te 50.0

  3. Slide 3: Expectations

    Expectations Customer Company Regulator Option to Make Behind the Meter Choices Service Availability – Regardless of Behind the Meter Choices Reasonable Rates 3

  4. Slide 4: Fixed Costs and Cost Allocation

    Fixed Costs and Cost Allocation z Principles of Cost Causation — Cost Allocation — Class Allocation z Transparency of Cost Shifting — Non-participants should not subsidize participants — To the extent they do, it should be identified, tracked and accounted for as part of the RESA. 4

  5. Slide 5: Where are we going?

    Where are we going? z It depends on: — Technology Cost and — Fuel Costs Development — Utility Electric Rates — Net Metering — Customer Preferences — Incentives above Net — Third Party Profitability Metering — Etc… — Investment Tax Credits 1,600 1,400 1,200 Capacity Installed (MW) 1,000 800 600 400 2

  6. Slide 6: Scenarios Points of Interest

    Scenarios Points of Interest z Scenario 1: Present Day w/Declining Incentive — 2022 and Beyond Capped — System Saturation (Hawaii Concern) z Scenario 2: Buy All/Sell All at Avoided Cost — Pricing same as PURPA pricing methodology — Customers are indifferent to the selection of the participant z Scen

  7. Slide 7: Tools in the Toolbox

    Tools in the Toolbox z Renewable Energy Standard Recovery — Maximum retail rate impact “…two percent of the total electric bill annually for each customer” z Public Service’s Recovery Mechanism is the RESA (Renewable Energy Standard Adjustment) 7

  8. Slide 8: In Brief

    In Brief 1) Existing DG plus projects in the pipeline will meet the RES through 2029. 2) Net metering credit above avoided costs should be: 1) classified as a incentive, 2) tracked and recovered through the RESA; 3) RES provides customer protections - 2% of total bill; 4) The Commission has a tool t

  9. Slide 9: Thank You

    Thank You www.xcelenergy.com 9

  10. Slide 10: Cumulative MW Capacity Installations in the Solar*Rewards Small Segment

    Cumulative MW Capacity Installations in the Solar*Rewards Small Segment 140 120 MW Installed 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Year Total MWs Installed (Cumulative) Estimated S*R Small MWs Installed 10

  11. Slide 11: MW Capacity by Year in the Solar*Rewards Small Segment

    Installed MW Capacity by Year in the Solar*Rewards Small Segment 30 25 MW Installed 20 15 10 5 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Year S*R Small 3rd Party (MW) S*R Small Customer Owned (MW) 11

  12. Slide 12: Solar Capacity Under Scenario 1

    Installed Solar Capacity Under Scenario 1 140.0 120.0 100.0 Capacity (MW) 80.0 60.0 40.0 20.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year Historical Scenario 1 12

  13. Slide 13: Capacity by Ownership Under Scenario

    Installed Capacity by Ownership Under Scenario 1 25,000 20,000 Number of Customers 15,000 3rd Party Customer Owned 10,000 5,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 13

  14. Slide 14: Solar Capacity Under Scenario 2

    Installed Solar Capacity Under Scenario 2 100.0 90.0 80.0 70.0 Capacity (MW) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year Historical Scenario 2 14

  15. Slide 15: Capacity by Ownership Under Scenario

    Installed Capacity by Ownership Under Scenario 2 16,000 14,000 Number of Customers 12,000 10,000 8,000 6,000 4,000 2,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Customer Owned 3rd Party 15

  16. Slide 16: Solar Capacity Under Scenario 3

    Installed Solar Capacity Under Scenario 3 120.0 100.0 80.0 Capacity (MW) 60.0 40.0 20.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year Historical Scenario 3 16

  17. Slide 17: Capacity by Ownership Under Scenario

    Installed Capacity by Ownership Under Scenario 3 20,000 18,000 16,000 Number of Customers 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Customer Owned 3rd Party 17

  18. Slide 18: Cumulative MW Installation of Solar*Rewards Small Segment Under All Scenarios

    Cumulative MW Installation of Solar*Rewards Small Segment Under All Scenarios 1,600 1,400 1,200 Capacity Installed (MW) 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year Historical Capacity Forecast: Scenario 1 Forecast:

  19. Slide 19: Annual Installed Capacity and Average Incentive

    Annual Installed Capacity and Average Incentive Annual MWs of Solar*Rewards Small Projects and Utility Incentive 60.000 $0.180 $0.160 50.000 $0.140 Average Incentive^ ($/kWh) 40.000 $0.120 Installed MW $0.100 30.000 $0.080 20.000 $0.060 $0.040 10.000 $0.020 0.000 $‐ 2006 2007 2008 2009 2010 2011 201

  20. Slide 20: Solar*Rewards Annual Installed Capacity and Median Installed Cost

    Solar*Rewards Annual Installed Capacity and Median Installed Cost 20

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